Rich States, Poor States - American Legislative Exchange Council

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Rich States, Poor States
ALEC-Laffer State Economic Competitiveness Index
Arthur B. Laffer
Stephen Moore
Jonathan Williams
ALEC-Laffer State Economic Competitiveness Index
© 2016 American Legislative Exchange Council
All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this
publication may be reproduced or distributed in any form or by any means, or stored in a database or
retrieval system without the prior permission of the publisher.
Published by
American Legislative Exchange Council
2900 Crystal Drive, Suite 600
Arlington, VA 22202
www.alec.org
Dr. Arthur B. Laffer, Stephen Moore
and Jonathan Williams, Authors
Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index has been published by the
American Legislative Exchange Council, America’s largest nonpartisan, voluntary membership organization of state legislators. Made up of nearly one-third of America’s state elected officials, the Council
provides a unique opportunity for state lawmakers, business leaders and citizen organizations from
around the country to share experiences and develop state-based, pro-growth models based on academic research, existing state policy and proven business practices.
The American Legislative Exchange Council is classified by the Internal Revenue Service as a 501(c)(3)
nonprofit and public policy and educational organization. Individuals, philanthropic foundations, corporations, companies or associations are eligible to support the Council’s work through tax-deductible gifts.
ii
About the Authors
DR. ARTHUR B. LAFFER
Arthur B. Laffer is the founder and chairman of Laffer Associates and Laffer Investments, and many
publications have named him “The Father of Supply-Side Economics.” Dr. Laffer served as a member
of President Reagan’s Economic Policy Advisory Board for both terms and also advised Prime Minister
Margaret Thatcher on fiscal policy in the U.K. during the 1980s. He has been a faculty member at the
University of Chicago, University of Southern California and Pepperdine University. In March 1999, he
was noted by Time Magazine as one of “the Century’s Greatest Minds” for his invention of the Laffer
Curve, which has been called one of “a few of the advances that powered this extraordinary century.”
He has received many awards for his economic research, including two Graham and Dodd Awards from
the Financial Analyst Federation. He graduated from Yale with a Bachelor’s degree in economics in 1963
and received both his MBA and Ph.D. in economics from Stanford University.
STEPHEN MOORE
Stephen Moore, who formerly wrote on the economy and public policy for The Wall Street Journal, is a
distinguished visiting fellow with Project for Economic Growth at The Heritage Foundation. Moore was
previously the founder and president of the Club for Growth and founded the Free Enterprise Fund. Over
the years, Moore has served as a senior economist at the Congressional Joint Economic Committee and
as a senior economics fellow at the Cato Institute. He was also a consultant to the National Economic
Commission in 1987 and research director for President Reagan’s Commission on Privatization. Moore is
a Fox News contributor along with writing regularly for National Review, Forbes, Investor’s Business Daily,
The Washington Times and the Orange County Register. Moore holds a master’s of arts in economics
from George Mason University. He has authored numerous books, including Who’s the Fairest of Them
All, It’s Getting Better All the Time, Still an Open Door and An Inquiry into the Nature and Causes of the
Wealth of States.
JONATHAN WILLIAMS
Jonathan Williams is the vice president for the Center for State Fiscal Reform at the American Legislative
Exchange Council (ALEC), where he works with state policymakers, congressional leaders and members
of the private sector to develop fiscal policy solutions for the states. Prior to joining ALEC, Williams served
as staff economist at the nonpartisan Tax Foundation, authoring numerous tax policy studies. Williams’s
work has appeared in many publications, including The Wall Street Journal, Forbes and Investor’s
Business Daily. He is a columnist for Tax Analysts, the leading provider of tax news and analysis for the
global community. He has written for the Ash Center for Democratic Governance and Innovation at
Harvard’s Kennedy School of Government. In addition, Williams was a contributing author of In Defense
of Capitalism (Northwood University Press). Williams has testified before numerous legislative bodies
and spoken to audiences across America. He is a frequent guest on talk radio shows and has appeared
on numerous television outlets, including the PBS NewsHour with Jim Lehrer, Fox Business News and
Bloomberg. Williams was also the recipient of the prestigious Ludwig von Mises Award in Economics.
iv
CHAPTER TITLE: Subtitle
Salt Lake City, Utah
State Rankings
www.alec.org
83
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.
Table 1 | ALEC-Laffer State Economic Outlook Rankings, 2016
Based upon equal-weighting of each state’s rank in 15 policy variables
Rank
State
Rank
State
1
Utah
26
Massachusetts
2
North Carolina
27
Kansas
3
North Dakota
28
Louisiana
4
Wyoming
29
Iowa
5
Arizona
30
South Carolina
6
Indiana
31
Maryland
7
Tennessee
32
Nebraska
8
Florida
33
Kentucky
9
Wisconsin
34
New Mexico
10
Oklahoma
35
Rhode Island
11
South Dakota
36
Washington
12
Texas
37
West Virginia
13
Virginia
38
Maine
14
Nevada
39
Pennsylvania
15
Idaho
40
Montana
16
Colorado
41
Oregon
17
Mississippi
42
Hawaii
18
Ohio
43
Illinois
19
Georgia
44
Delaware
20
Arkansas
45
Minnesota
21
Alabama
46
California
22
Michigan
47
Connecticut
23
New Hampshire
48
New Jersey
24
Missouri
49
Vermont
25
Alaska
50
New York
84 Rich States, Poor States
2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX
Table 2 | ALEC-Laffer State Economic Performance Rankings, 2004-2014
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
North Dakota
Oklahoma
Colorado
Wyoming
North Carolina
Oregon
Montana
Idaho
South Dakota
Alaska
Arizona
South Carolina
Nebraska
Georgia
Florida
Virginia
Tennessee
Iowa
West Virginia
Hawaii
Arkansas
Kentucky
New York
Kansas
Nevada
Alabama
Massachusetts
California
Minnesota
Louisiana
Maryland
New Hampshire
New Mexico
Delaware
Pennsylvania
Vermont
Indiana
Wisconsin
Mississippi
Missouri
Maine
Connecticut
Illinois
New Jersey
Rhode Island
Ohio
Michigan
State Gross Domestic Product
3
8
4
1
5
13
2
16
12
7
20
11
6
25
26
9
33
38
24
31
17
10
18
21
28
14
19
41
32
27
22
29
15
23
36
40
47
30
43
37
35
34
44
49
46
39
42
48
45
50
Absolute Domestic Migration
1
8
15
21
12
7
22
3
10
19
14
23
31
4
6
32
5
2
16
9
29
24
33
17
18
50
36
11
13
43
49
37
44
41
26
25
20
40
28
34
38
35
30
27
42
48
46
39
45
47
Non-Farm Payroll
2
6
3
1
7
5
4
12
15
11
9
10
8
18
17
14
20
25
26
27
21
34
22
36
30
13
23
29
41
16
19
24
31
28
33
32
35
37
38
39
40
45
42
48
43
44
46
49
47
50
www.alec.org
85
Alabama
Connecticut
29
21
Economic
Performance Rank
Economic
Outlook Rank
Economic Performance Rank (1=best 50=worst)
Economic Outlook Rank (1=best 50=worst)
A backward-looking measure based on the state’s performance (equal-weighted average) in the three important performance variables shown below. These variables are highly influenced by state policy.
