The 2023 holiday shopping season certainly looks uncertain, thanks to Bidenomics. Americans said they are cutting back on shopping this year, a finding Thursday found when discussing a Monmouth University survey released that day. On the same day, White House press secretary Karine Jean-Pierre stated that “we’re seeing costs coming down as we move into the holiday season when people go out for holiday shopping.” Any relief is not due to President Joe Biden or Bidenomics, but rather tax relief from Republican-led state legislatures.
One sec Arizona Katie Hobbs is a Democratic governor, and her residents are still relieved thanks to the Act enacted in 2021, when Republican Gov. Doug Ducey led the state, earlier this year, ahead of schedule, lowered Arizona’s flat income tax to 2.5%. The law allowed for early implementation if a state met economic thresholds.
IN Arkansas, Republican Gov. Sarah Huckabee Sanders signed legislation in September that further reduces the state’s top income tax rate from 4.7% to 4.4%. This is the second time this year that the Republican-controlled Legislature has cut taxes. Kiplinger Report recorded “[t]his state was able to provide this tax break due to a general revenue surplus of $1.161 billion for fiscal year 2023.” The governor tweeted about such a tax break in the context of relief from “Bideninflation.”
We secured a $250 million tax cut to provide Arkansans relief from Bidenflation.
And we will continue to responsibly reduce income tax until we wipe it off the books. pic.twitter.com/JIwmUdNpdk
— Sarah Huckabee Sanders (@SarahHuckabee) September 15, 2023
Florida Gov. Ron DeSantis touted the situation tax legislation that his statute was passed in May, and his office at the time announced how “Governor Ron DeSantis unveils the largest tax relief plan in Florida history” Governor revealed such a tax plan in February.
Thanks to $2.7 billion in tax cuts, a family of four could save up to $1,000 a year. The press note from the Provincial Office of May 25 also wrote:
Governor Ron DeSantis today signed the largest tax relief plan in Florida’s history, providing Florida families with $2.7 billion in tax relief for the 2023-2024 fiscal year. The tax relief package includes indefinite relief on necessities for babies and toddlers, such as strollers, cots, diapers and baby wipes. Additionally, the tax relief package includes two back-to-school sales tax holidays of 14 days each, two disaster preparedness sales tax holidays of 14 days each, and a free summer sales tax holiday recreational items and children’s toys, which will run from Memorial Day through Labor Day...
The indefinite sales tax exemptions included will save Floridians nearly $234 million and apply to items such as baby supplies, dental hygiene and firearm safety.
DeSantis also emphasized the need to limit the effects of Biden’s policies. ““Because of President Biden’s disastrous economic policies, Florida families are feeling inflationary pressures on their wallets,” he said in a statement. “But in Florida, we make sure that our state’s economic success is passed on to the people who made it possible.” . I will continue to push for smart fiscal policy that helps Florida families keep more of their hard-earned money in their pockets. Stronger families make a stronger Florida.”
Floridians will save a record $2.7 billion in taxes this year, and our tax relief packages include a permanent exemption on baby items to help young families. pic.twitter.com/1Afp6V3IXe
— Ron DeSantis (@GovRonDeSantis) May 26, 2023
In March, Georgia Governor Brian Kemp signed bills which provided $1 billion in tax funds. As a result, Georgians who filed returns in both 2021 and 2022 received a special state income tax refund.
Although Kemp did not mention Biden by name, he did refer to Washington and concerns about inflation in his statement. “While some in Washington are calling for tax increases, we are sending money back to hardworking Georgians,” he said. “And while they want to expand government, we are expanding capacity. Last year, we returned over a billion dollars to taxpayers in our state, and I’m proud that we’re doing it again. “I thank the members of the General Assembly who supported this solution to help Georgian families fight high inflation for 40 years.”
In 2022 Indiana legislature passed personal income tax cuts through HB 1002, which were accelerated by the legislation passed in MayHB 1001, signed by Governor Eric Holcomb.
The bill phases in further reductions through 2029, with personal income tax rates reduced to 2.9% starting in January 2027, ahead of the HB 1002 deadline.
The personal income tax rate for 2023 and 2024 was also reduced from 3.23%. up to 3.15 percent Taxpayers can also claim an exemption of $1,500 per year for each dependent child in 2023.
different state, Iowawitnessed historic tax reform under Gov. Kim Reynolds signed the bill, which her office touted as bipartisan. As mentioned in the press release, the bill “lowers the personal income tax rate for all Iowans to a flat and fair rate of 3.9% by 2026, eliminates the personal income tax on all retirement income starting in 2023, and changes the tax system Iowa Corporate Income Tax.”
