Which States Are Winning? ALEC Unveils New ‘Rich States, Poor States’ Rankings

ARLINGTON, Va. – Today, the American Legislative Exchange Council (ALEC) released the 19th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, the annual report assessing each state’s economic outlook and performance. The report, which has been used by lawmakers across the states since 2007, is co-authored by Reagan Economist Dr. Arthur B. Laffer, economic policy expert Stephen Moore, and ALEC President and Chief Economist Jonathan Williams.

“The 19^th edition of Rich States, Poor States demonstrates, once again, that states which prioritize limited government and free-market solutions are leading America’s economic turnaround,” said ALEC CEO Lisa B. Nelson. “ALEC is proud to highlight the policies that are working to create jobs and wealth across the country.”

The authors utilize 15 economic policy variables to rank the economic outlook of every state and highlights that cutting taxes, paying down debt, and maintaining free market policies have significantly helped states attract new residents. Notably, eight of the top 10 states have a flat personal income tax or no state income tax at all.

“As laboratories of democracy, the top states in this year’s report are demonstrating that low-tax, light-touch regulatory policies attract families, businesses, and opportunity,” said ALEC President and Chief Economist Jonathan Williams. “Meanwhile, states at the bottom of the rankings continue to lose residents to those embracing economic freedom.”

Find out how your state ranks here.

Utah has maintained its position as the top-ranked state for Economic Outlook for 19 years in a row. State leaders and legislators have a strong record of implementing pro-taxpayer reforms in recent years, including the adoption of a flat personal income tax rate, pension reform for its previously endangered system, and an innovative approach to property tax reform.

“I’m proud that Utah has once again been named the No. 1 state in the nation for economic outlook for the 19th year in a row,” said Utah Senate President J. Stuart Adams. “This recognition reflects years of forward-thinking decisions focused on economic growth and building an environment where the next generation can succeed. By focusing on fiscally responsible policies, we’ve built a foundation where Utahns are able to create a better future for themselves and their families.”

Ohio, which was ranked 25^th in Economic Outlook in last year’s report, moved up ten spots to 15^th this year, the largest increase of any state, thanks to the passage and implementation of a flat state income tax. New York remains 50^th, a spot the state has held since 2014.