Tennessee is one of the freest states, ranking well in both economic and overall freedom, according to the newly released third edition of "Freedom in 50 States" from George Mason University's Mercatus Center.
"Tennessee is one of the freest states in the country, placing just behind the Dakotas at the top of the rankings," according to the report. "Like the Dakotas, it fares better on economic freedom than personal freedom."
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The Volunteer State ranks especially well in fiscal policy. It has the fourth-lowest tax collections in the country—7.5 percent of personal income, according to the report.
It also has a relatively low government debt ratio, has low government employment and is the most "fiscally decentralized."
"Unfortunately, the Volunteer State is not all that committed to voluntarism in the personal sphere. It is mediocre on victimless crimes arrests, tobacco freedom and asset forfeiture," according to the report.