ALEC economic ranking places Michigan 16th in nation

(The Center Square) – A ranking of economic freedom across all 50 states places Michigan 16th in the nation for its overall economic outlook.

The American Legislative Exchange Council (ALEC)’s Rich States, Poor States: State Economic Competitiveness Index uses 15 equally weighted policy variables and trends from past decades to rank states.

The state gained high marks in three key metrics, including being a Right to Work state, not levying inheritance or estate taxes, and a relatively low public employee per 10,000 population of 434.2.

The report ranked Michigan 36th for its top marginal corporate income tax rate of 8%, 33rd for its property tax burden of $31.27 per $1,000 of personal income, and 34th for a 7.2% of debt service as a share of tax revenue.

ALEC says the report shows that cutting taxes, paying down debt, and maintaining free-market policies have helped states like Florida, Georgia and Texas improve their national rankings.

The report finds states with policies such as low or no income taxes and worker freedom are more economically competitive and better positioned for wage growth, job creation, and domestic in-migration compared to states with higher taxes and government spending.

“Utah, at the top of the rankings for the 14th year in a row, solidified its well-deserved first place spot this year by prioritizing sound economic policy,” ALEC chief economist and report co-author Jonathan Williams said in a statement.

“Utah has an incredibly strong track record of pro-taxpayer reforms in recent years, including the adoption of a flat personal income tax rate, pension reform for its previously endangered system and the state’s innovative approach to property tax reform. The success of Utah’s ‘truth in taxation’ policy for local property taxes, has been noticed by other states. Truth in taxation has already passed nearly unanimously in Kansas this session, and is being considered in Nebraska. It is a great development to see states follow the lead of competitive state policy, which brings with it job creation and shared economic success for all.”

The top 5 states are:

UtahFloridaOklahomaWyomingNorth Carolina

“The trends highlighted in Rich States, Poor States tell a story of the free-market ideals that win for taxpayers, and the consequences that follow when they’re ignored,” said ALEC CEO Lisa B. Nelson. “Rich States, Poor States economic outlook scores are a leading indicator of what’s to come. For years ALEC has highlighted the bright outlook of low tax states characterized by high scores and increasing population. The new census numbers and the congressional reapportionment to follow confirms Rich States, Poor States findings: People are voting with their feet. They’re headed to opportunity states.”

The last 5 states are

50. New York49. Vermont48. New Jersey47. Illinois46. Minnesota

Reagan Economist Dr. Arthur B. Laffer, FreedomWorks economist Stephen Moore, and ALEC Chief Economist Jonathan Williams authored the report.

“Following COVID-19, it has become clear that economically competitive states were better prepared for the pandemic,” Laffer said in a statement. “In fact, states ranked highly in this report have also seen lower rates of unemployment and fewer persistent economic problems post-economic shutdown than uncompetitive, low-ranked states. This publication acts as a guide to the solutions states used to stay resilient, and even prosperous.”

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