Dozens of states crank out tax cuts amid economic headwinds
Various states with budget surpluses are proposing property, income tax cuts to provide residents relief
Dozens of states proposing tax cuts to help residents amid economic headwinds
FOX Business' Ashley Webster reports on the states, from Arkansas to Wisconsin, looking to cut various taxes amid economic hardships and rising national debt.
While the federal government ran up $1 trillion worth of debt in the last six months, 28 states across the country are considering tax cuts as they tout budget surpluses.
"People, business and capital will flock to where they're treated best," Florida resident and investment adviser Gary Kaltbaum said on "Varney & Co." Thursday. "I have friends in California, and we compare numbers. It is stunning. It's a gargantuan spread as far as tax is concerned."
Florida Gov. Ron DeSantis announced his intention in February to pass the largest tax relief proposal in the state’s history, according to a press release. Florida families will allegedly save $2 billion during the 2023 to 2024 fiscal year.
Other states like Idaho and Colorado are looking to cut property taxes, while Arkansas and Mississippi may eliminate individual income tax altogether. Nebraska and Virginia, for example, are both exploring reducing income tax rates.
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"With a typical family, you may be saving over $1,000 with all this tax package. There's going to be some that save a lot more than that because they're doing more tolls or whatnot. And that's going to make a difference, particularly when we are bracing for continued economic headwinds," Gov. DeSantis said in a February press conference.
People, businesses and capital will "flock to where they're best treated," Gary Kaltbaum said on "Varney & Co." Thursday in reaction to 28 states considering tax cuts for the 2023-2024 fiscal year. (iStock)
Florida’s tax cut plan targets sales taxes, and proposes a permanent sales tax exemption on certain children’s necessities like cribs, strollers and clothing, as well as exemptions on some household items under $25.
Coincidentally, states that are the most debt-laden – like California, Massachusetts, Illinois, New Jersey and New York – are not looking at tax cuts for the next fiscal year.
On the other hand, Republican-controlled states saw an influx of residents in 2022 as the exodus from high-tax states accelerated. Red states that led in population growth include Florida, Texas, North Carolina, South Carolina, Tennessee, Georgia, Arizona and Idaho.
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"You don't have to be left. You don't have to be right. You don't have to be red or blue," "Shark Tank" star and O’Leary Ventures Chairman Kevin O’Leary said on "Kudlow" Wednesday. "If your taxes for the individual are over 50%, you start losing people by the billions of dollars. That's exactly what's happening in New Jersey, New York, Massachusetts."
The state tax cuts come as the Biden administration beefs up the Internal Revenue Service (IRS) with thousands of new employees and a nearly $80 billion funding boost. The White House has remained firm that the expansion will not impact any household making less than $400,000 annually.
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House Majority Leader Rep. Steve Scalise, R-La., warned that more than 90% of audits on U.S. families and small businesses fall below the $400,000 threshold.
"The Biden administration would like you to believe they are only going after ‘tax cheats and billionaires,’" Scalise previously wrote for FOX Business. "Between bank surveillance efforts, hiring 87,000 new IRS employees, proposing a new tip reporting program, and requiring the reporting of online payments above just $600 – there’s no denying this administration wants to tax, target and surveil everyday Americans’ private finances at every turn."
FOX Business’ Megan Henney contributed to this report.