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Rich States, Poor StatesALEC-Laffer State Economic Competitiveness Index

Arthur B. LafferStephen Moore

Jonathan Williams

Rich States, Poor StatesALEC-Laffer State Economic Competitiveness Index© 2016 American Legislative Exchange CouncilAll 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 byAmerican Legislative Exchange Council2900 Crystal Drive, Suite 600 Arlington, VA 22202

www.alec.org

Dr. Arthur B. Laffer, Stephen Mooreand 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 organiza-tion 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 aca-demic 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, corpora-tions, companies or associations are eligible to support the Council’s work through tax-deductible gifts.

ii Rich States, Poor States

About the Authors

DR. ARTHUR B. LAFFERArthur 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 MOOREStephen 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 WILLIAMSJonathan 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 Rich States, Poor States

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CHAPTER TITLE: Subtitle

Salt Lake City, Utah

State Rankings

84 Rich States, Poor States

State Rankings

Rank State

1 Utah

2 North Carolina

3 North Dakota

4 Wyoming

5 Arizona

6 Indiana

7 Tennessee

8 Florida

9 Wisconsin

10 Oklahoma

11 South Dakota

12 Texas

13 Virginia

14 Nevada

15 Idaho

16 Colorado

17 Mississippi

18 Ohio

19 Georgia

20 Arkansas

21 Alabama

22 Michigan

23 New Hampshire

24 Missouri

25 Alaska

Table 1 | ALEC-Laffer State Economic Outlook Rankings, 2016 Based upon equal-weighting of each state’s rank in 15 policy variables

Rank State

26 Massachusetts

27 Kansas

28 Louisiana

29 Iowa

30 South Carolina

31 Maryland

32 Nebraska

33 Kentucky

34 New Mexico

35 Rhode Island

36 Washington

37 West Virginia

38 Maine

39 Pennsylvania

40 Montana

41 Oregon

42 Hawaii

43 Illinois

44 Delaware

45 Minnesota

46 California

47 Connecticut

48 New Jersey

49 Vermont

50 New York

he Economic Outlook Ranking is a forecast based on a state’s current standing in 15 state policy vari-ables. 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 Employ-ment—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.

T

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2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

Rank State State Gross Domestic Product Absolute Domestic Migration Non-Farm Payroll

1 Texas 3 1 22 Washington 8 8 63 Utah 4 15 34 North Dakota 1 21 15 Oklahoma 5 12 76 Colorado 13 7 57 Wyoming 2 22 48 North Carolina 16 3 129 Oregon 12 10 15

10 Montana 7 19 1111 Idaho 20 14 912 South Dakota 11 23 1013 Alaska 6 31 814 Arizona 25 4 1815 South Carolina 26 6 1716 Nebraska 9 32 1417 Georgia 33 5 2018 Florida 38 2 2519 Virginia 24 16 2620 Tennessee 31 9 2721 Iowa 17 29 2122 West Virginia 10 24 3423 Hawaii 18 33 2224 Arkansas 21 17 3625 Kentucky 28 18 3026 New York 14 50 1327 Kansas 19 36 2328 Nevada 41 11 2929 Alabama 32 13 4130 Massachusetts 27 43 1631 California 22 49 1932 Minnesota 29 37 2433 Louisiana 15 44 3134 Maryland 23 41 2835 New Hampshire 36 26 3336 New Mexico 40 25 3237 Delaware 47 20 3538 Pennsylvania 30 40 3739 Vermont 43 28 3840 Indiana 37 34 3941 Wisconsin 35 38 4042 Mississippi 34 35 4543 Missouri 44 30 4244 Maine 49 27 4845 Connecticut 46 42 4346 Illinois 39 48 4447 New Jersey 42 46 4648 Rhode Island 48 39 4949 Ohio 45 45 4750 Michigan 50 47 50

