“Rich States, Poor States” Annual Report Puts Minnesota at the Bottom
Minnesota Ranks 46th in American Legislative Exchange Council’s “Rich States, Poor States” Annual Report
Gov. Mark Dayton’s “targeting of taxpayers” continues Minnesota’s decline in economic outlook
MINNEAPOLIS, Minnesota— The American Legislative Exchange Council released today its 6th annual “Rich States, Poor States” report, and the news isn’t good for Minnesota citizens, families and businesses. The report, which ranks all 50 states in the categories of Economic Performance and Economic Outlook, ranks Minnesota in the bottom ten in Economic Outlook-ahead of only California, Illinois, New York and Vermont.
Minnesota ranked 34th overall in Economic Performance, a backward-looking measure, and 46th overall in Economic Outlook, a forward-looking forecast. The report’s authors specifically noted Democratic Gov. Mark Dayton “targets taxpayers” and that because of the governor’s recent policy decisions in comparison to surrounding states, “not all tax changes moving through the Midwest are growth oriented.”
The report’s authors, Dr. Arthur B. Laffer, Stephen Moore, and Jonathan Williams, used 18 total performance and policy variables in producing each state’s ranking. Variables include a review of economic growth, domestic migration, income tax rates and progressivity, property and sales tax burdens and more.
“Minnesota’s continued drop to 46th overall in Economic Outlook is discouraging and disappointing news for Minnesota citizens, families and job creators,” stated John Cooney, AFP-MN State Director. “At a time when more economic freedom and prosperity are sorely needed to put Minnesotans back to work and our economy back on track, recent policy decisions by Democratic Gov. Mark Dayton and his like-minded legislative majorities serve as a road block to a vibrant and thriving economy. Unfortunately, the recently-concluded legislative session continued a dangerous focus on harmful and excessive taxation and spending that punishes Minnesota’s middle class rather than encouraging growth. It is clear that we need a sustained and thoughtful focus on increasing Minnesota’s ability to compete in the Midwest and in the growing global economy.”
Notable “Rich States, Poor States” Report Findings:
- According to statistics from the Internal Revenue Service, more than $2 trillion of wealth has moved across state lines in the past 15 years. This means that it is incredibly important to remain competitive.
- On balance, no income tax states have 2.5 times the population growth of the highest income tax states.
- From 2005 to 2010, a net 416,198 people moved from one of the 9 highest tax income tax states to one of 9 states without an income tax.
- The nine states without an income tax experienced 12.7% job growth, versus 7.6% in the average state and 4.9% in the highest tax states.
- The states with no income tax have higher tax revenue growth than the national average and the highest income tax states.
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 organization of state legislators. More information about the report authors, methodology, Minnesota’s ranking and the full “Rich States, Poor States” findings can be found here: http://alec.org/docs/RSPS-6th-Edition
Americans for Prosperity (AFP) is a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. For more information, visit www.americansforprosperity.org
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