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Institute: NH most free state in US

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The Cato Institute, a libertarian think tank, ranks New Hampshire as the most free state in the U.S.

The ranking is based on a multitude of factors, from tax rates to regulations on homeschooling.

New Hampshire scored particularly well on its overall tax burden. According to the Institute, “New Hampshire’s government taxes less than any other state but Alaska. We show a decline in state taxes as a share of personal income from 3.7 percent in FY 2000 to a projected 2.8 percent today.” 

Massachusetts ranked 33rd, while the rest of New England fell in the forties. New York was ranked last in the U.S.

To further reduce taxes at the state level, the Institute recommends that New Hampshire pass a constitutional amendment giving the legislature the power to define an adequate education and lower state education funding. The report argues this would lower taxes overall and allow municipalities to tailor education funding to their specific needs.

There are many opponents to such a constitutional amendment, however. They argue that if the legislature is given free reign over education funding, either rich towns will become “donor” towns for less wealthy districts, or poor districts will struggle to fund education. Either result is less fair than the current statewide funding system.

Furthermore, critics could also contend that the definition of what constitutes 'freedom' can vary greatly--an objection study authors anticipated by enabling users to create a personalized ranking by adding or removing various factors measured in the report.

Do you have an opinion on the Cato Institute ranking? Let us know in the comments.

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