Understanding the Rankings
The conversation started with an overview of the Rich States, Poor States report. Meyer explained the goal of the index and how it has made tax week more engaging.
“Every year for the last 19 years, Dr. Arthur Laffer, Steve Moore, and Jonathan Williams have published the Rich States, Poor States index on tax week,” he highlighted. “Our goal is to make tax week a little bit more fun for those of us who like comparing the states.”
Meyer further explained that while some rankings remain consistent, others are highly competitive and fluid.
“One thing, one of the big stories from Rich States, Poor States, is that Utah ranks number one this year for the 19th consecutive year,” he noted. “Conversely, New York has been 50th, bottom of the rankings, for most of the years.”
At the same time, “all around the middle of the rankings, the states are shifting, moving around, competing for positions,” he added.
How the Index Works
Jones and Arps then inquired about the consistency of state rankings in the Rich States, Poor States index, noting its reliance on data rather than talking points. Meyer emphasized that the report is rooted in data, not ideology.
“These aren’t right wing or left wing, they’re not Republican or Democrat. It’s just economics,” he said. “The ranking looks at 15 variables that are important for how Americans decide where to move.”
Those variables include “taxes on business, Right to Work policies, minimum wages, and things like that,” Meyer noted. The index, he added, serves as “a scorecard. It’s how are you doing compared to the other states looking forward?”
Missouri’s Movement and Policy Impact
Jones and Arps later asked which states are making economic turnarounds in the rankings. Meyer pointed to Missouri as a state showing recent improvement.
“Missouri ranks 19th for its economic outlook in this most recent edition,” he said. “That’s up five places from 24th last year.”
When asked how Missouri improved its ranking, Meyer attributed that progress to policy changes over time.
“We attribute that to the income tax cuts that have happened over multiple years,” he highlighted, adding that “the capital gains tax elimination that was enacted in the legislature last year” also contributed.
A Competitive National Landscape
The conversation concluded with a focus on how states are staying economically competitive. Meyer stressed that states are competing more aggressively than ever for growth and investment.
“26 states, including Missouri, have cut personal income tax rates just since 2021,” Meyer said. “If you sit still for one moment and think we’ve done enough, other states will outcompete you.”
He also framed the report around real-world decision-making by individuals and businesses.
“When people move for tax reasons, that’s a revealed preference because it has an immediate, concrete effect on their economic wellbeing,” Meyer noted. “Rich States, Poor States is based on that principle and the policies behind it.”
