Per a new report from the American Legislative Exchange Council (ALEC), the state of Louisiana has a serious disadvantage as it competes against neighbors Arkansas, Texas, and Mississippi for new residents and new business opportunities.
ALEC, based out of Arlington, Va., ranked the Pelican State 50th out of 50 states in economic performance. Authors Arthur B. Laffer, Stephen Moore, and Jonathan Williams published this document, the 2023 edition of Rich States, Poor States, late last week. Compared to Louisiana, the states of Texas, Arkansas, and Mississippi, ranked much more favorably.
Laffer, regarded as “the father of supply side economics,” was on President Ronald Reagan’s Economic Advisory Board. Moore wrote for the Wall Street Journal. Williams is ALEC’s chief economist.
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“The Economic Performance Ranking is a backward-looking measure based on a state’s performance on three important variables: State Gross Domestic Product, Absolute Domestic Migration and Non-Farm Payroll Employment — all of which are highly influenced by state policy,” according to the report.
“This ranking details states’ individual performances over the past 10 years based on this economic data.”
Meanwhile, in economic outlook, Louisiana ranked 26th.
The Economic Outlook Ranking is forecast based on a state’s current standing in 15 state policy variables. Those factors include, among others, highest marginal personal income tax rate, property and sales tax burdens, personal income tax progressivity, estate or inheritance tax, and number of public employees per 10,000 residents.
“Each of these factors is influenced directly by state lawmakers through the legislative process,” according to study authors
“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.”
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Louisiana’s neighboring states ranked higher in both economic performance and economic outlook in the following ways:
• Arkansas ranked 15th, both in economic performance and economic outlook.
• Mississippi ranked 37th in economic performance and 22nd in economic outlook.
• Texas ranked seventh in economic performance and 13th in economic outlook.
ALEC ranked Florida, Utah, Arizona, Idaho, Colorado, Washington, Texas, Georgia, South Carolina and North Carolina as the best in economic performance.
Alaska ranked 49th in economic performance, followed by Connecticut (48th), West Virginia (47th), Pennsylvania (46th), Hawaii (45th), Illinois (44th), Wyoming (43rd), New Mexico (42nd), Vermont (41st) and Maryland (40th).
According to its website, ALEC is nonpartisan and dedicated to the principles of limited government, free markets and federalism.
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