Which states have the best economic outlook?

An annual ranking has analyzed the effect of the federal tax reforms on the economic outlook for each state and found improvement for several.

The Rich States, Poor States study from the American Legislative Exchange Council puts Utah at the top of the states with the best economic outlook, followed by Idaho, Indiana, North Dakota, and Arizona.

As well as the direct impact of the federal tax changes, the ability that they have given to states to reform taxes has played a key role in improving economic outlook, the study says. And that has affected these latest rankings.

“The untold story of federal tax reform is its impact at the state level, where the vast majority of states are now enjoying unexpected revenue gains,” said Jonathan Williams, Chief Economist and Vice President of the ALEC Center for State Fiscal Reform. “This trend is empowering additional pro-growth tax reform efforts that will provide an added level of benefits for hard-working taxpayers.As states compete with each other for much-needed human and financial capital, there is a clear trend in favor of taxpayer-friendly, market-oriented reforms.”

Overall Economic Outlook for 2018