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.

  • Zedstrian@lemmy.dbzer0.comEnglish
    10·
    3 days ago

    As a condition of receiving federal funds, states with budget deficits shouldn’t be allowed to cut income taxes; it’s essentially passing off those costs to taxpayers in other states.