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.
Historical Ranking Comparison
Cumulative Growth 2004-2014
34.7%
Rank: 32
AL
U.S.
8%
6%
4%
2%
ECONOMIC OUTLOOK RANK
2009 2010 2011 2012 2013 2014 2015
16 17 20 21 17 20 19
Variable
Data
Rank
Top Marginal Personal Income Tax Rate
4.02%
13
Top Marginal Corporate Income Tax Rate
4.23%
7
-$2.16
1
$15.18
2
$25.01
33
$22.38
40
No
1
-$0.04
24
Debt Service as a Share of Tax Revenue
8.5%
31
Public Employees Per 10,000
of Population (full-time equivalent)
583.9
40
55.1
46
$7.25
1
$1.81
22
Yes
1
0
34
Personal Income Tax Progressivity
0%
(change in tax liability per $1,000 of income)
-2%
Property Tax Burden
-4%
’05
’06
’07
’08
’09
’10
Cumulative 2005-2014
’11
’12
’13
’14
(per $1,000 of personal income)
Sales Tax Burden
103,580
Rank: 13
(in thousands)
Remaining Tax Burden
35
30
Estate/Inheritance Tax Levied?
25
20
Recently Legislated Tax Changes
15
(2014 & 2015, per $1,000 of personal income)
10
5
0
-5
’05
’06
’07
’08
’09
’10
Non-Farm Payroll Employment
’11
’12
’13
’14
State Liability System Survey
1.2%
Rank: 41
AL
U.S.
3%
2%
(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%
’05
(0=least/worst 3=most/best)
’06
’07
’08
’09
8686Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Alaska
Delaware
13
25
Economic
Performance Rank
Economic
Outlook Rank
59.5%
Rank: 6
AK
U.S.
15%
10%
5%
0%
2009 2010 2011 2012 2013 2014 2015
38 22 29 29 21 18 14
Variable
Data
Rank
0.00%
1
9.40%
44
$0.00
2
$37.12
40
$5.71
5
$13.55
6
No
1
$0.19
33
6.2%
14
738.9
49
68.1
12
$9.75
48
$2.68
46
No
50
1
14
-5%
-10%
Property Tax Burden
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
-21,018
Rank: 31
(in thousands)
6
4
2
0
-2
-4
-6
-8
-10
-12
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
10.6%
Rank: 8
AK
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
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www.alec.org 87 87
Arizona
Connecticut
14
5
Economic
Performance Rank
Economic
Outlook Rank
40.0% Rank: 25
AZ
U.S.
12%
2009 2010 2011 2012 2013 2014 2015
3 3 12 9 6 7 5
Variable
Data
Rank
4.54%
14
5.50%
14
$10.65
32
$27.54
20
$37.16
48
$11.75
1
No
1
-$0.21
19
8.3%
30
426.6
2
65.4
25
$8.05
26
$1.60
14
Yes
1
2
3
10%
8%
6%
4%
2%
0%
-2%
-4%
Property Tax Burden
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
536,269
Rank: 4
(in thousands)
140
120
100
80
60
40
20
0
’05
’06
’07
’08
’09
’10
’11
’12
6.8%
’13
’14
Rank: 18
AZ
U.S.
8%
etc.)
State Minimum Wage
6%
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
8888Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Arkansas
Delaware
24
20
Economic
Performance Rank
Economic
Outlook Rank
40.7% Rank: 21
AR
U.S.
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
12 13 13 11 24 26 22
Variable
Data
Rank
6.90%
31
6.50%
21
$14.50
39
$18.03
3
$35.64
44
$16.90
20
No
1
-$0.30
16
5.0%
6
564.6
38
57.7
41
$8.00
25
$1.08
3
Yes
1
1
14
0%
-2%
Property Tax Burden
-3%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
63,430
(in thousands)
Sales Tax Burden
Rank: 17
25
20
15
10
5
0
-5
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
2.9%
Rank: 36
AR
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
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www.alec.org 89 89
California
Connecticut
31
46
Economic
Performance Rank
Economic
Outlook Rank
40.3% Rank: 22
CA
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
43 46 47 38 47 47 44
Variable
Data
Rank
13.30%
50
8.84%
40
$38.67
50
$28.56
24
$24.24
30
$18.18
24
No
1
-$0.71
10
9.4%
39
451.7
6
49.9
47
$10.00
49
$3.48
50
No
50
2
3
-2%
-4%
Property Tax Burden
’05
’06
’07
’08
’09
’10
’11
’12
-1,265,447
’13
’14
Sales Tax Burden
Rank: 49
(in thousands)
0
-50
-100
-150
-200
-250
-300
-350
’05
’06
’07
’08
’09
’10
’11
’12
6.8%
’13
’14
Rank: 19
CA
U.S.
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
9090Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Colorado
Delaware
6
16
Economic
Performance Rank
Economic
Outlook Rank
49.0% Rank: 13
CO
U.S.
10%
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
2 2 6 8 16 22 21
Variable
Data
Rank
4.63%
16
4.63%
9
$6.39
21
$28.77
25
$25.08
34
$13.84
8
No
1
-$0.03
25
10.8%
47
523.7
22
67.8
16
$8.31
34
$1.50
10
No
50
3
1
0%
-2%
Property Tax Burden
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
315,015
(in thousands)
Rank: 7
40
35
30
25
20
15
10
5
0
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
13.2%
Rank: 5
CO
U.S.
