ALEC. ORG 13 TH EDI TI ON ALEC– LAFFERST ATEECONOMI CCOMPETI TI VENESSI NDEX ARTHURB.LAFFER STEPHENMOORE J ONATHANWI LLI AMS Acknowledgements We wish to thank the following for making this publication possible: First, our sincere thanks go to the Searle Freedom Trust for their generous support of this research. Next, we thank Lisa B. Nelson, Bill Meierling, Dan Reynolds, Christine Phipps, Lee Schalk, Thomas Savidge, Daniel Turner, Joel Sorrell and the professional staff of the American Legislative Exchange Council for publishing this in a timely manner. Special thanks to Skip Estes of ALEC for managing the production of this publication. We also appreciate the research assistance of Nicholas Drinkwater, Richard Neikirk, and Kenneth Smith. We hope these research findings will continue to be a valuable resource for America’s state legislators and members of the public interested in pro-growth economic reforms. vi Rich States, Poor States State Rankings T he Economic Outlook Ranking is a forecast based on a state’s current standing in 15 state policy variables. Each of these factors is influenced directly by state lawmakers through the legislative process. Generally speaking, states that spend less — especially on income transfer programs — and states that tax less — particularly on productive activities such as working or investing — experience higher growth rates than states that tax and spend more. The Economic Performance Ranking is a backward-looking measure based on a state’s performance on three important variables: State Gross Domestic Product, Absolute Domestic Migration and Non-Farm Payroll Employment — all of which are highly influenced by state policy. This ranking details states’ individual performances over the past 10 years based on this economic data. ALEC-Laffer State Economic Outlook Rankings, 2020 Based upon equal-weighting of each state’s rank in 15 policy variables Rank State Rank State 1 Utah 26 Alaska 2 Wyoming 27 Iowa 3 Idaho 28 West Virginia 4 Indiana 29 Ohio 5 North Carolina 30 Louisiana 6 Nevada 31 Kentucky 7 Florida 32 South Carolina 8 Tennessee 33 Montana 9 Oklahoma 34 New Mexico 10 Arizona 35 Massachusetts 11 North Dakota 36 Nebraska 12 Wisconsin 37 Maryland 13 South Dakota 38 Pennsylvania 14 Michigan 39 Washington 15 Texas 40 Connecticut 16 Virginia 41 Maine 17 New Hampshire 42 Oregon 18 Colorado 43 Rhode Island 19 Missouri 44 Hawaii 20 Mississippi 45 Minnesota 21 Georgia 46 California 22 Arkansas 47 Illinois 23 Alabama 48 New Jersey 24 Delaware 49 Vermont 25 Kansas 50 New York 84 Rich States, Poor States 2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX ALEC-Laffer State Economic Performance Rankings, 2008-2018 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 State Texas Washington Utah Colorado North Dakota Florida South Carolina Oregon Tennessee Georgia Idaho North Carolina Arizona Nevada Montana South Dakota California Massachusetts Nebraska Minnesota New York Hawaii Delaware New Hampshire Iowa Kentucky Arkansas Indiana Virginia Maryland Oklahoma Michigan Alabama Wisconsin Maine Ohio Vermont Rhode Island Pennsylvania Missouri Kansas Illinois West Virginia Louisiana New Jersey Wyoming New Mexico Alaska Mississippi Connecticut State Gross Domestic Product 7 2 3 9 1 21 12 10 11 13 19 25 29 35 24 14 5 6 8 16 4 15 30 20 18 34 37 28 32 17 42 23 40 22 36 26 38 39 27 41 33 31 44 46 43 50 45 49 47 48 Absolute Domestic Migration 1 7 13 5 16 2 6 9 8 10 12 3 4 11 15 20 48 41 26 30 50 36 17 22 27 23 19 37 29 42 14 46 18 39 21 45 25 32 44 35 40 49 28 33 47 24 34 31 38 43 Non-Farm Payroll 2 7 1 4 5 3 10 11 12 13 6 17 14 9 18 23 8 16 30 22 15 19 24 29 34 26 28 21 25 27 32 20 40 38 45 31 41 35 36 39 43 37 49 44 33 50 47 46 42 48 www.alec.org 85 Alabama Connecticut 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 33 23 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 28.4% Rank: 40 AL U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 17 20 19 21 21 20 21 Variable Data Rank Top Marginal Personal Income Tax Rate 4.15% 12 Top Marginal Corporate Income Tax Rate 6.07% 18 -$1.88 1 $14.65 1 $26.16 35 $21.70 40 No 1 $1.20 39 Debt Service as a Share of Tax Revenue 7.0% 33 Public Employees Per 10,000 of Population (full-time equivalent) 580.9 40 65.6 42 $7.25 1 $1.65 22 Yes 1 0 34 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 16 Sales Tax Burden (per $1,000 of personal income) 20,389 Rank: 18 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 14 12 Recently Legislated Tax Changes 10 (2017 & 2018, per $1,000 of personal income) 8 6 4 2 0 -2 -4 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 3.6% Rank: 40 AL U.S. 1% 0% -1% -2% -3% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) -4% -5% -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 86 Rich States, Poor States Number of Tax Expenditure Limits (0=least/worst 3=most/best) Alaska Delaware 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 48 26 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 0.0% Rank: 49 AK U.S. 8% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 21 18 14 25 30 34 30 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 9.40% 42 $0.00 2 $37.66 39 $5.61 5 $13.34 8 No 1 $0.00 17 Debt Service as a Share of Tax Revenue 11.4% 50 Public Employees Per 10,000 of Population (full-time equivalent) 703.5 49 73.1 5 $10.19 37 $2.51 47 No 50 1 14 6% 4% 2% 0% -2% Personal Income Tax Progressivity -4% (change in tax liability per $1,000 of income) -6% -8% Property Tax Burden -10% (per $1,000 of personal income) -12% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) Sales Tax Burden (per $1,000 of personal income) -45,514 Rank: 31 6 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 4 2 Recently Legislated Tax Changes 0 (2017 & 2018, per $1,000 of personal income) -2 -4 -6 -8 -10 -12 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 1.2% Rank: 46 AK U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 87 Arizona Connecticut 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 13 10 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 34.3% Rank: 29 AZ U.S. 8% Historical Ranking Comparison 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 6 7 5 5 8 5 11 Variable Data Rank Top Marginal Personal Income Tax Rate 4.50% 13 Top Marginal Corporate Income Tax Rate 4.90% 11 $12.85 32 $26.66 18 $33.25 43 $11.11 1 No 1 $0.12 22 Debt Service as a Share of Tax Revenue 7.7% 38 Public Employees Per 10,000 of Population (full-time equivalent) 388.7 2 70.8 17 $12.00 45 $1.30 11 Yes 1 2 3 6% 4% 2% 0% Personal Income Tax Progressivity -2% (change in tax liability per $1,000 of income) -4% -6% Property Tax Burden (per $1,000 of personal income) -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 90 (in thousands) Sales Tax Burden (per $1,000 of personal income) 385,647 Rank: 4 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 80 70 Recently Legislated Tax Changes 60 (2017 & 2018, per $1,000 of personal income) 50 40 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 12.8% Rank: 14 AZ U.S. 2% 0% -2& State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? -4% -6% -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 88 Rich States, Poor States (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Arkansas Delaware 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 27 22 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 29.8% Rank: 37 AR U.S. 6% 5% 4% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 24 26 22 20 23 22 23 Variable Data Rank Top Marginal Personal Income Tax Rate 6.60% 30 Top Marginal Corporate Income Tax Rate 6.50% 22 $18.68 45 $18.15 3 $37.07 46 $16.61 24 No 1 $0.47 29 Debt Service as a Share of Tax Revenue 4.5% 8 Public Employees Per 10,000 of Population (full-time equivalent) 562.2 38 69.5 30 $10.00 34 $0.90 3 Yes 1 1 14 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 8 Sales Tax Burden (per $1,000 of personal income) 17,767 Rank: 19 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 6 Recently Legislated Tax Changes 4 (2017 & 2018, per $1,000 of personal income) 2 0 -2 -4 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 6.2% Rank: 28 AR U.S. 1% 0% -1% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? -2% (option to join or support a union) -3% -4% Number of Tax Expenditure Limits -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 (0=least/worst 3=most/best) www.alec.org 