Major policy reforms have boosted Michigan’s economic competitiveness ranking from 20th to 12th in the most recent Rich State, Poor State report released today by the American Legislative Exchange Council.
Jonathan Williams, director of the council and co-author of report, says fundamental tax and fiscal policy reforms attributed to the dramatic increase in economic competitiveness for Michigan, as well as Indiana and North Carolina, which ranked at No. 3 and No. 6, respectively.
“Michigan took a large leap in our most recent rankings,” Williams says. “The difference was the passage and phase-in of right-to-work legislation, which is a big step that will pay dividends to Michigan’s economic performance for decades to come.”
The report — which considers various tax rates, regulatory burdens, and labor policies — notes that states with low tax rates and right-to-work laws are more likely to have a better economic outlook.
“The report shows that states are taking responsibility for their own economic success and not waiting for direction from the federal government,” says Stephen Moore, a co-author of the report and chief economist at the Heritage Foundation. “The short story is, the states are leading the way in pro-growth, economic reforms.”
According to the report, Utah has the best economic outlook, followed by South Dakota, Indiana, North Dakota, and Idaho. New York is considered to be the least competitive state
To read the full report, click here.