So much of what policymakers and economic development experts get caught up in involves short-term economic gains. But what about the long-term? Well, in terms of the US economy, 50 years is a pretty long time, so this new report on personal income growth over the past 50 years is of interest.
First off, New Mexico fares pretty well in the report with a ranking of 18. But, what caught my eye is the success of states without personal income taxes and that do have “Right to Work” laws in place.
It is noteworthy that three of the top states in terms of economic growth: Nevada, Florida, and Texas, lack personal income taxes. Also, of the top 11 states in income growth over the past 50 years, nine (all but Alaska and Colorado) are among the 22 right to work states.
Obviously, 50 years is a long time and other economic forces are at work, but it would seem that economic policies like lack of a personal income tax and right to work laws have significant economic impacts.