Table 2 | ALEC-Laffer State Economic Performance Rankings, 2004-2014


Absolute Domestic MigrationCumulative 2005-2014

Economic Outlook Rank 2129 Economic

Performance Rank

Non-Farm Payroll EmploymentCumulative Growth 2004-2014

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Variable Data Rank

Top Marginal Personal Income Tax Rate 4.02% 13

Top Marginal Corporate Income Tax Rate 4.23% 7

Personal Income Tax Progressivity (change in tax liability per $1,000 of income) -$2.16 1

Property Tax Burden(per $1,000 of personal income) $15.18 2

Sales Tax Burden(per $1,000 of personal income) $25.01 33

Remaining Tax Burden(per $1,000 of personal income) $22.38 40

Estate/Inheritance Tax Levied? No 1

Recently Legislated Tax Changes(2014 & 2015, per $1,000 of personal income) -$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

State Liability System Survey(tort litigation treatment, judicial impartiality, etc.)

55.1 46

State Minimum Wage(federal floor is $7.25) $7.25 1

Average Workers’ Compensation Costs(per $100 of payroll) $1.81 22

Right-to-Work State?(option to join or support a union) Yes 1

Number of Tax Expenditure Limits(0=least/worst 3=most/best) 0 34

State Gross Domestic ProductCumulative Growth 2004-2014 34.7% Rank: 32

Economic Performance Rank (1=best 50=worst)A backward-looking measure based on the state’s per-formance (equal-weighted average) in the three impor-tant performance variables shown below. These vari-ables are highly influenced by state policy.

Economic Outlook Rank (1=best 50=worst)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.

103,580 Rank: 13

1.2% Rank: 41 AL

U.S.

AL

U.S.

(in thousands)

Connecticut Alabama2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5

0

5

10

15

20

25

30

35

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

Historical Ranking ComparisonECONOMIC OUTLOOK RANK

2009 2010 2011 2012 2013 2014 2015

16 17 20 21 17 20 19

-4%

-2%

0%

2%

4%

6%

8%

-6%

-5% -4% -3%

-2%

-1%

0%

1%

2%


3%

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13 Economic Performance Rank

Variable Data Rank



Personal Income Tax Progressivity (change in tax liability per $1,000 of income) $0.00 2





Recently Legislated Tax Changes(2014 & 2015, per $1,000 of personal income) $0.19 33



738.9 49


68.1 12



Right-to-Work State?(option to join or support a union) No 50


State Gross Domestic ProductCumulative Growth 2004-2014

Economic Outlook Rank



25

AK

U.S.

AK

U.S.

(in thousands)

Delaware Alaska2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

59.5% Rank: 6

-21,018 Rank: 31

10.6% Rank: 8

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

38 22 29 29 21 18 14

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

-10%

-5%

0%

5%

10%

15%

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

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-12

-10

-8

-6

-4

-2

0 2

4

6


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14



Variable Data Rank











426.6 2


65.4 25





State Gross Domestic ProductCumulative Growth 2004-2014 40.0% Rank: 25





5

536,269 Rank: 4

6.8% Rank: 18 AZ

U.S.

AZ

U.S.

(in thousands)

Connecticut Arizona2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

-8%

-6% -4% -2%

0%

2%

4%

6%

8%

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

0

20

40

60

80

100

120

140

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%


2009 2010 2011 2012 2013 2014 2015

3 3 12 9 6 7 5


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Variable Data Rank











564.6 38


57.7 41









20

AR

U.S.

AR

U.S.

(in thousands)

Delaware Arkansas2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

40.7% Rank: 21

63,430 Rank: 17

2.9% Rank: 36

-5% -4% -3% -2%

-1% 0%

1%

2%

3%

-5

0

5

10

15

20

25

-2%

0%

2%

4%

6%

8%


2009 2010 2011 2012 2013 2014 2015

12 13 13 11 24 26 22

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-3%


(in thousands)



CA

U.S. Variable Data Rank











451.7 6


49.9 47





CA

U.S.

