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“Rich States, Poor States” author Stephen Moore on how the states ranked by their economic outlook ratings.
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Is your state prospering or is it struggling.
A brand new study ranks all fifty of them from best to worst when it comes to economic development New York California New Jersey.
Not too surprising got the worst scores due to excessive tax and spending policies Stephen Moore is the senior economics writer for the Wall Street Journal -- he's also author of the new study.
Rich states -- states Steve it's great to have you back on the show.
Let's talk about these three bad actors new York New Jersey and California what's going wrong there.
While Jerry hate to tell us Richard if you wanna find prosperity are gonna have to move to Wyoming area hers -- -- job because.
Here -- eleven there right in the crux of why one of the most stock.
Anti growth states in New York I'm from one of the other.
Big guy -- they -- states Illinois in my home state diet dead very poorly this year New Jersey California.
So what those states -- -- comment is very up very high tax rates as you know living there in the northeast they also tend to be not right to work state so they have forced union work rolls which is something employers.
Don't like to see when they're looking at a place to put a new business or new factory.
They also tend to have higher rates of regulation all of those things -- wealth.
And jobs and factories out of those states in turn up booming stage but once -- I mentioned just got a minute ago Jerry states like.
Arizona and Utah and Florida and Tennessee and Texas.
You -- a number one they do the best job South Dakota Virginia Wyoming North Dakota.
He -- this report every year were there any surprises this year anything new.
While the state that that dropped ground the most was up my state of Illinois as you know Jerry at the beginning of this year.
Illinois had the biggest tax increase of any state raised their personal income tax rates by 75%.
That -- now the highest corporate taxes in that entire midwest Illinois -- lost a lot of ground.
The good news for the -- the the two coast new York and California -- they could lose anymore ground because they were -- right.
Of the worst.
Ari what do you think issues I find really interesting.
Our taxes that choose to Levy an income tax vs those that -- And yourself finds that the knowing contacts states attend outperformed the high income tax -- no surprise there but tell me about your findings.
Well you know this is something that comes shining through we've done this study not a Jerry allowed to allow for an -- now for five years and we've found consistently.
That the states that don't have income taxes and think about what -- -- and what states those are Jerry -- Florida Tennessee Texas Wyoming South Dakota.
New Hampshire.
Those are states that did tend to do very well and and -- continued to do very well none about a quarter -- had some problems with the with the housing bubble issue but for the most part those of the states that are flourishing and luck.
You know if you live in California think about this and you move to your business today.
Nevada which is right across the state line.
You can save if you're a million dollar business 10200000.
Dollars a year well I think when it.
Isn't exactly what apple does I think I -- exactly Apple's strategy that you know that they're there essentially taking their profits in Nevada.
Let's about the death Texas is a lot of the debate hello my line it is fact that -- A whole lot generators face of that you just made a very important point because you know worry in this tremendous.
National debate in this country about whether tax rates matter you know you've got a lot of liberals economists out there are some in the White House say you know you can raise tax rates at the federal level on it doesn't matter businesses will continue to pay those taxes.
And you know the one of the best pieces of evidence -- that is not true.
Is by just looking at the states that if tax rates don't matter jury that.
Why what how can you explain why taxes has half of the new jobs in the country over the last ten years and states like California new -- losing jobs and what we're saying in -- study is like tax is really do matter you can see right here in this country earlier findings on death taxes.
On the dot -- there are about half the states that have about a state taxes Jerry that sometimes are tires kind of 15% and about half of the states don't.
And what we found is that especially wealthy people as they get up and age as they -- retirement age and get their seventies and eighties.
It makes no sense to die in a state.
Where the State's gonna take ten or 15% of everything that you burned.
And that's you saved while you've been not.
Working and so people actually do move out of high death tax states and they moved to states like Florida it's not just good weather that brings people to Florida I mean they do have good weather but it's also a very.
Good tax state that doesn't tax people when they dot.
-- just talked to bill have from the governor of Tennessee talked about getting rid of the death tax there.
He expected to make a very big difference in that economy there -- just proving out what you're saying here's Steve thanks for coming on tonight great job is always in.
Fascinating study really eliminating.
Thank you had great to see Jerry tie up Tennessee is the state to look to keep an eye out because they've really improved our situation in the last year -- I'll probably do very well thank you okay.
