CALIFORNIA BUSINESS MINUTE
Ranking California
05-20-10
Hi, I am Tim Johnson and welcome to the California Business Minute.
According to a newly released report by the Washington D.C. based non-profit
group the American Legislative Exchange Council, ALEC, the Golden State remains
in the bottom 5 in the nation ( ranked 46th, down from 43rd in 2009) as identified in the
report – Rich States, Poor States: ALEC-Laffer State Economic Competitiveness
Index.
The third edition of Rich States, Poor States: ALEC-Laffer State Economic
Competitiveness Index shows how many states responded to the economic crisis
with higher taxes, new spending and more debt. But instead of continuing down
this road to a financial meltdown, the authors outline steps that states can
take to bring about economic recovery.
The report is co-authored by former California and economic advisor to president
Reagan, Art 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. Together they analyzed how economic competitiveness drives
income, population, and job growth in the states. They found that states with a
high and rising tax burden are more likely to drive away individuals and business,
while those with lower and falling tax burdens are more likely to attract businesses
and create jobs.
For California, this annual report has taken its toll. The state gets beat up by
its high personal income tax progressivity, continued legislative tax changes and
being a right to work state.
I am Tim Johnson and this has been the California Business Minute.
To view the report go to:
http://www.alec.org/AM/Template.cfm?Section=Rich_States_Poor_States
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