RSPS 8th Edition

Rich States, Poor States
ALEC-Laffer State Economic Competitiveness Index
Arthur B. Laffer
Stephen Moore
Jonathan Williams

ALEC-Laffer State Economic Competitiveness Index
2015 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, Americas largest nonpartisan, voluntary membership organization of state legislators. Made up of nearly one-third of Americas 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 Councils 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 Reagans 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 Centurys 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 Bachelors 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, 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 Reagans Commission on Privatization. Steve is a
Fox News contributor along with writing regularly for National Review, Forbes, Investors Business Daily,
The Washington Times, and Orange County Register. Steve holds a masters of arts in economics from
George Mason University. He has authored numerous books, including Whos the Fairest of Them All, Its
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. Williamss
work has appeared in many publications including The Wall Street Journal, Forbes, and Investors Business
Daily. He has written for the Ash Center for Democratic Governance and Innovation at Harvards 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 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
News. He serves on the board of directors for State Budget Solutions, a non-partisan good government
group that pursues fiscal reform in the states. Williams was also the recipient of the prestigious Ludwig
von Mises Award in Economics.
State Rankings
he Economic Outlook Ranking is a forecast based on a states 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 lessespecially on income transfer programs, and states that tax
lessparticularly on productive activities such as working or investingexperience higher growth rates than
states that tax and spend more.
The Economic Performance Ranking is a backward-looking measure based on a states performance on three
important variables: State Gross Domestic Product, Absolute Domestic Migration, and Non-Farm Payroll Employmentall 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, 2015

Based upon equal-weighting of each states rank in 15 policy variables
Rank
State
Rank
Utah
State
26
Louisiana
North Dakota
27
Missouri
Indiana
28
Massachusetts
North Carolina
29
New Hampshire
Arizona
30
Kentucky
Idaho
31
Nebraska
Georgia
32
South Carolina
Wyoming
33
Maryland
South Dakota
34
New Mexico
10
Nevada
35
Washington
11
Texas
36
West Virginia
12
Virginia
37
Hawaii
13
Wisconsin
38
Delaware
14
Alaska
39
Rhode Island
15
Florida
40
Illinois
16
Oklahoma
41
Pennsylvania
17
Tennessee
42
Maine
18
Kansas
43
Montana
19
Alabama
44
California
20
Mississippi
45
Oregon
21
Colorado
46
New Jersey
22
Arkansas
47
Connecticut
23
Ohio
48
Minnesota
24
Michigan
49
Vermont
25
Iowa
50
New York
68 Rich States, Poor States
2015 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX
Table 2 | ALEC-Laffer State Economic Performance Rankings, 2003-2013

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
North Dakota
Utah
Oklahoma
Wyoming
Washington
Oregon
Montana
Colorado
North Carolina
Alaska
Arizona
Idaho
South Dakota
Nevada
Virginia
Nebraska
Hawaii
West Virginia
South Carolina
Iowa
Arkansas
Florida
Tennessee
Georgia
New Mexico
Kentucky
Kansas
Alabama
Minnesota
Maryland
Delaware
Louisiana
New York
Massachusetts
New Hampshire
California
Vermont
Pennsylvania
Indiana
Mississippi
Missouri
Wisconsin
Maine
Connecticut
Illinois
Rhode Island
New Jersey
Ohio
Michigan
State Gross Domestic Product

4
1
5
7
2
13
6
8
18
19
3
24
17
9
23
22
10
15
12
36
16
14
40
35
42
26
30
21
29
28
20
38
11
25
32
44
27
37
33
34
31
46
39
49
41
43
48
45
47
50
Absolute Domestic Migration

1
21
16
14
22
8
11
19
9
3
30
4
15
23
10
12
32
33
24
6
31
17
2
7
5
25
18
38
13
39
41
20
44
50
43
26
49
29
36
34
35
28
37
27
42
48
40
46
45
47
Non-Farm Payroll
2
1
3
6
4
10
17
7
8
14
5
12
9
11
16
18
15
13
26
21
19
35
25
31
28
30
34
24
41
23
29
33
36
20
22
32
27
40
37
42
45
38
39
46
43
44
49
47
48
50
www.alec.org
69
Alabama
Connecticut
29
19
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 states 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 states 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 2003-2013
42.4% Rank: 29
AL
U.S.
10%
8%
6%
4%
2%
ECONOMIC OUTLOOK RANK
2008 2009 2010 2011 2012 2013 2014
15 16 17 20 21 17 20
Variable
Data
Rank
Top Marginal Personal Income Tax Rate
4.02%
13
Top Marginal Corporate Income Tax Rate
4.23%
-$1.81
$14.97
$24.34
32
$22.63
41
No
-$0.04
27
Debt Service as a Share of Tax Revenue
7.6%
24
Public Employees Per 10,000

of Population (full-time equivalent)
583.4
41
52.8
43
$7.25
$1.81
22
Yes
34
Personal Income Tax Progressivity
0%
(change in tax liability per $1,000 of income)
-2%
Property Tax Burden
-4%
04
05
06
07
08
09

Cumulative 2004-2013
10
11
12
13
(per $1,000 of personal income)
Sales Tax Burden
105,798
Rank: 13
(in thousands)
Remaining Tax Burden
35
30
Estate/Inheritance Tax Levied?
25
20
Recently Legislated Tax Changes
15
(2013 & 2014, per $1,000 of personal income)
10
5
0
-5
04
05
06
07
08
09
Non-Farm Payroll Employment

10
11
12
13
State Liability System Survey
1.8%
Rank: 41
AL
U.S.
4%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
(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)
04
05
06
07
08
09
10
11
12
13
Alaska
Delaware
11
14
Economic
Performance Rank
Economic
Outlook Rank

84.7% Rank: 3
AK
U.S.
15%
2008 2009 2010 2011 2012 2013 2014
37 38 22 29 29 21 18
Variable
Data
Rank
0.00%
9.40%
44
$0.00
$42.08
40
$5.81
$14.00
No
-$18.85
5.1%