6.8% Rank: 19

-1,265,447 Rank: 49

40.3% Rank: 22

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14






Connecticut California2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

-350

-300

-250

-200

-150

-100

-50

0

-4%

-2%

0%

2%

4%

6%

8%

-8%

-6%

-4%

-2%

0%

2%

4%


2009 2010 2011 2012 2013 2014 2015

43 46 47 38 47 47 44


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(in thousands)



CO

U.S. Variable Data Rank











523.7 22


67.8 16





Economic Outlook Rank 166 Economic

Performance Rank

CO

U.S.


Delaware Colorado2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

13.2% Rank: 5

315,015 Rank: 7

49.0% Rank: 13

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-6%

-4%

-2%

0%

2%

0

5 10

15 20

25 30 35 40


2009 2010 2011 2012 2013 2014 2015

2 2 6 8 16 22 21

-4%

-2%

0%

2%

4%

6%

8%

10%

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4%




(in thousands)




CT

U.S.

CT

U.S.

1.1% Rank: 43

-153,918 Rank: 42

26.0% Rank: 46

Variable Data Rank







Estate/Inheritance Tax Levied? Yes 50




530.1 25


65.9 22





Economic Performance Rank 45 Economic

Outlook Rank 47Connecticut Connecticut2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

-25

-20

-15

-10

-5

0

-4%

-2%

0%

2%

4%

6%

8%


2009 2010 2011 2012 2013 2014 2015

32 36 35 44 43 44 47


-30


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(in thousands)



DE

U.S.

DE

U.S.

3.1% Rank: 35

41,162 Rank: 20

25.3% Rank: 47

Variable Data Rank











524.2 23


76.5 1






Outlook Rank 44Delaware Delaware2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -5%

-4% -3% -2%

-1% 0% 1%

2%

3%

0

1

2

3

4

5

6

7

8

-4%

-2%

0%

2%

4%

6%

8%


2009 2010 2011 2012 2013 2014 2015

31 37 34 34 30 27 38

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-6%





(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


Economic Performance Rank

FL

U.S.

FL

U.S.

4.6% Rank: 25

834,966 Rank: 2

31.7% Rank: 38

Variable Data Rank











434.3 3


56.0 44





18 Economic Outlook Rank 8

Florida2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-8%

-6%

-4%

-2%

0%

2%

4%

6%

-50

0

50

100

150

200

250

300

-4%

-2%

0%

2%

4%

6%

8%

10%


2009 2010 2011 2012 2013 2014 2015

11 5 10 13 9 16 15



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(in thousands)



GA

U.S.

GA

U.S.

6.5% Rank: 20

406,863 Rank: 5

34.5% Rank: 33

Variable Data Rank











503.7 18


62.4 31






Outlook Rank 19

Georgia2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-6%

-4%

-2%

0%

2%

4%

-20

0

20

40

60

80

100

120

140

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%


2009 2010 2011 2012 2013 2014 2015

8 9 11 10 8 9 7

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(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


HI

U.S.

HI

U.S.

5.7% Rank: 22

-36,439 Rank: 33

42.9% Rank: 18

Variable Data Rank











527.8 24


62.8 30






Outlook Rank 42

Hawaii2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-6%

-4%

-2%

0%

2%

4%

-14

-12

-10

-8

-6

-4

-2

0

2

-4%

-2%

0%

2%

4%

6%

8%

10%


2009 2010 2011 2012 2013 2014 2015

41 39 46 46 40 36 37


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(in thousands)





ID

U.S.

ID

U.S.

88,127 Rank: 14

42.3% Rank: 20

Variable Data Rank











493.8 15


70.5 6





Economic Performance Rank 11

Idaho2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

15

10.5% Rank: 9


2009 2010 2011 2012 2013 2014 2015

14 7 5 6 7 5 6

-4%

-2%

0%

2%

4%

6%

8%

-5

0

5

10

15

20

25

-8%

-6%

-4%

-2%

0%

2%

4%

6%

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(in thousands)



IL

U.S.

