Why Utah is Forbes Best State for Business

Utah has just been named Forbes Best State for Business for the third consecutive year. What’s happening in the Beehive state to receive this singular honor? And, most
importantly, how can other communities get these advantages too?

As a resident of Utah and a participant in a powerful economic engine, [Alan Hall] is pleased to share
with you why Utah is at the top of the pack, and, even more importantly, why its foundational
underpinnings can provide ideas and impetus that could allow your own community to achieve a similar level of business winning success.

Since 2006, Utah’s economy has expanded at an annual rate of 2.3%, versus 0.5% for the nation as a
whole. “We have a very fertile environment for entrepreneurs and business,” says Gov. Gary Herbert,
who was reelected in a 68%-28% landslide last year.

Herbert cites three areas where Utah has a competitive advantage: Taxes, labor force and a favorable
regulatory climate.

1. Utah’s 5% flat corporate tax rate is one of the lowest in the country. The Tax Foundation, which released a study in February of 2012 thatmeasures the tax burdens in each state across different industries, rated Utah sixth best for existing firms.(Utah also ranked No. 10 for new firms.)
2. Utah has a young, vibrant workforce. The state’s median age of 29 is 4 years lower than Texas, the next youngest state. A third of the state’s workforce is bilingual, according to the Economic Development Corporation of Utah.
3. Utah ranks third for a positive regulatory climate in the Mercatus Center’s Freedom in the 50 States study–a new metric in the Best States study. “Utah is less likely to reward frivolous lawsuits or to handout excessive judgments,” says Jason Sorens, who co-authored the report. “Utah’s health insurance regulations are generally light, resulting in less costly policies and more choice for people in the small group and individual markets.”

Last year, Gov. Herbert initiated a review of the state’s nearly 2,000 administrative rules. The state
eliminated or modified 368 of them that he characterized as “a drag on the economy.”

Among the other pluses for Utah: energy costs that are 29% below the national average. It is also one of only seven states to maintain an AAA bond rating from the three rating agencies–something the U.S., as a nation, lost last year. Gov. Herbert’s motto: “Government should get off of your backs and out of your wallets.”

Lastly, Utah is proud of its Olympic-level ski resorts, its urban attractions and its acclaimed status as the safest state in the nation. Find out what else Utah is doing at Forbes