“Beginning in tax year 2023, the tax liability of nearly 295,000 Iowa taxpayers will be eliminated under the retirement provisions of the new tax law, and 98% of Iowa taxpayers with taxable income of $10,000 or more will see their tax liability reduced for the tax year 2026” – also noted in the announcement.
Reynolds had advertised such a plan a month earlier.
IN MississippiGov. Tate Reeves signed the bill into law last April, October report from the Magnolia Tribune he noted that it resulted in “the largest tax cut in Mississippi history. But more specifically, one that focused primarily on ordinary workers.”
As stated in the report:
Starting this year, Mississippi enjoys the highest tax exemption in the nation among states that collect income tax. Single filers won’t pay any income tax this year on the first $18,300 of income. Married couples filing jointly will not pay income tax on the first $36,600 of income this year.
For context, federal poverty level is $14,580 for a one-person household and $35,140 for a five-person household. This means that the overwhelming majority of people classified as “working poor” in Mississippi will not pay any income tax starting this year.
It also means that middle-class families struggling to make ends meet in a high-inflation environment will be able to take home more tax-free dollars before tax liability kicks in.
For dollars earned above exemption levels, the Tax Freedom Act also includes a credit. Over the three years from 2024 to 2026, the tax rate applicable to all income above the exemption threshold will be reduced to a straightforward and low four percent flat tax.
Missouri The Department of the Treasury (DOR) issued a press release in January highlighting how “Missouri taxpayers will benefit from historic tax cuts in 2023“ Last October, Gov. Mike Parson signed the bill legislation to allow almost all Missouri filers to pay a lower rate in 2023.
IN MontanaGovernor Greg Gianforte also advertised in March, as he signed “the largest tax cut in state history” that included “six bills providing Montanans with immediate tax relief and permanent, long-term tax relief.”
A press release from Gianforte’s office noted achievements such as “$500 million in income tax relief”$280 Million in Property Tax Breaks,” “Up to $1,250 in Income Tax Breaks for Montana Residents,” “Fourth Lowest Capital Gains Tax Rate in the Nation,” “5,000 Companies Removed from Business Equipment Tax Rolls,” and “ Modernization of the Corporate Income Tax Code.
Another historic tax package has emerged Nebraskawhere Gov. Jim Pillen signed in March the legislation notably provides tax breaks for childcare, family and service providers, and reduces top personal and corporate income tax rates to 3.99% by 2027.
North Carolina Democrat Roy Cooper is in charge, but the Republican-led state Legislature with a veto-proof majority has been able to advance priorities, including on tax breaks. Cooper announced in September he allowed the 2023 appropriations bill to become law without his signature.
In particular, the budget reduces personal income tax to 4.5% in 2024, 4.25% in 2025 and 3.99% after 2025. There is also one of the lowest corporate income tax rates in the country at 2 .5%, with planned complete withdrawal.
IN North DakotaGovernor Doug Burgum emphasized how the 2023 session was a session that “provides historic tax credits and invests in key priorities including workforce, child care and infrastructure.” This included tax cuts worth $515 million.
Relief for Ohio he was dealing with income tax rates, as a bill signed by Gov. Mike DeWine in March lowers the personal income tax rate from 3.99% to 3.75%. Plante Moran also noted that the legislation “[f]harmonizes and consolidates Ohio’s income tax brackets from four to two by tax year 2024” and that “the top two income tax brackets will be consolidated and the rate reduced to 3.5%” in 2024.
In 2024, relief in the form of tax holidays is also planned. The Republican-led state legislature authorizes Ohio’s tax commissioner to extend the sales tax holiday to 3 to 14 days.
Residents saw another “historic” tax cut thanks to Republican state legislatures, including Utah. Governor Spencer Cox in March signed into law $400 million in tax cuts, which also lowers the income tax rate from 4.85% to 4.65%.
IN West VirginiaGov. Jim Justice signed it in March the largest tax cut in state historywhich reduces income tax rates on average by 21.25 percent, with such hope people will spend more.
“While hard-working Americans feel the Bidenomics failure in their pockets, Republican-led state legislatures have come to the rescue, passing tax cuts to provide relief,” RSLC Communications Director Mike Joyce said of the relief. “Holiday shoppers have state Republicans to thank this holiday season by finding economic solutions to offset Joe Biden’s failed economic agenda.”
