The Pacific Research Institute, in association with Forbes magazine, ranks Idaho second in its 2008 U.S. Economic Freedom Index.
The recent study measures factors related to an individual’s ability to pursue their interests through a voluntary exchange of private property under the rule of law. The measure assesses a state based on how friendly or unfriendly its government policies are toward free enterprise and consumer choice, the Idaho Department of Commerce said in a release.
States that cut their marginal tax rates, enact right-to-work legislation, and limit frivolous jury awards see an influx of capital, people, and businesses, the study says. This expands the tax base, leading to larger and less volatile revenue streams compared to those states that raise taxes and enact other anti-growth measures, according to the study.
The news release and study can be accessed here.