North Carolina trails only Utah in the latest edition of the “Rich States, Poor States” report from the American Legislative Exchange Council. The Tar Heel State moved up two spots on ALEC’s list.

“2015 was another banner year for tax cuts in many statehouses around the country,” said Jonathan Williams, co-author of the report and vice president of the ALEC Center for State Fiscal Reform. “As states compete with each other for much-needed human and financial capital, there is a clear trend in favor of taxpayer-friendly, market-oriented reforms.”

Rich States, Poor States examines the latest movements in state economic growth. The data ranks the 2016 economic outlook of states using fifteen equally weighted policy variables, including various tax rates, regulatory burdens and labor policies. The ninth edition examines trends over the last few decades that have helped or hurt states’ economies.