The Pacific Research Institute, in association with Forbes magazine, ranks Idaho second in its 2008 U.S. Economic Freedom Index.
 
The 2008 study measures factors related to an individual's ability to pursue one's interests through a voluntary exchange of private property, within each state's statutes.

"The measure assesses a state based on how friendly or unfriendly its government policies are toward free enterprise and consumer choice," the Idaho Department of Commerce said in a release.

States that cut their marginal tax rates, enact right-to-work legislation, and limit frivolous jury awards see an influx of capital, people, and businesses, according to the Economic Freedom Index. This expands the tax base, leading to larger and less volatile revenue streams compared to those states that raise taxes and enact other anti-growth measures, as based on data and information from the study.
 
Learn more about the entire study at this link:

http://commerce.idaho.gov/assets/content/docs/Economic_Freedom_Index_2008.pdf