North Dakota Ranks Bottom of Taxpayer Return on Investment Report | North Dakota

(The Center Square) – North Dakota ranked 48th overall in a report analyze the return on investment for state taxpayers.

Personal finance website WalletHub determined the rankings by comparing what residents pay in state and local taxes and the quality of government services they receive. Major government services such as education, health, security, economy and infrastructure and pollution were used as indicators in the report.

Despite landing near the bottom of the list, the state scored higher for the quality of services provided to residents. He came first in infrastructure and pollution. The state was 14th in health services, 23rd in safety, and 27th in the education system, and the state’s economy ranked 18th.

Gov. Doug Burgum acknowledged positive economic growth in the state at a press conference earlier this month with more than 30,000 jobs available, but said growth was being held back by a labor force at the train.

Burgum announced a $15 million allocation in US bailout funds for an in-state workforce development program to address this issue.

One of the goals of the WalletHub report was to determine whether the amount of taxes paid by residents correlates with better or worse government services.

“Different states have dramatically different tax burdens,” the report’s authors wrote. “This raises the question of whether residents of high-tax states receive superior government services. Similarly, are low-tax states more efficient or do they receive lower quality services? In short, where do taxpayers get the most and least value for their money? »

North Dakota ranked 50th in taxes paid per capita. Thanks to legislation passed last fall, residents will receive a income tax credit this year up to $350 for year-round residents and up to $700 for year-round residents who are married and file jointly.

In general, red states would have a higher taxpayer return on investment than blue states, according to the report. Among the top 10 are New Hampshire, Florida, South Dakota, Georgia, Virginia and Missouri.

New Mexico and Hawaii ranked 49th and 50th, respectively, for overall taxpayer return on investment.

“Ultimately, the efficient use of tax revenue means that a government spends taxpayers’ money on things that their constituents value more than the marginal dollar they pay in taxes,” said Daniel Garrett, professor finance assistant at the Wharton School of the University of Pennsylvania.

The best use of taxpayer dollars varies widely from state to state due to differences in population and values, Garrett said.