753.9
49
69.1
13
$7.75
26
$2.68
46
No
50
14
10%
5%
0%
-5%
Property Tax Burden
-10%
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
-8,750
Rank: 30
(in thousands)
5
4
3
2
1
0
-1
-2
-3
-4

04
05
06
07
08
09

10
11
12
13
13.0%
Rank: 5
AK
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
www.alec.org
71
Arizona
Connecticut
12
Economic
Performance Rank
Economic
Outlook Rank

45.2% Rank: 24
AZ
U.S.
12%
10%
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
6 3 3 12 9 6 7
Variable
Data
Rank
4.54%
14
6.00%
15
$10.62
32
$29.21
23
$36.74
46
$12.58
No
-$0.24
20
9.8%
39

427.8
66.8
17
$8.05
33
$1.60
14
Yes
-2%
-4%
-6%
Property Tax Burden
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
584,103
Rank: 4
(in thousands)
140
120
100
80
60
40
20
0
04
05
06
07
08
09

10
11
9.1%
12
13
Rank: 12
AZ
U.S.
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
Arkansas
Delaware
22
22
Economic
Performance Rank
Economic
Outlook Rank

56.1% Rank: 14
AR
U.S.
10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013 2014
11 12 13 13 11 24 26
Variable
Data
Rank
6.90%
32
6.50%
22
$14.91
40
$18.81
$36.11
45
$17.48
23
No
-$0.31
18
5.3%

570.3
40
57.2
35
$7.50
22
$1.08
Yes
14
0%
-2%
Property Tax Burden
04
05
06
07
08
09
10
11
12
13
Sales Tax Burden

76,520
(in thousands)
Rank: 17
25
20
15
10
5
0
-5
04
05
06
07
08
09

10
11
2.8%
12
13
Rank: 35
AR
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
www.alec.org
73
California
Connecticut
37
44
Economic
Performance Rank
Economic
Outlook Rank

43.5% Rank: 27
CA
U.S.
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
42 43 46 47 38 47 47
Variable
Data
Rank
13.30%
50
8.84%
40
$38.34
50
$29.72
25
$23.60
27
$16.21
16
No
-$0.47
10
10.5%
42

446.3
50.6
47
$9.00
44
$3.48
50
No
50
-2%
-4%
Property Tax Burden

04
05
06
07
08
09
10
11

-1,394,911
12
13
Rank: 49
-50
-100
-150
-200
-250
-300
-350
Sales Tax Burden
(in thousands)
04
05
06
07
08
09
10
11
12
13

etc.)

4.9%
Rank: 27
CA
U.S.
State Minimum Wage

4%
2%
0%
-2%
-4%
-6%

-8%
04
74
05
06
07
08
09
10
11
12
13
Colorado
Delaware
21
Economic
Performance Rank
Economic
Outlook Rank

51.3% Rank: 18
CO
U.S.
10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013 2014
9 2 2 6 8 16 22
Variable
Data
Rank
4.63%
16
4.63%
$6.36
21
$29.87
27
$23.35
26
$13.94
No
$0.25
37
11.8%
47

524.4
24
64.2
23
$8.23
38
$1.50
10
No
50
0%
-2%
Property Tax Burden
-4%
04
05
06
07
08
09
10
11
12
13
Sales Tax Burden

272,722
(in thousands)
Rank: 9
40
35
30
25
20
15
10
5
0
-5
04
05
06
07
08
09
10
11
12
13

11.6%
Rank: 8
CO
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
75
Connecticut
Connecticut
45
47
Economic
Performance Rank
Economic
Outlook Rank

36.6% Rank: 41
2008 2009 2010 2011 2012 2013 2014
40 32 36 35 44 43 44
10%
CT
U.S.
8%
6%
Variable
Data
Rank
6.70%
30
9.00%
42
$7.67
27
$44.80
43
$17.98
14
$17.83
26
Yes
50
$1.66
46
7.8%
26

516.9
22
63.8
25
$9.15
47
$2.87
49
No
50
14
4%
2%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-140,974
Rank: 42
(in thousands)
-5
-10
-15
-20
-25
04
05
06
07
08
09
10
11
12
13

1.1%
Rank: 43
CT
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

04
76
05
06
07
08
09
10
11
12
13
Delaware
Delaware
32
38
Economic
Performance Rank
Economic
Outlook Rank

38.1% Rank: 38
DE
U.S.
10%
8%
6%
2008 2009 2010 2011 2012 2013 2014
31 31 37 34 34 30 27
Variable
Data
Rank
7.85%
40
10.35%
47
$13.70
38
$17.59
$0.00
$50.16
50
Yes
50
$1.24
45
8.1%
29

542.7
32
75.8
$7.75
26
$2.31
42
No
50
4%
2%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
42,811
Rank: 20
(in thousands)
7
6
4
3
2
1
0
04
05
06
07
08
09

10
11
3.2%
12
13
Rank: 33
DE
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
www.alec.org
77
Florida
23
15
Economic
Performance Rank
Economic
Outlook Rank

37.0% Rank: 40
FL
U.S.
10%
2008 2009 2010 2011 2012 2013 2014
16 11 5 10 13 9 16
Variable
Data
Rank
0.00%
5.50%
14
$0.00
$31.65
30
$27.32
36
$21.53
39
No
-$0.15
22
9.4%
36

441.0
55.3
41
$8.05
33
$1.82
23
Yes
8%
6%
4%
2%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
960,492
Rank: 2
(in thousands)
300
250
200
150
100
50
0
-50
04
05
06
07
08
09

10
11
5.3%
12
13
Rank: 25
FL
U.S.
6%

etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
04
05
06
07
08
09
10
11
12
13
Georgia
25
Economic
Performance Rank
Economic
Outlook Rank

35.6% Rank: 42
GA
U.S.
7%
6%
5%
4%
3%
2%
2008 2009 2010 2011 2012 2013 2014
8 8 9 11 10 8 9
Variable
Data
Rank
6.00%
27
6.00%
15
$6.53
23
$28.56
21
$25.25
34
$11.18
No
-$0.30
19
7.5%
18

