Staff Report

COLUMBIA — In the American Legislative Exchange Council’s first economic ranking of all 50 states, South Carolina was ranked as the 25th best state in the country.

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, South Carolina scored relatively well in terms of low business, no inheritance tax, low minimum wage, and its “right-to-work” status. The state’s competitiveness ranking suffers as a result of comparatively high personal income and property taxes and high debt. One sign of South Carolina’s healthy economy is a positive net domestic migration as over 250,000 residents of other states have moved into the state since 1997.

“We have done a good job of attracting businesses and jobs to South Carolina as well as people. It is vital that we maintain and improve the policies that promote economic growth and well being for our state and our residents,” said State Rep. Liston Barfield, R-Conway, ALEC’s South Carolina state chairman and a member of ALEC’s board of directors.

The authors identify 16 policy variables with a proven impact on the migration of human and investment capital in and out if states. According to their findings, a record eight million Americans moved from one state to another last year, revealing which states have the most dynamic and desirable economies, and which are "has-been" states. The winners in this contest are generally the states with the lowest tax, spending and regulatory burdens. The biggest losers are California, the Northeast, and the Midwest.

“The historical evidence is clear: States that keep spending and taxes low exhibit the best economic results, while states that follow the tax-and-spend path lag far behind. Today, many states stand at a crossroads, and it will soon become apparent if lawmakers choose to use history as a guide for their actions. No state has ever taxed its way into prosperity. This is not about Republican versus Democrat, or left versus right. It is simply a choice between economic vitality and economic malaise,” said Jonathan P. Williams, Director of ALEC’s Tax and Fiscal Policy Task Force.

The complete book is available online, each state can be downloaded individually. Also available is a link to the C-SPAN video presentation by the authors.