The report looks at how states perform in 15 key categories
Tennessee came in 11th on the American Legislative Exchange Council’s latest State Economic Outlook Ranking. Among states in the Southeast, North Carolina finished 2nd, while Florida came in 9th. The No. 1 state on the forward-looking list was Utah.
The Economic Outlook Ranking is a forecast based on states’ current standing in 15 state policy variables. Each of these factors is influenced directly by state lawmakers through the legislative process. According to ALEC, states that spend less — especially on income transfer programs — and states that tax less — particularly on productive activities such as working or investing — generally experience higher growth rates than states that tax and spend more.
Tennessee ranked No. 1 on four of the 15 variables: top marginal personal income tax rate, whether it has an estate or inheritance tax, the state minimum wage and its right-to-work status.