512.6
20
64.0
24
$7.25
$1.75
19
Yes
34
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
437,897
Rank: 5
(in thousands)
140
120
100
80
60
40
20
0
-20
04
05
06
07
08
09

10
11
4.8%
12
13
Rank: 28
GA
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
79
Hawaii
18
37
Economic
Performance Rank
Economic
Outlook Rank

54.9% Rank: 15
HI
U.S.
10%
2008 2009 2010 2011 2012 2013 2014
41 41 39 46 46 40 36
Variable
Data
Rank
11.00%
48
6.40%
21
$13.54
37
$21.66
$47.74
50
$26.29
46
Yes
50
-$0.57
7.4%
17

515.7
21
62.5
29
$7.75
26
$1.85
24
No
50
14
8%
6%
4%
2%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
-30,719
Rank: 33
(in thousands)
0
-2
-4
-6
-8
-10
-12
-14
Property Tax Burden
04
05
06
07
08
09
10
11
12
13

8.9%
Rank: 13
HI
U.S.

etc.)
State Minimum Wage

4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

04
05
06
07
08
09
10
11
12
13
Idaho
13
Economic
Performance Rank
Economic
Outlook Rank

51.4% Rank: 17
ID
U.S.
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
10 14 7 5 6 7 5
Variable
Data
Rank
7.40%
37
7.40%
30
$13.40
36
$25.57
14
$22.48
24
$15.18
11
No
-$0.34
17
5.4%

496.0
14
70.5
$7.25
$2.01
37
Yes
14
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
92,462
Rank: 15
(in thousands)
25
20
15
10
5
0
-5
04
05
06
07
08
09

10
11
11.1%
12
13
Rank: 9
ID
U.S.
6%

etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
04
05
06
07
08
09
10
11
12
13
www.alec.org
81
Illinois
46
40
Economic
Performance Rank
Economic
Outlook Rank

35.6% Rank: 43
IL
U.S.
8%
7%
6%
5%
4%
3%
2%
1%
2008 2009 2010 2011 2012 2013 2014
43 44 47 44 48 48 48
Variable
Data
Rank
3.75%
12
7.75%
32
$1.08
14
$44.14
42
$16.66
10
$21.26
37
Yes
50
-$2.99
10.2%
40

501.0
15
51.3
46
$8.25
39
$2.35
44
No
50
34
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-646,867
Rank: 48
(in thousands)
0
-10
-20
-30
-40
-50
-60
-70
-80
-90
04
05
06
07
08
09
10
11
12
13

0.5%
Rank: 44
IL
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

04
05
06
07
08
09
10
11
12
13
Indiana
40
Economic
Performance Rank
Economic
Outlook Rank

39.9% Rank: 34
IN
U.S.
8%
2008 2009 2010 2011 2012 2013 2014
12 17 20 16 24 14 3
Variable
Data
Rank
5.07%
20
7.00%
27
$0.68
13
$26.68
17
$27.23
35
$18.54
28
No
-$0.37
15
8.6%
31

486.3
12
69.0
14
$7.25
$1.06
Yes
14
6%
4%
2%
0%
-2%
-4%
-6%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-35,692
Rank: 34
(in thousands)
10
-5
-10
-15
04
05
06
07
08
09

10
11
1.8%
12
13
Rank: 42
IN
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
-7%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
www.alec.org
83
Iowa
21
25
Economic
Performance Rank
Economic
Outlook Rank

54.8% Rank: 16
IA
U.S.
12%
10%
8%
2008 2009 2010 2011 2012 2013 2014
25 35 28 23 22 25 25
Variable
Data
Rank
5.42%
23
9.90%
46
$11.87
33
$34.02
34
$24.09
30
$16.92
20
Yes
50
-$0.35
16
5.1%

552.4
35
69.5
10
$7.25
$1.88
27
Yes
14
6%
4%
2%
0%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-19,319
Rank: 31
(in thousands)
1
0
-1
-2
-3
-4
-5
-6
04
05
06
07
08
09

10
11
6.7%
12
13
Rank: 19
IA
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
Kansas
28
18
Economic
Performance Rank
Economic
Outlook Rank

48.8% Rank: 21
KS
U.S.
8%
2008 2009 2010 2011 2012 2013 2014
29 24 25 27 26 11 15
Variable
Data
Rank
4%
4.60%
15
2%
7.00%
27
$7.02
25
$31.82
32
$30.11
38
$12.34
No
-$0.57
9.0%
35

695.4
48
70.6
$7.25
$1.55
12
Yes
34
6%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-57,018
Rank: 38
(in thousands)
4
2
0
-2
-4
-6
-8
-10
-12
-14
04
05
06
07
08
09

10
11
5.5%
12
13
Rank: 24
KS
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
85
Kentucky
27
30
Economic
Performance Rank
Economic
Outlook Rank

42.4% Rank: 30
KY
U.S.
7%
6%
5%
4%
3%
2%
2008 2009 2010 2011 2012 2013 2014
44 36 40 40 39 38 39
Variable
Data
Rank
8.20%
42
6.00%
15
$5.44
19
$20.29
$19.78
17
$20.57
33
Yes
50
-$0.12
25
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
65,970
Rank: 18
(in thousands)
20
15
10
13.6%
50

537.4
28
56.8
38
$7.25
$1.51
11
No
50
14
-5
-10
04
05
06
07
08
09

10
11
2.9%
12
13
Rank: 34
KY
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%

04
05
06
07
08
09
10
11
12
13
Louisiana
33
26
Economic
Performance Rank
Economic
Outlook Rank

60.8% Rank: 11
LA
U.S.
20%
15%
10%
5%
2008 2009 2010 2011 2012 2013 2014
24 18 16 15 19 28 29
Variable
Data
Rank
3.62%
11
5.20%
13
$10.17
30
$20.10
$36.78
47
$16.61
17
No
-$0.02
28
10.3%
41

