Maryland and Virginia Lag in Economic Competitiveness, ALEC Report Finds
ARLINGTON, Va. — In the latest “Rich States, Poor States” report, Maryland and Virginia have been ranked poorly in economic outlook, coming in at 42nd and 32nd, respectively. The findings highlight ongoing challenges related to taxation, government spending, and population growth.
Lee Schalk, Senior Vice President of Policy at the American Legislative Exchange Council (ALEC), discussed the implications of the report during an appearance on Fox 5 News DC. “This report, compiled over 18 years, indicates states with lower tax burdens, responsible spending, and worker freedoms thrive economically,” he stated.
Maryland’s economic position is particularly concerning, with over 260,000 residents leaving the state in the past decade. Schalk attributed this trend to Maryland’s high tax status, worsened by Governor Wes Moore’s recent proposals to increase taxes on high earners. “Maryland is continuing down the path of high taxation and spending, prompting further outmigration of residents and businesses,” he cautioned.
While Virginia’s ranking remains higher, it is also on a downward trajectory. Schalk noted the state’s stagnation in efforts to reduce income taxes. “Governor Glenn Youngkin has faced obstacles from Democrats in Richmond, missing a crucial opportunity for reform,” he explained. However, Virginia does benefit from being a right-to-work state and lacking estate and inheritance taxes, in contrast to Maryland.
Neighboring states such as North Carolina and Tennessee have been recognized for their successful economic reforms, particularly the absence of an income tax. Schalk emphasized that the “Rich States, Poor States” report offers a framework for policymakers in Maryland and Virginia to attract more residents and job creators by focusing on competitive policies.
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