Tennessee is a model of economic growth for the nation, according to Reagan-era economist Arthur Laffer.
This praise came with the announcement that the Volunteer State has been ranked as one of the top five most economically competitive states in the nation by the American Legislative Exchange Council’s annual Rich States, Poor States report. The study looks at 15 different state policy metrics—such as tax burden, minimum wage, workers’ compensation costs, right to work laws, GDP and job growth, and domestic migration—to rank each state’s economic performance and outlook. Tennessee came in 15th and 5th, respectively.
The Chattanooga Times Free Press reported a quote from Stephen Moore, co-author of the report: “The nine no-income tax states (including Tennessee) have had almost three times the job rate increase that the states with income taxes have had. There is a clear migration of businesses, factories, and jobs to these states that have no income tax, and I’m just mystified that more states have not moved into that column.”
Additionally, in more good news, a study by WalletHub found that Tennessee’s tax burden is the third lowest in the nation.