OLeary Ventures chairman Kevin OLeary and former State Department spokesperson Morgan Ortagus weigh in on the impact to businesses from New York Citys congestion toll and the states policies.
New York’s economic outlook is the worst of any other U.S. state due to its high taxes and regulatory environment, according to new data.
The American Legislative Exchange Council’s (ALEC) annual Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, released this week, found New York ranked dead last for economic outlook for the 11th year in a row.
The Manhattan skyline is seen at sunrise from the 86th floor observatory of the Empire State Building on April 3, 2021 in New York City. The state of New York has the worst economic outlook of any other state in the U.S. according to ALEC’s latest “R (Photo by ANGELA WEISS/AFP via Getty Images / Getty Images)
The report, co-authored by Reagan economist Dr. Arthur B. Laffer, economic policy expert and FOX Business contributor Stephen Moore, and ALEC chief economist Jonathan Williams, assessed all 50 states on economic competitiveness.
The study found New York ranked 29th in economic performance last year, but it warned its policies could continue to drive residents and businesses out of the state, noting it has lost more than 2 million residents to other states since 2012.
Florida Chief Financial Officer Jimmy Patronis discussed inviting New York businesses to the Sunshine State and weighed in on a potential menthol cigarettes ban.
To determine the economic outlook ranking for states, the economists looked at 15 policy variables considered to be markers of financial stability, including personal and corporate income tax rates, sales tax burdens, tort systems, minimum wages and debt service as a share of tax revenue.
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New York has the highest top personal and corporate income tax rates in the country and the second-highest debt service to tax revenue ratio. Those factors, combined with its regulatory environment, its status as a right-to-work state, its inheritance tax and high workers’ compensation costs, all helped push it to the bottom.
“New York is the perfect example of a state that can’t get out its own way, thanks to failed, tax and spend approach to policymaking,” said Williams. “In order to reverse the devastating trend of outmigration of businesses and individuals, New York needs to embrace commonsense, pro-taxpayer policy reforms.”
People walk outside the New York Stock Exchange on July 25, 2022 in New York City. ALEC’s annual report found New York ranked 29th among all 50 states for economic performance in 2023, but dead least for its economic outlook. ((Photo by Spencer Platt/Getty Images) / Getty Images)
Behind New York, Vermont came in 49th in the study for its economic outlook, followed by No. 48 Illinois, No. 47 California and No. 46 New Jersey.
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At the top of the list, Utah ranked No. 1 in economic outlook, followed by No. 2 Idaho, No. 3 Arizona, No. 4 North Carolina and Indiana came in at No. 5.
