3/13/08

Right To Work law boosts Louisiana

In the American Legislative Exchange Council’s (ALEC) first economic ranking of all 50 states, Louisiana was ranked 21st, better than the national average, thanks to a mix of mostly good and some bad economic policies. The report, RICH STATES, POOR STATES ALEC-Laffer State Economic Competitiveness Index, was a collaborative effort from authors Dr. Arthur Laffer, nationally recognized economist, and Stephen Moore of the Wall Street Journal.

Contributing to the state’s positive economic outlook were low personal income, business, and property taxes, the lack of an estate tax or minimum wage, and the state’s right-to-work status. On the down side, Louisiana ’s economy suffers from high sales taxes, high worker’s compensation costs, and one of the worst tort liability systems in the nation.

The authors identify 16 policy variables with a proven impact on the migration of human and investment capital in and out if states. According to their findings, a record eight million Americans moved from one state to another last year, revealing which states have the most dynamic and desirable economies, and which are "has-been" states. The winners in this contest are generally the states with the lowest tax, spending and regulatory burdens. The biggest losers are California , the Northeast, and the Midwest .

“The historical evidence is clear: States that keep spending and taxes low exhibit the best economic results, while states that follow the tax-and-spend path lag far behind. Today, many states stand at a crossroads, and it will soon become apparent if lawmakers choose to use history as a guide for their actions. No state has ever taxed its way into prosperity. This is not about Republican versus Democrat, or left versus right. It is simply a choice between economic vitality and economic malaise,” said Jonathan P. Williams, Director of ALEC’s Tax and Fiscal Policy Task Force.

The complete book is available online at www.alec.org; each state can be downloaded individually. Also available is a link to the C-SPAN video presentation by the authors.

(sulphurdailynews.com)

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