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The Five Best and Worst States for Business

Texas tops the list of best states for doing business, boasting strong job creation and the second-lowest taxes in the nation. Meanwhile, a state that typically ranks as one of the best for quality of living ranked as the worst for business.

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Texas topped the list of best states for doing business.CEOs across the country consistently rank Texas as the top state for doing business, according to the results from Chief Executive magazine's annual "Best & Worst States" survey. For the seventh year in a row, Texas has snagged the No. 1 ranking in the survey, which this year asked 550 CEOs to evaluate the states on a broad range of issues, including regulations, tax policies, workforce quality, education resources, quality of living and infrastructure. North Carolina maintained its No. 2 spot in the rankings from last year, followed by Florida, which jumped three spots from last year to make it into the Top 5. The other business-friendly states as rated by CEOs include Tennessee at No. 4 and Georgia at No. 5.

"[Texas] gets strong marks in all areas important for business creation, and has the second-lowest taxes in the nation. The state has created more jobs than any other -- about 250,000 last year," J.P. Donlon, editor-in-chief of Chief Executive, said in an article on ChiefExecutive.net.

The states that ranked lowest in the survey for having the least friendly business environment also happen to be two of the most popular states when it comes to lifestyle. California came in at No. 50, with New York not faring much better at No. 49. Illinois, New Jersey and Michigan rounded out the bottom five. "Not surprisingly, states with punitive tax and regulatory regimes are punished with lower rankings, and this can offset even positive scores on quality of living environment," Donlon said.

Compared to the rankings last year, Wisconsin and Louisiana posted the two biggest gains, with Wisconsin jumping 17 spots to No. 24. Alaska tumbled the most in the rankings from last year, landing at No. 31, from No. 21 in 2010.

Read more about the analysis on the best and worst states for business in 2011 at ChiefExecutive.net.

Tags: Chief Executive magazine, ChiefExecutive.net, News, Texas, worst states for business

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