Unlike many countries the United States is not “monolithic”. Freedom varies widely from state to state primarily because each state is the master of its own destiny. Although the Federal Government has been trying to exert more control, each state is still able to create their own laws, taxes and regulations. Each year since 2000 the CATO Institute has published its evaluation of the relative freedom of each state based on a variety of criteria including Fiscal Policy (30.4%), Regulatory Policy (34%), and Personal Freedom (34.1%). Of course, each of these major categories is made up of a variety of sub-categories. See the full breakdown.
In the most recent study, the starkest contrast is between Vermont and New Hampshire. Since they are such close neighbors you would think they would be similar but they couldn’t be more different. This year New Hampshire showed the most improvement moving to the Second most free state in the country while Vermont is at the other end of the spectrum at 46th overall and 48th on land use and energy freedom. Vermonters also face one of the highest tax rates in the country with the state taking 9.7% of adjusted personal income on top of what the Federal government takes.
The Ranking:
It may or may not surprise you that New York came in dead last for freedom. Ranking #50 overall but also # 50 for fiscal policy, #40 for personal freedom and #50 for regulatory freedom. Perhaps, somewhat surprisingly Hawaii was #49 overall being #49 for fiscal policy, #48 for personal freedom and #46 for regulatory freedom. Only slightly less bad was California at #48 with #42 for fiscal policy, #23 for personal freedom and #48 for regulatory freedom. New Jersey came in #47 with #30 for fiscal policy, #33 for personal freedom and #49 for regulatory freedom. And as we said Vermont came in #46 with #47 for fiscal policy, #7 for personal freedom and #45 for regulatory freedom. Surprisingly, it has a good ranking for personal freedom (which is composed of Incarceration and arrest rates, gun freedom, gambling, marriage, education, alcohol, asset forfeiture, marijuana, tobacco, civil liberties, travel freedom and campaign finance.
On the opposite end was Florida which came in #1 overall, #1 for fiscal policy, #11 for personal freedom and #22 for regulatory freedom. New Hampshire’s #2 was composed of #2 fiscal, #5 personal and #31 regulatory. Indiana came in 3rd overall with #10 for fiscal policy, #10 for personal freedom and #5 for regulatory freedom. 4th place went to Colorado with #8 for fiscal policy, #4 for personal freedom and #25 for regulatory freedom. Surprisingly this was one place lower than the previous year. Nevada ranked fifth again with #20 for fiscal policy, #2 for personal freedom and #17 for regulatory freedom.
Overall Freedom Rankings
(Followed by change from last year)
