According to a new study from the American Legislative Exchange Council (ALEC), Massachusetts’s economic outlook fell to 26th nationally.

The second edition of "Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index" states "high corporate income taxes, the presence of a state ‘death tax,’ along with one of the worst records of state debt all hurt Massachusetts’s economic outlook."

Also of particular concern, according to the study, is the state’s "rapid accumulation of debt from years of borrowing – Massachusetts ranked worst nationally in this category." On the positive side, the study gives good marks to the Bay State for a relatively low sales tax burden and competitive workers’ compensation costs, the report said.

"The top performing states keep taxes, spending and regulatory burdens low, while the biggest losers in the book tend to share similar policies of high tax rates, unsustainable spending and regulation," said co-author, Jonathan Williams. "State governments that believe they can bring about economic recovery by growing government and increasing taxes are sadly mistaken."

The index listed Utah, Colorado, Arizona, Virginia and South Dakota in its top five, while New Jesery, Maine, Rhode Island, Vermont and New York bottomed out.