On Money and Politics in Delaware, ALEC President and Chief Economist Jonathan Williams spoke with host Dace Blaskovitz about Delaware’s economic outlook in the latest edition of Rich States, Poor States and how state policy decisions shape long-term competitiveness.
Williams argued that Delaware’s challenge is not unique but part of a broader national competition among states. “Fifty states [are] all competing,” he said, noting that jurisdictions such as Texas and Nevada are actively seeking to attract corporate activity with lower taxes and streamlined regulation.
He pointed to corporate relocations as evidence of that shift, citing firms such as Exxon Mobil moving operations to more competitive tax environments. States like Texas, he said, combine “a great business climate” with structural advantages like no state income tax.
The risk for Delaware, Williams suggested, is stagnation in a rapidly evolving landscape. “States that want to be in that top tier, can fall behind by just standing still,” he said.
He highlighted high-performing states such as Utah, which has maintained the No. 1 economic outlook ranking for nearly two decades by continually adjusting tax policy and controlling long-term liabilities. Similarly, Ohio has moved sharply up the rankings after adopting a flatter income tax structure.
The policy implications for Delaware, Williams argued, are straightforward. “The state has got to break out from being a high-cost state to do business in,” he said, citing both corporate and personal income tax burdens as key constraints.
Ultimately, he framed the issue as one of competitiveness and long-term fiscal discipline. In a system where states “are all competing,” Williams said, standing still is not a neutral position; it is a losing one.
Listen to the full interview below: