Click here for a link to the report.
The annual publication Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index found Delaware experienced the largest improvement regarding economic outlook in the most recent data, jumping from 44th to 37th place, thanks to a respite from recent tax hikes.
However, Delaware still has plenty of room for progress, the report noted. Not mentioned was the states budget shortfall, which will make tax hikes likely.
Rich States, Poor States is celebrating its 10th edition
The publication is authored by Dr. Arthur B. Laffer, a member of Ronald Reagan’s Economic Policy Advisory Board, Stephen Moore, distinguished visiting fellow at The Heritage Foundation, and Jonathan Williams, ALEC Chief Economist and Vice President of the ALEC Center for State Fiscal Reform.
The ALEC report downgrades states that lack right to work laws or have higher minimum wages. The report incorrectly listed the state’s minimum wage at $10.10, rather than $8.25. Other negatives included a high personal income tax and corporate tax rate.
“As we celebrate the 10th edition of Rich States, Poor States, the presented data remains consistent in its message. State governments are constantly competing for Americans and jobs, and in this fast-moving environment, standing still is enough to get left behind,” said Jonathan Williams. “States that have adopted pro-growth policies have enjoyed robust economic expansion, with greater wage growth and more opportunities for citizens. The facts remain clear that pro-growth policies are working and there is a clear trend in favor of market-oriented reforms. Along with my co-authors, Dr. Art Laffer and Stephen Moore, I look forward to continuing this important work for years to come.”
According to the report, many states significantly improved or fell in the index. West Virginia also climbed six spots from 37th to 31st. On the other hand, Oklahoma dropped six places from 10thto 16th, whereas Wisconsin, Mississippi, and Alaska all fell five places in the Index to 14th, 22nd and 30th respectively.