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Indiana rated 7th on economic outlook; 22nd on performance

Indiana ranks 7th among all states in economic outlook but 22nd in economic performance, according to a report by American Legislative Exchange Council.

Indiana outscored its regional neighbors on economic outlook, including Michigan, 17th; Ohio, 19th; Kentucky, 34th; and Illinois, 45th.

The report, “Rich States, Poor States,” rates states on 15 metrics including rates for personal, corporate, property and sales taxes; various employer costs including workers’ compensation and minimum wage; and governmental factors including debt service and number of public employees per capita.

Indiana ranks highly for having no inheritance tax and having right to work legislation. It is one of 20 states that mirrors the federal minimum wage of $7.25 per hour. California’s minimum wage is $15 per hour. Fourteen states have a minimum wage of $12 or higher.

The state received its lowest ranking, 38th, for debt service as a percentage of tax revenue, which is 7.31%.

Tax rankings, including both state and local rates, placed the state 11th for top marginal corporate tax rate, 13th for property tax and 33rd for sales tax.

Indiana has 488 public employees per 100,000 population, which ranks 10th. Nevada has the fewest at 377.

The state ranked 31st in a survey of judicial factors including tort litigation treatment and judicial impartiality.

Despite having just 2.6% unemployment and a month-over-month increase of over 11,000 jobs, Indiana ranked 22nd on economic performance based on three metrics.

For decadal GDP growth, the state ranked 26th at 32.83%. Nonfarm employment growth from 2010 to 2020 ranked 17th at 7.29 percent. Indiana ranked 30th on domestic migration at -44,157.

ALEC describes itself as a nonpartisan, voluntary organization of state legislators and job creators dedicated to the principles of limited government, free markets and federalism. Although the group proposes model legislation for states, ALEC is exempted by name in Indiana law from having to register as a lobbying organization.

This article originally appeared on The Center Square.

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