A Great State Income Tax Divorce Is Underway, And It’s A Beautiful Thing
The Wall Street Journal recently reported on the growing divide between blue and red states when it comes to income taxes. What it failed to mention is that this shows the genius of the nation’s founders.
“Republican-led states are racing each other to flatten, cut, and eliminate individual income taxes, with 23 states lowering their top income-tax rates since 2021,” Richard Rubin and Jeanne Whalen write.
And, indeed, this year, nine states – all Republican – either cut their top marginal tax rate or lowered their flat tax rate. Ohio became the 14th state to adopt a flat tax.
“Democratic-controlled states are moving the opposite way,” notes the Journal, “pushing to increase taxes on top earners to combat inequality and plug budget holes expected from Republicans’ cuts to federal health and nutrition assistance programs.”
(We will leave aside the fact that these reporters fail to explain why only Democratic states are expecting “budget holes” caused by supposed federal spending cuts. The truth is that these states have been spending like there’s no tomorrow.)
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