By Casey Harper, for The Center Square
(The Center Square) – Vermont is ranked 49th in economic prospects, according to a recent study. But don’t think about fleeing across the Lake to New York. The Empire State is ranked 50th, dead last.
States with lower tax rates, lower debt and fewer government restrictions generally have stronger economic outlooks, according to the latest report that ranks states from best to worst based on how friendly their policies are to economic growth.
The American Legislative Exchange Council released its “Rich States Poor States” report Tuesday. The report ranks states based on “economic outlook” using 15 factors.
Those factors include property tax rate, sales tax rate, top marginal income tax rate, top marginal corporate tax rate and how progressive the personal income tax rate is as well as whether there is an inheritance tax.
“This is the 17th annual version of this report that comes out right before tax day every year to give legislators and concerned citizens some tangible data for how their state stacks up versus the other 49,” Jonathan Williams, chief economist at ALEC, told The Center Square.
The report also considers the state minimum wage, average worker’s compensation costs, whether it is a right-to-work state, the size of the debt and the number of public employees compared to the state population, among other factors.
“You see people voting with their feet across state lines so getting it right with state policy is now more important than ever,” Williams said.
Williams pointed out that the report only ranks states on policy factors that are within the control of lawmakers, not the myriad of other factors that impact economic growth.
“It’s really a good policy snapshot into those states,” he said.
The report also reviews recent economic performance and ranks states. The top performing states Florida, Idaho and Utah are followed by Colorado, Arizona and Texas. The worst performing state is Louisiana, followed by Alaska, Connecticut, West Virginia, and Hawaii.
Williams told The Center Square performance rankings don’t always align with the outlook rankings because there are many non-policy factors, such as weather, financial hubs, local resources, and more that impact the economy.
“Each of these factors is influenced directly by state lawmakers through the legislative process,” the report said. “Generally speaking, states that spend less – especially on income transfer programs – and states that tax less – particularly on productive activities such as working or investing – experience higher growth rates than states that tax and spend more.”
Williams said that several states like California are facing major deficits after spending through COVID-era funds from the federal government.
“Over the last three legislative sessions … we’ve seen roughly half the states pretty substantially cut taxes,” he added.
From best to worst, below are the state economic outlook rankings:
- Utah
- Idaho
- Arizona
- North Carolina
- Indiana
- Texas
- South Dakota
- Wyoming
- Oklahoma
- North Dakota
- Georgia
- Tennessee
- Nevada
- Florida
- Arkansas
- Michigan
- Colorado
- Mississippi
- New Hampshire
- Alabama
- Wisconsin
- Virginia
- West Virginia
- South Carolina
- Alaska
- Ohio
- Kansas
- Kentucky
- Missouri
- Montana
- Louisiana
- Nebraska
- Delaware
- Iowa
- Pennsylvania
- Massachusetts
- Washington
- New Mexico
- Rhode Island
- Connecticut
- Hawaii
- Oregon
- Maryland
- Minnesota
- Maine
- New Jersey
- California
- Illinois
- Vermont
- New York
Casey Harper is a Senior Reporter for the Washington, D.C. Bureau of The Center Square. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, and USA Today.
Discover more from Vermont Daily Chronicle
Subscribe to get the latest posts sent to your email.
Categories: Business, National News
There’s a surprise, VT didn’t come in dead last.
Wait till all the new taxes, the clean heat standard, etc. kicks in. We’re on our way to dead last and nothing can stop us now!
Last or is it first ???? 🙂
It is nothing but a liability to live in this state.
Yet, home many economic development professionals do we have in the state? Many have been at it for years but the only jobs they have created have been their own.
Wow, the liberal cesspool ” California ” is rated higher than ” Vermont” so what have we become, this is pretty pathetic !!
Vermont’s economic outlook is pretty bleak, if we stay on this path with our so-called supermajority in the state house, we will be last on the list the next time, if you love our state, vote these feckless clowns out
Wake up people, if this doesn’t wake you up then nothing will.
Way to go Vermont ! I have all the faith in the world that our citizen legislators will have us in that coveted #1 spot by the end of this legislative season !
The American Legislative Exchange Council is not a credible organization.
“Not all Americans have heard of “ALEC,” but every American is living under some of the “model” laws secretly pre-voted on by corporate lobbyists voting as equals with state legislators behind closed doors through this powerful special interest group. ALEC has undermined Americans’ civil rights, civil liberties, and human rights in numerous ways.” https://www.americanbar.org/groups/crsj/publications/human_rights_magazine_home/2014_vol_40/vol_40_no_2_civil_rights/alec_exposed/
Having lived in Vermont all of my 56 years I don’t need any outside organization to tell me how anti business the state government has become. The elected representatives and unelected bureaucrats are Marxist and openly hostile to any economic activity that doesn’t conform to the ideology.
There are many that say the same things about the American Bar Association… just another captured institution.
The top ten states have to be business friendly because there is no other reason to live in those absolute hell holes. You want to live in pristine Vermont? Better pay the piper.
The top ten states are hell holes? Just because they aren’t taxing their population out of their homes? Where can I get my rose colored glasses…or do I need to hit the local pot store to see the VT that you see?
