Report ranks New York lowest in nation for economic outlook
New York has maintained its place at the bottom of a nationwide ranking on economic outlook, according to a new report, which cites the state’s high tax burden, a “lack of fiscal constraint” and rising debt obligations.
The American Legislative Exchange Council 2023 “Rich States, Poor States” report ranked New York 31st among all states in economic performance, but 50th in economic outlook.
“New York’s across-the-board high tax burden, lack of fiscal constraint and out-of-control debt growth and general unfriendliness to business and worker freedom continues to make the Empire State the Emperor of the Bottom,” the report’s authors wrote in a summary of the findings.
The report ranks states on 15 metrics ranging from rates for personal, corporate, property and sales taxes to employer costs including workers’ compensation and minimum wages.
“Each of these factors is influenced directly by state lawmakers through the legislative process,” the report’s authors noted. “Generally speaking, 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.”
New York got the lowest rankings for tax rankings, including both state and local rates, placing 50th for top marginal personal and corporate tax rates, 46th for property taxes and 32nd for sales tax.
New York has 593.8 public employees per 100,000 population, which ranks 10th.
The state is ranked 36th in a survey of judicial factors including tort litigation treatment and judicial impartiality.
ALEC’s annual ranking also gave New York low marks for having an inheritance or estate tax, and for not having right to work legislation on the books.
Despite the negative outlook, New York was ranked 31st in the group’s backward looking “economic performance” based on three metrics.
For decadal gross domestic product growth, the state ranked 15th at 52.40%. Nonfarm employment growth from 2010 to 2020 ranked 29th at 5.59%.
But the Empire State ranked 50th on domestic migration with an estimated loss of more than 1.7 million residents between 2012 and 2021, according to the report.
ALEC describes itself as a “nonpartisan, voluntary organization of state legislators and job creators” dedicated to the principles of limited government, free markets and federalism.
New York has consistently been ranked rock bottom in economic outlook by the group. Only twice has New York not ranked 50th, both times only reaching 49th, the group said.