IL

U.S.

1.0% Rank: 44

-669,442 Rank: 48

31.2% Rank: 39

Variable Data Rank











487.7 13


48.0 48






Outlook Rank 43

Illinois2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

44 47 44 48 48 48 40

-2%

0%

2%

4%

6%

8%

-60

-40

-20

0

-6% -5% -4%

-3% -2% -1% 0%

1%

2%


-80

-100


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(in thousands)



IN

U.S.

IN

U.S.

1.9% Rank: 39

-36,609 Rank: 34

32.3% Rank: 37

Variable Data Rank











483.5 10


67.7 18






Outlook Rank 6

Indiana2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

17 20 16 24 14 3 3

-6%

-4%

-2%

0%

2%

4%

6%

8%

-15

-10

-5

0

5

10

-7% -6% -5%

-4% -3%

-2% -1% 0%

1%

2%

3%

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(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


IA

U.S.

IA

U.S.

6.3% Rank: 21

-14,589 Rank: 29

43.0% Rank: 17

Variable Data Rank











585.1 41


72.2 4






Outlook Rank 29

Iowa2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

35 28 23 22 25 25 25

-2%

0%

2%

4%

6%

8%

-6

-5

-4

-3

-2

-1

0

1

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

0%

1%

2%

3%



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(in thousands)



KS

U.S.

KS

U.S.

5.0% Rank: 23

-58,640 Rank: 36

42.5% Rank: 19

Variable Data Rank











672.0 48


67.6 19






Outlook Rank 27

Kansas2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

24 25 27 26 11 15 18

-5%

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

1%

2%

3%

-14

-12

-10

-8

-6

-4

-2

0

2

4

-4%

-2%

0%

2%

4%

6%

8%

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(in thousands)



KY

U.S.

KY

U.S.

3.7% Rank: 30

54,650 Rank: 18

38.1% Rank: 28

Variable Data Rank











550.6 33


59.0 39






Outlook Rank 33

Kentucky2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

36 40 40 39 38 39 30

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

-10

-5

0

5

10

15

20

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14



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(in thousands)



LA

U.S.

LA

U.S.

3.7% Rank: 31

-230,747 Rank: 44

45.8% Rank: 15

Variable Data Rank











565.5 39


46.5 49






Outlook Rank 28

Louisiana2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

18 16 15 19 28 29 26

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-8%

-6%

-4%

-2%

0%

2%

4%

6%

-300

-250

-200

-150

-100

-50

0

50

-5%

0%

5%

10%

15%

20%

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(in thousands)



ME

U.S.

ME

U.S.

-1.2% Rank: 48

-3,958 Rank: 27

21.8% Rank: 49

Variable Data Rank











531.7 27


68.0 14






Outlook Rank 38Maine Maine2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

47 44 48 47 41 40 42

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5

-4

-3

-2

-1

0

1

2

3

-2%

-1%

0% 1% 2%

3%

4%

5%

6%

7%

-5% -4% -3%

-2%

-1%

0%

1%

2%


3%


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(in thousands)



MD

U.S.

MD

U.S.

4.1% Rank: 28

-145,560 Rank: 41

40.2% Rank: 23

Variable Data Rank











505.1 19


63.9 28






Outlook Rank 31Maryland Maryland2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

28 29 21 20 35 34 33

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -5%

-4%

-3%

-2%

-1%

0% 1%

2%

3%

-35

-30

-25

-20

-15

-10

-5

0

5

-2%

0%

2%

4%

6%

8%

www.alec.org 105





(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


MA

U.S.

MA

U.S.

7.0% Rank: 16

-156,861 Rank: 43

38.3% Rank: 27

Variable Data Rank











488.8 14


67.8 17






Outlook Rank 26

Massachusetts2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

26 32 24 25 29 28 28

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

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

-60

-50

-40

-30

-20

-10

0

10

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%



www.alec.org 107



(in thousands)



MI

U.S.