555.5
36
46.5
49
$7.25
$2.23
41
Yes
0%
-5%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-234,082
Rank: 44
(in thousands)
50
0
-50
-100
-150
-200
-250
-300
04
05
06
07
08
09

10
11
2.7%
12
13
Rank: 36
LA
U.S.
6%

etc.)
State Minimum Wage
4%
2%
0%
-2%
-4%
-6%
-8%
04
05
06
07
08
09
10
11
12
13
www.alec.org
87
Maine
Maine
44
42
Economic
Performance Rank
Economic
Outlook Rank

30.0% Rank: 49
ME
U.S.
7%
6%
5%
4%
2008 2009 2010 2011 2012 2013 2014
46 47 44 48 47 41 40
Variable
Data
Rank
7.95%
41
8.93%
41
$19.47
47
$45.50
45
$20.38
20
$19.59
30
Yes
50
-$0.17
21
6.0%
10

548.0
33
69.2
12
$7.50
22
$2.15
38
No
50
14
3%
2%
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-1,063
Rank: 27
(in thousands)
5
4
3
2
0
-1
-2
-3
-4
-5
04
05
06
07
08
09

10
11
-1.0%
12
13
Rank: 46
ME
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%

04
05
06
07
08
09
10
11
12
13
Maryland
Maryland
31
33
Economic
Performance Rank
Economic
Outlook Rank

48.9% Rank: 20
MD
U.S.
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
28 28 29 21 20 35 34
Variable
Data
Rank
8.95%
43
8.25%
37
$5.03
18
$25.95
15
$13.13
$18.40
27
Yes
50
$0.20
35
6.3%
13

503.2
17
58.3
33
$8.00
29
$1.64
16
No
50
34
-2%
04
05
06
07
08
09
10
11
12
13
Property Tax Burden
Sales Tax Burden
-140,571
Rank: 41
(in thousands)
5
0
-5
-10
-15
-20
-25
-30
-35
04
05
06
07
08
09

10
11
4.5%
12
13
Rank: 29
MD
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
www.alec.org
89
Massachusetts
35
28
Economic
Performance Rank
Economic
Outlook Rank

41.1% Rank: 32
MA
U.S.
7%
6%
5%
4%
2008 2009 2010 2011 2012 2013 2014
22 26 32 24 25 29 28
Variable
Data
Rank
5.15%
21
8.00%
35
$3.02
16
$37.28
39
$13.86
$11.87
Yes
50
$0.62
41
10.9%
44

482.8
11
66.3
19
$9.00
44
$1.17
No
50
14
3%
2%
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-200,230
Rank: 43
(in thousands)
10
0
-10
-20
-30
-40
-50
-60
04
05
06
07
08
09

10
11
5.8%
12
13
Rank: 22
MA
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
Michigan
50
24
Economic
Performance Rank
Economic
Outlook Rank

14.4% Rank: 50
MI
U.S.
8%
6%
4%
2%
0%
-2%
2008 2009 2010 2011 2012 2013 2014
17 34 26 25 17 20 12
Variable
Data
Rank
6.65%
29
8.00%
35
$2.27
15
$35.50
35
$23.88
29
$15.51
13
No
$0.66
42
-4%
-6%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-628,472
Rank: 47
(in thousands)
-20
-40
-60
-80
8.3%
30

438.5
63.0
27
$8.15
37
$1.68
17
Yes
-100
-120
04
05
06
07
08
09

10
11
-6.4%
12
13
Rank: 50
MI
U.S.
4%

etc.)
State Minimum Wage

2%
0%
-2%
-4%
-6%
-8%

04
05
06
07
08
09
10
11
12
13
www.alec.org
91
Minnesota
30
48
Economic
Performance Rank
Economic
Outlook Rank

42.8% Rank: 28
MN
U.S.
7%
6%
5%
4%
3%
2%
2008 2009 2010 2011 2012 2013 2014
39 40 38 37 41 46 46
Variable
Data
Rank
9.85%
45
9.80%
45
$18.42
45
$31.75
31
$20.44
21
$24.58
45
Yes
50
$2.36
49
7.5%
20

509.7
19
71.4
$8.00
29
$1.99
31
No
50
34
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-68,644
Rank: 39
(in thousands)
-2
-4
-6
-8
-10
-12
-14
04
05
06
07
08
09

10
11
5.5%
12
13
Rank: 23
MN
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
Mississippi
41
20
Economic
Performance Rank
Economic
Outlook Rank

41.8% Rank: 31
MS
U.S.
8%
2008 2009 2010 2011 2012 2013 2014
19 19 18 19 15 10 14
Variable
Data
Rank
4%
5.00%
18
2%
5.00%
$7.53
26
$26.51
16
$31.41
40
$20.79
36
No
-$0.05
26
6.2%
11

644.9
47
46.6
48
$7.25
$1.59
13
Yes
6%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-41,744
Rank: 35
(in thousands)
-5
-10
-15
-20
04
05
06
07
08
09

10
11
0.0%
12
13
Rank: 45
MS
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
93
Missouri
Missouri
42
27
Economic
Performance Rank
Economic
Outlook Rank

34.0% Rank: 46
MO
U.S.
7%
6%
5%
4%
3%
2%
2008 2009 2010 2011 2012 2013 2014
25 23 15 9 7 23 24
Variable
Data
Rank
7.00%
35
6.16%
19
$14.00
39
$24.59
13
$22.30
23
$15.37
12
No
$0.00
29
9.0%
34

525.0
25
57.8
34
$7.65
25
$1.98
30
No
50
1%
0%
-1%
-2%
04
05
06
07
08
09
10
11
12
13
-6,229
(in thousands)
Sales Tax Burden

Property Tax Burden
Rank: 28
15
10
0
-5
-10
-15
04
05
06
07
08
09

10
11
2.5%
12
13
Rank: 38
MO
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
Montana
Montana
43
Economic
Performance Rank
Economic
Outlook Rank

