Idaho’s economic outlook has improved, and the state now ranks seventh, according to the American Legislative Exchange Council’s new Rich States, Poor States report. Idaho improved from 14th a year ago due to its relatively low property tax burden, good labor policy, lack of a state estate tax and the second lowest state debt ratio. But Idaho has room for improvement, especially regarding its income tax rates that are higher than average, the group said.
As states face their toughest budgetary situations in a generation, those with a high and rising tax burden are more likely to drive away individuals and business, while those with lower and falling tax burdens are more likely to attract businesses and create jobs, the council said in a release.
Among neighboring states, Montana ranks 33rd in economic outlook, Wyoming ranks 6th, Utah ranks 1st, Nevada ranks 11th, Oregon ranks 41st and Washington ranks 24th.
Nationally, the top five states are Utah, Colorado, Arizona, South Dakota and Florida. The bottom five are California (46), Illinois, New Jersey, Vermont and New York, according to the American Legislative Exchange Council’s report.