MI

U.S.

-5.4% Rank: 50

-614,661 Rank: 47

16.9% Rank: 50

Variable Data Rank











441.5 4


65.5 24






Outlook Rank 22

Michigan2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

34 26 25 17 20 12 24

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-8%

-6%

-4%

-2%

0%

2%

4%

-120

-100

-80

-60

-40

-20

0

-6%

-4%

-2%

0%

2%

4%

6%

8%

www.alec.org 107





(in thousands)

-2% -1% 0% 1% 2% 3% 4% 5% 6% 7%



MN

U.S.

MN

U.S.

4.9% Rank: 24

-65,800 Rank: 37

36.8% Rank: 29

Variable Data Rank











518.6 20


68.0 13






Outlook Rank 45

Minnesota2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

40 38 37 41 46 46 48

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

-14

-12

-10

-8

-6

-4

-2

0

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


-3%


www.alec.org 109



(in thousands)



MS

U.S.

MS

U.S.

-0.5% Rank: 45

-54,821 Rank: 35

34.0% Rank: 34

Variable Data Rank











641.5 47


56.3 43






Outlook Rank 17

Mississippi2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

19 18 19 15 10 14 20

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

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

1%

2%

3%

-20

-15

-10

-5

0

5

-4%

-2%

0%

2%

4%

6%

8%

www.alec.org 109






(in thousands)


MO

U.S.

MO

U.S.

1.1% Rank: 42

-18,012 Rank: 30

29.6% Rank: 44

Variable Data Rank











522.2 21


56.6 42






Economic Outlook Rank 24

Missouri Missouri2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

23 15 9 7 23 24 27

-2%

-1%

0%

1% 2% 3% 4%

5%

6% 7%

-15

-10

-5

0

5

10

15

-5%

-4%

-3%

-2%

-1%

0% 1%

2%

3%


43


www.alec.org 111



(in thousands)




MT

U.S.

MT

U.S.

9.5% Rank: 11

46,931 Rank: 19

57.7% Rank: 7

Variable Data Rank











557.6 36


60.5 34





10 Economic Outlook Rank 40

Montana Montana2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

30 33 36 36 42 43 43

0

1

2

3

4

5

6

7

8

-4%

-2%

0%

2%

4%

6%

8%

10%

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

4%

5%

www.alec.org 111





(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


NE

U.S.

NE

U.S.

7.5% Rank: 14

-21,401 Rank: 32

55.6% Rank: 9

Variable Data Rank











630.1 45


73.0 3






Outlook Rank 32

Nebraska2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

29 34 32 31 37 35 31

-5% -4% -3%

-2% -1% 0% 1%

2%

3%

-6

-5

-4

-3

-2

-1

0

1

-2%

0%

2%

4%

6%

8%


10%


www.alec.org 113



(in thousands)



NV

U.S.

NV

U.S.

3.8% Rank: 29

189,804 Rank: 11

30.5% Rank: 41

Variable Data Rank











387.0 1


60.4 35






Outlook Rank 14

Nevada2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

7 11 17 18 13 8 10

-20

-10

0

10

20

30

40

50

60

-10%

-5%

0%

5%

10%

15%

-10% -8%

-6% -4% -2%

0%

2%

4%

6%

8%

www.alec.org 113




State Gross Domestic ProductCCumulative Growth 2004-2014


(in thousands)


NH

U.S.

NH

U.S.

3.3% Rank: 33

-3,612 Rank: 26

32.4% Rank: 36

Variable Data Rank











537.5 31


70.7 5






Outlook Rank 23

New Hampshire2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

37 30 28 28 27 32 29

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

-4

-3

-2

-1

0 1

2

3

4

5

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%


www.alec.org 115





(in thousands)


NJ

U.S.