89 California Connecticut 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 17 46 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 50.6% Rank: 5 CA U.S. 8% 6% 4% 2% 0% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 47 47 44 46 47 47 47 Variable Data Rank Top Marginal Personal Income Tax Rate 13.30% 50 Top Marginal Corporate Income Tax Rate 8.84% 40 $40.13 50 $27.36 21 $21.21 22 $15.69 15 No 1 $1.43 41 Debt Service as a Share of Tax Revenue 8.3% 41 Public Employees Per 10,000 of Population (full-time equivalent) 473.4 7 60.2 48 $13.00 49 $2.87 49 No 50 2 3 Personal Income Tax Progressivity (change in tax liability per $1,000 of income) -2% -4% Property Tax Burden (per $1,000 of personal income) -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 Sales Tax Burden (per $1,000 of personal income) -811,801 Rank: 48 Remaining Tax Burden (per $1,000 of personal income) (in thousands) 0 Estate/Inheritance Tax Levied? -20 -40 Recently Legislated Tax Changes -60 (2017 & 2018, per $1,000 of personal income) -80 -100 -120 -140 -160 -180 Historical Ranking Comparison ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 14.6% Rank: 8 CA U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 90 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Colorado Delaware 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 4 18 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 45.5% Rank: 9 CO U.S. 7% 6% 5% 4% 3% 2% 1% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 16 22 21 16 15 15 18 Variable Data Rank Top Marginal Personal Income Tax Rate 4.63% 14 Top Marginal Corporate Income Tax Rate 4.63% 10 $7.65 21 $28.93 25 $25.11 32 $13.06 6 No 1 $0.16 23 Debt Service as a Share of Tax Revenue 8.5% 42 Public Employees Per 10,000 of Population (full-time equivalent) 526.1 25 70.7 21 $12.00 45 $1.43 16 No 50 3 1 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden -3% (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 60 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) 380,134 Rank: 5 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 50 Recently Legislated Tax Changes 40 (2017 & 2018, per $1,000 of personal income) 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 17.5% Rank: 4 CO U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 91 Connecticut 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 50 40 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 14.5% Rank: 48 CT U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 43 44 47 47 46 40 40 Variable Data Rank Top Marginal Personal Income Tax Rate 6.99% 36 Top Marginal Corporate Income Tax Rate 7.50% 31 $7.67 22 $42.68 44 $16.76 10 $13.49 9 Yes 50 $4.76 50 Debt Service as a Share of Tax Revenue 7.3% 34 Public Employees Per 10,000 of Population (full-time equivalent) 516.6 22 73.8 3 $11.00 40 $2.20 44 No 50 1 14 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3-% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 (per $1,000 of personal income) Absolute Domestic Migration Cumulative 2009-2018 0 (in thousands) Sales Tax Burden -193,944 Rank: 43 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -5 Recently Legislated Tax Changes -10 (2017 & 2018, per $1,000 of personal income) -15 -20 -25 -30 -35 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 0.2% Rank: 48 CT U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 92 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Delaware 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 23 24 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 34.1% Rank: 30 DE U.S. 12% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 30 27 38 44 37 36 36 Variable Data Rank Top Marginal Personal Income Tax Rate 7.85% 42 11.80% 47 $15.10 38 $18.77 4 $0.00 1 $48.86 50 No 1 -$0.18 13 Debt Service as a Share of Tax Revenue 5.7% 21 Public Employees Per 10,000 of Population (full-time equivalent) 510.3 20 76.3 1 $9.25 29 $2.50 46 No 50 2 3 10% 8% 6% Top Marginal Corporate Income Tax Rate 4% Personal Income Tax Progressivity 2% (change in tax liability per $1,000 of income) 0% -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 8 (in thousands) Sales Tax Burden (per $1,000 of personal income) 35,284 Rank: 17 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 7 6 Recently Legislated Tax Changes (2017 & 2018, per $1,000 of personal income) 5 4 3 2 1 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 7.0% Rank: 24 DE U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 93 Florida 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 6 7 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product 38.5% Rank: 21 Cumulative Growth 2008-2018 FL U.S. 8% 6% 4% 2% 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 9 16 15 8 6 6 9 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 4.46% 8 $0.00 2 $28.71 23 $28.57 39 $19.08 32 No 1 -$0.94 5 Debt Service as a Share of Tax Revenue 6.3% 26 Public Employees Per 10,000 of Population (full-time equivalent) 422.4 3 62.3 46 $8.56 23 $1.81 30 Yes 1 2 3 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) Sales Tax Burden (per $1,000 of personal income) 1,139,015 Rank: 2 250 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 200 Recently Legislated Tax Changes 150 (2017 & 2018, per $1,000 of personal income) 100 50 0 -50 -100 Historical Ranking Comparison ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 5% 4% 3% 2% 1% 0 -1% -2% -3% -4% -5% -6% 17.7% Rank: 3 FL U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 94 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Georgia 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 10 21 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 43.4% Rank: 13 GA U.S. 7% Historical Ranking Comparison 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 8 9 7 19 17 11 20 Variable Data Rank Top Marginal Personal Income Tax Rate 5.75% 25 Top Marginal Corporate Income Tax Rate 6.40% 21 $7.90 23 $26.80 19 $20.59 21 $12.44 3 No 1 $0.74 34 Debt Service as a Share of Tax Revenue 6.0% 24 Public Employees Per 10,000 of Population (full-time equivalent) 497 16 66.1 41 $7.25 1 $2.27 45 Yes 1 0 34 6% 5% 4% 3% 2% 1% Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 0% -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 50 Sales Tax Burden (per $1,000 of personal income) 225,386 Rank: 10 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 40 Recently Legislated Tax Changes 30 (2017 & 2018, per $1,000 of personal income) 20 10 0 -10 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 12.9% Rank: 13 GA U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 95 Hawaii 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 22 44 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 40.3% Rank: 15 HI U.S. 7% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 40 36 37 42 43 45 45 Variable Data Rank Top Marginal Personal Income Tax Rate 11.00% 47 Top Marginal Corporate Income Tax Rate 6.40% 20 $13.54 34 $23.70 13 $46.64 50 $26.33 46 Yes 50 $0.89 37 Debt Service as a Share of Tax Revenue 3.8% 4 Public Employees Per 10,000 of Population (full-time equivalent) 527.6 27 71.1 15 $10.10 36 $2.01 38 No 50 1 14 6% 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -61,895 Rank: 36 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -2 Recently Legislated Tax Changes -4 (2017 & 2018, per $1,000 of personal income) -6 -8 -10 -12 -14 -16 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 8.0% Rank: 19 HI U.S. 3% 2% 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 96 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Idaho 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 11 3 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 38.7% Rank: 19 ID U.S. 8% 6% 4% 2% 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 7 5 6 15 10 2 2 Variable Data Rank Top Marginal Personal Income Tax Rate 6.93% 34 Top Marginal Corporate Income Tax Rate 6.93% 26 $14.91 36 $24.91 15 $23.57 26 $15.56 13 No 1 -$1.31 2 Debt Service as a Share of Tax Revenue 3.8% 3 Public Employees Per 10,000 of Population (full-time equivalent) 487.7 9 72.2 9 $7.25 1 $1.81 30 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 30 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) 88,444 Rank: 12 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 25 Recently Legislated Tax Changes 20 (2017 & 2018, per $1,000 of personal income) 15 10 5 0 -5 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 16.3% Rank: 6 ID U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 97 Illinois 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 42 47 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 33.9% Rank: 31 IL U.S. 