April 18, 2017

CT's economic outlook 5th worst in U.S.

HBJ file photo
HBJ file photo
The State Capitol in Hartford.

Connecticut's economic outlook is fifth worst in the nation, according to a new study by a conservative nonprofit that compares states' economic competitiveness based on several criteria including tax burden.

The 2017 "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index," ranked Connecticut 46th in the nation, ahead of just California, New Jersey, Vermont, and New York. That was a slight improvement from last year's 47th ranking.

According to the annual index published by the conservative American Legislative Exchange Council (ALEC),

Connecticut ranked poorly in many tax categories, including top marginal income tax rates (6.99 percent), top marginal corporate income tax rate (9 percent), and property tax burden ($42.53 per $1,000 of personal income). The state's high minimum wage ($10.10) and average workers' compensation costs, also dragged down Connecticut's ranking, the report said.

According to the annual publication, "Connecticut citizens are packing up and taking their tax dollars with them, a reflection of the continual negative domestic migration rates over the past decade."

"State governments are constantly competing for Americans and jobs, and in this fast-moving environment, standing still is enough to get left behind," said Jonathan Williams, ALEC chief economist and vice president of the ALEC Center for State Fiscal Reform. "States that have adopted pro-growth policies have enjoyed robust economic expansion, with greater wage growth and more opportunities for citizens. The facts remain clear that pro-growth policies are working and there is a clear trend in favor of market-oriented reforms."

The index is a forward-looking economic forecast based on a state's standing in 15 state policy variables, the report said.

Utah, Indiana and North Carolina were the top ranked states in the report.

For more information on Connecticut's ranking click here.

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