Despite the federal government struggling with debt limits, 27 U.S. states are considering cutting or totally eliminating their taxes. In this article, read and find out if your state is one of them!Despite the U.S. federal government struggling with a debt limit crisis, several U.S. states have a cash surplus or what they commonly call “rainy day funds”. As a matter of fact, 27 U.S. states are considering income tax cuts 2023 or eliminating taxes altogether. The National Association of State Budget Officers announced that it has been two years since several states across the country are having budget surpluses.
According to Fragassi, in 2020, the surplus amounted to $70 billion and nearly doubled to $136 billion in 2023. This is why several states are considering Income Tax Cuts 2023 by providing rebate checks to their residents.
READ ALSO: West Virginia House Votes To Approve 50% Income Tax Cut In 3 Years
27 States Considering Income Tax Cuts 2023
The following are the 27 U.S. states that consider cutting their income taxes or eliminating them altogether.
- New Mexico
- North Carolina
- North Dakota
- South Carolina
- West Virginia
According to Picchi, some of the reasons why state legislators have decided to make this move is to make their states more economically competent like the others. In addition, they also intend to boost their states’ economic growth or support their resident taxpayers who struggle with the inflation. In particular, the states of Mississippi and Arkansas consider eliminating their state income taxes to attract new businesses and new households.
READ ALSO: Minnesota Republicans Propose $13 Billion “Give It Back” Tax Cut Plan