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 48 48 40 43 44 48 48 Variable Data Rank Top Marginal Personal Income Tax Rate 4.95% 16 Top Marginal Corporate Income Tax Rate 9.50% 43 $1.53 14 $42.21 43 $21.25 23 $21.43 39 Yes 50 $3.95 48 Debt Service as a Share of Tax Revenue 10.1% 49 Public Employees Per 10,000 of Population (full-time equivalent) 483.5 8 59.6 50 $9.25 29 $1.80 29 No 50 0 34 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration -843,799 Cumulative 2009-2018 Sales Tax Burden (per $1,000 of personal income) Rank: 49 Remaining Tax Burden (per $1,000 of personal income) (in thousands) 0 Estate/Inheritance Tax Levied? -200 Recently Legislated Tax Changes -400 (2017 & 2018, per $1,000 of personal income) -600 -800 -1,000 -1,200 -1,400 ’09 ’10 ’11 ’12 ’13 ’14 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% ’15 ’16 4.4% ’17 ’18 Rank: 37 IL U.S. 1% 0% -1% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? -2% (option to join or support a union) -3% -4% -5% Number of Tax Expenditure Limits -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 98 Rich States, Poor States (0=least/worst 3=most/best) Indiana 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 28 4 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 34.4% Rank: 28 IN U.S. 8% 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 14 3 3 6 2 3 3 Variable Data Rank Top Marginal Personal Income Tax Rate 5.25% 22 Top Marginal Corporate Income Tax Rate 5.50% 15 $0.70 13 $23.45 12 $25.55 33 $14.73 12 No 1 -$0.38 11 Debt Service as a Share of Tax Revenue 7.9% 39 Public Employees Per 10,000 of Population (full-time equivalent) 495.5 14 68.9 31 $7.25 1 $0.87 2 Yes 1 1 14 4% 2% 0% Personal Income Tax Progressivity (change in tax liability per $1,000 of income) -2% -4% Property Tax Burden (per $1,000 of personal income) -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 6 4 (in thousands) (per $1,000 of personal income) -67,779 Rank: 37 (2017 & 2018, per $1,000 of personal income) -8 -10 -12 -14 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 2% (per $1,000 of personal income) Recently Legislated Tax Changes -2 -4 -6 3% Remaining Tax Burden Estate/Inheritance Tax Levied? 2 0 -16 Sales Tax Burden 7.8% Rank: 21 IN U.S. State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs 1% (per $100 of payroll) 0% -1% Right-to-Work State? -2% (option to join or support a union) -3% -4% -5% Number of Tax Expenditure Limits -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 (0=least/worst 3=most/best) www.alec.org 99 Iowa 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 25 27 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 38.9% Rank: 18 IA U.S. 8% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 25 25 25 29 29 29 25 Variable Data Rank Top Marginal Personal Income Tax Rate 5.37% 23 Top Marginal Corporate Income Tax Rate 11.67% 46 $13.11 33 $34.81 36 $24.06 29 $19.16 33 Yes 50 -$0.44 9 Debt Service as a Share of Tax Revenue 4.1% 6 Public Employees Per 10,000 of Population (full-time equivalent) 590.4 41 70.6 23 $7.25 1 $1.64 21 Yes 1 1 14 7% 6% 5% 4% 3% 2% Personal Income Tax Progressivity 1% (change in tax liability per $1,000 of income) 0% -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 1 Sales Tax Burden (per $1,000 of personal income) -26,159 Rank: 27 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 0 Recently Legislated Tax Changes -1 (2017 & 2018, per $1,000 of personal income) -2 -3 -4 -5 -6 ’09 ’10 ’11 ’12 ’13 ’14 Non-Farm Payroll Employment Cumulative 2008-2018 ’15 ’16 4.5% ’17 ’18 Rank: 34 IA U.S. 3% 2% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs 1% (per $100 of payroll) 0% -1% Right-to-Work State? -2% (option to join or support a union) -3% -4% Number of Tax Expenditure Limits -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 100 Rich States, Poor States (0=least/worst 3=most/best) Kansas 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 41 25 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 31.8% Rank: 33 KS U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 11 15 18 27 26 26 26 Variable Data Rank Top Marginal Personal Income Tax Rate 5.70% 24 Top Marginal Corporate Income Tax Rate 7.00% 28 $10.09 27 $32.20 33 $30.64 40 $13.75 10 No 1 $0.00 17 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden -3% (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) Sales Tax Burden (per $1,000 of personal income) -92,771 Rank: 40 5 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 0 Recently Legislated Tax Changes (2017 & 2018, per $1,000 of personal income) -5 -10 Debt Service as a Share of Tax Revenue 7.0% 31 -15 Public Employees Per 10,000 of Population (full-time equivalent) 695.0 48 68.8 32 $7.25 1 $1.15 6 Yes 1 0 34 -20 ’09 ’10 ’11 ’12 ’13 ’14 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% ’15 ’16 2.4% ’17 ’18 Rank: 43 KS U.S. State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs 1% (per $100 of payroll) 0% -1% Right-to-Work State? -2% (option to join or support a union) -3% -4% Number of Tax Expenditure Limits -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 (0=least/worst 3=most/best) www.alec.org 101 Kentucky 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 26 31 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 31.6% Rank: 34 KY U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 38 39 30 33 33 31 33 Variable Data Rank Top Marginal Personal Income Tax Rate 7.20% 39 Top Marginal Corporate Income Tax Rate 7.20% 30 $1.77 15 $20.65 7 $19.48 15 $19.63 36 Yes 50 $1.01 38 Debt Service as a Share of Tax Revenue 8.6% 43 Public Employees Per 10,000 of Population (full-time equivalent) 546.3 35 66.5 40 $7.25 1 $1.51 18 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Sales Tax Burden (per $1,000 of personal income) -1,636 Rank: 23 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 8 6 Recently Legislated Tax Changes 4 (2017 & 2018, per $1,000 of personal income) 2 0 -2 -4 -6 -8 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 6.6% Rank: 26 KY U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 102 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Louisiana 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 44 30 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 19.6% Rank: 46 LA U.S. 10% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 28 29 26 28 28 27 27 Variable Data Rank Top Marginal Personal Income Tax Rate 3.78% 11 Top Marginal Corporate Income Tax Rate 6.32% 19 $11.04 28 $20.78 8 $42.72 49 $18.34 28 No 1 $2.09 45 Debt Service as a Share of Tax Revenue 7.3% 35 Public Employees Per 10,000 of Population (full-time equivalent) 553.7 37 60.0 49 $7.25 1 $2.05 41 Yes 1 2 3 8% 6% 4% 2% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -2% -4% Property Tax Burden (per $1,000 of personal income) -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 20 15 Sales Tax Burden (per $1,000 of personal income) -50,043 Rank: 33 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 10 5 Recently Legislated Tax Changes 0 -5 -10 (2017 & 2018, per $1,000 of personal income) -15 -20 -25 -30 -35 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 2.0% Rank: 44 LA U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 103 Maine 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 35 41 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 29.8% Rank: 36 ME U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 41 40 42 38 42 42 42 Variable Data Rank Top Marginal Personal Income Tax Rate 7.15% 38 Top Marginal Corporate Income Tax Rate 8.93% 41 $25.43 48 $46.96 46 $23.72 27 $17.64 26 Yes 50 -$0.15 14 Debt Service as a Share of Tax Revenue 4.0% 5 Public Employees Per 10,000 of Population (full-time equivalent) 520.4 24 73.8 2 $12.00 45 $1.84 32 No 50 1 14 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 8 Sales Tax Burden (per $1,000 of personal income) 3,499 Rank: 21 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 6 Recently Legislated Tax Changes 4 (2017 & 2018, per $1,000 of personal income) 2 0 -2 -4 -6 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 1.8% Rank: 45 ME