(The Center Square) – Oklahoma ranks fourth in the nation for its economic competitiveness, according to a new report.
The Rich States, Poor States analysis is from the American Legislative Exchange Council, a nonpartisan organization of state legislators. The report evaluates economic outlook and economic performance of each state based on 15 economic policy variables.
Oklahoma ranked 29th for its economic performance. The ranking was determined by the state’s gross domestic product, absolute domestic migration, and non-farm payroll employment.
The report showed over 39,000 people have moved to Oklahoma between 2011 and 2020. Economist Jonathan Williams, one of the authors of the report, said it highlighted that Americans vote with their feet by moving to states with lower tax burdens.
Oklahoma’s top marginal personal income tax rate was 4.7% and its top marginal corporate income tax rate was 4%, the report said. Personal income tax progressivity, which represented the change in tax liability per $,1,000 of income, was $7.17, 19th overall. The property tax burden in Oklahoma was $17.41 per $1,000 of personal income, and the sales tax burden was $28.99 per $1,000 of personal income, according to the review. The remaining tax burden was $15.74 per $1,000 of personal income.
Oklahoma does not levy an estate or inheritance tax and is a right to work state.
The review found recently legislated tax changes brought a decrease of $0.69 per $1,000 of personal income. Debt service as a share of tax revenue, which calculates interest paid on state and local debt as a percentage of state and local tax revenue, was 4.8%, ranking 15th.
The state has about 526 public employees per 10,000 residents. The liability system survey, which measures tort litigation treatment and judicial impartiality, ranked the state at No. 14. Oklahoma’s minimum wage is at the federal floor of $7.25. Average workers’ compensation costs per $100 of payroll was $1.66, 38th overall. The number of tax expenditure limits, which measures the influence of tax and expenditure limits on state tax revenue and spending, ranked 15th, the report said.
The authors said the review demonstrated states that embrace free-market ideals are rewarded by an influx of residents who are drawn to their policies.
“If you believe incentives matter, and I do, state policies have the effect of changing those incentives at both the state and local levels,” said Dr. Arthur Laffer, one of the report’s authors. “Those changes in incentives have consequences. This ranking of states is a tried-and-true formula. I think it is a great way of picking winners and giving guidance on how states should be effectively governed.”
Other states that ranked at the top were Utah, North Carolina, Arizona, and Idaho. The bottom five in Nos. 46-50 positions, respectively, for economic competitiveness were Minnesota, Vermont, California, New Jersey and New York.
via Oklahoma's Center Square News