(The Center Square) – Virginia is ranked No. 31 in the country in economic outlook in the 19th annual Rich States, Poor States ranking.
Fifteen state policy variables are measured in the ALEC-Laffer State Economic Competitiveness Index, released Wednesday by the American Legislative Exchange Council. Better scores go to states spending and taxing less to attain higher growth rates.
Utah, Tennessee and Idaho are the top three, respectively.
Virginia was No. 32 last year and No. 22 in 2024.
“Generally speaking,” the report explains, “states that spend less – especially on income transfer programs – and states that tax less – particularly on productive activities such as working or investing – experience higher growth rates than states that tax and spend more.”
The 12th largest state in America has a population estimated at 8.8 million, up an estimated 250,000 since 2020.
The economic performance rank is No. 21. In the 15 categories scored, the state is tied or at the top as a right to work state, and no inheritance tax levied. Virginia is No. 7 in sales tax burden ($14.84), state tort systems costs (1.47%), and No. 8 in average workers’ compensation costs (73 cents).
The worst rankings are No. 38 for remaining tax burden ($19.41), and No. 35 for public employees per 10,000 of population (539.2).
