American Legislative Exchange Council’s annual rankings points to where state needs to improve to better itself
The American Legislative Exchange Council released its annual Rich States, Poor States report this month, and it placed Alaska in the dead middle in its Economic Outlook category. (Click the link above and scroll to Page 7).
Saving Alaska from ranking near the bottom were not having income and inheritance taxes. Otherwise, the Debt Service as a Share of Tax Revenue (50), Public Employees Per 10,000 People (49), Top Marginal Corporate Tax Rate (44), and Property Tax Burden (41) were four of the 15 variable used that showed the bigger drags on the Alaska economy.
“Clearly, our state’s tax policies are our saving grace,” said Thor Stacey, NFIB Alaska state director. “They explain why we also rank so high in the Tax Foundation’s list. Other groups’ measurements are instructive for lawmakers to consider in order to improve our standing in other categories.”
Below is a sample of where Alaska ranks in other reports:
- A–Truth in Accounting’s Financial State of the States 2023
- 3–Tax Foundation’s 2024 State Business Tax Climate Index
- 25–American Legislative Exchange Council’s Rich States Poor States (2024)
- 39–Fraser Institute’s Economic Freedom Index
- 41–Wallet Hub Most & Least Innovative States (2024)
- 42–Forbes Best States to Start a Small Business (2024)
- 49–US News’ Best States 2023
- 50–CNBC’s America’s Top States for Business (2023)
NFIB does not rank states. Instead, it ranks environments and conditions for small businesses as a whole across the nation. Its most prestigious report, considered the gold standard measurement of the Main Street economy, is the monthly Small Business Economic Trends (SBET) report, also known as the Optimism Index.
“The SBET is one of the few archival data sets on small businesses, particularly when research questions address business operations rather than opinions,” according to this one-page history of SBET. “Today, it’s the largest, longest-running data set on small business economic conditions available.”