69.4% Rank: 8
MT
U.S.
10%
8%
6%
2008 2009 2010 2011 2012 2013 2014
32 30 33 36 36 42 43
Variable
Data
Rank
6.90%
32
6.75%
25
$18.02
44
$36.26
37
$0.00
$23.77
43
No
-$0.13
24
5.8%

562.0
38
52.2
45
$8.05
33
$2.21
40
No
50
34
4%
2%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
48,162
Rank: 19
(in thousands)
8
7
6
5
4
3
2
1
0
04
05
06
07
08
09

10
11
11.7%
12
13
Rank: 7
MT
U.S.
5%
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
www.alec.org
95
Nebraska
17
31
Economic
Performance Rank
Economic
Outlook Rank

62.5% Rank: 10
NE
U.S.
8%
6%
2008 2009 2010 2011 2012 2013 2014
34 29 34 32 31 37 35
Variable
Data
Rank
6.84%
31
7.81%
33
$18.52
46
$35.68
36
$22.80
25
$14.57
10
Yes
50
-$0.49
7.5%
19

639.9
46
74.1
$8.00
29
$1.78
21
Yes
34
4%
2%
0%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-24,274
Rank: 32
(in thousands)
-1
-2
-3
-4
-5
-6
04
05
06
07
08
09

10
11
7.5%
12
13
Rank: 15
NE
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
Nevada
15
10
Economic
Performance Rank
Economic
Outlook Rank

46.2% Rank: 23
NV
U.S.
15%
10%
5%
2008 2009 2010 2011 2012 2013 2014
7 7 11 17 18 13 8
Variable
Data
Rank
0.00%
0.00%
$0.00
$27.20
20
$35.96
44
$35.54
49
No
$0.00
30
10.7%
43

367.6
57.0
37
$8.25
39
$1.26
Yes
0%
-5%
-10%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
231,579
Rank: 10
(in thousands)
70
60
50
40
30
20
10
0
-10
-20
04
05
06
07
08
09
10
11
7.2
12
13
Rank: 16
NV
U.S.
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
97
New Hampshire
36
29
Economic
Performance Rank
Economic
Outlook Rank

35.0% Rank: 44
NH
U.S.
8%
7%
6%
5%
4%
3%
2%
1%
2008 2009 2010 2011 2012 2013 2014
26 37 30 28 28 27 32
Variable
Data
Rank
0.00%
8.50%
38
$0.00
$53.07
49
$0.00
$19.54
29
No
$0.48
40
9.7%
38

520.6
23
65.7
21
$7.25
$2.18
39
No
50
34
0%
-1%
-2%
-3%
04
05
06
07
08
09
10
11
12
13
Property Tax Burden
Sales Tax Burden

-19
(in thousands)
Rank: 26
5
4
2
1
0
-1
-2
-3
-4
04
05
06
07
08
09

10
11
3.6%
12
13
Rank: 32
NH
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
New Jersey
48
46
Economic
Performance Rank
Economic
Outlook Rank

34.6% Rank: 45
NJ
U.S.
7%
6%
5%
4%
2008 2009 2010 2011 2012 2013 2014
48 46 48 45 42 39 45
Variable
Data
Rank
9.97%
46
9.00%
42
$24.81
48
$54.07
50
$16.92
11
$14.22
Yes
50
-$0.39
13
6.6%
15

531.2
26
60.1
32
$8.38
41
$2.82
48
No
50
14
3%
2%
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-524,205
Rank: 46
(in thousands)
-10
-20
-30
-40
-50
-60
-70
-80
-90
04
05
06
07
08
09

10
11
-1.1%
12
13
Rank: 47
NJ
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
www.alec.org
99
New Mexico
26
34
Economic
Performance Rank
Economic
Outlook Rank

44.7% Rank: 26
NM
U.S.
12%
10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013 2014
27 25 35 39 35 33 37
Variable
Data
Rank
4.90%
17
6.90%
26
$10.46
31
$19.36
$39.78
48
$13.59
No
$0.05
32
7.6%
23

595.5
42
52.7
44
$7.50
22
$1.99
31
No
50
34
0%
-2%
-4%
Property Tax Burden
-6%
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
19,783
Rank: 25
(in thousands)
10
0
-5
-10
-15
04
05
06
07
08
09

10
11
3.9%
12
13
Rank: 30
NM
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage

04
05
06
07
08
09
10
11
12
13
(0 least/worst 3=most/best)
New York
34
50
Economic
Performance Rank
Economic
Outlook Rank

45.2% Rank: 25
NY
U.S.
8%
7%
6%
5%
4%
3%
2%
1%
2008 2009 2010 2011 2012 2013 2014
49 50 50 50 50 49 50
Variable
Data
Rank
12.70%
49
17.16%
50
$12.66
34
$46.19
46
$24.21
31
$20.59
35
Yes
50
-$1.48
9.4%
37

596.4
43
66.4
18
$8.75
43
$2.75
47
No
50
34
0%
-1%
-2%
04
05
06
07
08
09
10
11

-1,519,449
12
13
Property Tax Burden
Sales Tax Burden
Rank: 50
(in thousands)
-50
-100
-150
-200
-250
-300
04
05
06
07
08
09
10
11
6.6%
12
13
Rank: 20
NY
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
www.alec.org
101
North Carolina
10
Economic
Performance Rank
Economic
Outlook Rank

50.5% Rank: 19
NC
U.S.
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
21 21 21 26 23 22 6
Variable
Data
Rank
5.75%
24
5.00%
$5.75
20
$24.49
12
$21.54
22
$16.89
19
No
-$0.43
11
7.5%
21

558.0
37
65.8
20
$7.25
$1.85
24
Yes
14
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
655,663
Rank: 3
(in thousands)
140
120
100
80
60
40
20
0
04
05
06
07
08
09

10
11
8.3%
12
13
Rank: 14
NC
U.S.
6%

etc.)
State Minimum Wage

4%
2%
0%
-2%
-4%
-6%

04
05
06
07
08
09
10
11
12
13
North Dakota
North Dakota
Economic
Performance Rank
Economic
Outlook Rank

