New York ranks last in the nation on an index of state economic competitiveness published by the American Legislative Exchange Council, which cited the Empire State and New Jersey as two of four examples of “how not to govern a state.”
Connecticut ranked 36th on “Rich States, Poor States” report published by Washington, D.C.-based ALEC, based on an index devised by economist Arthur Laffer that takes into account growth in gross state product, personal income and population over a 10-year period ending in 2008.
ALEC, which advocates for limited government and free markets, opined that Connecticut hurt its competitive standing by increasing income taxes last year on individuals earning more than $500,000, a provision that affects small business owners as well who file business income taxes using personal income tax forms.
No Northeast state ranked in the top 10 nationally, with New Hampshire and Massachusetts the best performing at 30th and 32nd respectively. Utah, Colorado and Arizona topped the list, and New Jersey, Vermont and New York brought up the bottom.
“The tax hikes in California, Hawaii, New Jersey, New York, and North Carolina are supposed to be ”˜temporary,”™” Laffer and his co-authors wrote in the report. “We”™ll believe that when we see it. In too many cases, as lawmakers get addicted
to the promise of more revenue, these so-called ”˜temporary”™ tax hikes soon enough become permanent fixtures in state tax codes.”
