Hawaiçi’s economic outlook is among the bottom 10 states nationally according to the American Legislative Exchange Council, a non-profit organization that advocates free markets and limited government.

The council’s “Rich States, Poor States,” found Hawaii’s recent economic performance ranked it 21st best in the nation, but because of a variety of factors it’s economic outlook was 41st.
The report said Hawaiçi’s bottom-10 outlook ranking was based on its poor labor laws, burdensome income taxes and the highest burden from taxes on retail sales in the nation.
One of the report’s authors, economist Arthur Laffer, said the report shows states cannot tax their way into prosperity and that the study shows which states are best positioned for recovery.
Laffer is best known for advising President Ronald Reagan and bringing attention to what became known as the “Laffer curve,” a concept that in certain situations government can increase tax revenues by cutting tax rates.
The council said Laffer and co-authors Steve Moore and Jonathan Williams found that states with a high and rising tax burden are more likely to suffer through economic decline, while those with lower and falling tax burdens are more likely to enjoy economic growth.
The report as Utah as the best state in terms of economic outlook. Colorado, Arizona, Virginia, and South Dakota rounded out the top five.
New York had the worst outlook, followed by Vermont, Rhode Island, Maine and New Jersey.