It certainly comes as no shock given what we know about taxes and regulations in blue states.
But the latest information shows that conditions are even more dire than previously thought.
Now Governor Kathy Hochul is shaking her head in shame after leading New York to one embarrassing accolade.
The American Legislative Exchange Council (ALEC) is America’s largest nonpartisan, voluntary membership organization of state legislators, supporting limited government, free markets, and federalism.
Each year the organization releases a report detailing the economic outlook in each of the fifty states.
With the latest release of data, the Democrat-dominated Empire State has just reached a grim milestone.
New York is dead last in economic outlook for the 11th year in a row
For the 11th consecutive year in a row, the ALEC-Laffer State Economic Competitiveness Index found New York ranked dead last for economic outlook.
Today, ALEC released the 17th edition of Rich States, Poor States. Take a look at the top 10 states with the highest economic outlook rankings! https://t.co/mi0GqLzbWM#Utah #Idaho #Arizona #NorthCarolina #Indiana #Texas #SouthDakota #Wyoming #Oklahoma #NorthDakota pic.twitter.com/xd0EG43M9g
— American Legislative Exchange Council (@ALEC_states) April 9, 2024
In determining their ratings, economists looked at 15 policy variables that suggest financial stability.
These include personal and corporate income tax rates, sales tax burdens, tort systems, minimum wages, and debt service as a share of tax revenue.
The results weren’t pretty for those trying to earn a respectable living in deep-blue New York.
In summarizing their findings, the authors wrote, “New York’s across-the-board high tax burden, lack of fiscal constraint and out-of-control debt growth and general unfriendliness to business and worker freedom continue to make the Empire State the Emperor of the Bottom.”
The report continued, “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.”
Bolstering their claims, it was noted that New York got the lowest rankings for tax rankings, including both state and local rates.
The state placed 50th for top marginal personal and corporate tax rates, 46th for property taxes, and 32nd for sales tax.
New York was ranked 36th in a survey of judicial factors including tort litigation treatment and judicial impartiality.
ALEC chief economist Jonathan Williams said, “New York is the perfect example of a state that can’t get out its own way, thanks to failed, tax and spend approach to policymaking. In order to reverse the devastating trend of outmigration of businesses and individuals, New York needs to embrace commonsense, pro-taxpayer policy reforms.”
Unsurprisingly, the states that fared slightly worse than the Empire State in the report were all deep-blue, Democrat-dominated states.
After New York, Vermont came in 49th in the study for its economic outlook, followed by No. 48 Illinois, No. 47 California, and No. 46 New Jersey.
A bright spot for red states with fewer regulations
Conversely, the top five states in economic outlook are largely Republican-dominated.
Utah ranked No. 1 in economic outlook, followed by No. 2 Idaho, No. 3 Arizona, No. 4 North Carolina, and Indiana came in at No. 5.
Given the information found by the council, there’s little wonder why the population is shifting from blue to red states every year.
Here’s to hoping that those leaving those states with poor economic outlooks for better opportunities also leave the failed policies that hurt those states behind.
Stay tuned to Blue State Blues for any updates to this ongoing story.
