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September 18, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

New York and Connecticut rank low on new study of state economic growth

New York and Connecticut ranked at the bottom for state economic growth in the 2019 edition of the American Legislative Exchange Council’s (ALEC) study “Rich States, Poor States.”

Image courtesy ALEC

The ALEC report, now in its 12th year, ranks the states via 15 policy considerations ranging from tax rates, regulatory burdens and labor policies, with the determination on whether these policies have benefited or brutalized the states’ economies.

New York ranked 50th for economic outlook for the sixth consecutive year, although it ranked 17th for economic performance. Among the variables that resulted in its rankings, the ALEC analysts noted its marginal corporate income tax rate (a 50th ranking), average workers compensation costs (a 50th ranking) and the marginal personal income tax rate (a 49th ranking).

Across the border, Connecticut ranked 41st for economic outlook and 50th for economic performance. Among the variables that resulted in its rankings, the ALEC analysts scored Connecticut with low marks for its property taxes (a 43rd ranking), its estate/inheritance tax policy (a 50th ranking) and its labor policy that works against the right-to-work concept (another 50th ranking).

“With massive surpluses gifted to the states through federal tax reform, many state lawmakers are leveraging this into tax relief to benefit state taxpayers,” said ALEC Chief Economist and Vice President Jonathan Williams. “However, some states aren’t seizing their golden opportunity to become more competitive, and their economies will suffer for it.”

Williams also noted economic policies that contribute to an exodus of state residents – New York saw 1.3 million leave and Connecticut saw 178,000 move out between 2008 and 2017 – also has political consequences.

“This migration directly influences the economic and political makeup of states, and the Electoral College, as we approach the 2020 census,” he added. “Americans continue to vote with their feet across states, and they are voting strongly in favor of the states that have created a free market environment conducive to economic growth and opportunity.”

The top 10 consisted of in ascending order Utah, Idaho, North Dakota, Nevada, Indiana, North Carolina, Tennessee, Florida, South Dakota and Arizona.