Earlier this week, American Legislative Exchange Council (ALEC) released its 10th annual Rich States, Poor States study. Written by Dr. Arthur Laffer, Stephen Moore, and Jonathan Williams, the study examines the fiscal policies of the various states and ranks them based on their economic performance over the previous year. The study confirms what many know to be true – states that tax and spend less outperform high spending and high taxing states.
Over the last couple years, for instance, North Carolina has dramatically improved its economic outlook – from 26th in 2011 to 3rd for 2017 – by passing comprehensive tax reform that lowered rates and helped rein in state spending.
Rich States, Poor States is a vital tool for state lawmakers as they look at ways to increase economic growth and competitiveness. Simply put, for those interested in fostering economic growth and higher standards of living, Rich States, Poor States is an excellent how-to.