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The American Legislative Exchange Council’s “Rich States, Poor
States” report is a forecast based on a state’s current standing
in 15 state policy variables. Each of these factors is
influenced directly by state lawmakers through the legislative
process. The authors contend that states that spend less and
states that tax less experience higher growth rates than states
that tax and spend more.
Illinois ranked 46th in the country, down one spot from last
year. Hurting Illinois’ ranking are several tax-related
categories, including property tax burden, which the state
placed 42nd. Illinois ranked 44th in corporate income tax rate;
and 49th for debt service as a share of tax revenue.
Illinois placed last in the category of state liability system
survey, which includes treatment of tort litigation and judicial
impartiality. The state also placed last for labor policy for
not being a "right-to-work" state.
“Illinois continues to seem to want to take the approach of
doubling-down on policies that not only don’t work in Illinois
but don’t work anywhere else that they’re tried,” ALEC Chief
Economist Jonathan Williams said. “With the massively unfunded
pension liabilities, the labor policy, and the tax burdens,
whether on property or income or other taxes that are clearly
driving both businesses and individuals out of the state looking
for more economic opportunity elsewhere.”
The top three states in the economic outlook ranking are Utah,
North Carolina and Arizona.
ALEC has also released its Economic Performance Ranking, which
is a backward-looking measure based on a state’s performance on
three variables: State Gross Domestic Product, Absolute Domestic
Migration and Non-Farm Payroll Employment, all of which are
highly influenced by state policy.
Illinois placed 44th in the country with a ranking of 48th in
the migration category.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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