New report ranks Hawaii among worst places for business
by Malia Zimmerman, Watchdog.org, December 24, 2014
HONOLULU — A new report indicates businesses should tell Hawaii the goodbye version of aloha because of its business climate.
The Small Business and Entrepreneurship Council says Hawaii is the fourth worst state in which to operate a small business. Only New York, New Jersey, and California received rankings below Hawaii.
Hawaii was ranked poorly for having the second highest personal income tax rate; the highest consumption-based taxes; high unemployment taxes; high gas and diesel taxes and imposing a state death tax.
The study did note three positives: a low corporate capital gains tax; low property taxes and low wireless taxes.
Hawaii small business owners mainly cite Hawaii’s near highest in the nation taxes, burdensome regulations and costly mandates as barriers to profitability and success in Hawaii.
Under Gov. Neil Abercrombie, Hawaii dropped one place this year, going from place 46th to 47th.
The Small Business and Entrepreneurship Council reviews 42 indexes before assigning the ranking.
The friendly states include South Dakota at number one followed by Nevada, Texas, Wyoming, Florida, Washington, Alabama, Indiana, Colorado, North Dakota, Ohio, Arizona, Utah, Michigan and Virginia.