Florida in upper echelon in recovery positioning

According to a new study from the American Legislative Exchange Council (ALEC), Florida's economic outlook ranks 11th out of the 50 states. The second edition of Rich States, Poor States: ALECLaffer State Economic Competitiveness Index offers a roadmap for economic recovery based on state policies that have a proven impact on growth.

High property taxes and a poor state liability system both hurt Florida's economic outlook. On the positive side, the study praises Florida for being one of the nine states that do not tax personal income. The study also gives good marks to Florida for the absence of a "death tax" and a competitive corporate income tax.

Among bordering states, Georgia ranks 8th and Alabama ranks 16th.

The report shows how federal stimulus dollars may simply encourage out-of-control state spending, which is up 124 percent over the last 10 years, without requiring states to make the tough decisions needed to bring about financial stability. "States were quick to increase spending and add programs during the good times," said State Rep. Jimmy Patronis, ALEC's Florida State Chairman. "We need to make tough choices to live within our means and prioritize our budget. The best solution to our budget woes is to control state spending and promote policies that foster economic growth and job creation."

Co-author and renowned economist Dr. Arthur B. Laffer and his co-authors, Steve Moore, senior economics writer at The Wall Street Journal, and Jonathan Williams, director of the Tax and Fiscal Policy Task Force for ALEC, analyze how economic competitiveness drives income, population and job growth in the states. They found that, "states with a high and rising tax burden are more likely to suffer through economic decline, while those with lower and falling tax burdens are more likely to enjoy robust economic growth."

¦ To view the full report, download it for free at www.alec.org.