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Writer's pictureCook Tillman

What is fueling Tennessee’s strong reported business growth?

“[P]retty darn good.”

That is the assessment of a proven national economist commenting on a recent report authored by the nonprofit group American Legislative Exchange Council. The ALEC’s research focus is on states’ economic performance based on multiple business factors. Its bottom line concerning Tennessee is a solid thumbs-up.

In fact, the council slots Tennessee into a top-10 spot nationally for the vibrancy and enduring strength of its economy and business climate. The ALEC variables that are closely scrutinized include tax laws, regulatory controls, employment policies and migration trends.

Overall, Tennessee ranks 7th, with ALEC’s research spotlighting the state’s impressive showing in a broad-based way. Readers might want to consider these numbers, all linked with a recent 10-year period:

  1. Gross domestic product spike of 43%

  2. Net gain of nearly 236,000 people coming to Tennessee from other states

  3. Payroll employment gain of 8%

An ALEC spokesperson addressing the study notes the close link between economic performance and “things that state legislatures can control.” One of those is of course tax policy, and pundits point to a close connection between Tennessee’s upside performance and the state’s lack of a personal income tax, as well as its generally low tax rates.

The proven Middle Tennessee business law team at Cook Tillman Law Group certainly applauds the application of policies that positively spur economic growth across the state.

Our experienced attorneys welcome contacts from entrepreneurs and established business principals seeking representation in matters spanning entity formation, contract drafting, ongoing operations and planning for the future.

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