4%
etc.)
State Minimum Wage
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
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www.alec.org 91 91
Connecticut
Connecticut
45
47
Economic
Performance Rank
Economic
Outlook Rank
26.0% Rank: 46
CT
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
32 36 35 44 43 44 47
Variable
Data
Rank
6.99%
34
9.00%
42
$7.67
29
$43.55
44
$17.12
12
$18.11
23
Yes
50
$3.50
49
7.1%
22
530.1
25
65.9
22
$9.60
45
$2.87
49
No
50
1
14
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-153,918
Rank: 42
(in thousands)
0
-5
-10
-15
-20
-25
-30
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
1.1%
Rank: 43
CT
U.S.
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
9292Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Delaware
Delaware
37
44
Economic
Performance Rank
Economic
Outlook Rank
25.3% Rank: 47
DE
U.S.
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
31 37 34 34 30 27 38
Variable
Data
Rank
7.85%
41
11.66%
48
$15.10
40
$18.49
4
$0.00
1
$48.46
50
Yes
50
$1.19
40
10.3%
43
524.2
23
76.5
1
$8.25
30
$2.31
42
No
50
2
3
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
41,162
Rank: 20
(in thousands)
8
7
6
5
4
3
2
1
0
’05
’06
’07
’08
’09
’10
’11
’12
3.1%
’13
’14
Rank: 35
DE
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 93 93
Florida
18
8
Economic
Performance Rank
Economic
Outlook Rank
31.7% Rank: 38
FL
U.S.
10%
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
11 5 10 13 9 16 15
Variable
Data
Rank
0.00%
1
5.50%
14
$0.00
2
$29.53
27
$28.05
36
$21.87
39
No
1
-$0.60
11
9.0%
36
434.3
3
56.0
44
$8.05
26
$1.82
23
Yes
1
2
3
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
834,966
Rank: 2
(in thousands)
300
250
200
150
100
50
0
-50
’05
’06
’07
’08
’09
’10
’11
’12
4.6%
’13
’14
Rank: 25
FL
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
9494Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Georgia
17
19
Economic
Performance Rank
Economic
Outlook Rank
34.5% Rank: 33
GA
U.S.
7%
6%
5%
4%
3%
2%
1%
2009 2010 2011 2012 2013 2014 2015
8 9 11 10 8 9 7
Variable
Data
Rank
6.00%
27
6.00%
16
$6.53
23
$27.05
19
$24.52
32
$11.76
2
No
1
$2.10
44
7.6%
25
503.7
18
62.4
31
$7.25
1
$1.75
19
Yes
1
0
34
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
406,863
Rank: 5
(in thousands)
140
120
100
80
60
40
20
0
-20
’05
’06
’07
’08
’09
’10
’11
’12
6.5%
’13
’14
Rank: 20
GA
U.S.
4%
etc.)
State Minimum Wage
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
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www.alec.org 95 95
Hawaii
23
42
Economic
Performance Rank
Economic
Outlook Rank
42.9% Rank: 18
HI
U.S.
10%
2009 2010 2011 2012 2013 2014 2015
41 39 46 46 40 36 37
Variable
Data
Rank
8.25%
43
6.40%
19
$13.54
37
$21.33
9
$50.07
50
$27.86
46
Yes
50
-$0.84
9
6.8%
18
527.8
24
62.8
30
$8.50
36
$1.85
24
No
50
1
14
8%
6%
4%
2%
0%
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
-36,439
Rank: 33
(in thousands)
2
0
-2
-4
-6
-8
-10
-12
-14
Property Tax Burden
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
5.7%
Rank: 22
HI
U.S.
4%
etc.)
State Minimum Wage
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
9696Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Idaho
11
15
Economic
Performance Rank
Economic
Outlook Rank
42.3% Rank: 20
ID
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
14 7 5 6 7 5 6
Variable
Data
Rank
7.40%
38
7.40%
29
$13.50
36
$25.25
15
$23.36
26
$15.00
12
No
1
$0.71
37
4.9%
4
493.8
15
70.5
6
$7.25
1
$2.01
37
Yes
1
1
14
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
88,127
Rank: 14
(in thousands)
25
20
15
10
5
0
-5
’05
’06
’07
’08
’09
’10
’11
’12
10.5%
’13
’14
Rank: 9
ID
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 97 97
Illinois
46
43
Economic
Performance Rank
Economic
Outlook Rank
31.2% Rank: 39
IL
U.S.
8%
6%
2009 2010 2011 2012 2013 2014 2015
44 47 44 48 48 48 40
Variable
Data
Rank
3.75%
12
7.75%
31
$1.06
14
$42.74
42
$16.37
10
$21.66
38
Yes
50
-$2.96
1
10.3%
44
487.7
13
48.0
48
$8.25
30
$2.35
44
No
50
0
34
4%
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-669,442
Rank: 48
(in thousands)
0
-20
-40
-60
-80
-100
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
1.0%
Rank: 44
IL
U.S.
2%
1%
0%
-1%
-2%
-3%
etc.)
State Minimum Wage
-4%
-5%
-6%
’05
’06
’07
’08
’09
9898Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Indiana
40
6
Economic
Performance Rank
Economic
Outlook Rank
32.3% Rank: 37
IN
U.S.
8%
2009 2010 2011 2012 2013 2014 2015
17 20 16 24 14 3 3
Variable
Data
Rank
5.07%
21
6.50%
21
$0.68
13
$25.31
16
$27.04
35
$19.11
27
No
1
-$0.32
15
9.4%
40
483.5
10
67.7
18
$7.25
1
$1.06
2
Yes
1
1
14
6%
4%
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-36,609
Rank: 34
(in thousands)
10
5
0
-5
-10
-15
’05
’06
’07
’08
’09
’10
’11
’12
1.9%
’13
’14
Rank: 39
IN
U.S.
3%
2%
1%
0%
-1%
-2%
etc.)
State Minimum Wage
-3%
-4%
-5%
-6%
-7%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 99 99
Iowa
21
29
Economic
Performance Rank
Economic
Outlook Rank
43.0% Rank: 17
IA
U.S.