I would leave Vermont if I could. I have lived in far better places, with far more tolerant and diverse people, and abundant opportunities and affordable housing. Can’t make me drink the Vermont Kool Aid. Vermont has nothing to offer except for the scenery. You can’t live have a career and support a family on scenery.
Have you ever been to that ‘hell hole’ called Coeur d’Alene, Idaho, Mr. Chris whoever you are? Or done any fly fishing in Idaho’s Snake River? Have you been to Salt Lake City, Utah? The Grand Canyon or Flagstaff, AZ? Charlotte or Ashville, NC with The Great Smoky Mountains, and the Outer Banks? They’re all in the top five business friendly places. All ‘absolute hell holes’ to be sure.
Why don’t I move to one of these places? I’d love to. But I can’t sell my house. No one wants to live in ‘pristine’ Vermont and ‘pay the piper’ for the privilege.
Utah is an awesome place
Pristine??? As in public water systems & wells poisoned by PFAS and PCB’s in schools have forced closure of buildings? Where Chittenden County’s numerous sewer lines dump raw waste into Lake Champlain on a routine basis? Where Opioid overdose deaths & various drug addiction rates often top the highest in the nation? The “pristine” state with the second-worst economic prospects in the nation & where the governor of said state received an “F” from the uber-liberal ACLU for not affording constitutional/personal freedoms? The “pristine” state where homelessness reigns and increasing violent crimes & anarchy perpetrated by this demographic in conjunction with the drug trading “newcomers” abound?
Continuing to pay exorbitant taxes to a failing state overrun by illiberal radical extremists who have occupied the statehouse & have corroborated to attempt to establish socialism, i.e.: Communism in this once autonomous, free, and proud state is the genuine definition of abject stupidity.
Meanwhile, VT legislators are slapping their foreheads, wondering where they went wrong!! They thought FOR SURE they would be 50!! But New York out-Vermonted Vermont!! OK residents: Prepare for THE FISTING!!
goes to show you vermont is a leader//// more empty store fronts coming your way/// enjoy///
Vermont: The Cloward-Piven Strategy and its aftermath.
What a week thus far! ACLU gives the Governor an “F” and Vermont, along side our neighbor New York, are ranked as the dead pool cesspools of the nation. Can we get a round of rousing applause for our leadership? They work so hard for such destinction and honor and it shows every single day. Well done!
No problem…Pat Leahy will reach into the big federal pot of money and bring home the pork, like he always has…oh, wait, he’s not in office anymore?
Pat Leahy…. Imagine a U.S. Senate (or any other political office, and officials) where Senators were limited to two terms . (12 years) How would that change the “pork barrel politics” which is a product of a seniority based system ? By having fewer steps (?) in a senority based system we would have a more even spread of the benefits a seniority based system breeds in the Senate . The “have nots” would not be at the bottom of the seniority barrel for so long, and if you can’t “git-r-done” in 12 years, you probably never will, just move aside and give someone else a shot . JMO
All wealthy leftists have nice quiet places to retire to. At least we’re behind enemy lines. Likely will be untouched during the revolt. Too many environmental regulations. Hahaha.
If the people of Vermont want to turn things around it is easily done,as long as the election process is honest.
It’s simple,get out in mass,drive your elderly friends to the polling place and see that they vote EVERY LAST LEFTIST/PROGRESSIVE/Dem out of office.
It’s time for a change,a new broom sweeps clean, time for a clean sweep, and make a new dawn for the State of Vermont…SAY NO to the regression,VOTE REPUBLICA/VOTE TEAM TRUMP!
Question: Why do we not see the GOP State Committee out fighting and writting things like this? Where is the fight? Is the GOP cowed by the left? It sure seems it to me.
If you are going to roll over, and give it up, to the left, I have some vasoline you can use, to ease the pain ,of giving it up, to the left.
Grow a pair and fight! FIGHT! FIGHT!
William Olenick, is the election process honest? Not likely. The democrats have perverted the system. There’s no party affiliation for the candidates on the ballot. There’s no ability for the poll workers to verify if the person is a legal resident and who they say they are. For national elections the state has mass mailing with no accountability and there are drop boxes to stuff ballots in. And finally anyone can show up at the poles, claim they are a resident and vote.
The solution to reduce the possibility of fraud is to require a state issued photo ID, limit absentee ballots to people who request one and require a person to register and be added to the grand list at least 30 days before the election.
Hey William O….you are so quick to chastise the VT Republican party. Do you know just how many of us there are? It’s a VERY small group trying to do all the work without the federal $$$$ that the Dems are receiving. Many if not most, have moved out of state. So instead of criticizing the VTGOP kindly JOIN us!!! And HELP! Whatever town you’re in just join. All kinds of help is needed.
Lester…I agree with you and we need to watch the Sec of State like a hawk, as the steal beings, and is run, at the state level, there. For example; running intro psy ops promoting rank choice voting, from this latest activist Sec of State. We are watching , and keeping score, so it’s best play it straight, or the results of the monster you create can backfire…same goes with Suckerbucks, and forcing voting machines on towns that do not want them. We are not all dumb ya know.