Last-Minute Shoppers Have More Money to Spend Thanks to State Republicans
15 Republican-Led State Legislatures Cut Taxes This Year
WASHINGTON, D.C. -- While D.C. Democrats spent 2021 arguing how much more to raise taxes on hardworking Americans through their reckless tax-and-spend agenda, 15 Republican-led states passed tax relief legislation that puts more money in the pockets of their constituents. Last-minute shoppers who continue to flood stores across the country have state Republicans to thank for any extra gifts they can purchase this holiday season.
“Democrats spent all of 2021 hurting the wallets of hardworking taxpayers with their reckless tax-and-spending agenda that raised prices on everything – from gas to groceries to holiday gifts,” said RSLC President Dee Duncan. “At a time where inflation is at the highest level in over 40 years, state Republicans succeeded in putting more money into the pockets of hard working families by cutting taxes and serving as the counterweight to the D.C. Democrats’ big government takeover.”
BACKGROUND
Republicans in Arizona passed legislation in June that:
Implements a flat tax of 2.5% for nearly everyone and eliminates the state’s taxation system that ranged from 2.59% for the first roughly $54,000 of income to 4.5% for income above about $327,000. Arizonans earning between $75,000 and $100,000 will save $231 a year in state income taxes.
Republicans in Arkansas passed legislation in December that:
Will lower the top tax rate for individuals from 5.9% to 4.9% over the next four years.
Will cut the corporate tax rate to 5.3%.
Will provide an additional tax credit for people who make less than $23,600.
Republicans in Florida passed legislation in May that:
Provides more than $168 million in taxpayer savings for families and businesses.
Offers a tax relief on hurricane supplies like flashlights, batteries, and generators.
Creates Florida’s first permanent sales tax exemption for independent living items for seniors like shower seats and grab bars.
The inaugural Internship Tax Credit provides tax relief for Florida businesses that employ and retain student interns, encouraging companies to hire young Floridians attending college in the state.
Republicans in Idaho passed legislation in May that:
Provides Idahoans $220 million in immediate one-time income tax rebates and $163 million in ongoing income tax relief.
Decreases the top rate to 6.5 percent which will help Idaho attract more business to the state.
Simplifies the tax code which would cut the number of income tax brackets from seven to five.
Republicans in Iowa passed legislation in June that:
Will drop the top individual income tax rate will drop from 8.53% to 6.5%.
Will reduce the number of Iowa income tax brackets from nine to four.
Republicans in Louisiana passed legislation in June that:
Lowers the state’s income tax rates. This was approved by the Louisiana voters by referendum in November.
Republicans in Missouri passed legislation in June that:
Reduces the income tax rate to 4.8%.
Republicans in Montana passed legislation in June that:
Will reduce the number of income tax brackets from seven to two.
Cuts taxes for the top marginal tax rates from 6.9% to 6.75% in 2022, and then to 6.5% in 2024.
Conservatives in Nebraska passed legislation in May that:
Decreases Nebraska’s top corporate income tax rate from 7.81% to 7.25% over two years.
The new Republican majorities in New Hampshire passed legislation in June that:
Cut the state's rooms and meals tax from 9% to 8.5 % – the lowest level in more than a decade.
Cut the business enterprise tax from 0.6% to 0.55% and lowered the threshold to pay business taxes, which means less businesses will be paying that tax.
Republicans in North Carolina passed the largest tax cut in state history in December that:
Reduces the state’s individual income tax rate from 5.25 to 4.99 percent next year and will lower that rate to 3.99 percent by 2027.
Phases out the state’s 2.5 percent corporate income tax rate, zeroing it out entirely starting after 2029.
Republicans in North Dakota passed legislation in November that:
Provides $211 million in income tax relief over the next two years that eliminates the state income tax bill for about 300,000 North Dakota taxpayers and provides partial relief to another 200,000 taxpayers.
Republicans in Ohio passed legislation in July that:
Reduces personal income tax rates by 3% in tax year 2021 and beyond. In addition, the top bracket is eliminated and the new top rate is reduced further to 3.99%.
Republicans in Oklahoma passed legislation in May that:
Reduces the corporate income tax from 6 percent to 4 percent and reduces all individual income tax rates by 0.25 percentage points across the board.
Republicans in Wisconsin passed legislation in July that:
Cuts income taxes by $2 billion over two years, by lowering one tax bracket from 6.27% to 5.3%. The cut would apply to individuals making between $23,930 to $263,480 and married couples filing taxes jointly who earn between $31,910 and $351,310.
###