8%
6%
4%
2009 2010 2011 2012 2013 2014 2015
35 28 23 22 25 25 25
Variable
Data
Rank
5.42%
23
9.90%
46
$11.86
33
$34.79
35
$20.97
22
$17.17
21
Yes
50
$1.32
41
4.9%
5
585.1
41
72.2
4
$7.25
1
$1.88
27
Yes
1
1
14
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-14,589
Rank: 29
(in thousands)
1
0
-1
-2
-3
-4
-5
-6
’05
’06
’07
’08
’09
’10
’11
’12
6.3%
’13
’14
Rank: 21
IA
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
100
100
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Kansas
27
27
Economic
Performance Rank
Economic
Outlook Rank
42.5% Rank: 19
KS
U.S.
2009 2010 2011 2012 2013 2014 2015
24 25 27 26 11 15 18
Variable
Data
Rank
4.60%
15
2%
7.00%
27
0%
$7.02
26
$32.43
31
$29.73
39
$12.40
4
No
1
$2.67
47
8.1%
29
672.0
48
67.6
19
$7.25
1
$1.55
12
Yes
1
0
34
8%
6%
4%
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-58,640
Rank: 36
(in thousands)
4
2
0
-2
-4
-6
-8
-10
-12
-14
’05
’06
’07
’08
’09
’10
’11
’12
5.0%
’13
’14
Rank: 23
KS
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 101101
Kentucky
25
33
Economic
Performance Rank
Economic
Outlook Rank
38.1% Rank: 28
KY
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
36 40 40 39 38 39 30
Variable
Data
Rank
8.20%
42
8.20%
36
$5.46
19
$20.39
6
$19.15
16
$20.69
35
Yes
50
-$0.16
20
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
54,650
Rank: 18
(in thousands)
20
15
10
5
0
11.6%
50
550.6
33
59.0
39
$7.25
1
$1.51
11
No
50
1
14
-5
-10
’05
’06
’07
’08
’09
’10
’11
’12
3.7%
’13
’14
Rank: 30
KY
U.S.
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
102
102
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Louisiana
33
28
Economic
Performance Rank
Economic
Outlook Rank
45.8% Rank: 15
LA
U.S.
2009 2010 2011 2012 2013 2014 2015
18 16 15 19 28 29 26
Variable
Data
Rank
15%
3.62%
11
10%
5.20%
13
$10.16
30
$20.86
7
$35.98
45
$16.07
16
No
1
$3.32
48
9.0%
35
565.5
39
46.5
49
$7.25
1
$2.23
41
Yes
1
2
3
20%
5%
0%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-230,747
Rank: 44
(in thousands)
50
0
-50
-100
-150
-200
-250
-300
’05
’06
’07
’08
’09
’10
’11
’12
3.7%
’13
’14
Rank: 31
LA
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 103103
Maine
Maine
44
38
Economic
Performance Rank
Economic
Outlook Rank
21.8% Rank: 49
ME
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
47 44 48 47 41 40 42
Variable
Data
Rank
7.15%
37
8.93%
41
$19.33
47
$48.18
46
$20.38
20
$20.79
36
Yes
50
-$1.67
4
5.4%
10
531.7
27
68.0
14
$7.50
22
$2.15
38
No
50
1
14
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-3,958
Rank: 27
(in thousands)
3
2
1
0
-1
-2
-3
-4
-5
’05
’06
’07
’08
’09
’10
’11
’12
-1.2%
’13
’14
Rank: 48
ME
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
104
104
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Maryland
Maryland
34
31
Economic
Performance Rank
Economic
Outlook Rank
40.2% Rank: 23
MD
U.S.
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
28 29 21 20 35 34 33
Variable
Data
Rank
8.95%
44
8.25%
37
$5.03
18
$28.53
22
$13.15
8
$19.93
29
Yes
50
-$0.14
21
5.5%
11
505.1
19
63.9
28
$8.25
30
$1.64
16
No
50
0
34
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-145,560
Rank: 41
(in thousands)
5
0
-5
-10
-15
-20
-25
-30
-35
’05
’06
’07
’08
’09
’10
’11
’12
4.1%
’13
’14
Rank: 28
MD
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 105105
Massachusetts
30
26
Economic
Performance Rank
Economic
Outlook Rank
38.3% Rank: 27
MA
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
26 32 24 25 29 28 28
Variable
Data
Rank
5.10%
22
8.00%
34
$2.99
16
$36.59
39
$13.66
9
$12.02
3
Yes
50
$0.00
28
10.2%
41
488.8
14
67.8
17
$10.00
49
$1.17
4
No
50
1
14
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-156,861
Rank: 43
(in thousands)
10
0
-10
-20
-30
-40
-50
-60
’05
’06
’07
’08
’09
’10
’11
’12
7.0%
’13
’14
Rank: 16
MA
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
’05
’06
’07
’08
’09
106
106
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Michigan
50
22
Economic
Performance Rank
Economic
Outlook Rank
16.9% Rank: 50
MI
U.S.
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
34 26 25 17 20 12 24
Variable
Data
Rank
6.65%
29
8.00%
34
$2.27
15
$33.88
34
$21.94
25
$15.67
14
No
1
$1.15
39
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-614,661
Rank: 47
(in thousands)
0
-20
-40
-60
-80
9.2%
37
441.5
4
65.5
24
$8.50
36
$1.68
17
Yes
1
2
3
-100
-120
’05
’06
’07
’08
’09
’10
’11
’12
-5.4%
’13
’14
Rank: 50
MI
U.S.
4%
etc.)
State Minimum Wage
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 107107
Minnesota
32
45
Economic
Performance Rank
Economic
Outlook Rank
36.8% Rank: 29
MN
U.S.
