New York named worst state for economic outlook as NYC sees people ‘fleeing the city’

William Arsn

New York has been named the worst state in the U.S. for its economic outlook as New York City is reportedly seeing people “fleeing the city.”

The American Legislative Exchange Council released its annual ranking of “Rich States, Poor States” on Wednesday, ranking states based on competitiveness and economic outlook based on policy choices. The conservative nonprofit named NYS No. 50 overall for the seventh year in a row, giving it low scores in corporate and personal income tax rates property tax burdens, estate/inheritance taxes, average workers’ compensation costs and “recently legislated tax changes.”

“The data outlined in the 13th edition of Rich States, Poor States shows how economically competitive states thrive and how those that don’t make proactive pro-growth reforms, like Connecticut and Illinois, are left in the dust,” said Reagan economist and study author Dr. Arthur B. Laffer. “Sound tax policy and eliminating excessive government regulations continue to stand strong and true in improving states’ competitiveness, and we hope these states’ stories serve as a guide as we navigate the economic recovery following the Covid-19 pandemic.”

Other “worst” states included Vermont, New Jersey, Illinois, and California, while the five “best states” for economic outlook were Utah, Wyoming, Idaho, Indiana and North Carolina. Utah ranked No. 1 overall due to factors like a low state minimum wage — $7.25 compared to New York’s $11.80 — and low tax burdens.

ALEC, an organization of conservative state legislators with advisors from the private sector, also ranked the Empire State last in absolute domestic migration. Nearly 200,000 people left the state each of the past three years, and this year could be worse, a new report from The New York Post suggests.

Moving companies in New York City told the Post that 90{5667a53774e7bc9e4190cccc01624aae270829869c681dac1da167613dca7d05} of its customers are leaving NYC for the suburbs, Upstate New York, or other states due to the coronavirus pandemic.

“People are fleeing the city in droves,” Moon Salahie, owner of Elite Moving & Storing in Yonkers, told the publication.

Most are families with kids and worried about Covid-19 as the school year approaches, Salahie said. Others were frustrated with being stuck inside an apartment during the shutdown, unable to go to the park and other activities as large cities were hit hardest by the virus.

The Hartford Courant reports more than 16,000 New Yorkers moved to Connecticut from March through June, according to U.S. Postal Service data.

Overall, New York’s population has declined over the past decade. The state has lost a net 1.4 million residents to other states since 2010, according to U.S. census data and migration patterns in IRS records.

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