NJ

U.S.

-0.9% Rank: 46

-527,036 Rank: 46

30.2% Rank: 42

Variable Data Rank











531.7 28


59.3 38






Outlook Rank 48

New Jersey2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

46 48 45 42 39 45 46

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

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

1%

2%

3%

www.alec.org 115




-6%

-4%

-2%

0%

2%

4%

6%

8%


(in thousands)

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14



NM

U.S.

NM

U.S.

3.6% Rank: 32

328 Rank: 25

31.0% Rank: 40

Variable Data Rank











603.0 43


55.2 45






Outlook Rank 34

New Mexico2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

25 35 39 35 33 37 34

-15

-10

-5

0

5

10

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

1%

2%

3%

4%



www.alec.org 117



(in thousands)



NY

U.S.

NY

U.S.

7.7% Rank: 13

-1,468,080 Rank: 50

46.2% Rank: 14

Variable Data Rank











590.9 42


66.3 21






Outlook Rank 50

New York2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

50 50 50 50 49 50 50

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

-2%

0%

2%

4%

6%

8%

www.alec.org 117

-300

-250

-200

-150

-100

-50

0





(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


NC

U.S.

NC

U.S.

8.3% Rank: 12

641,487 Rank: 3

44.9% Rank: 16

Variable Data Rank











552.8 34


70.2 7






Outlook Rank 2

North Carolina2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

21 21 26 23 22 6 4

-6%

-4%

-2%

0% 2% 4%

6%

-4%

-2%

0%

2%

4%

6%

8%

0

20

40

60

80

100

120

140


www.alec.org 119




(in thousands)





ND

U.S.

ND

U.S.

37.6% Rank: 1

39,612 Rank: 21

139.3% Rank: 1

Variable Data Rank











619.7 44


67.9 15





4 3North Dakota North Dakota2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

13 12 7 5 2 4 2

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

10%

-5

0

5

10

15

20

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5%

0%

5%

10%

15%

20%

25%

www.alec.org 119

-6%

12%





(in thousands)



OH

U.S.

OH

U.S.

-1.1% Rank: 47

-375,890 Rank: 45

27.8% Rank: 45

Variable Data Rank











499.1 17


64.2 27






Outlook Rank 18

Ohio2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

45 42 38 37 26 23 23

-7%

-6%

-5%

-4% -3%

-2%

-1%

0%

2%

-50 -45 -40 -35 -30 -25 -20 -15 -10

-5

0

-4%

-2%

0%

2%

4%

6%

8%


1%

3%

www.alec.org 121




(in thousands)



OK

U.S.

OK

U.S.

11.0% Rank: 7

106,133 Rank: 12

60.5% Rank: 5

Variable Data Rank











555.1 35


61.0 33






Outlook Rank 10

Oklahoma2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

15 14 14 14 19 21 16

-5%

-4% -3%

-2%

-1%

0% 1%

2% 3% 4%

-5

0

5

10

20

-10%

-5%

0%

5%

10%

15%

www.alec.org 121

15





(in thousands)



OR

U.S.

OR

U.S.

7.3% Rank: 15

195,898 Rank: 10

49.3% Rank: 12

Variable Data Rank











479.4 9


61.2 32






Outlook Rank 41

Oregon2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

39 41 43 45 44 42 45

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -8%

-6%

-4%

-2%

0% 2% 4%

6%

0

5

10

15

20

25

30

35

-2%

0%

2% 4%

6%

8%

10%

12%


www.alec.org 123




(in thousands)


PA

U.S.

PA

U.S.

2.5% Rank: 37

-83,820 Rank: 40

36.6% Rank: 30

Variable Data Rank











445.3 5


59.4 37






Outlook Rank 39

Pennsylvania2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX



2009 2010 2011 2012 2013 2014 2015

42 43 41 40 34 33 41

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-35

-30

-25

-20

-15

-10

-5

0

5

10

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

www.alec.org 123





(in thousands)



RI

U.S.

