(The Center Square) – The American Legislative Exchange Council (ALEC) released its annual ranking of each state in terms of economic outlook and economic competitivenes.
Minnesota was near the bottom of the pack, granted 46th place.
Based off of the data in the 14th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, each state was ranked on their economic performance according to “15 equally weighted policy variables and trends” within the past several decades.
Utah ranked first and New York last in terms of economic competitiveness, according to a news release from ALEC.
According to the data, Utah, Florida, Oklahoma, Wyoming and North Carolina ranked in the top five most economically competitive states. Meanwhile, states such as Minnesota, Illinois, New Jersey, Vermont and New York ranked in the bottom five states.
While Minnesota’s ranking placed them among the bottom five states in terms of economic outlook, the ranking shows a “forward-looking forecast,” for the state.
Additionally, the data in which the state was evaluated on reflects “state and local rates and revenues,” along with “any effect of federal deductibility.”
Minnesota’s ranking was determined from 15 economic policy variables. The state ranked 17th for its sales tax burden; 28th for property tax burdens; and the state’s minimum wage of $10.08 ranked it 31st in the nation.
ALEC’s data shows that states that promoted policies geared towards low or no income taxes did better in terms of economic competitiveness and job creation, even during the pandemic, compared to the states that boasted higher taxes and government spending.
“Following COVID-19, it has become clear that economically competitive states were better prepared for the pandemic,” explained Reagan Economist Dr. Arthur B. Laffer in a press statement.
“In fact, states ranked highly in this report have also seen lower rates of unemployment and fewer persistent economic problems post-economic shutdown than uncompetitive, low-ranked states. This publication acts as a guide to the solutions states used to stay resilient, and even prosperous.”