149.4% Rank: 1
ND
U.S.
25%
2008 2009 2010 2011 2012 2013 2014
18 13 12 7 5 2 4
Variable
Data
Rank
15%
3.22%
10
10%
4.53%
$9.12
29
$22.01
10
$35.62
43
$19.68
31
No
-$3.78
2.7%

625.1
44
69.8
$7.25
$0.88
Yes
34
20%
5%
0%
-5%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
32,185
Rank: 21
(in thousands)
20
15
10
5
0
-5
04
05
06
07
08
09

10
11
35.0%
12
13
Rank: 1
ND
U.S.
10%
8%
6%
4%
2%
0%
-2%
-4%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
103
Ohio
49
23
Economic
Performance Rank
Economic
Outlook Rank

32.6% Rank: 47
OH
U.S.
8%
2008 2009 2010 2011 2012 2013 2014
47 45 42 38 37 26 23
Variable
Data
Rank
4%
7.83%
39
2%
3.58%
$12.73
35
$29.76
26
$18.66
15
$20.58
34
No
-$2.53
6.2%
12

501.6
16
62.1
30
$8.10
36
$1.74
18
No
50
14
6%
0%
-2%
-4%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-397,184
Rank: 45
(in thousands)
0
-5
-10
-15
-20
-25
-30
-35
-40
-45
-50
04
05
06
07
08
09

10
11
-2.3%
12
13
Rank: 48
OH
U.S.
2%
1.%
0%
-1%
-2%
-3%
-4%
-5%
-6%
-7%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
Oklahoma
16
Economic
Performance Rank
Economic
Outlook Rank

71.0% Rank: 7
OK
U.S.
15%
10%
5%
0%
2008 2009 2010 2011 2012 2013 2014
14 15 14 14 14 19 21
Variable
Data
Rank
5.25%
22
6.00%
15
$7.91
28
$14.99
$28.14
37
$17.08
21
No
-$0.38
14
6.4%
14

541.3
31
55.0
42
$7.25
$2.55
45
Yes
-5%
Property Tax Burden
-10%
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
97,612
Rank: 14
(in thousands)
20
15,
10
5
0
-5
04
05
06
07
08
09

10
11
11.7%
12
13
Rank: 6
OK
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
105
Oregon
45
Economic
Performance Rank
Economic
Outlook Rank

71.4% Rank: 6
OR
U.S.
12%
2008 2009 2010 2011 2012 2013 2014
35 39 41 43 45 44 42
Variable
Data
Rank
10.62%
47
11.25%
48
$15.54
42
$33.69
33
$0.00
$22.87
42
Yes
50
$0.88
43
8.9%
33

482.8
10
62.6
28
$9.25
49
$1.37
No
50
10%
8%
6%
4%
2%
0%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
174,782
Rank: 11
(in thousands)
35
30
25
20
15
10
5
0
04
05
06
07
08
09

10
11
7.1%
12
13
Rank: 17
OR
U.S.
6%
4%

etc.)
State Minimum Wage

2%
0%
-2%
-4%
-6%
-8%

04
05
06
07
08
09
10
11
12
13
(0= east/worst 3=most/best)
Pennsylvania
39
41
Economic
Performance Rank
Economic
Outlook Rank

40.3% Rank: 33
PA
U.S.
7%
6%
5%
4%
3%
2%
1%
2008 2009 2010 2011 2012 2013 2014
36 42 43 41 40 34 33
Variable
Data
Rank
6.99%
34
17.03%
49
$0.00
$29.98
29
$17.25
12
$24.04
44
Yes
50
$1.82
47
8.6%
32

444.9
56.3
39
$7.25
$2.00
34
No
50
34
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-55,565
Rank: 36
(in thousands)
10
5
0
-5
-10
-15
-20
-25
-30
-35
04
05
06
07
08
09
10
11
12
13

2.5%
Rank: 37
PA
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%

04
05
06
07
08
09
10
11
12
13
www.alec.org
107
Rhode Island
47
39
Economic
Performance Rank
Economic
Outlook Rank

31.6% Rank: 48
RI
U.S.
8%
2008 2009 2010 2011 2012 2013 2014
45 48 45 42 43 45 41
Variable
Data
Rank
5.99%
26
2%
7.00%
27
0%
$6.98
24
$49.27
47
$17.68
13
$17.56
24
Yes
50
-$0.14
23
6%
4%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
-69,187
Rank: 40
(in thousands)
-2
-4
-6
(2013 & 2014 per $1,000 of personal income)
-8
12.2%
48

458.1
60.9
31
$9.00
44
$1.99
31
No
50
14
-10
-12
04
05
06
07
08
09

10
11
-2.8%
12
13
Rank: 49
RI
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

04
05
06
07
08
09
10
11
12
13
South Carolina
20
32
Economic
Performance Rank
Economic
Outlook Rank

39.2% Rank: 36
SC
U.S.
7%
6%
2008 2009 2010 2011 2012 2013 2014
20 20 31 22 27 31 31
Variable
Data
Rank
7.00%
36
5.00%
$16.14
43
$29.96
28
$20.25
19
$16.77
18
No
$0.21
36
5%
4%
3%
2%
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
334,453
Rank: 6
(in thousands)
60
50
40
30
20
12.8%
49

539.4
30
56.3
39
$7.25
$2.00
34
Yes
14
10
0
04
05
06
07
08
09

10
11
6.2%
12
13
Rank: 21
SC
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6.%
-7%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
109
South Dakota
14
Economic
Performance Rank
Economic
Outlook Rank

63.0% Rank: 9
SD
U.S.
10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013 2014
2 5 4 2 2 3 2
Variable
Data
Rank
0.00%
0.00%
$0.00
$26.81
18
$30.46
39
$17.76
25
No
$0.00
31
0%
-2%
04
05
06
07
08
09
10
11
12
13
Sales Tax Burden

Property Tax Burden
23,748
Rank: 23
(in thousands)
7.7%
25

548.3
34
69.5
10
$8.50
42
$1.86
26
Yes
14
-1
04
05
06
07
08
09
10
11
12
13

10.0%
Rank: 11
SD
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
Tennessee
24
17
Economic
Performance Rank
Economic
Outlook Rank

