Reports of North Dakota's Performance Illustrate Need For Long-Term Reforms
In recent days, much has been made of a report by the Federal Reserve that says North Dakota is one of the worst performing states right now due to the commodity downturn.
The Tax Foundation ranks North Dakota 26th in Business Friendly Tax Policy nationally.
While this is a slight improvement from the ranking of 31st in 2006, it is clear that the focus has been too much on increasing budgets and not enough on making North Dakota more business friendly when it comes to taxes.
North Dakota's economy has always been cyclical - both for energy and agriculture. The people that said three years ago that "this is the boom that will not end" were simply rejecting the entire history of the state.
North Dakota must diversify its economy, and part of that process is acknowledging that a mediocre tax climate is not helping North Dakota in that goal.
The state's leaders must get spending under control now, not because it is just a good idea, but because they must. They must also realize that to be economically competitive requires constant improvement.
