Thursday, October 21, 2010

ALEC: Ohio Ranks 42nd in Economic Outlook

SIDNEY, OH - According to the latest edition of an annual study by the American Legislative Exchange Council (ALEC), Ohio's economic outlook ranks 42nd out of the 50 states. As states face their toughest budgetary climates in a generation, the third edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index offers a clear cut roadmap to prosperity.

"We cannot spend, borrow, or tax our way into prosperity," said Representative John Adams, Ohio House Minority Whip and ALEC State Chair. "State government must learn to live within its means, as we continually look for ways to make our great state more competitive and cultivate a business climate that will produce jobs."

While the state boasts of leading the nation in "green job" creation, Ohio's anti-growth policies have taken their toll on the state's overall economic outlook. When you add Ohio's local income tax rates to the state income tax, taxpayers face some of the highest rates in the nation.

Additionally, the study gives Ohio substandard marks for its poor labor policy and one of the worst state-level death taxes in the nation. Among bordering states, Indiana ranks 20th, West Virginia ranks 27th, Michigan ranks 26th, Kentucky ranks 40th, and Pennsylvania ranks 43rd.

Co-author and renowned economist Dr. Arthur B. Laffer summarized the report's findings when he said, "Tax and economic policies are essential to the competitiveness of our states." Rich States, Poor States presents state economic outlook rankings based on public policies that have a proven impact on growth, revealing which states have the best chance of experiencing economic recovery, and which need to re-examine their policies before they can expect to see improvement.

Laffer and his co-authors, Stephen Moore, senior economics writer at The Wall Street Journal, and Jonathan Williams, director of ALEC's Tax and Fiscal Policy Task Force, analyzed how economic competitiveness drives income, population, and job growth in the states.

"Our research shows that states with responsible spending and competitive tax rates enjoy the best economic outlook," Williams said. "States do not enact changes in a vacuum - every time they increase the cost of doing business in their state, their state brand immediately loses value."
Take that Ted Strickland (and Jon Husted)!