39.2% Rank: 35
TN
U.S.
7%
6%
5%
4%
2008 2009 2010 2011 2012 2013 2014
3 9 10 8 12 18 19
Variable
Data
Rank
0.00%
6.50%
22
$0.00
$21.00
$34.85
42
$20.08
32
Yes
50
$0.12
33
3%
2%
1%
0%
-1%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
285,394
Rank: 7
(in thousands)
60
50
40
30
20
7.6%
22

504.7
18
63.7
26
$7.25
$1.95
29
Yes
14
10
0
04
05
06
07
08
09
10
11
12
13

3.8%
Rank: 31
TN
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
111
Texas
11
Economic
Performance Rank
Economic
Outlook Rank

81.7% Rank: 4
TX
U.S.
10%
8%
6%
4%
2%
0%
-2%
2008 2009 2010 2011 2012 2013 2014
13 10 19 18 16 12 13
Variable
Data
Rank
0.00%
2.55%
$0.00
$37.04
38
$23.87
28
$21.34
38
No
-$0.39
12
11.7%
45

537.9
29
57.2
35
$7.25
$1.61
15
Yes
14
-4%
-6%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
1,229,173
Rank: 1
(in thousands)
250
200
150
100
50
0
04
05
06
07
08
09

10
11
20.5%
12
13
Rank: 2
TX
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
Utah
Economic
Performance Rank
Economic
Outlook Rank

76.1% Rank: 5
UT
U.S.
14%
12%
2008 2009 2010 2011 2012 2013 2014
1 1 1 1 1 1 1
Variable
Data
Rank
5.00%
18
5.00%
$0.00
$26.98
19
$25.17
33
$15.59
14
No
$0.17
34
7.8%
27

488.8
13
69.7
$7.25
$1.31
Yes
14
10%
8%
6%
4%
2%
0%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
78,474
Rank: 16
(in thousands)
25
20
15
10
5
0
-5
04
05
06
07
08
09

10
11
20.4%
12
13
Rank: 3
UT
U.S.
6%

etc.)
State Minimum Wage

4%
2%
0%
-2%
-4%
-6%

04
05
06
07
08
09
10
11
12
13
www.alec.org
113
Vermont
38
49
Economic
Performance Rank
Economic
Outlook Rank

38.8% Rank: 37
VT
U.S.
7%
6%
5%
4%
3%
2%
2008 2009 2010 2011 2012 2013 2014
50 49 49 49 49 50 49
Variable
Data
Rank
8.95%
43
8.50%
38
$28.69
49
$50.32
48
$12.83
$28.85
48
Yes
50
$2.60
50
5.3%

632.2
45
67.1
16
$9.15
47
$2.33
43
No
50
34
1%
0%
-1%
-2%
04
05
06
07
08
09
10
11
12
13
-7,780
(in thousands)
Sales Tax Burden

Property Tax Burden
Rank: 29
0.5
-0.5
-1
-1.5
-2
04
05
06
07
08
09

10
11
2.0%
12
13
Rank: 40
VT
U.S.

etc.)
State Minimum Wage

2%
1%
0%
-1%
-2%
-3%
-4%
-5%

04
05
06
07
08
09
10
11
12
13
Virginia
16
12
Economic
Performance Rank
Economic
Outlook Rank

47.3% Rank: 22
VA
U.S.
8%
6%
4%
2%
0%
2008 2009 2010 2011 2012 2013 2014
5 4 8 3 3 5 11
Variable
Data
Rank
5.75%
24
7.49%
31
$6.45
22
$29.09
22
$11.69
$15.84
15
No
$1.02
44
7.9%
28

532.2
27
70.2
$7.25
$1.17
Yes
34
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
120,136
Rank: 12
(in thousands)
30
25
20
15
10
5
0
-5
04
05
06
07
08
09

10
11
6.9%
12
13
Rank: 18
VA
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
115
Washington
35
Economic
Performance Rank
Economic
Outlook Rank

57.3% Rank: 13
WA
U.S.
10%
8%
6%
4%
2008 2009 2010 2011 2012 2013 2014
30 22 24 33 33 36 38
Variable
Data
Rank
0.00%
6.23%
20
$0.00
$29.41
24
$31.73
41
$22.58
40
Yes
50
$0.36
39
11.7%
46

460.2
65.4
22
$9.47
50
$2.00
34
No
50
14
2%
0%
-2%
04
05
06
07
08
09

10
11
12
13
Sales Tax Burden
275,864
Rank: 8
(in thousands)
60
Property Tax Burden
50
40
30
20
10
0
04
05
06
07
08
09

10
11
11.0%
12
13
Rank: 10
WA
U.S.
4%
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
West Virginia
19
36
Economic
Performance Rank
Economic
Outlook Rank

59.1% Rank: 12
WV
U.S.
10%
8%
6%
4%
2%
2008 2009 2010 2011 2012 2013 2014
38 33 27 31 30 32 30
Variable
Data
Rank
6.50%
28
6.50%
22
$15.53
41
$22.31
11
$19.85
18
$27.58
47
No
$0.26
38
5.4%

564.2
39
44.8
50
$8.00
29
$1.37
No
50
34
0%
-2%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
23,390
Rank: 24
(in thousands)
4
3
1
0
-1
-2
-3
04
05
06
07
08
09

10
11
5.0%
12
13
Rank: 26
WV
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage



04
05
06
07
08
09
10
11
12
13
www.alec.org
117
Wisconsin
43
13
Economic
Performance Rank
Economic
Outlook Rank

37.7% Rank: 39
WI
U.S.
7%
6%
5%
4%
3%
2%
1%
2008 2009 2010 2011 2012 2013 2014
33 27 23 30 32 15 17
Variable
Data
Rank
7.65%
38
7.90%
34
$4.51
17
$42.29
41
$19.46
16
$17.33
22
No
-$1.84
7.1%
16

