2024 Economic Policy Highlights

The economy ranked as the most important issue on voters’ minds as they headed into the voting booth in November, according to Gallup. Many of the solutions to their concerns, however, are better addressed at the state and local levels. This year, our Network helped secure state-level economic reforms in over a dozen states.

Arkansas: Following the release of a report from Opportunity Arkansas outlining the benefits of phasing out the personal income tax, Arkansas adopted a substantial round of income tax cuts using budget surpluses, a key recommendation contained in the paper. The law lowers Arkansas’ income tax rate from 4.4 percent to 3.9 percent. The new law also reduces the state’s top corporate income tax rate from 4.8 percent to 4.3 percent—providing $500 million in tax relief for Arkansas workers.

Georgia: The Peach State passed three bills this session aimed at providing property tax relief. The first law contains a rate roll-back for new property, the second advances a constitutional amendment to allow a statewide homestead exemption, and the third creates a statewide homestead exemption of $4,000 with the possibility that it could increase to $10,000. Georgia Public Policy Foundation applauded the legislation and looks forward to pushing for further reform in the next legislative session.

Hawaii: Thanks to the Grassroot Institute of Hawaii, the Aloha State signed a tax package into law that lowers the state income tax burden for average families by almost 70 percent by 2031 – saving taxpayers roughly $5 billion during that period. Hawaii’s standing as the bluest state in the nation shows that these reforms are not only viable in conservative areas but are part of a national trend towards tax relief.

Idaho: The Mountain States Policy Center secured an estimated $117 million in tax savings over five years for employers in the Gem State. Idaho Governor Brad Little signed HB 428 in early March. The legislation reduces the multiplier on taxes charged for unemployment Insurance from 1.3 to 1.2 – a $44 million net savings in the first year alone. By adding in reforms like these, Idaho is putting out “Open for Business” signs to attract business owners from across the country.

Iowa: Thanks to Iowans for Tax Relief Foundation, the state legislature continued the state’s tax cut momentum by passing legislation that pushes Iowa’s personal income tax down to a flat rate of 3.8 percent in 2025, delivering more than $1 billion of tax relief over the next six years. Iowans for Tax Relief also helped secured a ban on local guaranteed income programs, after releasing research showing that such programs are unsustainable and ineffective.

Kansas: Gov. Laura Kelly signed a bill reducing state taxes by $1.2 billion over three years thanks to the efforts of the Kansas Policy Institute. The new law establishes a two-bracket system as well as elevating the personal exemption for individuals with an additional tax break for dependents.

Nebraska: For years, the Platte Institute has highlighted problems with Nebraska’s occupational licensing system that imposes barriers to job opportunities. Their hard work paid off after Nebraska Governor Jim Pillen signed legislation bringing universal reciprocity to Nebraska, requiring licensing agencies to recognize occupational licenses from other states. This will remove unnecessary, state-specific regulatory hoops from those who move to Nebraska looking to continue to work in their current field.

Oklahoma: The Sooner State recently eliminated the state sales tax on groceries, giving a tax break to citizens. The Oklahoma Council of Public Affairs pushed heavily for this reform, which will make Oklahoma a more attractive state in terms of tax breaks.

South Carolina: The State Legislature cut the individual income tax rate in 2022. Thanks to Palmetto Promise Institute, the legislature accelerated this income tax cut even further from 6.4 percent to 6.2 percent.

Tennessee: The Tennessee legislature enacted a massive franchise tax reform this session, thanks largely in part to the Beacon Center of Tennessee. The reform includes a $400 million annual tax cut for Tennessee businesses by eliminating the state’s franchise tax. In addition, after concerns that the franchise tax may be illegal, the state refunded three years’ worth of the tax back to the businesses – a $1.6 billion refund. The Beacon Center made tax reform a priority this year, releasing a report calling for the change.

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