7%
6%
5%
4%
3%
2%
2009 2010 2011 2012 2013 2014 2015
40 38 37 41 46 46 48
Variable
Data
Rank
9.85%
46
9.80%
45
$18.43
45
$32.71
32
$20.01
19
$24.15
45
Yes
50
-$1.59
5
5.9%
12
518.6
20
68.0
13
$9.00
40
$1.99
31
No
50
0
34
1%
0%
-1%
-2%
-3%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-65,800
Rank: 37
(in thousands)
0
-2
-4
-6
-8
-10
-12
-14
’05
’06
’07
’08
’09
’10
’11
’12
4.9%
’13
’14
Rank: 24
MN
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
108
108
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Mississippi
42
17
Economic
Performance Rank
Economic
Outlook Rank
34.0% Rank: 34
MS
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
19 18 19 15 10 14 20
Variable
Data
Rank
5.00%
18
5.00%
10
$7.53
28
$27.01
18
$32.05
43
$21.14
37
No
1
-$0.29
17
5.3%
8
641.5
47
56.3
43
$7.25
1
$1.59
13
Yes
1
2
3
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-54,821
Rank: 35
(in thousands)
5
0
-5
-10
-15
-20
’05
’06
’07
’08
’09
’10
’11
’12
-0.5%
’13
’14
Rank: 45
MS
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 109109
Missouri
Missouri
43
24
Economic
Performance Rank
Economic
Outlook Rank
29.6% Rank: 44
MO
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
23 15 9 7 23 24 27
Variable
Data
Rank
7.00%
35
6.16%
18
$14.00
38
$24.32
13
$21.91
24
$14.62
10
No
1
$0.00
28
8.8%
34
522.2
21
56.6
42
$7.65
24
$1.98
30
No
50
3
1
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
-18,012
(in thousands)
Sales Tax Burden
Property Tax Burden
Rank: 30
15
10
5
0
-5
-10
-15
’05
’06
’07
’08
’09
’10
’11
’12
1.1%
’13
’14
Rank: 42
MO
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
110
110
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Montana
Montana
10
40
Economic
Performance Rank
Economic
Outlook Rank
57.7% Rank: 7
MT
U.S.
10%
2009 2010 2011 2012 2013 2014 2015
30 33 36 36 42 43 43
Variable
Data
Rank
6.90%
31
6.75%
26
$18.16
44
$36.07
38
$0.00
1
$23.43
44
No
1
-$0.11
22
5.2%
7
557.6
36
60.5
34
$8.05
26
$2.21
40
No
50
0
34
8%
6%
4%
2%
0%
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
46,931
Rank: 19
(in thousands)
8
7
6
5
4
3
2
1
0
’05
’06
’07
’08
’09
’10
’11
’12
9.5%
’13
’14
Rank: 11
MT
U.S.
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
etc.)
State Minimum Wage
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 111111
Nebraska
16
32
Economic
Performance Rank
Economic
Outlook Rank
55.6% Rank: 9
NE
U.S.
10%
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
29 34 32 31 37 35 31
Variable
Data
Rank
6.84%
30
7.81%
32
$18.81
46
$35.87
36
$23.39
27
$14.26
9
Yes
50
-$0.42
13
7.0%
19
630.1
45
73.0
3
$9.00
40
$1.78
21
Yes
1
0
34
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-21,401
Rank: 32
(in thousands)
1
0
-1
-2
-3
-4
-5
-6
’05
’06
’07
’08
’09
’10
’11
’12
7.5%
’13
’14
Rank: 14
NE
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
112
112
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Nevada
28
14
Economic
Performance Rank
Economic
Outlook Rank
30.5% Rank: 41
NV
U.S.
15%
10%
5%
2009 2010 2011 2012 2013 2014 2015
7 11 17 18 13 8 10
Variable
Data
Rank
0.00%
1
0.48%
3
$0.00
2
$24.81
14
$36.35
46
$35.09
49
No
1
$4.42
50
10.3%
42
387.0
1
60.4
35
$8.25
30
$1.26
6
Yes
1
2
3
0%
-5%
-10%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
189,804
Rank: 11
(in thousands)
60
50
40
30
20
10
0
-10
-20
’05
’06
’07
’08
’09
’10
’11
’12
3.8%
’13
’14
Rank: 29
NV
U.S.
8%
6%
4%
2%
etc.)
State Minimum Wage
0%
-2%
-4%
-6%
-8%
-10%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 113113
New Hampshire
35
23
Economic
Performance Rank
Economic
Outlook Rank
CCumulative Growth 2004-2014
32.4% Rank: 36
NH
U.S.
7%
6%
5%
4%
3%
2%
1%
2009 2010 2011 2012 2013 2014 2015
37 30 28 28 27 32 29
Variable
Data
Rank
0.00%
1
8.50%
38
$0.00
2
$53.12
49
$0.00
1
$20.01
30
No
1
$0.48
34
8.7%
33
537.5
31
70.7
5
$7.25
1
$2.18
39
No
50
0
34
0%
-1%
-2%
-3%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
-3,612
(in thousands)
Property Tax Burden
Sales Tax Burden
Rank: 26
5
4
3
2
1
0
-1
-2
-3
-4
’05
’06
’07
’08
’09
’10
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
’11
’12
3.3%
’13
’14
Rank: 33
NH
U.S.
etc.)
State Minimum Wage
’05
’06
’07
’08
’09
114
114
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
New Jersey
47
48
Economic
Performance Rank
Economic
Outlook Rank
30.2% Rank: 42
NJ
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
46 48 45 42 39 45 46
Variable
Data
Rank
9.97%
47
9.00%
42
$24.81
48
$54.21
50
$17.21
13
$13.70
7
Yes
50
-$0.02
26
6.3%
15
531.7
28
59.3
38
$8.38
35
$2.82
48
No
50
1
14
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-527,036
Rank: 46
(in thousands)
0
-10
-20
-30
-40
-50
-60
-70
-80
-90
’05
’06
’07
’08
’09
’10
’11
’12
-0.9%
’13
’14
Rank: 46
NJ
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
etc.)
State Minimum Wage
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 115115
New Mexico
36
34
Economic
Performance Rank
Economic
Outlook Rank
31.0% Rank: 40
NM
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
25 35 39 35 33 37 34
Variable
Data
Rank
4.90%
17
6.60%
25
$10.49
31
$19.34
5
$39.63
49
$14.72
11
No
1
-$0.02
27
8.1%
28
603.0
43
55.2
45
$7.50
22
$1.99
31
No
50
0
34
-2%
-4%
Property Tax Burden
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
328
Rank: 25
(in thousands)
10
5
0
-5
-10
-15
’05
’06
’07
’08
’09
’10
’11
’12
3.6%
’13
’14
Rank: 32
NM
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
etc.)
State Minimum Wage
’05
’06
’07
’08
’09
116
116
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
New York
26
50
Economic
Performance Rank
Economic
Outlook Rank
46.2% Rank: 14
NY
U.S.
