We knew that California is in a DOOM LOOP. Here are the statistics to prove it.
“California ranks:
- 48th for the Top Marginal Personal Income Tax Rate
- 50th for Personal Income Tax Progressivity
- 50th for Right-to-Work State
Someone tell Gov. Gavin Newsom that Florida ranked 15th overall and:
- 1st for Top Marginal Personal Income Tax Rate
- 2nd for Personal Income Tax Progressivity
- 1st for Right-to-Work State”
Just as Washington is under going a revolution, to save California we need to do the same.
ALEC’s ‘Rich States, Poor States’ Ranks California 47th in the Nation – Again
California’s economic outlook is not good, and is home to many of the worst cities to retire to
By Katy Grimes, California Globe, 4/19/25 https://californiaglobe.com/articles/alecs-rich-states-poor-states-ranks-california-47th-in-the-nation-again/
One of my favorite state rankings publications is out, and unfortunately, California does not have good news… again.
The American Legislative Exchange Council, ALEC, publishes the annual Rich States, Poor Statesreport, authored by economists Art Laffer, Stephen Moore and Jonathan Williams.
If only we could make this report mandatory reading for California’s economically illiterate Governor and Legislature… a girl can dream.
The 2025 report examines the latest movements in state economic growth and competition and ranks the economic competitiveness of states using 15 equally weighted policy variables.
California ranked 47th for economic outlook – again.
As ALEC reports, “California is currently ranked 47th in the United States for its economic outlook. This is a forward-looking forecast based on the state’s standing (equal-weighted average) in 15 important state policy variables. Data reflect state and local rates and revenues and any effect of federal deductibility.”
California ranks:
- 48th for the Top Marginal Personal Income Tax Rate
- 50th for Personal Income Tax Progressivity
- 50th for Right-to-Work State
Someone tell Gov. Gavin Newsom that Florida ranked 15th overall and:
- 1st for Top Marginal Personal Income Tax Rate
- 2nd for Personal Income Tax Progressivity
- 1st for Right-to-Work State
Top 10 States Bottom 10 States
| Utah | 1 | Minnesota | 41 | |
| Tennessee | 2 | Maryland | 42 | |
| Indiana | 3 | Oregon | 43 | |
| North Carolina | 4 | Connecticut | 44 | |
| North Dakota | 5 | Maine | 45 | |
| Arizona | 6 | Illinois | 46 | |
| Idaho | 7 | California | 47 | |
| South Dakota | 8 | New Jersey | 48 | |
| Texas | 9 | Vermont | 49 | |
| Arkansas | 10 | New York | 50 |
It’s not a coincidence that California and the rest of the states at the bottom of the economic outlook are all controlled by Democrat governors.
ALEC explains what makes Utah the top state:
Utah claims the top spot in the economic outlook ranking for an unprecedented 18 consecutive years. Leading the nation in job and state GDP growth, the Beehive State’s economy isn’t just stable, it’s thriving. This sustained success is no accident as Utah’s leaders have consistently championed pro-taxpayer reforms, from enacting flat personal and corporate income taxes to eliminating estate and death taxes. Their forward-thinking approach to property tax reform has further cemented Utah’s reputation as a national model for economic competitiveness and opportunity.
At the other end of the spectrum is New York – ALEC explains what makes New York the worst state:
New York continues its 12-year streak in dead last for economic outlook. Once an economic powerhouse, the Empire State now suffers from the nation’s highest marginal personal income tax rate, the highest corporate income tax rate, and the fourth-highest property tax burden. Fewer Fortune 500 companies call it home than Texas—a stunning reversal of fortunes.
California isn’t far behind, ranking 47th overall after enacting the largest increase in state taxes since 2023. These two former titans have collectively lost 4.2 million residents over the past decade. This continues the age-old tale of Americans voting with their feet, as high taxes and overregulation drive residents and job creators to seek prosperity elsewhere.
California’s Current Economic Outlook (2025)
| POLICY | VALUE | RANK |
| Top Marginal Personal Income Tax Rate | 14.40% | 48th |
| Top Marginal Corporate Income Tax Rate | 8.84% | 41st |
| Personal Income Tax Progressivity (change in tax liability per $1,000 of income) | $42.54 | 50th |
| Property Tax Burden (per $1,000 of personal income) | $27.96 | 27th |
| Sales Tax Burden (per $1,000 of personal income) | $24.71 | 24th |
| Remaining Tax Burden (per $1,000 of personal income) | $18.24 | 33rd |
| Estate / Inheritance Tax Levied? | No | 1st |
| Recently Legislated Tax Changes | $2.78 | 50th |
| Debt Service as a Share of Tax Revenue | 4.71% | 36th |
| Public Employees Per 10,000 of Population (full-time equivalent) | 491.6 | 13th |
| State Liability System Costs (as a share of state GDP) | 1.99% | 30th |
| State Minimum Wage (federal floor is $7.25) | $16.50 | 49th |
| Average Workers’ Compensation Costs (per $100 of payroll) | $2.26 | 48th |
| Right-to-Work State? (option to join or support a union) | No | 50th |
| Tax Expenditure Limits | 2 | 3rd |
California didn’t do well in Property Tax Burden, even with Proposition 13 – ranked 27th.
Where Should You Retire?
Another economic measurement of states is where people should retire.
WalletHub compared the retiree-friendliness of more than 180 U.S. cities across 45 key metrics in “Best & Worst States to Retire”. Their data measures the cost of living and tax laws to the availability of activities and the quality of health care.
Ironically for Gavin Newsom, 4 of the top 5 cities to retire to are in Florida – not California.
Top 5 Cities for Retirees
-
- Orlando, FL
- Miami, FL
- Minneapolis, MN
- Tampa, FL
- Fort Lauderdale, FL
Worst 5 Cities for Retirees
California has many cities in the worst places to retire list, including the worst three cities of the 182 measured:
182. San Bernardino, CA
181. Stockton, CA
180. Rancho Cucamonga, CA
179. Bakersfield, CA
178. Newark, NJ
176. Fresno, CA
WalletHub explains why Orlando is the best city to retire to:
Orlando, FL, is the best place to retire, living up to its reputation as a haven for seniors. One big reason for this is the lack of taxes, as Orlando is one of the most tax-friendly cities, and Florida does not have an estate or inheritance tax (or even income tax). In addition, while Orlando doesn’t have a particularly low cost of living, it is the 9th-cheapest city for homemaker services and the 20th-cheapest for adult day health care out of the more than 180 cities in our study.
California had 26 cities on the list, with San Francisco showing highest, ranked overall at #36, affordability at #173, activities #1, quality of life #41, health care #78.
Californians, just imagine how well off we would be with no income tax, a lower corporate income tax rate, and a fraction of the regulations; these have only served to run Californians out of the Golden State, into other low-no-tax states.
As many of us remember, California has endless potential with the right leadership.
