According to the newest edition of the Rich States, Poor States report, released by the American Legislative Exchange Council, New Jersey ranked 45th in the nation in terms of economic outlook based on 15 state policy variables. It ranked 48th in terms of past performance (2002-2012) in three performance variables including: state domestic product; absolute domestic migration; and non-farm employment.
Utah again earns the top spot for states with the best economic outlook in 2014, followed by South Dakota, Indiana, North Dakota and Idaho, The report also reveals that big reforms significantly helped Indiana, Michigan and North Carolina improve their national rankings this year.
“The big story in our report this year is that fundamental tax and fiscal policy reforms significantly improved the economic competitiveness rankings of North Carolina, Indiana, and Michigan. These states are now better poised to realize real economic growth,” said Jonathan Williams, director of the American Legislative Exchange Council Center for State Fiscal Reform and co-author of Rich States, Poor States: ALEC-Laffer State Economic State Competitiveness Index.
Rich States, Poor States examines the latest trends in state economic growth. The data ranks the 2014 economic outlook of states using 15 equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The seventh edition examines the trends over the last few decades that have helped or hurt states’ rankings, and states with low tax rates and right-to-work laws are more likely to have a better economic outlook.
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