8%
6%
4%
2009 2010 2011 2012 2013 2014 2015
50 50 50 50 49 50 50
Variable
Data
Rank
12.70%
49
17.01%
50
$12.72
35
$46.48
45
$24.41
31
$20.59
33
Yes
50
-$1.46
6
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-1,468,080
Rank: 50
(in thousands)
0
-50
-100
-150
-200
9.4%
38
590.9
42
66.3
21
$9.00
40
$2.75
47
No
50
0
34
-250
-300
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
7.7%
Rank: 13
NY
U.S.
etc.)
State Minimum Wage
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 117117
North Carolina
8
2
Economic
Performance Rank
Economic
Outlook Rank
44.9% Rank: 16
NC
U.S.
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
21 21 26 23 22 6 4
Variable
Data
Rank
5.75%
24
4.00%
6
$5.75
20
$23.69
12
$20.86
21
$17.21
22
No
1
-$0.22
18
7.1%
21
552.8
34
70.2
7
$7.25
1
$1.85
24
Yes
1
1
14
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
641,487
Rank: 3
(in thousands)
140
120
100
80
60
40
20
0
’05
’06
’07
’08
’09
’10
’11
’12
8.3%
’13
’14
Rank: 12
NC
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
118
118
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
North Dakota
North Dakota
4
3
Economic
Performance Rank
Economic
Outlook Rank
139.3% Rank: 1
ND
U.S.
25%
20%
15%
10%
5%
2009 2010 2011 2012 2013 2014 2015
13 12 7 5 2 4 2
Variable
Data
Rank
2.90%
10
4.31%
8
$7.01
25
$20.88
8
$37.07
47
$19.44
28
No
1
-$2.27
3
3.1%
2
619.7
44
67.9
15
$7.25
1
$0.88
1
Yes
1
0
34
0%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
39,612
Rank: 21
(in thousands)
20
15
10
5
0
-5
’05
’06
’07
’08
’09
’10
’11
’12
37.6%
’13
’14
Rank: 1
ND
U.S.
12%
etc.)
State Minimum Wage
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 119119
Ohio
49
18
Economic
Performance Rank
Economic
Outlook Rank
27.8% Rank: 45
OH
U.S.
8%
2009 2010 2011 2012 2013 2014 2015
45 42 38 37 26 23 23
Variable
Data
Rank
7.50%
39
2%
3.62%
5
0%
$11.95
34
$29.93
29
$19.14
15
$20.51
32
No
1
-$2.47
2
6.0%
13
499.1
17
64.2
27
$8.10
29
$1.74
18
No
50
1
14
6%
4%
-2%
-4%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-375,890
Rank: 45
(in thousands)
0
-5
-10
-15
-20
-25
-30
-35
-40
-45
-50
’05
’06
’07
’08
’09
’10
’11
’12
-1.1%
’13
’14
Rank: 47
OH
U.S.
3%
2%
1%
etc.)
State Minimum Wage
0%
-1%
-2%
-3%
-4%
-5%
-6%
-7%
’05
’06
’07
’08
’09
120
120
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Oklahoma
5
10
Economic
Performance Rank
Economic
Outlook Rank
60.5% Rank: 5
OK
U.S.
2009 2010 2011 2012 2013 2014 2015
15 14 14 14 19 21 16
Variable
Data
Rank
5.00%
18
5%
6.00%
16
0%
$7.38
27
$14.26
1
$28.06
37
$16.36
17
No
1
-$0.36
14
6.4%
17
555.1
35
61.0
33
$7.25
1
$2.55
45
Yes
1
2
3
15%
10%
-5%
Property Tax Burden
-10%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
106,133
Rank: 12
(in thousands)
20
15
10
5
0
-5
’05
’06
’07
’08
’09
’10
’11
’12
11.0%
’13
’14
Rank: 7
OK
U.S.
4%
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 121121
Oregon
9
41
Economic
Performance Rank
Economic
Outlook Rank
49.3% Rank: 12
OR
U.S.
12%
10%
8%
6%
4%
2009 2010 2011 2012 2013 2014 2015
39 41 43 45 44 42 45
Variable
Data
Rank
10.63%
48
11.25%
47
$15.57
42
$32.89
33
$0.00
1
$22.83
41
Yes
50
-$0.07
23
8.7%
32
479.4
9
61.2
32
$9.25
43
$1.37
8
No
50
2
3
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
195,898
Rank: 10
(in thousands)
35
30
25
20
15
10
5
0
’05
’06
’07
’08
’09
’10
’11
’12
7.3%
’13
’14
Rank: 15
OR
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
’05
’06
’07
’08
’09
122
122
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Pennsylvania
38
39
Economic
Performance Rank
Economic
Outlook Rank
36.6% Rank: 30
PA
U.S.
7%
6%
5%
4%
3%
2%
1%
2009 2010 2011 2012 2013 2014 2015
42 43 41 40 34 33 41
Variable
Data
Rank
6.98%
33
17.01%
49
$0.00
2
$29.92
28
$16.92
11
$23.26
43
Yes
50
$1.68
43
7.9%
27
445.3
5
59.4
37
$7.25
1
$2.00
34
No
50
0
34
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
-83,820
Rank: 40
(in thousands)
10
5
0
-5
-10
-15
-20
-25
-30
-35
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
2.5%
Rank: 37
PA
U.S.
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
Property Tax Burden
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 123123
Rhode Island
48
35
Economic
Performance Rank
Economic
Outlook Rank
25.2% Rank: 48
RI
U.S.
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
48 45 42 43 45 41 39
Variable
Data
Rank
5.99%
26
7.00%
27
$6.91
24
$49.45
47
$18.14
14
$18.21
25
Yes
50
-$0.84
8
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
-70,591
Rank: 39
(in thousands)
0
-2
-4
-6
-8
11.1%
48
454.2
7
64.6
26
$9.60
45
$1.99
31
No
50
1
14
-10
-12
’05
’06
’07
’08
’09
’10
’11
’12
-2.3%
’13
’14
Rank: 49
RI
U.S.
3%
2%
1%
etc.)
