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New York’s income and property taxes and workers’ compensation costs have contributed to the state’s poor economic outlook and ranking as the second to worst state for economic growth, a new report by the American Legislative Exchange Council shows.
Rich States, Poor States looks at the latest trends in state economic growth and ranks each state based on 15 policy variables, including tax rates, regulatory burdens and labor policies. Utah ranked first in terms of overall economic outlook for 2013, while Vermont ranked 50th.
New York ranked 37th for its economic performance, a backward-looking measure based on the state’s performance in GDP, domestic migration and non-farm jobs. While GDP grew 43 percent from 2001 to 2011, some 1.6 million people left the state during the same time period. Non-farm jobs increased 2.8 percent, the report shows.
New York’s overall economic outlook rank of 49th was an improvement from 2012, when the state ranked last.
The state ranked 49th in terms of top personal income tax rate and 50th for its 17.16 percent top marginal corporate income tax rate.
New York ranked 44th for its property tax burden of $47.67 per $1,000 of personal income. The state ranked 46th in terms of average workers’ compensation costs of $2.82 per $100 of payroll.
The report’s authors note states with lower taxes and fiscally responsible policies experience far more economic growth, job creation and in-migration than do states with high-tax, big government counterparts.
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