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发帖数: 29846 | 1 Will Your State’s Policies Lead to Prosperity or the Poorhouse?
April 9, 2015 - 3:35 PM
By Rachel Greszler
States across the U.S. share the common goal of economic prosperity, but
they differ vastly in how they set out to achieve it. The latest edition of
the American Legislative Exchange Council- Arthur Laffer Rich States, Poor
States competitiveness index examines policies that maximize economic growth
and assesses which states are on the path to prosperity and which are more
likely headed to the poorhouse.
For the eighth consecutive year, Utah has remained #1. Rounding out the top
10 for 2014 are: North Dakota, Indiana, North Carolina, Arizona, Idaho,
Georgia, Wyoming, South Dakota and Nevada. At the other end of the spectrum,
New York obtained the lowest ranking at #50. Working backward, Vermont
ranked 49, preceded by Minnesota, Connecticut, New Jersey, Oregon,
California, Montana, Maine, and Pennsylvania.
The rankings are a combination of past economic performance (economic growth
, net migration and employment) and forward-looking policy variables such as
taxes, debt, and the presence of right-to-work laws.
States at the top earned their rankings by implementing policies that
energized their economies, attracted businesses and entrepreneurs, and
expanded employment and income. So what are these energizing policies that
could help states at the bottom boost their economies? Based on both past
and present rankings, low income taxes and right-to-work laws provide the
most bang for the buck.
ALEC 2015 Economic Outlook Rankings
(Image Courtesy of ALEC)
Analysis provided alongside last year’s rankings showed economic growth in
the nine states with no personal income tax averaged 62 percent from 2003 to
2013 while the nine highest income tax states grew by an average of only 47
percent. And states with no income tax experienced twice the rate of
population growth (14 percent) as the highest income tax states (7 percent).
The growth gap between high-tax and low-tax states translates into more than
a $100 billion in lost annual output for big, bottom-ranking states like
California (#44) and New York (#50). And while it may seem counterintuitive,
tax revenue increased substantially more in the nine states with no income
tax than it did in the highest income tax states. Lower taxes produce a
larger economic pie, and a larger pie means bigger slices for all—including
the state tax revenue.
States with right-to-work laws that prevent workers from being coerced to
pay union dues attract more businesses and workers, which in turn grow their
economies. Compared to forced-union states, right-to-work states
experienced twice the rate of employment growth from 2003–2013, one-quarter
higher income growth, and one-third greater output growth. What’s more,
right-to-work states experienced a 3 percent increase in net migration,
while forced-union states suffered a 1 percent loss in net migration.
Competition is inherent in any ranking, and competition among the states is
a good thing. Fortunately for states at the bottom of the rankings, research
and analysis such as Rich States, Poor States provides an open playbook for
prosperity.
Rachel Greszler is a senior policy analyst in economics and entitlements at
The Heritage Foundation's Center for Data Analysis. |
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