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ALEC Report Ranks Utah No. 1, Puts New York Last in 2026 Economic Outlook

The index links lower taxes to stronger growth with more people moving in.

Overview

  • The 19th Rich States, Poor States report, released Wednesday, ranks states by a 15-factor policy index focused on taxes, labor rules, and other choices under state control.
  • Utah holds the top outlook for a 19th year, with ALEC crediting a flat income tax, pension reforms, and a light overall tax burden.
  • New York places last for the 13th straight year, with ALEC citing high personal and corporate tax rates and about 1.5 million more people leaving than arriving since 2015.
  • California lands at No. 47 and has seen roughly 1.4 million residents depart over the past decade, while Arizona climbs to No. 5 and Colorado drops to 29.
  • ALEC highlights a political pattern in the rankings and argues policy drives migration and investment, though economists in the coverage note housing costs and industry mix also shape outcomes.