Checking in on Legislative Sessions: Which States are Advancing Tax Reforms?

All eyes are on Washington, DC, as Congress considers how to extend President Trump’s Tax Cuts and Jobs Act (TCJA), which expires at the end of the year.

But Americans don’t have to wait on Washington for tax reform. State legislatures are in session, and many are advancing policies aimed at lowering the cost of living for residents—especially as families continue to face high prices for everyday goods.

Across the country, state capitols are lowering or eliminating income taxes, and in some cases reducing property tax bills for their citizens.

State Policy Network’s affiliate organizations are encouraging the leaders in their state to advance these reforms—demonstrating how tax relief will benefit the individuals, families, and businesses in their communities.

Georgia

The Georgia Legislature advanced a bill that would lower the income tax rate to 5.19%. Georgia is also considering legislation that would exclude tips from taxation. The Georgia Public Policy Foundation noted a lawmaker claimed that this reform will save taxpayers $65-$95 million per year. Georgia is also considering a measure that that gives a $500 tax break to married couples filing joint tax returns.

Idaho

Idaho lawmakers are considering legislation that delivers more than $252 million in tax cuts, starting with cutting individual and corporate income taxes to 5.3%. The Mountain States Policy Center noted that if passed, the bill would be one of largest income tax cuts in Idaho history.

Kansas

The Kansas Policy Institute highlighted how lawmakers in Kansas are debating capping property taxes or limiting their growth, with two different proposals under consideration in each chamber of the legislature.

Mississippi

The Mississippi Center for Public Policy highlighted how the state’s House passed a bill which would eliminate the state income tax over the next decade.

Missouri

Policymakers in the Show Me State are considering legislation to eliminate the income tax. The Show-Me Institute noted reducing the tax is welcome because Missouri needs to be more competitive with the states around us who are also working to attract families and businesses—including those already living and working in Missouri.

Oklahoma

Days before Oklahoma’s legislative session, Governor Kevin Stitt noted he would seek a personal income tax from 4.75 percent to 4.25 percent this year. Even more promising, there is also an effort to repeal the income tax completely.

The Oklahoma Council of Public Affairs (OCPA) pointed out the state’s current rate is among the highest in the nation.

In a recent piece, OCPA’s president Jonathan Small encouraged policymakers to reduce the rate, noting: “For Oklahoma to attract capital, create jobs, and increase opportunity for all, our state must cut and eventually eliminate its penalty on work, the personal income tax.”

South Carolina

In an op-ed for Governing, the South Carolina Policy Council’s Sam Aaron encouraged lawmakers to prioritize lowering income tax rates. Aaron highlighted how lawmakers have introduced bills this year to eliminate the income tax altogether and reduce the rate to a flat 3.5 percent.