Tag: flat tax

Gov. Kemp Pitches Legislation to ‘Accelerate’ Georgia Tax Cuts Next Year

Tom Pappert

Governor Brian Kemp (R) pitched new legislation on Monday that he said will “accelerate” Georgia’s new income tax cuts. Beginning in 2024, the Kemp’s plan would steadily increase income taxes annually until the tax rate falls to 4.99 percent.

Kemp announced the move to expand on HB 1437, which established a flat income tax in Georgia by which all income earners are taxed equally at 5.49 percent. While HB 1437 called for the tax rate to eventually decrease to 4.99 percent, Kemp said in a Monday statement that his changes to the law will mean Georgians pay less taxes sooner.

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New Report Highlights Benefits of a Wisconsin Flat Tax

M.D. Kittle

As the Wisconsin Legislature considers sweeping tax cuts, a new report finds a flat tax would yield substantial benefits for all. 

The report, published by the Badger Institute, notes single-rate reform to Wisconsin’s costly progressive tax system would spur faster economic growth, creating more jobs and more investment — all while lowering the burden on Badger State taxpayers. 

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Gov. Tony Evers Signals Big Spending Plans for Wisconsin in State of the State Address

M.D. Kittle

In his fifth State of the State address Tuesday evening, Gov. Tony Evers began laying out how he plans to use Wisconsin’s $6.6 billion surplus, pitching a spending bender of big government initiatives already with a price tag to date of around $1.3 billion. But there’s more to come. Evers is still constructing his biennial budget plan, set for release in a few weeks. 

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New Survey Shows Wisconsin Businesses See Recession Ahead

M.D. Kittle

Battered by ongoing high inflation, a majority of Wisconsin businesses see a recession ahead, according to Wisconsin Manufacturers & Commerce’s latest Wisconsin Employer Survey.

WMC’s survey finds 60 percent of businesses believe the Badger State economy is headed for a recession this year. On the surface, the number appears to be an improvement from last summer’s survey when 71 percent of respondents worried a recession was looming. But Nick Novak, WMC’s vice president of communications and marketing, said more employers moved from being sure about a recession to uncertain about the economy.

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State Senate Majority Leader Pitches Flat Tax for Wisconsin

Admin

by Benjamin Yount   Wisconsin’s Senate majority leader says there is plenty of money available to reconfigure the state’s personal income tax rates. State Sen. Devin LeMahieu, R-Oostburg, on Friday said Wisconsin’s record $6.6 billion surplus will help get the state over the hump. “So, for sure in the first two years of the budget we’ll have plenty of revenue,” LeMahieu said. His proposal would move Wisconsin from a top personal income tax rate of 7.65% to a flat rate of 3.25% for everyone by 2026. LeMahieu estimates that his plan will save taxpayers $5 billion. “It maybe looks a little daunting in years three and four,” Lemahieu said of the impact on state coffers. “When other states have done this, sales tax revenue goes up, and other revenue goes up because there’s more money in the system. It changes people’s spending habits.” LeMahieu said Wisconsin’s economy has grown over the past several years, and he expects that to continue. He also said lowering the tax rate to 3.25% would make Wisconsin the lowest among its neighbors. Minnesota’s income tax rates start at 5.35%, while Illinois, Iowa and Michigan all have flat taxes that are or would be higher than…

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Gov. Evers Puts Kibosh on Flat Tax, School Choice in Wisconsin

Admin

Gov. Tony Evers is already taking things off the list of possible compromises at the Wisconsin Capitol.

The governor told WISN TV on UPFRONT that he will not sign a flat tax or universal school choice plan if Republicans send him one.

“A flat tax, if that’s part of the budget, that could end it. If it’s universal school choice across the state for education, that could be a killer too. But we’ll see. I don’t think any of those things are going to happen, so I’m planning on signing a good budget.”

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Georgia Lawmakers Sign Off on Flat Tax

The Center Square
Governor Brian Kemp

Georgia lawmakers passed legislation that will gradually drop the state income tax rate over the next few years, a move that proponents say will make the state more competitive.

The state House voted 167-2, and the state Senate voted 41-13 in favor of an amended House Bill 1437. The bill sets the state’s tax level at 4.99% by 2029, starting with a 5.49% flat tax for the tax year beginning Jan. 1, 2024.

The measure, which received broad bipartisan support in both chambers of the Legislature, now heads to Gov. Brian Kemp, a Republican, for his signature. Kemp is expected to sign the bill into law.

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Arizona GOP Legislators and Gov. Ducey Drafting Legislation to Combat Initiative That Would Derail Historic Tax Cuts

Rachel Alexander

Last year, Arizona enacted historic tax cuts, changing the state’s tax code law to mostly a 2.5% flat tax rate. But opponents collected enough signatures to put an initiative on the ballot this fall, Prop. 307, that would reverse the legislation. In response, Republican state legislators are working with Gov. Doug Ducey to pass legislation that would make the initiative null and void — and maybe implement even more striking tax cuts. 

State Rep. Jake Hoffman (R-Queen Creek), who sponsored legislation last year that would have repealed and replaced the historic tax cuts with an even more far reaching 1.5% tax rate, told The Arizona Sun Times, “I told the Governor’s office that the 2.5% tax rate he’s pushing for can only be the starting point. With yet another year of record budget surpluses of nearly $4 billion, the people of Arizona are being overtaxed. We must cut taxes even more during the budget process.” 

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Lawsuit Filed Against Referendums That Attempt to Reverse Arizona’s Historic Tax Cuts

Rachel Alexander

The Arizona Free Enterprise Club filed a lawsuit recently against Invest in Arizona over the organization’s attempt to get three referendums on the Arizona ballot that would reverse Arizona’s recently passed tax cuts. The lawsuit contends that since the tax cuts “provide for, and directly relate to, the generation of revenues that are remitted to the general fund and appropriated to various agencies, departments and instrumentalities of the state government,” they cannot be the subject of a referendum and are unconstitutional.

AFEC President Scot Mussi, who is one of the plaintiffs, said, “All three bills directly provide for the support and maintenance of the state, were key aspects of the state’s budget, and therefore are not referable by Invest in Arizona.”

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Historic Income Tax Overhaul Reduces Burden by 13 Percent for Most Arizonans

Rachel Alexander

Arizona Governor Doug Ducey is expected to sign a budget bill the Arizona Legislature sent to him on Friday that includes a historic tax reform package. HB 2900 implements the lowest flat tax in the country, 2.5%. The average Arizona family will see a 13% income tax reduction, about $350 per year. According to the nonpartisan Tax Foundation, Arizona previously had one of the highest marginal income tax rates in the country. 

The budget bill also eliminates taxes on veterans’ retirement pay and prevents a 77% increase on small business taxes. It reduces property taxes by 10% on small businesses and job creators by 10%, capping the maximum tax rate on businesses at 4.5% and reducing commercial property taxes. According to a report by Ducey, 43% of Arizonans in the private sector work for small businesses. HB 2900 increases the homeowner’s rebate so the state covers half of homeowners’ primary property taxes.

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New Mission PAC Hosts GOP Gubernatorial Forum

Eric Burk

GOP gubernatorial candidates Delegate Kirk Cox (R-Colonial Heights), Peter Doran, Sergio de la Peña, and Glenn Youngkin met on Zoom on Thursday evening to answer policy questions about school reform, fixing Virginia’s tax code, improving broadband access, and making Virginia more veteran friendly. The New Mission PAC hosted the forum. PAC founder Daniel Gade and former Delegate Chris Saxman asked the questions in a format designed to allow candidates to demonstrate policy positions without engaging in direct debate.

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