Some states are ushering in lower income tax rates in January, part of a recent push to cut taxes for their residents.

Summary

Nine states cutting income taxes on January 1, 2025: Indiana, Iowa, Louisiana, Mississippi, Missouri, Nebraska, New Mexico, North Carolina, and West Virginia.

Most reductions occur in Republican-led states, with changes like flat tax rates in Iowa (3.8%) and Louisiana (3%).

Democrat-led New Mexico targets middle- and low-income taxpayers.

Proponents argue these cuts enhance economic competitiveness, while critics warn of potential public service impacts.

Several states plan further reductions in coming years.

  • Omega@lemmy.world
    7·
    3 days ago

    Here in Arkansas, they’ve been shifting the tax burden from income to sales tax as well. And it’s also presented as tax cutting rather than taxing the working class more.