State Minimum Wage
0%
-1%
-2%
-3%
-4%
-5%
-6%
’05
’06
’07
’08
’09
124
124
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
South Carolina
15
30
Economic
Performance Rank
Economic
Outlook Rank
38.3% Rank: 26
SC
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
20 31 22 27 31 31 32
Variable
Data
Rank
7.00%
36
5.00%
10
$16.28
43
$30.54
30
$21.23
23
$16.57
19
No
1
$0.16
32
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
343,700
Rank: 6
(in thousands)
60
50
40
30
20
10.8%
46
530.5
26
59.4
36
$7.25
1
$2.00
34
Yes
1
1
14
10
0
’05
’06
’07
’08
’09
’10
’11
’12
6.8%
’13
’14
Rank: 17
SC
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6.%
-7%
’05
etc.)
State Minimum Wage
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 125125
South Dakota
12
11
Economic
Performance Rank
Economic
Outlook Rank
50.0% Rank: 11
SD
U.S.
12%
10%
8%
6%
4%
2009 2010 2011 2012 2013 2014 2015
5 4 2 2 3 2 9
Variable
Data
Rank
0.00%
1
0.00%
1
$0.00
2
$27.70
21
$31.48
40
$18.53
26
No
1
$2.16
45
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
Property Tax Burden
22,594
Rank: 23
(in thousands)
5
4
3
2
1
7.0%
20
0
531.9
29
69.5
9
$8.55
38
$1.86
26
Yes
1
1
14
-1
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
10.0%
Rank: 10
SD
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
126
126
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Tennessee
20
7
Economic
Performance Rank
Economic
Outlook Rank
34.7% Rank: 31
TN
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
9 10 8 12 18 19 17
Variable
Data
Rank
0.00%
1
6.50%
21
$0.00
2
$21.38
10
$31.80
42
$20.06
31
No
1
$0.06
31
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
281,998
Rank: 9
(in thousands)
60
50
40
30
20
7.3%
24
494.2
16
65.7
23
$7.25
1
$1.95
29
Yes
1
1
14
10
0
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
4.4%
Rank: 27
TN
U.S.
3%
2%
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
-7%
etc.)
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 127127
Texas
1
12
Economic
Performance Rank
Economic
Outlook Rank
77.8% Rank: 3
TX
U.S.
10%
8%
6%
4%
2%
0%
2009 2010 2011 2012 2013 2014 2015
10 19 18 16 12 13 11
Variable
Data
Rank
0.00%
1
2.53%
4
$0.00
2
$35.93
37
$24.18
28
$20.64
34
No
1
-$1.16
7
11.4%
49
532.8
30
58.5
40
$7.25
1
$1.61
15
Yes
1
1
14
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
1,353,981
Rank: 1
(in thousands)
250
200
150
100
50
0
’05
’06
’07
’08
’09
’10
’11
’12
22.3%
’13
’14
Rank: 2
TX
U.S.
4%
etc.)
State Minimum Wage
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
128
128
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Utah
3
1
Economic
Performance Rank
Economic
Outlook Rank
61.9% Rank: 4
UT
U.S.
14%
2009 2010 2011 2012 2013 2014 2015
1 1 1 1 1 1 1
Variable
Data
Rank
5.00%
18
5.00%
10
$0.00
2
$26.39
17
$24.21
29
$15.24
13
No
1
$1.63
42
7.8%
26
477.1
8
69.0
10
$7.25
1
$1.31
7
Yes
1
1
14
12%
10%
8%
6%
4%
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
82,986
Rank: 15
(in thousands)
25
20
15
10
5
0
-5
’05
’06
’07
’08
’09
’10
’11
’12
20.3%
’13
’14
Rank: 3
UT
U.S.
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 129129
Vermont
39
49
Economic
Performance Rank
Economic
Outlook Rank
30.1% Rank: 43
VT
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
49 49 49 49 50 49 49
Variable
Data
Rank
8.95%
44
8.50%
38
$29.59
49
$52.35
48
$12.81
7
$29.03
48
Yes
50
$2.62
46
4.2%
3
636.8
46
73.8
2
$9.60
45
$2.33
43
No
50
0
34
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
-9,107
(in thousands)
Sales Tax Burden
Property Tax Burden
Rank: 28
0
-0.2
-0.4
-0.6
-0.8
-1.0
-1.2
-1.4
-1.6
-1.8
’05
’06
’07
’08
’09
’10
’11
’12
2.5%
’13
’14
Rank: 38
VT
U.S.
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
130
130
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Virginia
19
13
Economic
Performance Rank
Economic
Outlook Rank
40.1% Rank: 24
VA
U.S.
10%
8%
6%
4%
2%
4 8 3 3 5 11 12
Variable
Data
Rank
5.75%
24
7.55%
30
$6.45
22
$29.13
26
$12.09
6
$16.02
15
No
1
$0.68
36
7.3%
23
537.6
32
68.3
11
$7.25
1
$1.17
4
Yes
1
0
34
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
76,071
Rank: 16
(in thousands)
30
25
20
15
10
5
0
-5
-10
-15
-20
-25
2009 2010 2011 2012 2013 2014 2015
’05
’06
’07
’08
’09
’10
’11
’12
4.5%
’13
’14
Rank: 26
VA
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 131131
Washington
2
36
Economic
Performance Rank
Economic
Outlook Rank
55.7% Rank: 8
WA
U.S.
10%
8%
6%
4%
2009 2010 2011 2012 2013 2014 2015
22 24 33 33 36 38 35
Variable
Data
Rank
0.00%
1
6.46%
20
$0.00
2
$28.55
23
$31.79
41
$22.84
42
Yes
50
$0.80
38
10.6%
45
484.2
11
63.8
29
$9.47
44
$2.00
34
No
50
1
14
2%
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
286,312
Rank: 8
50
40
30
20
10
0
’05
’06
’07
’08
’09
’10
’11
’12
12.6%
’13
’14
Rank: 6
WA
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
Sales Tax Burden
(in thousands)
60
Property Tax Burden
etc.)
State Minimum Wage
’05
’06
’07
’08
’09
132
132
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
West Virginia
22
37
Economic
Performance Rank
Economic
Outlook Rank
50.4% Rank: 10
WV
U.S.
