California Rated 2nd as Most, Least Favored

New York is the least favorable state for doing business while Texas is the most attractive, according to a survey of corporate executives. California has a unique distinction in the survey: It rated second as both the most- and least-favored state. The poll of 427 U.S. and European chief executives, presidents and other officers in companies with at least $100 million in annual sales was conducted by Development Counsellors International, a New York research company, and International Development Research Council in Norcross, Ga. The executives were asked to list the three states they regarded as the most and least favorable for doing business. Among states most favored, Texas was voted No. 1 by 30% of the respondents, California by 22%, North Carolina 20%, Georgia 17% and Florida 14%. Among least attractive, New York was rated by 24% of the respondents, California by 19%, Massachusetts 16%, New Jersey 11% and Connecticut 7%. California is admired by executives for the diversity of its markets, its technology base and its access to Asia, said Rob DeRocker, senior vice president of Development Counsellors. At the same time, California’s unfavorable tax status discouraged many U.S. executives, he said. New York is still perceived as a high-tax, highly regulated, highly bureaucratic place, DeRocker said.