Pennsylvania's Economy Struggles to Compete

frustration In three separate studies on the state’s economic competitiveness and business climates, Pennsylvania remains near the bottom of the pack.

The 2012 Alec-Laffer Economic Competitiveness Index, ranks states economic performance and outlook (1 being the best, 50 the worst). According to the index, the Keystone State ranks 40^th in economic outlook for 2012 thanks to several factors, including:

50^th in Top Marginal Corporate Income Tax Rate
32^nd in Top Marginal Personal Income Tax Rate
50^th in Levying Estate/Inheritance Tax
45^th in Remaining Tax Burden (additional taxes beyond those already ranked)
41^st in Recently Legislated Tax Changes

Another study by ChiefExecutive.net placed the Keystone State as the 43^rd best state for business—a four position drop since last year. CEOs found, “Pennsylvania…is regulation heavy even for very small 1-2 person businesses,” this despite a “positive” ranking in the development trend indicator as a result of the natural gas boom.

The general business climate is one thing, but how is the outlook for small businesses? The Thumbtack.com/Kauffman Foundation Small Business Survey found that Pennsylvania’s small business climate is mediocre, earning a C for overall friendliness to small businesses. Although the survey gave business start ups a C+, the commonwealth received a C- for hiring regulations, and a D in jobs training programs.

Pennsylvania remains a relatively unattractive place to begin or operate a business. Crippling taxes, heavy regulation, and burdensome bureaucracy have held back the Keystone State’s economic growth.