While the White House and congressional Democrats are feverishly trying to enact massive, economy-killing tax increases, numerous states are going in the opposite direction: They’re cutting taxes.
This segment of What’s Ahead focuses on how local officials are recognizing that lower tax rates mean more opportunities and prosperity.
Ohio engineered the biggest tax reduction in the history of the Buckeye State. Arizona passed a virtual flat tax. But this isn’t happening only in Republican states. The governor of Wisconsin, a Democrat, wanted to boost levies, but he instead ended up signing the largest tax cut in the history of the Badger State.
The North Carolina legislature approved a reduction of almost 25% in the state’s single-rate income tax and a phase-out of its corporate tax. The state’s Democratic governor is expected to sign this bill into law.
The lesson is timeless and simple: Economies with benign tax regimes do better than those with hostile ones.