North Dakota Builds on Economic Strengths: Joshua Meyer on The Steve Hallstrom Show

With states across the country competing for jobs, investment, and residents, North Dakota is proving that sound policy still delivers results. In a recent interview on The Steve Hallstrom Show, Joshua Meyer, ALEC’s Tax and Fiscal Policy Task Force Director, discussed the state’s impressive rise in the 18th edition of Rich States, Poor States where North Dakota earned a top-five spot, signaling strong momentum driven by pro-growth policies, a competitive tax code, and a light regulatory touch.

“This report starts from a fairly simple observation about the United States: people and businesses in our modern world can move around the country fairly easily,” Meyer explained. “We look at what the various states are doing in public policy to make their states an appealing place for businesses and individuals to locate and work.”

The rankings are based on 15 equally weighted policy variables, with special attention given to tax burden, labor policy, and regulatory environment.

“Taxes play a big role in it,” Meyer said, “but we also look at labor policy and regulatory policies.”

North Dakota’s fifth-place ranking was fueled by the state’s 2.5% income tax rate and top national rankings in workers’ compensation costs, right-to-work status, liability system costs, and its treatment of estate and inheritance taxes.

The news is more mixed for neighboring states. Minnesota finished in the bottom ten at 41st overall ranking while South Dakota, often seen as a close economic cousin to North Dakota, finished with a very respectable 8th place finish.

“In the past, we’ve seen South Dakota ahead of North Dakota in the rankings,” Meyer said. “But not so this year… North Dakota does better on a lot of the other regulatory and labor policies that we look at.”

The biggest takeaway from the report, Meyer emphasized, is that economic policy is dynamic.

“States can fall behind by standing still,” he said. “North Dakota, South Dakota—those states haven’t fallen victim to that mindset.”

At the top of the rankings sits Utah, which has now held the number one spot for 18 consecutive years. At the bottom, once again, is New York thanks to its high property taxes, high income taxes, high business taxes, and “a regulatory environment that kills small business.”

Recent trends, such as the rise of remote work and the state’s robust energy sector, provide North Dakotans with reasons to be bullish on North Dakota’s future.

“Our report is meant to be somewhat forward-looking,” he said. “Growth is coming North Dakota’s way.”

Thanks to its business-friendly tax structure, light regulatory touch, and strong energy assets, North Dakota, Meyer said, is uniquely positioned to thrive in the years ahead.

“That’s why we’ve put North Dakota in the top five,” Meyer concluded.