PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Texas is Big For Small Business & Entrepreneurship

By at 30 May, 2019, 7:35 am

by Raymond J. Keating-

Texas is #1 for Policy Friendliness

 

Small Business Policy Index 2019: Texas ranked the very best – that is, #1 – among the 50 states.

 SBE Council’s “Small Business Policy Index 2019” ranks the 50 states according to 62 different policy measures, including a wide array of tax, regulatory and government spending and performance measurements.

 Small Business Tax Index 2019: Texas again ranked very best – or #1 – among the 50 states.

 SBE Council’s “Small Business Tax Index 2019” is included in the Policy Index report, ranking the states according to a wide array of tax measures, including income, capital gains, property, death, unemployment, and various consumption-based taxes like state gas and diesel levies.

Texas Always Working to Get Better

Texas offers the best public policy climate for incentivizing individuals to start up, run, expand and invest in small businesses. That’s critical to the state’s economy given the central role that entrepreneurship and private investment play in economic, income and employment growth.

According to SBE Council’s “Small Business Policy Index 2019: Ranking the States on Policy Measures and Costs Impacting Entrepreneurship and Small Business Growth,” which ranks the 50 states according to 62 different policy measures, including assorted tax, regulatory and government spending measures, Texas came in number one among the 50 states. And the state achieved the same top spot on the “Small Business Tax Index 2019,” which is a subset of the larger Policy Index, whereby the states are ranked just on tax measures.

In order to come in ahead of all the other states, Texas has a host of big positives, including imposing no personal, individual capital gains, corporate income, corporate capital gains and death taxes; having low unemployment, gas and diesel taxes; tying for the lowest energy regulation burden; claiming fairly low workers’ compensation costs; imposing no annual fee on LLCs; registering relatively low state and local government spending; being counted as a right-to-work state; imposing light land-use and zoning regulations; and inflicting no added minimum wage mandate.

In fact, when we look at the 62 measures included in this year’s Index, Texas ranked above average or among the best in 45 of those categories. That’s an impressive tally.

Yes, There’s Always Room for Improvement

Interestingly, though, even in Texas – the state ranking best on the “Small Business Policy Index” – there’s room for some policy improvement. If that’s the case, imagine the work that’s needed to move the states ranking among the worst on the Index to the middle of the pack. That might seem like a daunting task, but following the example set in the Lone Star State would be a good place to start.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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