Right to Work law boosts Alabama ranking

In the American Legislative Exchange Council’s (ALEC) first economic ranking of all 50 states, Alabama, with its low income, business and property taxes, no estate tax and “right-to-work” status was ranked as the 18th best state in the country in terms of its economic outlook. 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.”

According to the authors, Alabama could have earned higher marks, but for its high workers’ compensation costs and poor tort litigation system.

“Our economy has been doing well, attracting businesses, jobs, and new residents, but we can do better,” said State Rep. Mary Sue McClurkin and ALEC’s state Chairman. “As this report shows, we need to stay on course with our low tax rates and at the same time address the need for tort reform legislation.”

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,” said Jonathan P. Williams, Director of ALEC’s Tax and Fiscal Policy Task Force. “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.”


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