States with lower taxes and less spending have a stronger economic outlook than states with higher taxes and more spending, according to a new report from the American Legislative Exchange Council.

“They follow, in a way, what President [Ronald] Reagan warned of, which was the liberal view of the economy [and] can be summed up as this: if it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it,” Jonathan Williams, executive vice president of policy at the ALEC, told the Daily Caller News Foundation.

Utah, North Carolina, and Arizona lead the country with the top economic outlook for 2022, according to the report.