10%
8%
6%
4%
2%
2009 2010 2011 2012 2013 2014 2015
33 27 31 30 32 30 36
Variable
Data
Rank
6.50%
28
6.50%
21
$15.53
41
$22.56
11
$19.15
17
$28.12
47
No
1
$0.63
35
5.4%
9
560.3
37
46.3
50
$8.75
39
$1.37
8
No
50
0
34
0%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
16,719
Rank: 24
(in thousands)
6
5
4
3
2
1
0
-1
-2
-3
-4
-5
’05
’06
’07
’08
’09
’10
’11
’12
3.1%
’13
’14
Rank: 34
WV
U.S.
3%
etc.)
State Minimum Wage
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 133133
Wisconsin
41
9
Economic
Performance Rank
Economic
Outlook Rank
33.6% Rank: 35
WI
U.S.
7%
2009 2010 2011 2012 2013 2014 2015
27 23 30 32 15 17 13
Variable
Data
Rank
7.65%
40
7.90%
33
$4.60
17
$43.27
43
$19.50
18
$16.53
18
No
1
-$0.54
12
6.4%
16
485.5
12
66.6
20
$7.25
1
$1.92
28
Yes
1
2
3
6%
5%
4%
3%
2%
1%
0%
-1%
-2%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Sales Tax Burden
Property Tax Burden
-66,862
Rank: 38
(in thousands)
0
-2
-4
-6
-8
-10
-12
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
1.6%
Rank: 40
WI
U.S.
3%
2%
etc.)
State Minimum Wage
1%
0%
-1%
-2%
-3%
-4%
-5%
’05
’06
’07
’08
’09
134
134
Rich
Rich
States,
States,
Poor
Poor
States
States
’10
’11
’12
’13
’14
Wyoming
7
4
Economic
Performance Rank
Economic
Outlook Rank
84.8% Rank: 2
WY
U.S.
20%
15%
10%
2009 2010 2011 2012 2013 2014 2015
6 6 6 6 6 10 8
Variable
Data
Rank
0.00%
1
0.00%
1
$0.00
2
$41.84
41
$28.68
38
$12.41
5
No
1
$0.00
28
2.8%
1
873.1
50
69.7
8
$7.25
1
$1.76
20
Yes
1
0
34
5%
0%
-5%
-10%
-15%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
Property Tax Burden
Sales Tax Burden
27,391
Rank: 22
(in thousands)
8
6
4
2
0
-2
-4
’05
’06
’07
’08
’09
’10
’11
’12
14.1%
’13
’14
Rank: 4
WY
U.S.
8%
6%
etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
’05
’06
’07
’08
’09
’10
’11
’12
’13
’14
www.alec.org
www.alec.org 135135
APPENDIX
Appendix
2016 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 2016 ALEC-Laffer Economic Outlook rankings 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 ranking includes local taxes, if any, and any
impact of federal deductibility, if allowed. A state’s
largest city was 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, 2016.
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 was used as a proxy
for local tax rates. In the case of gross receipts
or business franchise taxes, an effective tax rate
was approximated using NIPA profits, rental and
proprietor’s income and gross domestic product
data. 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 does a gross receipts tax.
Therefore, what we believe is the best measurement for an effective corporate tax rate for Texas
is to average the 4.30 percent measure we would
use if the tax was a gross receipts tax and the 0.75
percent highest rate on its margin tax, leading to
our measure of 2.53 percent. 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, 2016.
PERSONAL INCOME TAX PROGRESSIVITY
This variable was measured as the difference
between the average tax liability per $1,000 at
incomes of $50,000 and $150,000. The tax liabili136 Rich States, Poor States
ties were measured using a combination of effective tax rates, exemptions and deductions at both
state and federal levels, which are calculations
from Laffer Associates.
PROPERTY TAX BURDEN
This variable was calculated by taking tax revenues from property taxes per $1,000 of personal
income. We have used U.S. Census Bureau data,
for which the most recent year available is 2013.
These data were released in December 2015.
SALES TAX BURDEN
This variable was calculated by taking tax revenues from sales taxes per $1,000 of personal income. Sales taxes taken into consideration include
the general sales tax and specific sales taxes. We
have used U.S. Census Bureau Data, for which the
most recent year available is 2013. Where appropriate, gross receipts or business franchise taxes,
counted as sales taxes in the Census data, were
subtracted from a state’s total sales taxes in order
to avoid double-counting tax burden in a state.
These data were released in September 2015.
REMAINING TAX BURDEN
This variable was calculated by taking tax revenues from all taxes—excluding personal income,
corporate income (including corporate license),
property, sales and severance per $1,000 of personal income. We used U.S. Census Bureau Data,
for which the most recent year available is 2013.
These data were released in September 2015.
ESTATE OR INHERITANCE TAX (YES OR NO)
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 were drawn from: McGuire Woods
LLP, “State Death Tax Chart” and indicate the presence of an estate or inheritance tax as of January
1, 2016.
STATE MINIMUM WAGE
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. This information comes from the U.S. Department of Labor,
as of January 1, 2016.
RECENTLY LEGISLATED TAX CHANGES
This variable calculates each state’s relative
change in tax burden over a two-year period (in
this case, the 2014 and 2015 legislative session)
for the next fiscal year, using revenue estimates
of legislated tax changes per $1,000 of personal
income. This timeframe ensures that tax changes
will impact a state’s ranking immediately enough
to overcome any lags in the tax revenue data.
ALEC and Laffer Associates calculations used raw
data from state legislative fiscal notes, state budget offices, state revenue offices and other sources, including the National Conference of State
Legislators.
WORKERS’ COMPENSATION COSTS
This variable highlights the 2014 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.
DEBT SERVICE AS A SHARE OF TAX REVENUE
Interest paid on debt as a percentage of total tax
revenue. This information comes from 2013 U.S.
Census Bureau data. These data were released in
September 2015.
PUBLIC EMPLOYEES PER 10,000 RESIDENTS
This variable shows the full-time equivalent public
employees per 10,000 of population. This information comes from 2014 U.S. Census Bureau data.
These data were released in December 2015.
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 2015 Lawsuit Climate
Survey.
RIGHT-TO-WORK STATE (YES OR NO)
This variable assesses whether or not a state requires union membership for its employees. We
have chosen to score states 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, 2016.
TAX OR EXPENDITURE LIMIT
States were ranked only 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. All tax or expenditure limitations measured apply directly to state government. This information comes from the Cato Institute and other sources.
www.alec.org
137

Rich States, Poor States - American Legislative Exchange Council

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