U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 104 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Maryland 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 30 37 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 39.2% Rank: 17 MD U.S. 6% 5% 4% 3% 2% 1% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 35 34 33 31 34 32 35 Variable Data Rank Top Marginal Personal Income Tax Rate 8.95% 44 Top Marginal Corporate Income Tax Rate 8.25% 38 $8.95 26 $27.21 20 $12.83 8 $22.74 43 Yes 50 -$1.07 4 Debt Service as a Share of Tax Revenue 5.2% 15 Public Employees Per 10,000 of Population (full-time equivalent) 502.9 17 69.7 27 $11.00 40 $1.33 12 No 50 0 34 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 Sales Tax Burden (per $1,000 of personal income) -147,651 Rank: 42 (in thousands) 5 Historical Ranking Comparison Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 0 -5 Recently Legislated Tax Changes (2017 & 2018, per $1,000 of personal income) -10 -15 -20 -25 -30 -35 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 6.4% Rank: 27 MD U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 105 Massachusetts 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 18 35 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 46.6% Rank: 6 MA U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 29 28 28 26 25 25 28 Variable Data Rank Top Marginal Personal Income Tax Rate 5.00% 18 Top Marginal Corporate Income Tax Rate 8.00% 36 $2.93 17 $36.55 38 $13.66 9 $11.35 2 Yes 50 $1.72 43 Debt Service as a Share of Tax Revenue 8.7% 44 Public Employees Per 10,000 of Population (full-time equivalent) 494.3 13 69.6 28 $12.75 48 $1.37 13 No 50 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration -125,348 Cumulative 2009-2018 (per $1,000 of personal income) Rank: 41 Remaining Tax Burden (per $1,000 of personal income) (in thousands) 10 Sales Tax Burden Estate/Inheritance Tax Levied? 5 0 Recently Legislated Tax Changes -5 (2018 & 2019, per $1,000 of personal income) -10 -15 -20 -25 -30 -35 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 10.4% Rank: 16 MA U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 106 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Michigan 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 32 14 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 36.5% Rank: 23 MI U.S. 8% 6% 4% 2% 0% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 20 12 24 22 20 18 12 Variable Data Rank Top Marginal Personal Income Tax Rate 6.65% 31 Top Marginal Corporate Income Tax Rate 8.00% 36 $2.69 16 $31.11 30 $20.32 20 $15.83 18 No 1 -$0.66 8 Debt Service as a Share of Tax Revenue 7.0% 32 Public Employees Per 10,000 of Population (full-time equivalent) 436.9 4 68.8 33 $9.65 33 $1.38 14 Yes 1 2 3 Personal Income Tax Progressivity (change in tax liability per $1,000 of income) -2% -4% Property Tax Burden (per $1,000 of personal income) -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration -385,458 Cumulative 2009-2018 Sales Tax Burden (per $1,000 of personal income) Rank: 46 Remaining Tax Burden (per $1,000 of personal income) (in thousands) 0 Estate/Inheritance Tax Levied? -10 -20 Recently Legislated Tax Changes -30 (2018 & 2019, per $1,000 of personal income) -40 -50 -60 -70 -80 -90 -100 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% 7.9% Rank: 20 MI U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 107 Minnesota 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 20 45 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 39.4% Rank: 16 MN U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 46 46 48 45 45 44 41 Variable Data Rank Top Marginal Personal Income Tax Rate 9.85% 45 Top Marginal Corporate Income Tax Rate 9.80% 44 $19.89 46 $29.62 28 $20.32 19 $23.79 44 Yes 50 -$0.71 7 Debt Service as a Share of Tax Revenue 5.1% 14 Public Employees Per 10,000 of Population (full-time equivalent) 539.3 33 70.7 20 $10.00 34 $1.67 23 No 50 0 34 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -13% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Sales Tax Burden (per $1,000 of personal income) --43,711 Rank: 30 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 5 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) 0 -5 -10 -15 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 7.6% Rank: 22 MN U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 108 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Mississippi 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 49 20 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 18.6% Rank: 47 MS U.S. 6% 4% 2% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 10 14 20 17 22 24 19 Variable Data Rank Top Marginal Personal Income Tax Rate 5.00% 18 Top Marginal Corporate Income Tax Rate 5.00% 13 $7.93 24 $28.30 22 $32.83 42 $19.94 37 No 1 -$0.41 10 Debt Service as a Share of Tax Revenue 5.3% 16 Public Employees Per 10,000 of Population (full-time equivalent) 626.5 45 61.9 47 $7.25 1 $1.54 20 Yes 1 2 3 0% Personal Income Tax Progressivity -2% (change in tax liability per $1,000 of income) -4% Property Tax Burden (per $1,000 of personal income) -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -81,914 Rank: 38 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -2 -4 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) -6 -8 -10 -12 -14 -16 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 2.5% Rank: 42 MS U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 109 Missouri 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 40 19 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 27.3% Rank: 41 MO U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 23 24 27 24 24 23 22 Variable Data Rank Top Marginal Personal Income Tax Rate 6.40% 28 Top Marginal Corporate Income Tax Rate 4.58% 9 $12.53 31 $23.13 11 $23.32 24 $13.30 7 No 1 -$0.07 15 Debt Service as a Share of Tax Revenue 7.6% 37 Public Employees Per 10,000 of Population (full-time equivalent) 520.1 23 64.4 44 $9.45 32 $1.68 24 No 50 3 1 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -60,137 Rank: 35 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -2 Recently Legislated Tax Changes -4 (2018 & 2019, per $1,000 of personal income) -6 -8 -10 -12 -14 -16 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.0% Rank: 39 MO U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 110 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Montana 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 15 33 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 36.5% Rank: 24 MT U.S. 8% 7% 6% 5% 4% 3% 2% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 42 43 43 40 39 43 39 Variable Data Rank Top Marginal Personal Income Tax Rate 6.90% 33 Top Marginal Corporate Income Tax Rate 6.75% 25 $18.12 42 $35.39 37 $0.00 1 $20.65 38 No 1 $0.20 26 Debt Service as a Share of Tax Revenue 4.6% 9 Public Employees Per 10,000 of Population (full-time equivalent) 538.3 32 72.5 7 $8.65 24 $2.01 38 No 50 0 34 Personal Income Tax Progressivity 1% (change in tax liability per $1,000 of income) 0% -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Sales Tax Burden (per $1,000 of personal income) 46,609 Rank: 15 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 9 8 Recently Legislated Tax Changes 7 (2018 & 2019, per $1,000 of personal income) 6 5 4 3 2 1 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 8.2% Rank: 18 MT U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 111 Nebraska 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 19 36 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 45.5% Rank: 8 NE U.S. 10% 8% 6% 4% 2% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 37 35 31 32 32 28 34 Variable Data Rank Top Marginal Personal Income Tax Rate 6.84% 32 Top Marginal Corporate Income Tax Rate 7.81% 34 $18.66 44 $39.19 41 $23.38 25 $13.87 11 Yes 50 -$3.18 1 Debt Service as a Share of Tax Revenue 5.7% 22 Public Employees Per 10,000 of Population (full-time equivalent) 631.6 46 72.3 8 $9.00 27 $1.70 25 Yes 1 0 34 Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 0% -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 2 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) -15,199 Rank: 26 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 1 Recently Legislated Tax Changes 0 (2018 & 2019, per $1,000 of personal income) -1 -2 -3 -4 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 