(The Center Square) — A report released on Thursday gives the future of Mississippi’s economy high marks.
According to a report by the Virginia-based American Legislative Exchange Council, Mississippi’s economic outlook is better than all but 21 states.
The state’s economic performance over the past decade was ranked 37th. Mississippi’s outlook is up five places from last year’s rank of 27th.
The 16th edition of the Rich States, Poor States report, authored by Arthur Laffer, Stephen Moore and Jonathan Williams, ranked Mississippi 22nd using 15 policy variables among the states that can be influenced by lawmakers. According to the report, states that spend less, especially on welfare programs and tax less experience higher growth rates than states with higher rates of both taxing and spending.
According to the study authors, free market reforms championed by Mississippi House Speaker Philip Gunn and other lawmakers have played a big role in that improving score. They also predict that as tax rates fall, the state will have a bigger improvement in its economic outlook scores.
Mississippi receives top marks for not having a minimum wage more than the federal floor of $7.25, being a right to work state and not levying an inheritance/estate tax. Despite tort reform, the state’s liability system was rated third worst by the authors and the number of public employees per 10,000 residents (606.9) was fifth worst. The state’s sales tax burden of $31.01 per $1,000 of personal income was also eighth worst nationally.
Mississippi’s economic outlook was better than Alabama (24th) and Louisiana (26th), but worse than Tennessee, which was ranked 11th best, and Arkansas (15th).
Utah was rated first in economic outlook, with North Carolina, Arizona, Idaho and Oklahoma rounding out the top five. Worst was New York, preceded by Vermont, Minnesota, New Jersey and Illinois.
