Democrats in Blue States Block Republican Tax Relief Proposals Despite Record Inflation and Gas Prices
Refuse to Give Budget Surpluses Back to Taxpayers
Washington D.C.— Americans across the country may be feeling the pinch of soaring gas prices and 40-year high inflation, but the coffers of blue states across the country are flush with cash. While Republican legislators in these states are proposing to use their surpluses to provide relief in the form of tax cuts, Democrats are killing these proposals designed to put more money in their constituents’ pockets in trying times.
The reluctance of state Democrats to support these measures comes after a recent RSLC poll found that 74% of likely voters in key battleground states believe it is important for their state legislature to cut taxes help offset the rise in inflation and cost of living.
“Americans are struggling right now with record inflation and skyrocketing gas prices because of the failed policies of Joe Biden and his liberal allies in Washington D.C.,” said RSLC Deputy Communications Director Mason Di Palma.“While Republicans are looking to ease the financial pain for their constituents by introducing tax reform bills, Democrats in Colorado, Maryland, New Mexico, Vermont and Washington would rather block these proposals. At a time where Americans could use a little relief, Democrats are playing politics with people’s lives and would rather continue to stand behind a failing President Biden rather than work with Republicans to deliver relief.”
Several Democrat-Controlled State Legislatures Have Blocked Republican Tax Relief Proposals, Including:
Colorado: “HB 1021 would have reduced both individual and corporate state income tax rates from 4.55% to 4.4%. By Fiscal Year 2023-2024, this bill would put $420.4 million back in the pockets of Coloradans and save a family making $77,0000, Colorado’s median household income, $115 in income taxes.”
Action: Democrats voted in March to block two bills that would have reduced the state income tax from moving out of Committee and to the House floor.
Maryland: “Republican state lawmakers, who are vastly outnumbered in the General Assembly, renewed their call for “meaningful” tax cuts, including a direct-cash payment and Gov. Larry Hogan’s (R)marquee, $4 billion proposal to eliminate all state taxes on retirees.”
Action: This bill is still sitting in committee and has not been put to a vote yet.
New Mexico: “Gov. Michelle Lujan Grisham (D) has made a reduction in the state’s very broad-based, hybrid sales tax (which the state calls a gross receipts tax) a priority, and legislation (SB 5) affecting that rate reduction, from 5.125 percent to 4.875 percent, has been introduced but not yet heard in committee.”
Action: The New Mexico statehouse session concluded on 2/11/22 with SB 5 still stuck in committee.
Vermont: “Gov. Phil Scott (R) unveiled a proposal to increase the Earned Income Tax Credit to 45 percent of the federal credit, raise the Social Security exemption from $45,000 to $75,000, and increase the child and dependent care credit.”
Action: A key House committee has rejected Gov. Phil Scott's $50 million tax cut package and substituted its own proposal.
Washington: “In Washington, lawmakers introduced tax relief bills this year. The proposals include Senate Bill 5957, which would have cut the business and occupation (B&O) tax for manufacturers roughly in half. Other tax relief proposals include Senate Bill 5932, would have reduced the state’s sales tax by a full 1%, and Senate Bill 5769, which would have eliminated the B&O tax for manufacturing, repealed the capital gains tax and offered significant property tax relief.”
Action: The Washington State legislative session for 2022 ended last week and these bills were killed by Democrats.
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