(HorizonPost.com) – States across the country are quietly reducing or eliminating their income taxes.
In recent years, there has been a mass migration of sorts to states like Texas, Florida, and Tennessee. These states, and others like them, enjoyed more freedoms during nationwide lockdowns. But another reason people are flocking to live in these states is that they don’t impose an income tax.
Additionally, six other states don’t levy an income tax against their citizens: South Dakota, Wyoming, Alaska, Nevada, Washington, and New Hampshire. According to a recent report from Just the News, other states may soon reduce or eliminate their own income taxes.
On the John Solomon Reports podcast, President of Americans for Tax Reform Grover Norquist said that ten more states are working toward removing their income tax requirements, too. Some of the states on the verge of eliminating state income tax include Idaho, Wisconsin, North Carolina, and North Dakota.
Norquist indicated that removing state income taxes isn’t a straightforward process. In fact, it can take years.
Not every state will handle tax reforms in the same ways, either. For instance, New Hampshire doesn’t impose income tax on wages, but they do tax interest and dividends. It will take roughly three years for the state to phase out interest and dividend taxes.
North Dakota is also on the way to removing income tax. In August 2022, Gov. Doug Burgum said that about 60% of taxpayers will no longer pay state income tax. Those who still do will have their liability reduced.
Other states, such as West Virginia, are reducing their income taxes. Ultimately, this could help citizens across the country keep more money in their pockets.
The more states that successfully repeal their income taxes, the merrier. However, without a state income tax, citizens may take a bigger financial hit elsewhere. They should consult with their legislators to ensure they understand the future implications.
Copyright 2023, HorizonPost.com