477.8
68.4
15
$7.25
$1.92
28
No
50
0%
-1%
-2%
04
05
06
07
08
09
10
11
12
13
Sales Tax Burden

Property Tax Burden
-56,632
Rank: 37
(in thousands)
0
-2
-4
-6
-8
-10
-12
04
05
06
07
08
09
10
11
12
13

2.3%
Rank: 39
WI
U.S.
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%

etc.)
State Minimum Wage


04
05
06
07
08
09
10
11
12
13
Wyoming
Economic
Performance Rank
Economic
Outlook Rank

113.5% Rank: 2
WY
U.S.
20%
15%
10%
2008 2009 2010 2011 2012 2013 2014
4 6 6 6 6 6 10
Variable
Data
Rank
0.00%
0.00%
$0.00
$45.43
44
$41.38
49
$12.20
No
$2.34
48
2.5%

865.5
50
72.6
$7.25
$1.76
20
Yes
34
5%
0%
-5%
-10%
-15%
04
05
06
07
08
09

10
11
12
13
Property Tax Burden
Sales Tax Burden
31,416
Rank: 22
(in thousands)
7
6
5
3
2
1
0
-1
04
05
06
07
08
09

10
11
15.8%
12
13
Rank: 4
WY
U.S.
8%

etc.)
State Minimum Wage

6%
4%
2%
0%
-2%
-4%
-6%

04
05
06
07
08
09
10
11
12
13
www.alec.org
119
APPENDIX
Appendix
2015 ALEC-Laffer State Economic Competitiveness

Index: Economic Outlook Methodology
n previous editions of this report we introduced 15 policy variables that have a proven impact on
the migration of capitalboth investment and humaninto and out of states. The end result of
an equal-weighted combination of these variables is the 2015 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 states
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, 2015.
HIGHEST MARGINAL CORPORATE INCOME
TAX RATE
This variable includes local taxes, if any, and includes the effect of federal deductibility, if allowed. A states 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
proprietors 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 4.15 percent measure we would
use if the tax was a gross receipts tax and the 0.95
percent highest rate on its margin tax, leading to
our measure of 2.55 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, 2015.
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 liabili-
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 2012.
These data were released in December 2014.
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 2012. Where appropriate, gross receipts or business franchise taxes,
counted as sales taxes in the Census data, were
subtracted from a states total sales taxes in order
to avoid double-counting tax burden in a state.
REMAINING TAX BURDEN
This variable was calculated by taking tax revenues from all taxesexcluding 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 2012.
ESTATE OR INHERITANCE TAX (YES OR NO)
This variable assesses if a state levies an estate
or an 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. 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: Revised January 26,
2015, and indicate the presence of an estate or
inheritance tax as of January 1, 2015.
RECENTLY LEGISLATED TAX CHANGES
This variable calculates each states relative
change in tax burden over a two-year period (in
this case, the 2013 and 2014 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 states ranking immediately enough
to overcome any lags in the tax revenue data. 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.
DEBT SERVICE AS A SHARE OF TAX REVENUE
Interest paid on debt as a percentage of total tax
revenue. This information comes from 2012 U.S.
Census Bureau data. These data were released in
December 2014.
PUBLIC EMPLOYEES PER 10,000 RESIDENTS
This variable shows the full-time equivalent public
employees per 10,000 of population. This information comes from 2013 U.S. Census Bureau data.
STATE MINIMUM WAGE

Minimum wage enforced on a state-by-state
baMinimum 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, 2015.
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.
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, 2015.
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.
QUALITY OF STATE LEGAL SYSTEM

This variable ranks tort systems by state. Information comes from the 2012 U.S. Chamber of Commerce State Liability Systems Ranking.
www.alec.org
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Rich States, Poor States

ALEC-Laffer State Economic Competitiveness Index

Rich States, Poor States

Rich States, Poor States

About the Authors

DR. ARTHUR B. LAFFER

Table 1 | ALEC-Laffer State Economic Outlook Rankings, 2015

68 Rich States, Poor States

2015 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

Table 2 | ALEC-Laffer State Economic Performance Rankings, 2003-2013

State Gross Domestic Product

Absolute Domestic Migration

2015 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

Economic Performance Rank (1=best 50=worst)

Economic Outlook Rank (1=best 50=worst)

A forward-looking forecast based on the states standing

State Gross Domestic Product

Historical Ranking Comparison

Cumulative Growth 2003-2013

ECONOMIC OUTLOOK RANK

2008 2009 2010 2011 2012 2013 2014

Top Marginal Personal Income Tax Rate

Top Marginal Corporate Income Tax Rate

Debt Service as a Share of Tax Revenue

Public Employees Per 10,000

Personal Income Tax Progressivity

(change in tax liability per $1,000 of income)

Property Tax Burden

Absolute Domestic Migration

(per $1,000 of personal income)

Sales Tax Burden

(per $1,000 of personal income)

Remaining Tax Burden

(per $1,000 of personal income)

Estate/Inheritance Tax Levied?

Recently Legislated Tax Changes

(2013 & 2014, per $1,000 of personal income)

Non-Farm Payroll Employment

State Liability System Survey

(tort litigation treatment, judicial impartiality,

State Minimum Wage

Average Workers Compensation Costs

(option to join or support a union)

Number of Tax Expenditure Limits

70 Rich States, Poor States

2015 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

Economic Performance Rank (1=best 50=worst)

Economic Outlook Rank (1=best 50=worst)

A forward-looking forecast based on the states standing

State Gross Domestic Product

Historical Ranking Comparison

Cumulative Growth 2003-2013

ECONOMIC OUTLOOK RANK

2008 2009 2010 2011 2012 2013 2014

Top Marginal Personal Income Tax Rate

Top Marginal Corporate Income Tax Rate

Debt Service as a Share of Tax Revenue

Public Employees Per 10,000

Personal Income Tax Progressivity

(change in tax liability per $1,000 of income)

Property Tax Burden

Absolute Domestic Migration

Sales Tax Burden

(per $1,000 of personal income)