New Study Outlines the Road to Economic Recovery for States: Arkansas's Economic Outlook Ranks 13th Best Nationally

WASHINGTON, June 16 /PRNewswire-USNewswire/ -- According to the latest edition of an annual study by the American Legislative Exchange Council (ALEC), Arkansas's economic outlook ranks 13th out of the 50 states. As states face their toughest budgetary climates in a generation, the third edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index offers a clear cut roadmap to prosperity.

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"We cannot spend, borrow, or tax our way into prosperity," said Arkansas Representative Ed Garner, a member of ALEC's Tax and Fiscal Policy Task Force. "State government must learn to live within its means as we continually look for ways to make our great state more competitive and cultivate a business climate that will produce jobs."

Unfortunately, Arkansas's economic outlook has fallen slightly since the inaugural edition of the study in 2008 - moving from 11th to 13th. The recent cigarette tax increase and the state's high sales taxes hurt the state's ranking. However, the study credits Arkansas for its low property tax burden, no estate/inheritance tax, and good labor policies. Among bordering states Tennessee ranks 10th in economic outlook, Louisiana ranks 16th, Missouri ranks 15th, Oklahoma ranks 14th, while Mississippi and Texas rank 18th and 19th respectively.

Co-author and renowned economist Dr. Arthur B. Laffer summarized the report's findings when he said, "Tax and economic policies are essential to the competitiveness of our states." Rich States, Poor States presents state economic outlook rankings based on public policies that have a proven impact on growth, revealing which states have the best chance of experiencing economic recovery, and which need to re-examine their policies before they can expect to see improvement.

Laffer and his co-authors, Stephen Moore, senior economics writer at The Wall Street Journal, and Jonathan Williams, director of ALEC's Tax and Fiscal Policy Task Force, analyzed how economic competitiveness drives income, population, and job growth in the states.

"Our research shows that states with responsible spending and competitive tax rates enjoy the best economic outlook," Williams said. "States do not enact changes in a vacuum – every time they increase the cost of doing business in their state, their state brand immediately loses value."

To read more about the state-to-state comparisons and view the full report, download it for free at www.alec.org.

SOURCE American Legislative Exchange Council

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