ALEC Report Shows Economic Strain Deepening in Progressive States

Clear Facts

• The American Legislative Exchange Council ranked New York, New Jersey, California, and Illinois at the bottom of its 15-factor economic analysis.
• Nine of the ten states with the worst economic outlooks are currently governed by Democratic trifectas.
• Republican-led Utah and Florida secured top spots by maintaining low taxes and saw GDP growth exceeding 98% over the last decade.

Blue states are trailing the nation in economic competitiveness as progressive policies continue to burden taxpayers across the country. The latest analysis from the American Legislative Exchange Council places states like New York and California at the bottom due to high taxes and regulatory hurdles.

New York has ranked last for 13 consecutive years, suffering from massive domestic migration losses as residents flee for better opportunities. The state maintains burdensome corporate and personal income tax rates that have eroded its tax base over time.

“If there’s anything that ties these ten states, it’s the philosophy of tax, spend, regulate and give to special interests in the name of cronyism,” stated Jonathan Williams, ALEC President and Chief Economist.

“That’s the approach of states that have bad policies.”

In contrast, states with no personal income tax spend significantly less per person while experiencing robust economic growth. Florida and Utah lead the nation in performance by embracing flat taxes and managing unfunded liabilities effectively.

“The states with no personal income taxes spend around 50 to 60% less per person than in states with larger tax rates and larger tax burdens,” Williams added.

Ongoing domestic migration patterns suggest that residents are voting with their feet by moving to red states with lower costs of living. This exodus threatens the future budgets of high-tax states as they lose productive citizens and businesses.

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