Less than a month after the U.S. Census Bureau reported that the population is continuing to flow from “tax and spend” blue states to more competitive red states, an important group of state legislators has filled in the astonishing details on why that’s happened.
The American Legislative Exchange Council (ALEC) has tracked the economic policies of state governments for 14 years. Once again, it found that states pursuing low tax and spending policies have faster growth and a brighter future. Utah came out in first place in the latest Economic Competitiveness report, its 14th straight year in the top spot. Florida was a big winner under Governor Ron DeSantis’s leadership, jumping from seventh place last year to second place now.
Who fared the worst? New York, Vermont, and New Jersey — a trio of neighboring states that are mired in a model that features high taxes, crushing regulations on business, and a precarious public-pension system.
The ALEC report is called “Rich States, Poor States.” One of its co-authors is Steve Moore, co-founder of the Committee to Unleash Prosperity. He laments that once-vibrant economies such as New York, Illinois, and California have been ruined by bad policies. “People are moving to places like Utah and Florida, where you can’t even buy a house now,” he said. “You can’t get a construction crew for four months.”