July 11, 2012
Kansas is the 15th-best place to do business this year, according to a CNBC report that attempts to gauge the business climate in each state.
That’s down from No. 11 last year.
CNBC says it takes into account 43 measures of competitiveness when developing its rankings. They fall into 10 categories: cost of doing business, work force, quality of life, economy, transportation and infrastructure, technology and innovation, education, business friendliness, access to capital, and cost of living.
Texas topped the list this year for the third time, followed by Utah, Virginia, North Carolina and North Dakota. Rhode Island was at the bottom.
How does Texas do so well? A solid infrastructure, a good environment for technology and innovation, and a low cost of living were among key reasons, CNBC says, though the report acknowledges that Texas had to make some sacrifices in education and quality of life to get there. The no-income-tax Texas also scored lower than might have been expected in the cost of doing business category, with CNBC saying its overall tax burden is relatively large because of high property taxes.
Kansas Gov. Sam Brownback has promoted the Texas model in his own efforts to reduce Kansas income taxes.
Interestingly, Kansas fell the furthest in the CNBC rankings this year on the measure of cost of doing business, which CNBC says takes into account tax burden, particularly as it applies to new investments, utility costs, cost of wages and rental rates.
However, that could change as Kansas’ new tax policy takes effect. The plan reduces personal income tax rates and eliminates state tax on business partners’ non-wage business income.