The Buckeye Institute Releases Economic Freedom of North America 2021 ReportJan 06, 2022
Columbus, OH – For another year, Ohio ranked an unimpressive 35th out of all 50 states in the Economic Freedom of North America 2021 report, released by the Economic Research Center at The Buckeye Institute in partnership with Canada’s Fraser Institute. The report ranks every state and province in North America based on economic freedom, as measured by government spending, taxation, and labor market restrictions.
“In the 2021 Economic Freedom of North America report, Ohio maintained a lackluster rating of 35th in the nation, its best score in the index’s history, but below average nevertheless,” said Rea S. Hederman Jr., executive director of the Economic Research Center and vice president of policy at The Buckeye Institute. “To enhance economic freedom and make Ohio more attractive to businesses and workers, state policymakers should reduce government spending, reform the state tax code, and end labor market regulations that do households and workers more harm than good.”
The latest edition of the report uses a revised methodology to score states on their government spending, taxation, and labor market restrictions. The current rankings are based on data from 2019 (the latest year data was available). Once again, Ohio ranks 35th among the 50 states in overall economic freedom with a score of 5.72.
Ohio’s Ranking in Key Areas
Government Spending – 42nd
- Transfers and subsidies as a percent of personal income – 25th
- Insurance and retirement payments as a percent of personal income – 49th
Taxes – 23rd
- Income and payroll tax revenue as a percent of personal income – 29th
- Top Marginal Rate and Income Threshold at Which it Applies – 11th
- Property tax and other tax revenue as a percent of personal income – 17th
- Sales tax revenue as a percent of personal income – 30th
Labor Market Freedom – 30th
- Minimum wage income as a percent of per capita personal income – 34th
- Government employees as a percent of total employees – 18th
Included in the report is Buckeye’s Ohio Economic Freedom Fact Sheet, which summarizes where Ohio ranks in various economic freedom policies and shows how it compares to neighboring states and the nation as a whole.
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