Fraser Institute: Lower Taxes Leads To High Economic Growth, Standard Of Living
Earlier this month Canada’s Fraser Institute issued its Economic Freedom of North America report for 2014. The survey ranks the economic liberty of all 50 U.S. states, 10 Canadian provinces and 32 Mexican states against one another. According to the Fraser Institute, Alberta, Saskatchewan and Newfoundland are the most economically-free jurisdictions, followed by Texas and British Columbia.
The study’s co-author Fred McMahon told the Panama Post, “The link between economic freedom and prosperity is clear … Provinces that support low taxation, limited government and flexible labour markets enjoy greater economic growth, while provinces with lower levels of economic freedom see lower living standards and fewer economic opportunities.”
In the United States, the report found the average per-capita gross domestic product in 2012 was roughly $55,000 in the states ranked the most economically-free compared to $48,000 for the states at the bottom of the rankings.