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States Are Slashing Taxes; Why Is Washington Trying To Raise Them?

Our friend Dan Clifton of Strategas, a financial research firm, reports that of the 22 governors who have delivered a State of the State address in January, 16 have proposed new tax cuts with three big trends:1) Flat income taxes; 2) Cuts in marginal income tax rates; and 3) Attacking inflation through gas and grocery tax cuts. Even Democrats are cutting tax rates. Leading the way is Mississippi, which just passed a bill through the House to eliminate the state income tax entirely.

We’ve argued for nearly a year now that the massive $1.9 trillion spending bill passed in March mainly to bail out blue states was a horrendous mistake. It only enabled states to remain shutdown even longer, while offering hyper-generous unemployment benefits to people not working. How did that turn out?

So it’s good news that so many states are at least using the money to cut taxes. Remember the Biden administration tried to illegally prevent states from reducing their tax burdens but lot in court.

The map below shows where the state tax revenues have grown the fastest. Every state in green needs to be cutting taxes.

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