5.5% Rank: 30 NE U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 112 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Nevada 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 14 6 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 30.9% Rank: 35 NV U.S. 8% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 13 8 10 14 13 13 5 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 0.66% 3 $0.00 2 $22.20 9 $40.51 47 $35.42 49 No 1 $0.46 28 Debt Service as a Share of Tax Revenue 7.3% 36 Public Employees Per 10,000 of Population (full-time equivalent) 383.0 1 69.5 29 $8.25 22 $1.18 8 Yes 1 2 3 6% 4% 2% 0% Personal Income Tax Progressivity -2% (change in tax liability per $1,000 of income) -4% -6% Property Tax Burden (per $1,000 of personal income) -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 60 Sales Tax Burden (per $1,000 of personal income) 178,026 Rank: 11 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 50 40 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) 30 20 10 0 -10 -20 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 6% 4% 14.5% Rank: 9 NV U.S. 2% 0% -2% -4% -6% -8% -10% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 113 New Hampshire 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 24 17 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 38.7% Rank: 20 NH U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 27 32 29 23 18 17 16 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 7.70% 33 $0.00 2 $57.90 50 $0.00 1 $19.51 35 No 1 -$0.37 12 Debt Service as a Share of Tax Revenue 6.8% 29 Public Employees Per 10,000 of Population (full-time equivalent) 515.5 21 70.7 18 $7.25 1 $1.70 25 No 50 0 34 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 5 Sales Tax Burden (per $1,000 of personal income) 588 Rank: 22 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 4 3 Recently Legislated Tax Changes 2 (2018 & 2019, per $1,000 of personal income) 1 0 -1 -2 -3 -4 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 5.7% Rank: 29 NH U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 114 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) New Jersey 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 45 48 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 25.6% Rank: 43 NJ U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 39 45 46 48 48 46 46 Variable Data Rank Top Marginal Personal Income Tax Rate 11.75% 48 Top Marginal Corporate Income Tax Rate 10.50% 45 $24.81 47 $51.51 48 $16.97 11 $12.82 4 Yes 50 $1.24 40 Debt Service as a Share of Tax Revenue 5.5% 18 Public Employees Per 10,000 of Population (full-time equivalent) 531.8 30 65.4 43 $11.00 40 $2.84 48 No 50 1 14 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (per $1,000 of personal income) -501,674 Rank: 47 (in thousands) 0 Sales Tax Burden Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -10 -20 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) -30 -40 -50 -60 -70 -80 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.8% Rank: 33 NJ U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 115 New Mexico 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 47 34 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 19.8% Rank: 45 NM U.S. 7% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 33 37 34 34 35 35 29 Variable Data Rank Top Marginal Personal Income Tax Rate 4.90% 15 Top Marginal Corporate Income Tax Rate 5.90% 16 $11.83 30 $20.25 6 $41.01 48 $15.72 16 No 1 $2.32 46 Debt Service as a Share of Tax Revenue 7.0% 30 Public Employees Per 10,000 of Population (full-time equivalent) 594.0 42 70.6 22 $9.00 27 $1.50 17 No 50 0 34 6% 5% 4% 3% 2% 1% Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 0% -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Sales Tax Burden (per $1,000 of personal income) -50,189 Rank: 34 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 5 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) 0 -5 -10 -15 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 0.5% Rank: 47 NM U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 116 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) New York 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 21 50 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 51.8% Rank: 4 NY U.S. 8% 7% 6% 5% 4% 3% 2% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 49 50 50 50 50 50 50 Variable Data Rank Top Marginal Personal Income Tax Rate 12.70% 49 Top Marginal Corporate Income Tax Rate 17.26% 50 $17.30 41 $45.90 45 $24.53 30 $19.01 30 Yes 50 $1.84 44 Personal Income Tax Progressivity 1% (change in tax liability per $1,000 of income) 0% -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) Sales Tax Burden (per $1,000 of personal income) -1,366,465 Rank: 50 0 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -50 Recently Legislated Tax Changes -100 (2018 & 2019, per $1,000 of personal income) -150 Debt Service as a Share of Tax Revenue 9.6% 48 Public Employees Per 10,000 of Population (full-time equivalent) 616.7 43 67.7 36 $11.80 44 $3.08 50 No 50 0 34 -200 -250 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 10.9% Rank: 15 NY U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 117 North Carolina 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 12 5 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 36.4% Rank: 25 NC U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 22 6 4 2 3 7 6 Variable Data Rank Top Marginal Personal Income Tax Rate 5.25% 21 Top Marginal Corporate Income Tax Rate 2.50% 4 $7.53 19 $22.58 10 $23.79 28 $16.45 23 No 1 -$0.84 6 Debt Service as a Share of Tax Revenue 5.0% 12 Public Employees Per 10,000 of Population (full-time equivalent) 549.9 36 70.9 16 $7.25 1 $1.84 32 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 80 Sales Tax Burden (per $1,000 of personal income) 472,668 Rank: 3 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 70 60 Recently Legislated Tax Changes 50 (2018 & 2019, per $1,000 of personal income) 40 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 10.3% Rank: 17 NC U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 118 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) North Dakota 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 5 11 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 76.8% Rank: 1 ND U.S. 30% Historical Ranking Comparison 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 2 4 2 3 4 4 4 Variable Data Rank Top Marginal Personal Income Tax Rate 2.90% 10 Top Marginal Corporate Income Tax Rate 4.31% 7 $8.55 25 $31.38 31 $28.00 37 $18.81 29 No 1 -$0.03 16 Debt Service as a Share of Tax Revenue 4.2% 7 Public Employees Per 10,000 of Population (full-time equivalent) 619.0 44 72.6 6 $7.25 1 $0.82 1 Yes 1 0 34 25% 20% 15% 10% Personal Income Tax Progressivity 5% (change in tax liability per $1,000 of income) 0% -5% Property Tax Burden (per $1,000 of personal income) -10% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 20 Sales Tax Burden (per $1,000 of personal income) 40,353 Rank: 16 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 15 Recently Legislated Tax Changes 10 (2018 & 2019, per $1,000 of personal income) 5 0 -5 -10 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 10% 8% 17.4% Rank: 5 ND U.S. 6% 4% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) 2% 0% -2% -4% -6% -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 119 Ohio 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 36 29 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 36.3% Rank: 26 OH U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 26 23 23 18 19 21 24 Variable Data Rank Top Marginal Personal Income Tax Rate 7.30% 40 Top Marginal Corporate Income Tax Rate 3.71% 6 $15.56 40 $28.78 24 $25.83 34 $17.49 25 No 1 $0.76 35 Debt Service as a Share of Tax Revenue 5.7% 20 Public Employees Per 10,000 of Population (full-time equivalent) 504.2 18 67.7 35 $8.70 25 $1.40 15 No 50 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden -3% (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -277,941 Rank: 45 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -5 -10 Recently Legislated Tax Changes -15 (2018 & 2019, per $1,000 of personal income) -20 -25 -30 -35 -40 -45 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 5.1% Rank: 31 OH U.S. 1% 