The Impact of Sound Tax Policy in the States

Do you know where your state ranks in economic outlook? Or how much economic growth your state experienced recently compared to other states? The latest edition of Rich States, Poor States from the American Legislative Exchange Council (ALEC) has all the answers. The American Legislator explains:

Rich States, Poor States uses two sets of rankings. First, the economic outlook rank is based on 15 equally weighted policy variables that the evidence demonstrates are significantly connected to economic growth and is a forward looking measure on the potential economic growth a state is poised to realize. The second measure is a backward looking measure that ranks the states’ economic performance with three key indicators to demonstrate how each state has performed economically in comparison to the rest of the country.

In addition to the rankings, Rich States, Poor States provides chapters on economic policy and explains why and how certain policy choices affect a state’s economic growth (or lack thereof).

In this year’s edition, you’ll read about why North Carolina’s income tax cuts helped the Old North State cruise past Virginia in the rankings, as well as the impact of Missouri’s historic income tax on the state’s economic outlook. Once again, authors Art Laffer, Stephen Moore, and Jonathan Williams have put together an excellent report. I’ll be using the data to make my own arguments in favor of tax relief and sound economic policy at the state level, and you should too! Click here to read the report.