The Massachusetts economy is stagnant, according to an economic ranking of all 50 states by the American Legislative Exchange Council .
Massachusetts came in at 26 out of 50 in the ranking, “thanks to a mix of good and bad economic policies,” according to the council. The ALEC report says the state’s high business and property taxes, inheritance tax, “excessively high minimum wage and forced unionism” contributed to its “lackluster ranking.” Utah is the number one state in the ALEC ranking. Vermont came in dead last.
On the good side, the report notes that the state has relatively low personal and sales taxes, low workers’ compensation costs and a solid tort liability system.
The report concludes that states that keep taxes and government spending low reap the greatest economic results, while states that tax and spend heavily watch as their businesses and residents flee to more competitive states.
The council compiled the ranking in a report entitled “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.” The report was written by economist Arthur Laffer and Stephen Moore of the Wall Street Journal.
