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Ohio's Business Climate Concerns CPA Business Leaders
DUBLIN, Ohio -- Ohio's anti-competitive business climate is a top concern among Ohio's certified public accountants, according to the largely negative results of the State of Ohio Business Poll present opinions about the state of the business climate.The State of Ohio Business Poll is an annual survey conducted by The Ohio Society of CPAs.According to the respondents, the economy is and will continue to be an issue. In terms of top of mind concerns, the economy garnered 61% of the votes. Education was a distant second at 15%. Health care and post-9/11 national security tied at 9% each. Government waste was cited by 6%, and crime drew only a 1% mention.Though the economy remains a major concern, many see improvement over 2003. Over half, 54%, said Ohio's economy had improved in comparison to last year. About a third, 30%, felt it was unchanged, and 17% described it as worse.Looking ahead to the outlook for the 2005 economy, Ohio's CPAs are optimistic with 63% predicting improvement and only 8% forecasting worse conditions. Almost one-third said the economy would not change.The 2004 business climate results echo the business community's concerns in 2003. The overall opinion about the state's business environment was largely negative. Respondents had little positive to say -- with most considering the business climate slightly more negative than last year:One-third evaluated the economy as poor in comparison to 27% in 2003.Half of the respondents termed it fair in comparison to 52% in 2003.18% characterized it as good -- similar to 2003.No one described it as excellent -- in comparison to 2003 when 1% used this characterization."Our members are optimistic that Ohio's economy can improve, but not without changes in public policy," said Jeffrey H. Tucker, chairman of the Executive Board of The Ohio CPA Society.The CPAs outlined three key policy areas that must be addressed to make Ohio more competitive. Tort reform, repeal of the state's one-cent sales tax, and comprehensive tax reform are critical to reversing the negative numbers. "Frivolous lawsuits are strangling Ohio's small businesses which are the lifeblood of a healthy economy," said J. Clarke Price, society president and chief executive officer. "CPAs are leaders in every one of Ohio's industries, and every day they see the tremendous negative impact of Ohio's uncompetitive tax structure and business regulations."The penny increase in Ohio sales tax was viewed as negatively impacting the state's economy and most felt the increase should expire next year. The CPAs surveyed called for spending cuts before increased taxes on businesses. Almost three-fourths, 73%, agreed that the penny increase should sunset on July 1, 2005, as current law provides. Only one-fifth sought to make the increase permanent. An even greater majority, 88%, agreed that Ohio state government should cut spending further before increasing taxes on business.On the positive side, the economic growth forecast by senior leaders in the CPA profession will likely result from steady capital investments and job expansion. They expressed this optimistic outlook despite continuing to rate Ohio's government climate for business quite negatively.Most respondents (50%) predicted capital investments would stay at current levels in 2005, though 37% estimated they would rise next year. Only 13% said capital expenditures would shrink. Nearly half, 48%, expect job expansion in 2005 and only one-tenth predicted fewer jobs. Financial services and health care showed the most improvement in 2004. Manufacturing and agriculture evidenced the least improvement.Visit the Ohio Society of CPAs: www.ohioscpa.com"