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Democrats Join State Tax Cut Bandwagon

More good news: now even Democratic governors are joining Republicans in cutting state taxes.

The more than $1.5 trillion the feds threw at the states last year have created record revenue surpluses. (Even for politicians this was a brain-dead idea: What sense does it make for the feds with a $23 trillion debt, to hand out money to the states that are flush with cash?)

We reported last week that conservative states such as Mississippi, West Virginia, and Louisiana are moving towards eliminating their state income tax.

Now deep blue Washington state is debating a Democratic state senator’s proposal to cut the state sales tax from 6.5 percent to 5.5 percent.

In Maryland, GOP Governor Larry Hogan is close to getting agreement with his Democratic legislature to gradually eliminate income taxes for retirees, so fewer will decamp to Florida and other low-tax states.

In Illinois far-left Governor J.D. Pritzker wants a one-year suspension of the sales tax on groceries.   California Governor Gavin Newsom wants to delay a scheduled gas tax hike. Tax and fee cuts are on the table in Colorado, New York, and Rhode Island.

Democrats are fearful of a Republican wave so what better way to appear moderate than to use budget surpluses to cut taxes. Republican lawmakers in these states should press for much bigger and more permanent tax cuts. In any case, for now tax cutting is back in vogue. Someone tell Biden.

https://apnews.com/article/coronavirus-pandemic-health-business-new-jersey-california-ddd6fa4ac74ff9a7f914d67b0a400e14

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