Half of U.S. states either enacted income tax cuts last year or are planning cuts this year, according to a report from The Wall Street Journal.
Sixteen states implemented income tax cuts last year, and at least 13 states are considering similar cuts this year. Corporate tax rates were cut in six states, according to Forbes. ASCs typically welcome income tax cuts or adjustments to lower the amount paid on generated income per year.
Here are a few examples:
Oklahoma is considering switching income tax to a flat tax.
Iowa enacted income tax cuts last year, and Gov. Kim Reynolds wants to sign another income tax cut this year.
Idaho legislators are also planning a second income tax cut in as many years.
Legislation introduced in Michigan would lower corporate and personal income tax rates to 3.9 percent.
South Carolina Gov. Henry McMaster asked legislators to send income tax cut legislation to his desk after the state reported nearly $1 billion in surplus recurring revenue.
The Mississippi Senate voted to cut state income taxes, and Gov. Tate Reeves wants to eliminate state income tax.
The move to cut income tax comes after revenue for all 50 states jumped 14.5 percent in the 2021 fiscal year, according to the National Association of State Budget Officers, and tax revenue is projected to keep increasing this year.
Both Democrat and Republican lawmakers facing re-election and rising inflation see tax relief as a smart move and are working with state legislatures to enact change.