Leaders in Several States Propose an End to Income Taxes
According to Reuters, Nebraska Governor Dave Heineman has become the second governor in less than a week to propose ending his state's income tax. Last week, Louisiana Governor Bobby Jindal pitched the same idea, saying he wanted to get rid of both individual and corporate income taxes. Heineman’s plan would also remove both of those taxes. Gov. Heineman says the move would make his state more competitive. He also says that if a complete elimination of the two taxes isn’t possible, he would still push ahead to lower rates, making up for the lost revenue by reducing business exemptions to sales tax.
The Kansas City Star reports that Kansas Gov. Sam Brownback indicated that he would also pursue an end to the income tax in his state. He told lawmakers yesterday he wants to slash income taxes for the state’s lowest wage earners by more than a third while keeping the current state sales tax rate at the current level of 6.3 cents on the dollar and eventually phase out income taxes altogether. Referencing Texas’ scaled back tax structure, Brownback said in his annual State of the State address to the Legislature: “Look out Texas. Here comes Kansas.”
Check out these 2012 CSG regional reports on state corporate income tax trends: