Economic outlook tops nation - for 16th straight year

Another year, another top ranking for Utah’s economic outlook.

The latest version of the “Rich States, Poor States” report from the American Legislative Exchange Council finds Utah ranked No. 1 for economic outlook, a place it has held for 16 consecutive years.

ALEC is a nonpartisan organization of state legislators in the United States.

“Utah is the ultimate success story of ‘Rich States, Poor States,’” said Jonathan Williams, ALEC chief economist and one of{mprestriction ids="1,3"} three report authors. “The secret to the Beehive State’s success is found in the major free-market and pro-taxpayer policy reforms, as well as the state’s continued commitment by leading policymakers to study Utah’s economic resume and stay ahead of the curve.” 

The ALEC-Laffer State Economic Competitive Index assesses each state’s economic competitiveness and economic outlook. The report’s authors use 15 economic policy variables to rank the economic outlook of every state. The report surmises that cutting taxes, paying down debt, and maintaining free market policies have significantly helped states attract new residents.

“When the states — our 50 laboratories of democracy — promote economic growth through lower taxes, responsible budgeting, and pro-worker policies, they attract new residents and job creators,” Williams said. “Americans continue to vote with their feet by relocating to states like Utah, North Carolina and Arizona, where elected officials’ commitment to free market principles and pro-taxpayer reforms were a key factor in achieving our top overall rankings.”

The report maintains that Utah state leaders and legislators “have a strong record of implementing pro-taxpayer reforms in recent years, including the adoption of a flat personal income tax rate, pension reform for its previously endangered system, and an innovative approach to property tax reform.”

“Being named the state with the best economic outlook for 16 years running is not an accident,” said Utah Senate President Stuart Adams. “In Utah, we have diligently worked to cultivate strong conservative policies that strengthen our workforce and economy.”

Rounding out the top five for economic outlook are North Carolina, Arizona, Idaho and Oklahoma. The bottom-ranked state is New York, based on its persistently high personal, corporate, property and inheritance taxes, which continue to place a heavy burden on taxpayers in the state, the authors state.

In a joint statement, Gov. Spencer Cox, Adams and Utah House Speaker Brad Wilson said that “strategic policies, smart fiscal decisions and forward-thinking reserve funds, combined with the hard work of Utahns across the state, have placed Utah on top once again.”

“This year, we made generational investments in education, social services, water, housing, transportation and infrastructure while cutting taxes for the third consecutive year,” they said. “Not only have we weathered recent economic storms, we’ve planned for future uncertainties and downturns. Due to federal government overspending, the nation’s economy is in a precarious position; however, Utah is well-poised to protect its economy and citizens.

“As our state continues to hit new milestones, we are determined never to become satisfied with our progress. Utah is just getting started. We’ve proved that Utah can rise to the top over and over again — 16 times to be exact.”

Utah finished No. 2, behind Florida, for economic performance rankings for the period of 2011-21. The rankings used three performance variables highly influenced by state policy. Those variables include Utah’s state gross domestic product, which grew by 79.46 percent during that period; absolute domestic migration from 2012-21, which was 127,932, enough for 13th among states; and nonfarm payroll employment, tops in the nation at 33.52 percent.

The bottom-ranked economic performance state is Louisiana.

“This amazing repository of data on the competition among the states is the ultimate guide to economic growth and prosperity,” said Arthur Laffer, a Reagan economist and a report co-author. “‘Rich States, Poor States’ tells a clear story: States with low taxes attract more business investment and more workers. People move to where they have economic opportunities.”

Stephen Moore, another co-author and FreedomWorks economist, said that over 16 years, “we’ve seen a race to the top among states. Our rankings continue to motivate state legislators and governors to pursue pro-growth policies while limiting the size and intrusiveness of government.”

“With no end in sight to the dysfunction in Washington, states are taking matters into their own hands,” said Lisa B. Nelson, CEO of ALEC. “This new edition of ‘Rich States, Poor States’ showcases how states are competing with one another to become bastions of freedom and opportunity. Ultimately, it is the American people who benefit from this friendly competition, which ALEC is proud to promote.”{/mprestriction}