The American Legislative Exchange Council (ALEC) has released the 18th edition of its "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index." This annual report evaluates each state's economic outlook for the upcoming year. The report is co-authored by Dr. Arthur B. Laffer, Stephen Moore, and Jonathan Williams.
Since its inception in 2007, the report has provided state lawmakers with insights into how tax and fiscal policies affect economic competitiveness. It uses 15 policy variables to rank states' economic outlooks and highlights the connection between free-market reforms and economic growth. The report also ranks states based on GDP growth, domestic migration, and employment growth from 2013 to 2023.
Jonathan Williams said, "As Washington attempts to tackle debt and bureaucracy, the states remain America’s last line of defense for fiscal responsibility and economic growth." He emphasized that Americans are moving from high-tax states to those with low taxes and balanced budgets.
Utah continues to lead in economic outlook rankings for the 18th consecutive year due to its consistent pro-taxpayer reforms. New Mexico improved its ranking by five spots due to recent tax cuts. Carla Sonntag of the New Mexico Business Coalition noted this improvement but acknowledged more work is needed for competitiveness.
Louisiana made significant gains by moving up 13 spots after a tax overhaul. West Virginia also improved by seven spots due to fiscal policy enhancements. Arkansas achieved its best ranking at number 10 after years of cutting taxes.
Conversely, New York remains last in economic outlook due to high taxes. California ranks 47th following a significant tax increase in 2023. Both states have seen substantial resident outflows over the past decade.
Carla Sonntag remarked on New Mexico's potential: "New Mexico is rich with human and natural resources and should be a leader in the United States."
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