Utah ranked as the best U.S. state for businesses for the 15th year in a row in an annual conservative economic forecast this week, with New York ranking dead last.
The American Legislative Exchange Council, a network of conservative private investors and state legislators, found in the 15th annual Rich States, Poor States report that Utah again topped a range of 15 indicators after adopting a flat personal income tax and easing pension and property taxes.
Economists Arthur B. Laffer, Stephen Moore and Jonathan Williams conducted the ranking of all 50 states. It favors states with tax incentives, lower regulatory burdens and minimal debt.
“If you believe incentives matter, and I do, state policies have the effect of changing those incentives at both the state and local levels,” said Mr. Laffer, a former member of President Reagan’s Economic Policy Advisory Board.
North Carolina, Arizona, Oklahoma, Idaho, Nevada, Indiana, Florida, North Dakota and Wyoming rounded out the top 10 states.
According to ALEC, North Carolina rose to its best spot on the list this year with continued tax cuts and business-friendly policies. When the state passed tax cuts in 2013, it ranked 22nd on the annual list.
“Americans continue to vote with their feet toward states that have lower tax burdens and value economic competitiveness,” said Mr. Williams, ALEC’s chief economist.
Mr. Williams said the study builds on demographic trends to show that “states with lower taxes, especially those that avoid personal income taxes, have seen significantly better rates of in-migration than states with high income-tax rates.”
New Jersey, California, Vermont, Minnesota, Illinois, Maine, Hawaii, Maryland and Oregon round out the list of 10 worst states for businesses, ahead of New York.
Mr. Moore, chief economist for the free-market advocacy group FreedomWorks, said officials in these states would do well to heed the report’s implications.
“This is a magic moment for tax reform at the state level. I think even in some of these blue states that have been traditionally very liberal, they’re looking at reforms that could really make their states more prosperous,” Mr. Moore said.
• Sean Salai can be reached at ssalai@washingtontimes.com.
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