New Jersey ranked among the worst states for personal/economic freedom
(The Center Square) – New Jersey ranked among the worst states in the union for personal and economic freedom.
According to the CATO Institute’s recent 2021 Freedom in the States rankings, the Garden State ranked 47th. Only California (48), Hawaii (49) and New York (50) fared worse than New Jersey.
The CATO Institute, a public policy think tank based on libertarian ideals, used 230 policy variables to rank states on promoting fiscal, regulatory, and personal freedom.
“About 60 years ago, New Jersey was considered a tax haven. It grew wealthy under that regime, but during the past decade it has dwelt in the bottom five for economic freedom,” Cato said in its analysis. “It still does relatively well on fiscal policy, but it is a regulatory nightmare and performs poorly on personal freedom as well.”
Cato also found state-level taxes in New Jersey averaged 5.7% of adjusted income “for many years,” but they “have crept up” in the past two years. They are now above average at 6.3%, while local taxes have trended downward to 5.3%, which is still well above the national average of 3.9%.
Meanwhile, personal freedom in New Jersey ranks third worst, while criminal justice ranked the state 12th nationally. The state fared poorly for its land-use freedom, as only Oregon fared worse.
Cato suggested New Jersey policymakers take action to improve its standing.
On the fiscal front, Cato suggested the state cut “spending on the ‘miscellaneous’ category and employee retirement, areas in which New Jersey spends a lot more than average. Income, utilities, and property taxes are abnormally high and could be cut.”
Regarding its regulatory environment, the state should end “rent control, especially given its unintended consequences on housing quality and quantity.”
Specific to personal freedoms, the state should fully “free wine sales from the currently arcane regulatory system.”
New Hampshire topped Cato’s list, followed by Florida, Nevada, Tennessee, and South Dakota.
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