2015: Year of State Income Tax Cuts?

Current reports such as this one by the American Legislator point us to one key state trend:  recently elected state leaders are trying to lower the price that we place on work. We know, from our best-selling book, Wealth of States, that when you lower the price of work, you can expect to see more of it. Low tax states not only see more growth in their state economy and their personal incomes, but also grow an average of 30% more state and local government revenue over a decade!

This year, 31 of our 50 states are governed by conservative executives. Voters elected Governor Larry Hogan in Maryland who made the flight of taxpayers a centerpiece campaign theme last November. Florida Governor Rick Scott cut over 20 different kinds of taxes, and continues to lower the fiscal drag even further with new tax relief measures on communications services.

2015 could prove to be the year of the state income tax cut.  For more information about why this matters to states, check out my James Madison Institute presentation given in Tallahassee, FL.