(The Center Square) – Louisiana is ranked No. 18 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 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.
Louisiana was No. 18 a year earlier as well after being No. 31 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 25th-largest state in America has a population estimated at 4.6 million with a loss of about 50,000 this decade.
The economic performance rank is 50th. In the 15 categories scored, the state is tied or at the top as a right to work state, minimum wage of $7.25, and no inheritance tax levied. The number (two) of tax expenditure limits is third; property tax burden ($18.98) sixth; and recently legislated tax changes (minus-$2.60) eighth.
The worst rankings are No. 48 for state tort system costs (2.65%), No. 47 for sales tax burden ($41.25) and No. 42 for average workers’ compensation costs ($1.41).
