North Carolina places 2nd in new 50-state rankings showcasing how economic policies attract individuals and job creators
Utah claims top spot for economic outlook for 16th straight year
ARLINGTON, Va. – The American Legislative Exchange Council (ALEC) released the 16th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, the annual report assessing each state's competitiveness and economic outlook. The report, which has been used by lawmakers across the states since 2007, is co-authored by Reagan Economist Dr. Arthur B. Laffer, FreedomWorks Economist Stephen Moore, and ALEC Chief Economist Jonathan Williams.
“This ranking again demonstrates our strong commitment to fiscally sound pro-business policies,” said Rep. Jason Saine, Senior Chairman, House Appropriations Committee. “North Carolinians should be proud to see that we remain one of the premier states in the nation to live, work, and do business in.”
North Carolina has been the best turnaround story from Rich States, Poor States. In the first edition of the rankings, the Tarheel State ranked 21st and would drop to a low of 26th over the next few editions. Today, North Carolina stands strong in 2nd. This is largely due to the commitment to tax reform over the last decade, including the switch to a flat tax in 2015 and business income tax reform in 2021 that will phase out the tax altogether over the next five years.
“North Carolina continues its winning streak as the number two state in the country for economic outlook,” said Williams. “Since the landmark tax reform package of 2013, North Carolina has put more and more money back in the pockets of hardworking individuals and businesses. It’s no wonder 600,000 people have relocated to the Old North State over the past decade.”
The authors utilize 15 economic policy variables to rank the economic outlook of every state. These variables have proven over time to be influential for state competitiveness and growth. The report highlights that cutting taxes, paying down debt, and maintaining free market policies have significantly helped states attract new residents.
“With no end in sight to the dysfunction in Washington, states are taking matters into their own hands,” added ALEC CEO Lisa B. Nelson. “This new edition of Rich States, Poor States showcases how states are competing with one another to become bastions of freedom and opportunity. Ultimately, it is the American people who benefit from this friendly competition, which ALEC is proud to promote.”
Utah has maintained its position as the top-ranked state for economic outlook for 16 straight years as state leaders and legislators have implemented pro-taxpayer reforms including the adoption of a flat personal income tax rate, pension reform for its previously endangered system, and an innovative approach to property tax reform. Similarly, Virginia's impressive climb from 24th to 18th place in the rankings can be attributed to the significant tax cuts and rebates enacted during its 2022 legislative session. In contrast, New York's ranking at the bottom of the list has remained unchanged due to its persistently high personal, corporate, property, and inheritance taxes, which continue to place a heavy burden on taxpayers in the state.
Find out how every state ranks here.
The American Legislative Exchange Council is the largest nonpartisan, voluntary membership organization of state legislators in the United States. For more information about the American Legislative Exchange Council, please visit: www.alec.org.
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