The recent death of Eric Garner after an incident with New York police has recently made headlines and sparked controversy about excessive force and police practices. Sources report that police and prosecutors are...
- The Tax Policy Blog
- 2014 Rich States, Poor States Report Ranks States on Econ...
2014 Rich States, Poor States Report Ranks States on Economic Performance and Outlook
The American Legislative Exchange Council today released their 7th annual Rich States, Poor States report, which ranks states in two metrics: historical performance based on economic indicators, and forecasted outlook based on policy variables. Here’s the top and bottom 10 breakdown this year:
|Economic Outlook Ranking, 2014||Economic Performance Ranking, 2002-2012|
|1. Utah||41. Rhode Island||1. Texas||41. Massachusetts|
|2. South Dakota||42. Oregon||2. Utah||42. Maine|
|3. Indiana||43. Montana||3. Wyoming||43. California|
|4. North Dakota||44. Connecticut||4. North Dakota||44. Wisconsin|
|5. Idaho||45. New Jersey||5. Montana||45. Connecticut|
|6. North Carolina||46. Minnesota||6. Washington||46. Illinois|
|7. Arizona||47. California||7. Nevada||47. Rhode Island|
|8. Nevada||48. Illinois||8. Arizona||48. New Jersey|
|9. Georgia||49. Vermont||9. Oklahoma||49. Ohio|
|10. Wyoming||50. New York||10. Idaho||50. Michigan|
It turns out that these policies matter. A quick look shows that Utah, North Dakota, Arizona, and Idaho appear in the top ten for performance and outlook, while Rhode Island, Connecticut, New Jersey, California, and Illinois appear in the bottom ten for both performance and policy.
The rankings are a valuable tool for understanding the impact of a variety of fiscal policies. The economic outlook ranking is determined in part by the quality of state tax systems (9 out of 15 variables), but also includes variables for debt service as a share of tax revenue, public employees per 10,000 residents, a variable for the quality of a state’s legal systems, and other fiscal measures.
North Carolina moved from 22nd to 6th in the outlook ranking, due in large part to beneficial tax reforms signed into law in 2013, and Indiana moved from 14th to 3rd, due in part to repeal of the state’s inheritance tax in 2013 and cuts to the corporate income tax rate that have been phasing in for the past few years.
The full report is here.
Follow Scott on Twitter.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official weblog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.