Pennsylvania rates low in economic ranking of states

In the American Legislative Exchange Council's (ALEC) first economic outlook ranking of all 50 states, Pennsylvania was ranked 37th thanks in large part to its high personal and business taxes, inheritance taxes, bloated government, and forced unionism. The report, "Rich States, Poor States: Alec-Laffer State Economic Competitiveness Index," was a collaborative effort from authors Dr. Arthur Laffer, nationally recognized economist, and Stephen Moore of the Wall Street Journal.

According to the authors, the Pennsylvania experience is oppressive tax rates, mindless and meddlesome regulation, obese social welfare programs, slumping real estate markets, and a steady stampede of net outward migration (over 180,000 residents have left since 1997). The only bright spots for the state are its relatively low sales taxes, low number of public employees per 10,000 residents, and recently enacted tax cuts.

"We have the second highest business taxes of any state, which does nothing to encourage businesses to stay or locate here. When we lose out on business opportunities we are also losing out on more and better jobs for our residents.This is a recipe for economic stagnation," said Pennsylvania State Rep. Coraig Daily (R-Northampton), ALEC's state chairman.