RI

U.S.

-2.3% Rank: 49

-70,591 Rank: 39

25.2% Rank: 48

Variable Data Rank











454.2 7


64.6 26






Outlook Rank 35

Rhode Island2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

48 45 42 43 45 41 39

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-2%

0%

2%

4%

6%

8%

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

-12

-10

-8

-6

-4

-2

0


3%

www.alec.org 125





(in thousands)


SC

U.S.

SC

U.S.

6.8% Rank: 17

343,700 Rank: 6

38.3% Rank: 26

Variable Data Rank











530.5 26


59.4 36






Outlook Rank 30

South Carolina2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

20 31 22 27 31 31 32

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -7% -6.%

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

1%

2%

3%

0

10

20

30

40

50

60

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

www.alec.org 125





(in thousands)




SD

U.S.

SD

U.S.

10.0% Rank: 10

22,594 Rank: 23

50.0% Rank: 11

Variable Data Rank











531.9 29


69.5 9





Economic Performance Rank 12 11

South Dakota2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

5 4 2 2 3 2 9

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5% -4% -3% -2%

-1% 0%

1%

2%

3%

-1

0

1

2

3

4

5


-2%

0%

2%

4%

6%

8%

10%

12%

www.alec.org 127





(in thousands)


TNU.S.

TN

U.S.

4.4% Rank: 27

281,998 Rank: 9

34.7% Rank: 31

Variable Data Rank











494.2 16


65.7 23






Tennessee2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

9 10 8 12 18 19 17

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

0

10

20

30

40

50

60

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

www.alec.org 127

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

0%

1%

2%

3%

-7%






(in thousands)



TX

U.S.

TX

U.S.

22.3% Rank: 2

1,353,981 Rank: 1

77.8% Rank: 3

Variable Data Rank











532.8 30


58.5 40





Economic Outlook Rank 12Economic

Performance Rank 1

Texas2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

10 19 18 16 12 13 11

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -5% -4% -3% -2% -1% 0%

1%

2%

3%

4%

0

50

100

150

200

250

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%



www.alec.org 129



(in thousands)




UT

U.S.

UT

U.S.

20.3% Rank: 3

82,986 Rank: 15

61.9% Rank: 4

Variable Data Rank











477.1 8


69.0 10






Utah2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

1 1 1 1 1 1 1

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-6%

-4%

-2%

0%

2%

4%

6%

-5

0

5

10

15

20

25

-2%

0%

2%

4%

6%

8%

10%

12%

14%

www.alec.org 129






(in thousands)


VT

U.S.

VT

U.S.

2.5% Rank: 38

-9,107 Rank: 28

30.1% Rank: 43

Variable Data Rank











636.8 46


73.8 2






Outlook Rank 49

Vermont2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

49 49 49 49 50 49 49

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 -5% -4%

-3%

-2%

-1%

0%

1%

2%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%


-1.8 -1.6

-1.4

-1.2

-0.8

-0.6

-0.4

-0.2

0

-1.0


www.alec.org 131



(in thousands)





VA

U.S.

VA

U.S.

4.5% Rank: 26

76,071 Rank: 16

40.1% Rank: 24

Variable Data Rank











537.6 32


68.3 11





19 13

Virginia2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX


2009 2010 2011 2012 2013 2014 2015

4 8 3 3 5 11 12

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

-2%

0%

2%

4%

6%

8%

www.alec.org 131

10%

-25 -20 -15 -10 -50 5

10 1520 25 30





(in thousands)


’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


WA

U.S.

WA

U.S.

12.6% Rank: 6

286,312 Rank: 8

55.7% Rank: 8

Variable Data Rank











484.2 11


63.8 29






Outlook Rank 36

Washington2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

22 24 33 33 36 38 35

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

1%

2%

3%

4%

0

10

20

30

40

50

60

-2%

0%

2%

4%

6%

8%

10%



www.alec.org 133



(in thousands)



WV

U.S.

