Autumn reflection along the Portsmouth New Hampshire waterfront. It is a historic seaport and … [+] popular summer tourist destination. Portsmouth is the third oldest city in the USA. New Hampshire is one of New England’s most popular fall foliage destinations bringing out some of the best foliage in the United States
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The positive relationship between economic freedom and economic growth is one of the most robust empirical relationships in economics. This is good news for New Hampshire, which ranks number one in the latest edition of the Fraser Institute’s Economic Freedom of North America (EFNA) index.
Each year, the Fraser Institute releases its EFNA index, which ranks the 50 U.S. states, 10 Canadian provinces, and 32 Mexican states based on how free their citizens are to engage in economic activity. The three primary areas analyzed for the index are government spending, taxes, and labor market freedom. Data for the report are from 2022, which are the most recent data available due to lags in reporting across the various states and countries. Among the three countries, U.S. states are freer on average, holding every top 40 spot except for one: Alberta, Canada is tied for 12th overall. Every Mexican state is ranked below every U.S. state and Canadian province.
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In the United States, New Hampshire is the freest state, followed by South Dakota and Florida. New York is the least free state, ranked just below California and Hawaii (see figure below).
Top and bottom 5 states on EFNA index
Fraser Institute Economic Freedom of North America Index https://www.fraserinstitute.org/studies/economic-freedom-north-america-2024
As discussed in the report, the most economically free U.S. states experienced faster population growth and more employment growth from 2013 to 2022. Population growth in the states ranked in the top 25% was 8.3% over this period. For those ranked in the bottom 25%, it was only 0.8%. Similarly, employment growth in the states ranked in the top 25% was 12%, while it was only 4% for those in the bottom 25%. Per capita incomes also grew faster on average in states that increased their economic freedom over this period, as shown in the figure below.
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Average growth in per capita income and economic freedom
Fraser Institute Economic Freedom of North America Index https://www.fraserinstitute.org/studies/economic-freedom-north-america-2024
So, what can state policymakers do to increase economic freedom in their state? One option is tax reform. High tax rates impose large financial burdens on workers, businesses, and consumers and distort choices, such as whether to work more or invest rather than spend. Lower tax rates allow people to keep more of their money and reduce distortions, which is why lowering rates increases economic freedom.
Louisiana ranks 23rd on this year’s index, but it is likely to do better next year due to its recent tax reforms. In a recent special session that ended a couple weeks ago, Louisiana’s legislature approved a flat 3% individual income tax rate, eliminating the previous top rate of 4.25% that applied to income over $50,000. It also lowered the corporate income tax rate to a flat 5.5% from a top marginal rate of 7.5%. To offset some of the lost revenue, the sales tax rate was increased from 4% to 5%. Unfortunately, other pro-growth tax reforms that eliminated tax credits for restoring historic buildings and the film industry were defeated.
Reducing regulation is another way states can boost economic freedom. While regulation can provide benefits, too much regulation restricts consumers’ choices and imposes unnecessary burdens on businesses. America’s inability to build housing and energy and transportation infrastructure is a perfect example of what happens when regulation runs amok.
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Idaho is a great example of how a state can reduce its regulatory burden. Since 2019, it has eliminated or simplified 95% of its regulations through a comprehensive process that requires agencies to periodically review regulations and eliminate or reform those that are not working. Today, it is one of the least regulated states in the country and its economy is booming: Its real GDP grew by 5.9% on an annualized basis—the highest in the country—according to the most recent data from the Bureau of Economic Analysis.
A thriving economy benefits everyone—workers, consumers, and entrepreneurs—and government has a role to play in protecting individual economic choices so people are free to innovate and create new products and services. State officials who want to improve their state’s economy should focus on increasing economic freedom.
CONCORD – While Republican Gov. Kelly Ayotte has said she opposes increasing highway toll rates across the state, the Senate voted Thursday to increase rates for out-of-state license plate holders.
It now goes to the House for consideration.
This would be a $1 increase for those who have out of state plates going through the tolls at Hooksett, Hampton and Bedford for out-of-state plates, a 75 cent hike for those taking Hampton’s Exit 2 and on the Spaulding turnpike at Rochester, and a 50 cent hike for those taking the exit off I-93 to Hooksett.
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An analysis in the bill shows that this would increase toll revenue by $53.3 million in fiscal year 2027 and go up each year to generate $81.4 million a year in 2036.
Senate Bill 627 passed on a voice vote with two Republicans, Senators Regina Birdsell of Hampstead and William Gannon of Sandown opposing.
Senator Mark E. McConkey, R-Freedom, moved to take the bill off the table and offered an amendment. He said the last time there was a systemwide increase to the turnpike toll was 19 years ago.
“I am sure we could all agree the cost of operations…has continued to escalate when revenue is not rising with it,” and he noted that with an enterprise fund, the state can only spend what it takes in.
The state has just completed a 10-year highway plan and there was a $400 million shortfall in projects that could not be paid for under the current income.
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McConkey said the measure would not increase tolls for New Hampshire drivers with a state license plate.
“Why don’t we ask our neighbors,” to pay a toll increase. “We are getting the best of all worlds,” by passing the bill, he said, including “protecting our residents” and having resources for improvements to the turnpike system.
Sen. Gannon, R-Sandown, asked McConkey if there are any studies on impacts near the border on businesses.
If implemented, McConkey said the state will be the 27th lowest in per mile cost still. McConkey said the bill would also increase from seven to 14 days the amount of time for those with NH license plates to pay for a toll adding there are other states that also have different rates for out-of-state users.
The Hampton toll cost would go from $2 to $3, while Hooksett and Bedford would rise from $1 to $2 for out-of-state plates.
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New Hampshire currently has the lowest rate per mile among states with tolls roads. The governor said she does not support a toll increase.
“We are not going to put a burden on drivers for a toll increase,” Ayotte said. “Families are struggling.”
WILTON, N.H. (WHDH) – A woman died in a Wilton, New Hampshire, house fire Wednesday morning, according to the New Hampshire State Fire Marshal’s Office.
At 9:08 a.m., Wilton firefighters responded to Burns Hill Road after a caller said their home was filling up with smoke. When they arrived, a single-family home was on fire and they found out two people were still inside on the second floor.
A man and a woman were both taken out of the house by firefighters and taken to Elliott Hospital. The woman was pronounced dead and the man is in serious condition.
Officials have not released the name of the victim at this time.
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At this time, investigators are looking into the cause of the fire and are trying to determine if a power outage in the area played a factor. The fire is not currently considered suspicious.
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