States with the highest tax burdens, such as New York, Illinois, and California, continue to lose residents this year as tax rates have a significant effect on the growth and prosperity of the states, economists say.
“The evidence is clear that competitive tax rates, thoughtful regulations, and responsible spending lead to more opportunities for all Americans,” according to the “Rich States, Poor States” report by the American Legislative Exchange Council (ALEC), a conservative nonprofit organization.
The annual report ranks states based on their competitiveness and economic outlook by examining the policy choices made by the states and their impact.
In 2019, Utah ranked No. 1 for economic outlook, followed by Wyoming, Idaho, Indiana, and North Carolina; the state has earned the top ranking for 13 consecutive years.
According to Jonathan Williams, ALEC’s chief economist, Utah has implemented many reforms “that have been ahead of the curve.”
Utah’s lawmakers saw the unfunded liability problem in the state pension system and took bold actions to fix it after the financial crisis of 2008. The state also revised its property tax system.
“It’s not just a theory. This is really playing out in practice. And we see Americans continue to move into Utah. And Utah is just booming right now,” Williams told the show “NTD Business.”
“We continue to see this phenomenon where Americans vote with their feet. And they’re voting very strongly away from states with high tax burdens and less economic opportunities,” he said.
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