West Virginia's Economic Performance Ranks 47th According to ALEC Report

April 14, 2023

Mountaineer News

WV Economic Performance

(CHARLESTON, WV (Mountaineer News) - The latest rankings by the American Legislative Exchange Council (ALEC) have revealed that West Virginia's economic performance ranks 47th in the country. ALEC, an organization that advocates for limited government, free markets, and federalism, evaluates states on 15 policy categories, including gross domestic product, domestic migration, and non-farm payroll employment.

Although West Virginia was ranked 28th in the economic outlook, it was praised for being a right-to-work state and for not having estate/inheritance tax, leading to its top ranking in those categories. Additionally, the state was ranked second for having low average workers' compensation costs.

On the downside, West Virginia ranked 46th in remaining tax burden after income, property, and sales tax and was 40th in personal income tax progressivity. However, the state recently passed a bill for an $817.8 million income tax cut, which is expected to positively impact the economy.

Unfortunately, West Virginia's economic performance has been on the decline, with the state ranking last in non-farm payroll employment and 47th in state gross domestic product. The state was only 32nd in absolute domestic migration, indicating that people are leaving the state in search of better opportunities.

Florida, Utah, Arizona, and Idaho topped the rankings for economic performance, while Connecticut, Alaska, and Louisiana were at the bottom. It's clear that West Virginia has some work to do to improve its economic standing, and the recent income tax cut bill may be a step in the right direction.