In April, the 17th edition of Rich States, Poor States was released by the American Legislative Exchange Council (ALEC). This annual report ranks the 50 states with the best economic outlook based on several different factors. For the 17th year in a row and for the entirety of the time the publication has been in existence, Utah has taken the #1 spot.
While Utah remains at the #1 spot for another year, several states are hot on our heels and will soon dethrone Utah of the top spot unless further action is taken. For example, the two states now occupying the #3 and #4 spots, Arizona and North Carolina, are leaving Utah in the dust when it comes to tax policy. While Utah has recently moved the state income tax rate from 4.65% to 4.55% (about a $160 million cut), Arizona reduced their income tax rate from 4.5% to 2.5% (over a $1 billion cut) in one year. Over on the east coast, North Carolina has spent the last decade taking their individual income tax rate from above 7% to a current level of 3.99% next year and their corporate income tax rate is now at 2.5% withand they have plans to take that rate to 0%.
Idaho, our neighbor to the north, now sits at the #2 spot. With similar legislative goals like cutting the income tax rate and massive in-migration to the gem state thereir is a very real possibility they also could take the #1 spot away from Utah.
Utah has not maintained the #1 spot in this ranking by accident. It has taken hard work and leadership by elected officials and policymakers. The Utah Taxpayers Association urges all of them to not forget that.