The Pro-Taxpayer Formula for Economic Success: Jonathan Williams and Lee Schalk in Governing
Our path to economic revival has always run through the states.
Jonathan Williams, ALEC President and Chief Economist, and Lee Schalk, ALEC Senior Vice President of Policy, recently co-authored an op-ed in Governing about how state budgets are returning to normal following the pandemic’s revenue boom and federal aid. In addition, they highlight how states that prioritized fiscal responsibility can lead to long term growth.
By overwhelming margins, American voters want Congress to make President Donald Trump’s expiring 2017 federal tax cuts permanent. But while tax debates play out in Washington, state leaders have been taking matters into their own hands to create economic opportunity.
The story of how states compete with one another for new residents and job creators can be found in the latest edition of our annual “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index,” which demonstrates how economically farsighted legislators and governors are reducing taxes and boosting growth.
Since 2007, this research has provided state lawmakers with clear, data-driven insights into how tax and other fiscal policies impact economic competitiveness. Using 15 proven policy variables, the report ranks each state’s economic outlook and highlights the direct connection between free-market reforms — like cutting taxes, reducing debt and limiting government overreach — and stronger economic growth.
For an unprecedented 18th consecutive year, Utah claimed the top spot in the economic outlook ranking while leading the nation in job and state GDP growth. This sustained success is no accident: Utah’s leaders have consistently championed pro-taxpayer reforms, from enacting flat personal and business income taxes to keeping property tax burdens in check. Meanwhile, Tennessee soared to No. 2, with Indiana, North Carolina and North Dakota rounding out the top five.