0% -1% -2% -3% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) -4% -5% -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 120 Rich States, Poor States Number of Tax Expenditure Limits (0=least/worst 3=most/best) Oklahoma 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 31 9 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 26.9% Rank: 42 OK U.S. 10% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 19 21 16 10 16 16 13 Variable Data Rank Top Marginal Personal Income Tax Rate 5.00% 18 Top Marginal Corporate Income Tax Rate 6.00% 17 $7.41 18 $17.20 2 $27.92 36 $16.04 20 No 1 $4.14 49 Debt Service as a Share of Tax Revenue 4.9% 11 Public Employees Per 10,000 of Population (full-time equivalent) 529.2 28 71.2 14 $7.25 1 $1.71 27 Yes 1 2 3 8% 6% 4% 2% 0% -2% Personal Income Tax Progressivity (change in tax liability per $1,000 of income) -4% -6% Property Tax Burden -8% (per $1,000 of personal income) -10% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 25 Sales Tax Burden (per $1,000 of personal income) 56,515 Rank: 14 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 20 15 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) 10 5 0 -5 -10 -15 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.9% Rank: 32 OK U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 121 Oregon 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 8 42 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 45.2% Rank: 10 OR U.S. 10% 8% 6% 4% 2% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 44 42 45 41 41 41 44 Variable Data Rank Top Marginal Personal Income Tax Rate 10.67% 46 Top Marginal Corporate Income Tax Rate 14.30% 48 $14.98 37 $31.63 32 $0.00 1 $22.26 41 Yes 50 $3.72 47 Debt Service as a Share of Tax Revenue 6.6% 27 Public Employees Per 10,000 of Population (full-time equivalent) 493.4 12 69.9 25 $11.25 43 $1.15 6 No 50 2 3 Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 0% -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 60 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) 234,419 Rank: 9 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 50 Recently Legislated Tax Changes 40 (2018 & 2019, per $1,000 of personal income) 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 6% 4% 13.2% Rank: 11 OR U.S. 2% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) 0% -2% -4% -6% -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 122 Rich States, Poor States Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Pennsylvania 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 39 38 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product 34.5% Rank: 27 Cumulative Growth 2008-2018 PA U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 34 33 41 39 38 38 38 Variable Data Rank Top Marginal Personal Income Tax Rate 6.94% 35 Top Marginal Corporate Income Tax Rate 16.90% 49 $0.00 2 $29.24 26 $17.10 12 $22.61 42 Yes 50 $0.09 21 Debt Service as a Share of Tax Revenue 6.8% 28 Public Employees Per 10,000 of Population (full-time equivalent) 437.3 5 66.6 39 $7.25 1 $1.85 34 No 50 0 34 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Sales Tax Burden (per $1,000 of personal income) -228,570 Rank: 44 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 0 Recently Legislated Tax Changes -10 (2018 & 2019, per $1,000 of personal income) -20 -30 -40 -50 -60 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.5% Rank: 36 PA U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 123 Rhode Island 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 38 43 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 Historical Ranking Comparison 28.6% 6% Rank: 39 RI U.S. ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 45 41 39 35 36 39 43 Variable Data Rank Top Marginal Personal Income Tax Rate 5.99% 27 Top Marginal Corporate Income Tax Rate 7.00% 28 $11.31 29 $46.97 47 $18.40 13 $17.88 27 Yes 50 $0.72 33 Debt Service as a Share of Tax Revenue 9.6% 47 Public Employees Per 10,000 of Population (full-time equivalent) 453.1 6 70.5 24 $10.50 38 $2.19 43 No 50 1 14 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -46,978 Rank: 32 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -1 Recently Legislated Tax Changes -2 (2018 & 2019, per $1,000 of personal income) -3 -4 -5 -6 -7 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.5% Rank: 35 RI U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 124 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) South Carolina 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 7 32 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 44.6% Rank: 12 SC U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 31 31 32 30 27 33 32 Variable Data Rank Top Marginal Personal Income Tax Rate 7.00% 37 Top Marginal Corporate Income Tax Rate 5.00% 13 $18.55 43 $29.29 27 $18.54 14 $16.12 21 No 1 $1.47 42 Debt Service as a Share of Tax Revenue 8.1% 40 Public Employees Per 10,000 of Population (full-time equivalent) 532.1 31 67.6 37 $7.25 1 $1.95 37 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 60 Sales Tax Burden (per $1,000 of personal income) 357,604 Rank: 6 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 50 Recently Legislated Tax Changes 40 (2018 & 2019, per $1,000 of personal income) 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 13.9% Rank: 10 SC U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 125 South Dakota 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 16 13 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 41.9% Rank: 14 SD U.S. 12% Historical Ranking Comparison 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 3 2 9 11 12 9 7 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 0.00% 1 $0.00 2 $33.14 34 $33.69 45 $19.33 34 No 1 $0.00 17 Debt Service as a Share of Tax Revenue 5.4% 17 Public Employees Per 10,000 of Population (full-time equivalent) 544.6 34 72.0 10 $9.30 31 $1.73 28 Yes 1 1 14 10% 8% 6% 4% Personal Income Tax Progressivity 2% (change in tax liability per $1,000 of income) 0% -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 5 Sales Tax Burden (per $1,000 of personal income) 16,992 Rank: 20 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 4 Recently Legislated Tax Changes 3 (2018 & 2019, per $1,000 of personal income) 2 1 0 -1 -2 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 7.6% Rank: 23 SD U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 126 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Tennessee 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 9 8 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 44.7% Rank: 11 TN U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 18 19 17 7 5 12 8 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 6.50% 22 $0.00 2 $19.85 5 $31.57 41 $19.05 31 No 1 $0.05 20 Debt Service as a Share of Tax Revenue 5.8% 23 Public Employees Per 10,000 of Population (full-time equivalent) 495.8 15 68.3 34 $7.25 1 $1.52 19 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 45 Sales Tax Burden (per $1,000 of personal income) 251,287 Rank: 8 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 40 35 Recently Legislated Tax Changes 30 (2018 & 2019, per $1,000 of personal income) 25 20 15 10 5 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 13.0% Rank: 12 TN U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 127 Texas 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 1 15 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product 45.7% Cumulative Growth 2008-2018 Rank: 7 TX U.S. 10% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 12 13 11 12 9 14 15 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 2.70% 5 $0.00 2 $40.46 42 $28.35 38 $16.15 22 No 1 $0.17 24 Debt Service as a Share of Tax Revenue 9.3% 46 Public Employees Per 10,000 of Population (full-time equivalent) 526.2 26 67.1 38 $7.25 1 $1.21 9 Yes 1 1 14 8% 6% 4% 2% 0% Personal Income Tax Progressivity -2% (change in tax liability per $1,000 of income) -4% Property Tax Burden -6% (per $1,000 of personal income) -8% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 200 (in thousands) Sales Tax Burden (per $1,000 of personal income) 1,262,347 Rank: 1 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 180 160 Recently Legislated Tax Changes 140 (2018 & 2019, per $1,000 of personal income) 120 100 80 60 40 20 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 18.5% Rank: 2 TX U.S. 2% 1% 