(The Center Square) – Alabama is ranked No. 28 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.
Alabama was No. 20 each of the prior three years.
“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 24th-largest state in America has a population estimated at 5 million, up roughly 130,000 since 2020.
The economic performance rank is 15th. In the 15 categories scored, the state is tied or at the top as a right to work state, minimum wage of $7.25, no inheritance tax levied, property tax burden of $14.43 and personal income tax progressivity of minus-96 cents. Next best was No. 17 for top marginal personal income tax rate (4.15%).
The worst rankings are No. 39 each for sales tax burden ($30.31), remaining tax burden ($19.90) and public employees per 10,000 population (569.4).