WV

U.S.

3.1% Rank: 34

16,719 Rank: 24

50.4% Rank: 10

Variable Data Rank











560.3 37


46.3 50






Outlook Rank 37

West Virginia2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

33 27 31 30 32 30 36

-2%

0%

2%

4%

6%

8%

10%

-5% -4% -3% -2%

-1% 0%

1%

2%

3%

www.alec.org 133

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






(in thousands)

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


WI

U.S.

-66,862 Rank: 38

33.6% Rank: 35

Variable Data Rank











485.5 12


66.6 20






Outlook Rank 9

WI

U.S.

1.6% Rank: 40

Wisconsin2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

27 23 30 32 15 17 13

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-5%

-4%

-3% -2%

-1%

0% 1%

2%

3%

-12

-10

-8

-6

-4

-2

0

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%


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(in thousands)

7


WY

U.S.

14.1% Rank: 4



WY

U.S.

27,391 Rank: 22

84.8% Rank: 2

Variable Data Rank











873.1 50


69.7 8





4

Wyoming2016 ALEC-LAFFER STATE ECONOMIC COMPETITIVENESS INDEX

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14


2009 2010 2011 2012 2013 2014 2015

6 6 6 6 6 10 8

’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

-6%

-4%

-2%

0%

2% 4%

6%

8%

-15%

-10%

-5%

0%

5%

10%

15%

20%

www.alec.org 135

-4

-2

0

2

4

6

8


Appendix2016 ALEC-Laffer State Economic Competitiveness Index: Economic Outlook Methodology

I

APPENDIX

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 re-turn forms. Tax rates are as of January 1, 2016.

HIGHEST MARGINAL CORPORATE INCOME TAX RATE This variable includes local taxes, if any, and in-cludes the effect of federal deductibility, if al-lowed. 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 measure-ment 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 Adminis-trators, 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 liabili-

ties were measured using a combination of effec-tive 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 rev-enues 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 rev-enues from sales taxes per $1,000 of personal in-come. 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 appro-priate, 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 rev-enues from all taxes—excluding personal income, corporate income (including corporate license), property, sales and severance per $1,000 of per-sonal 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

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 rank-

ings 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:

www.alec.org 137

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 pres-ence of an estate or inheritance tax as of January 1, 2016.

RECENTLY LEGISLATED TAX CHANGESThis 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 bud-get offices, state revenue offices and other sourc-es, including the National Conference of State Legislators. DEBT SERVICE AS A SHARE OF TAX REVENUEInterest 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 RESIDENTSThis variable shows the full-time equivalent public employees per 10,000 of population. This infor-mation comes from 2014 U.S. Census Bureau data. These data were released in December 2015.

QUALITY OF STATE LEGAL SYSTEMThis variable ranks tort systems by state. Informa-tion comes from the U.S. Chamber of Commerce Institute for Legal Reform 2015 Lawsuit Climate Survey.

STATE MINIMUM WAGEMinimum wage enforced on a state-by-state ba-sis. If a state does not have a minimum wage, we use the federal minimum wage floor. This infor-mation comes from the U.S. Department of Labor, as of January 1, 2016.

WORKERS’ COMPENSATION COSTSThis variable highlights the 2014 Workers’ Com-pensation Index Rate (cost per $100 of payroll). This survey is conducted biennially by the Oregon Department of Consumer & Business Services, In-formation Management Division.

RIGHT-TO-WORK STATE (YES OR NO)This variable assesses whether or not a state re-quires 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 sta-tus is as of January 1, 2016.

TAX OR EXPENDITURE LIMITStates 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 superma-jority requirement for tax increases. One point is awarded for each type of tax or expenditure limitation a state has. All tax or expenditure limi-tations measured apply directly to state govern-ment. This information comes from the Cato Insti-tute and other sources.

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