0% -1% -2% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 128 Rich States, Poor States Number of Tax Expenditure Limits (0=least/worst 3=most/best) Utah 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 3 1 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 53.6% Rank: 3 UT U.S. 7% 6% 5% 4% 3% 2% 1% 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 1 1 1 1 1 1 1 Variable Data Rank Top Marginal Personal Income Tax Rate 4.95% 16 Top Marginal Corporate Income Tax Rate 4.95% 12 $0.28 12 $24.29 14 $25.06 31 $15.74 17 No 1 $0.69 32 Debt Service as a Share of Tax Revenue 5.7% 19 Public Employees Per 10,000 of Population (full-time equivalent) 491.5 11 70.7 19 $7.25 1 $1.06 5 Yes 1 1 14 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 25 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) 77,933 Rank: 13 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 20 Recently Legislated Tax Changes 15 (2018 & 2019, per $1,000 of personal income) 10 5 0 -5 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% 23.6% Rank: 1 UT U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 129 Vermont 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 37 49 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 29.5% Rank: 38 VT U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 50 49 49 49 49 49 49 Variable Data Rank Top Marginal Personal Income Tax Rate 8.75% 43 Top Marginal Corporate Income Tax Rate 8.50% 39 $28.94 49 $52.10 49 $12.23 7 $27.84 48 Yes 50 $0.81 36 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 0 Sales Tax Burden (per $1,000 of personal income) -11,834 Rank: 25 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -1 Recently Legislated Tax Changes -2 (2018 & 2019, per $1,000 of personal income) -3 Debt Service as a Share of Tax Revenue 3.8% 2 -4 Public Employees Per 10,000 of Population (full-time equivalent) 633.0 47 71.7 11 $10.96 39 $2.09 42 No 50 0 34 -5 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 3.4% Rank: 41 VT U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 130 Rich States, Poor States State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) Virginia 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 29 16 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 33.5% Rank: 32 VA U.S. 6% Historical Ranking Comparison 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 5 11 12 13 11 10 14 Variable Data Rank Top Marginal Personal Income Tax Rate 5.75% 25 Top Marginal Corporate Income Tax Rate 7.68% 32 $7.60 20 $30.48 29 $11.83 6 $15.92 19 No 1 $0.49 30 Debt Service as a Share of Tax Revenue 6.1% 25 Public Employees Per 10,000 of Population (full-time equivalent) 531.5 29 71.3 12 $7.25 1 $1.28 10 Yes 1 0 34 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% -2% Property Tax Burden (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 30 Sales Tax Burden (per $1,000 of personal income) -30,217 Rank: 29 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 20 Recently Legislated Tax Changes 10 (2018 & 2019, per $1,000 of personal income) 0 -10 -20 -30 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 4% 3% 6.9% Rank: 25 VA U.S. 2% 1% 0% -1% -2% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 131 Washington 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 2 39 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 59.1% Rank: 2 WA U.S. 10% 8% 6% 4% 2% ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 36 38 35 36 40 37 37 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 6.98% 27 $0.00 2 $26.43 17 $33.51 44 $24.01 45 Yes 50 $0.50 31 Debt Service as a Share of Tax Revenue 8.9% 45 Public Employees Per 10,000 of Population (full-time equivalent) 504.5 19 69.8 26 $13.50 50 $1.87 35 No 50 1 14 Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 0% -2% Property Tax Burden (per $1,000 of personal income) -4% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 80 Historical Ranking Comparison (in thousands) Sales Tax Burden (per $1,000 of personal income) 356,317 Rank: 7 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 70 60 Recently Legislated Tax Changes 50 (2018 & 2019, per $1,000 of personal income) 40 30 20 10 0 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 15.6% Rank: 7 WA U.S. 4% 3% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs 2% (per $100 of payroll) 1% 0% Right-to-Work State? -1% (option to join or support a union) -2% -3% -4% Number of Tax Expenditure Limits -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 132 Rich States, Poor States (0=least/worst 3=most/best) West Virginia 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 43 28 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 24.8% Rank: 44 WV U.S. 7% 6% 5% 4% 3% 2% 1% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 32 30 36 37 31 30 31 Variable Data Rank Top Marginal Personal Income Tax Rate 6.50% 29 Top Marginal Corporate Income Tax Rate 6.50% 22 $15.53 39 $25.08 16 $20.05 16 $26.71 47 No 1 $0.22 27 Debt Service as a Share of Tax Revenue 4.6% 10 Public Employees Per 10,000 of Population (full-time equivalent) 565.9 39 63.3 45 $8.75 26 $1.01 4 Yes 1 0 34 Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 6 Sales Tax Burden (per $1,000 of personal income) -28,000 Rank: 28 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 4 2 Recently Legislated Tax Changes 0 (2018 & 2019, per $1,000 of personal income) -2 -4 -6 -8 -10 -12 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 0.1% Rank: 49 WV U.S. 1% 0% -1% -2% -3% -4% -5% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 133 Wisconsin 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 34 12 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 37.40% Rank: 22 WI U.S. 6% Historical Ranking Comparison ECONOMIC OUTLOOK RANK 2013 2014 2015 2016 2017 2018 2019 15 17 13 9 14 19 17 Variable Data Rank Top Marginal Personal Income Tax Rate 7.65% 41 Top Marginal Corporate Income Tax Rate 7.90% 35 $14.63 35 $34.31 35 $20.08 17 $15.64 14 No 1 -$1.18 3 Debt Service as a Share of Tax Revenue 5.0% 13 Public Employees Per 10,000 of Population (full-time equivalent) 488.8 10 71.2 13 $7.25 1 $2.02 40 Yes 1 2 3 5% 4% 3% 2% 1% Personal Income Tax Progressivity 0% (change in tax liability per $1,000 of income) -1% Property Tax Burden -2% (per $1,000 of personal income) -3% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 0 (in thousands) (per $1,000 of personal income) -84,435 Rank: 39 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? -2 -4 Recently Legislated Tax Changes (2018 & 2019, per $1,000 of personal income) -6 -8 -10 -12 -14 -16 Sales Tax Burden ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 4.2% Rank: 38 WI U.S. 1% 0% -1% -2% -3% State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) -4% -5% -6% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 134 Rich States, Poor States Number of Tax Expenditure Limits (0=least/worst 3=most/best) Wyoming 2020 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX 46 2 Economic Performance Rank Economic Outlook Rank Economic Outlook Rank (1=best 50=worst) A forward-looking forecast based on the state’s standing (equal-weighted average) in the 15 important state policy variables shown below. Data reflect state and local rates and revenues and any effect of federal deductibility. State Gross Domestic Product Cumulative Growth 2008-2018 -8.0% Rank: 50 WY U.S. 10% 5% 0% -5% 2013 2014 2015 2016 2017 2018 2019 ECONOMIC OUTLOOK RANK 6 10 8 4 7 8 10 Variable Data Rank Top Marginal Personal Income Tax Rate 0.00% 1 Top Marginal Corporate Income Tax Rate 0.00% 1 $0.00 2 $37.75 40 $20.18 18 $13.06 5 No 1 $0.20 25 Debt Service as a Share of Tax Revenue 2.5% 1 Public Employees Per 10,000 of Population (full-time equivalent) 868.2 50 73.1 4 $7.25 1 $1.87 35 Yes 1 0 34 Personal Income Tax Progressivity -10% (change in tax liability per $1,000 of income) -15% Property Tax Burden (per $1,000 of personal income) -20% ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Absolute Domestic Migration Cumulative 2009-2018 (in thousands) 10 Historical Ranking Comparison Sales Tax Burden (per $1,000 of personal income) -5,623 Rank: 24 Remaining Tax Burden (per $1,000 of personal income) Estate/Inheritance Tax Levied? 8 6 Recently Legislated Tax Changes 4 (2018 & 2019, per $1,000 of personal income) 2 0 -2 -4 -6 -8 -10 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Non-Farm Payroll Employment Cumulative 2008-2018 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7% -4.5% Rank: 50 WY U.S. ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 State Liability System Survey (tort litigation treatment, judicial impartiality, etc.) State Minimum Wage (federal floor is $7.25) Average Workers’ Compensation Costs (per $100 of payroll) Right-to-Work State? (option to join or support a union) Number of Tax Expenditure Limits (0=least/worst 3=most/best) www.alec.org 135 APPENDIX Appendix 2020 ALEC-Laffer State Economic Competitiveness Index: Economic Outlook Methodology I n previous editions of this report, we introduced 15 policy variables that have a proven impact on the migration of capital — both investment and human — into and out of states. The end result of an equal-weighted combination of these variables is the 2020 ALEC-Laffer Economic Outlook ranking of the states. Each of these factors is influenced directly by state lawmakers through the legislative process. The 15 factors and a basic description of their purposes, sourcing and subsequent calculation methodologies are as follows: HIGHEST MARGINAL PERSONAL INCOME TAX RATE This variable includes local taxes, if any, and any impact of federal deductibility, if allowed. A state’s largest city is used as a proxy for local tax rates. Data were drawn from Tax Analysts, Federation of Tax Administrators and individual state tax return forms. Tax rates are as of January 1, 2020. HIGHEST MARGINAL CORPORATE INCOME TAX RATE This variable includes local taxes, if any, and includes the effect of federal deductibility, if allowed. A state’s largest city is used as a proxy for local tax rates. In the case of gross receipts or business franchise taxes, an effective tax rate is approximated using NIPA profits, rental and proprietor’s income and gross domestic product data. For an explanation of the estimation of Texas’ franchise tax, see note below. The Texas franchise tax is not a traditional gross receipts tax, but is instead a “margin” tax with more than one rate. A margin tax creates less distortion than a gross receipts tax. Therefore, we believe the best measurement for an effective corporate tax rate for Texas is to average the 4.656% measure we would use if the tax was a gross receipts tax and the 0.75% highest rate on its margin tax, leading to our measure of 2.70%. Data were drawn from Tax Analysts, Federation of Tax Administrators, individual state tax return forms and the Bureau of Economic Analysis. Tax rates are as of January 1, 2020. PERSONAL INCOME TAX PROGRESSIVITY This variable is measured as the difference between the average tax liability per $1,000, 136 Rich States, Poor States at incomes of $50,000 and $150,000. The tax liabilities are measured using a combination of effective tax rates, exemptions, and deductions at both state and federal levels, which are calculations from Laffer Associates. Tax rates are as of January 1, 2020. PROPERTY TAX BURDEN This variable is calculated by taking tax revenues from state and local property taxes per $1,000 of personal income. We have used U.S. Census Bureau data, for which the most recent year available is 2017. These data were released in October 2019. SALES TAX BURDEN This variable is calculated by taking tax revenues from state and local sales taxes per $1,000 of personal income. Sales taxes taken into consideration include the general sales tax and specific sales taxes. We use U.S. Census Bureau Data, for which the most recent year available is 2017. Where appropriate, gross receipts or business franchise taxes, counted as sales taxes in the Census data, are subtracted from a state’s total sales taxes in order to avoid double-counting tax burden in a state. These data were released in October 2019. REMAINING TAX BURDEN This variable is calculated by taking tax revenues from state and local taxes—excluding personal income, corporate income (including corporate license), property, sales and severance per $1,000 of personal income. We use U.S. Census Bureau Data, for which the most recent year available is 2017. These data were released in October 2019. ESTATE OR INHERITANCE TAX This variable assesses if a state levies an estate or inheritance tax. We chose to score states based on either a “yes” for the presence of a state-level estate or inheritance tax, or a “no” for the lack thereof. Data are drawn from McGuire Woods LLP, “State Death Tax Chart” and indicate the presence of an estate or inheritance tax as of January 1, 2020. RECENTLY LEGISLATED TAX CHANGES This variable calculates each state’s relative change in tax burden over a two-year period (in this case, the 2018 and 2019 legislative sessions) for the next fiscal year, using revenue estimates of legislated tax changes per $1,000 of personal income. Personal income data are drawn from 2018. This timeframe ensures that tax changes will still be reflected in a state’s ranking despite lags in the tax revenue data. ALEC and Laffer Associates calculations use raw data from state legislative fiscal notes, state budget offices, state revenue offices and other sources, including the National Conference of State Legislators. DEBT SERVICE AS A SHARE OF TAX REVENUE This variable calculates interest paid on state and local debt as a percentage of state and local total tax revenue. This information comes from 2017 U.S. Census Bureau data. These data were released in October 2019. PUBLIC EMPLOYEES PER 10,000 RESIDENTS This variable shows the full-time equivalent state and local public employees per 10,000 of population. This information comes from 2018 U.S. Census Bureau data. These data were released in June 2019. QUALITY OF STATE LEGAL SYSTEM This variable ranks tort systems by state. Information comes from the U.S. Chamber of Commerce Institute for Legal Reform 2019 Lawsuit Climate Survey. STATE MINIMUM WAGE This variable indicates minimum wage enforced on a state-by-state basis. If a state does not have a minimum wage, we use the federal minimum wage floor of $7.25 per hour. This information comes from the U.S. Department of Labor, as of January 1, 2020. WORKERS’ COMPENSATION COSTS This variable highlights the 2018 Workers’ Compensation Index Rate (cost per $100 of payroll). This survey is conducted biennially by the Oregon Department of Consumer & Business Services, Information Management Division. RIGHT-TO-WORK STATE This variable assesses whether or not a state allows employees to be forced to pay union dues as a condition of employment. States receive their rank based on either a “yes” for the presence of a right-to-work law or a “no” for the lack thereof. This information comes from the National Right to Work Legal Defense and Education Foundation, Inc. Right-to-work status is as of January 1, 2020. TAX OR EXPENDITURE LIMIT This variable measures the influence of tax and expenditure limits on state tax revenue and spending. States are ranked by the number of state tax or expenditure limits in place. We measure this by i) a state expenditure limit, ii) mandatory voter approval of tax increases and iii) a supermajority requirement for tax increases. One point is awarded for each type of tax or expenditure limitation a state has. This information comes from the National Association of State Budget Officers, American Enterprise Institute and other sources. www.alec.org www.alec.org 137 137 APPENDIX Appendix 2020 ALEC-Laffer State Economic Competitiveness Index: Economic Performance Methodology GROSS DOMESTIC PRODUCT GROWTH This variable is calculated by observing state GDP growth figures over 10 years from 2008-2018. A percentage change formula over the 10-year timeframe generates a GDP growth figure for each state. Data are drawn from the Bureau of Economic Analysis, which were last updated in November 2019. CUMULATIVE DOMESTIC MIGRATION This variable is a summation of net in-migration of individuals for each state over a 10-year period from 2009-2018. Data are drawn from the U.S. Census Bureau, which were last revised in December 2019. NON-FARM EMPLOYMENT GROWTH This variable is calculated by observing state nonfarm employment growth figures over a 10-year period, from 2008-2018. A percentage change formula over the 10-year timeframe generates a decadal non-farm employment growth rate for each state. Data are drawn from the Bureau of Labor Statistics, which were last revised in March 2019.