The 2023 holiday shopping season, thanks to Bidenomics, certainly looks to be a precarious one. Americans have said they're cutting back this year on shopping, as covered Thursday when discussing the Monmouth University poll released that day. That same day, White House Press Secretary Karine Jean-Pierre claimed "we are seeing lowering costs as we're going into this holiday season, as people are going to do some holiday shopping." Any relief it's not thanks to President Joe Biden or Bidenomics, but rather tax relief from Republican-led state legislatures.
While Arizona's Katie Hobbs is a Democratic governor, residents there still saw relief thanks to a law passed in 2021, when Republican Gov. Doug Ducey led the state, that cut Arizona's flat income tax to 2.5 percent at the start of this year, ahead of schedule. The law allowed early implementation if the state hit economic thresholds.
In Arkansas, Republican Gov. Sarah Huckabee Sanders signed legislation in September that further reduces the state's top income tax rate from 4.7 percent to 4.4 percent. It was the second time this year that the Republican-controlled legislature has cut taxes. A report from Kiplinger noted "[t]he state was able to provide this tax relief due to a $1.161 billion general revenue surplus for the 2023 fiscal year." The governor tweeted about such tax relief in the context of relief from "Bideninflation."
We delivered a $250 million tax cut to give Arkansans relief from Bidenflation.
— Sarah Huckabee Sanders (@SarahHuckabee) September 15, 2023
And we will continue to responsibly cut the income tax until we wipe it off the books. pic.twitter.com/JIwmUdNpdk
Florida Gov. Ron DeSantis has been touting tax legislation that his state passed in May, with his office at the time heralding how "Governor Ron DeSantis Highlights Largest Tax Relief Plan in Florida’s History." The governor had unveiled such a tax plan in February.
Thanks to the $2.7 billion in tax cuts, a family of four could save up to $1,000 a year. As a press release from the governor's office from May 25 also noted:
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Today, Governor Ron DeSantis signed the largest tax relief plan in Florida’s history, providing Florida families with $2.7 billion in tax relief during the 2023–2024 fiscal year. The tax relief package includes a permanent exemption for baby and toddler necessities such as strollers, cribs, diapers, and baby wipes. Additionally, the tax relief package includes two back-to-school sales tax holidays lasting 14 days each, two disaster preparedness sales tax holidays lasting 14 days each, and a freedom summer sales tax holiday on recreational items and children’s toys that will last from Memorial Day to Labor Day...
Permanent sales tax exemptions included will also save Floridians nearly $234 million, and applies to items such as baby necessities, oral hygiene, and firearm safety.
DeSantis also highlighted the need to curb the effects of Biden's policies. "Because of President Biden’s disastrous economic policies, Florida families are feeling the pressure of inflation on their wallets," he said in a statement. "But in Florida, we are ensuring that our state’s economic success gets passed on to the people that made it possible. I will continue to push smart fiscal policy that will allow Florida families to keep more of their hard-earned money in their pockets. Stronger families make a stronger Florida."
Floridians will be saving a record $2.7 billion in taxes this year and our tax relief packages include a permanent exemption on baby items to aid young families. pic.twitter.com/1Afp6V3IXe
— Ron DeSantis (@GovRonDeSantis) May 26, 2023
In March, Georgia Gov. Brian Kemp signed legislation that provided $1 billion in tax funds. As a result, Georgians who had filed returns in both 2021 and 2022 received a special state income tax refund.
Although Kemp did not mention Biden by name, his statement referenced Washington and concerns with inflation. "While some in Washington D.C. are calling for tax increases, we’re sending money back to hardworking Georgians," he said. "And while they want to grow government, we’re growing opportunity. Last year, we returned over a billion dollars to the taxpayers of our state, and I'm proud we're doing it again. Thank you to those in the General Assembly who supported this measure to help Georgia families fighting through 40-year high inflation."
In 2022, the Indiana legislature had passed personal income tax cuts via HB 1002, which were accelerated thanks to legislation passed in May, HB 1001, signed into law by Gov. Eric Holcomb.
The law gradually applies further reductions through 2029, with personal income tax rates decreasing to 2.9 percent effective January 2027, which is ahead of schedule from HB 1002.
The personal income tax rate was also lowered for 2023 and 2024, from 3.23 percent to 3.15 percent. Taxpayers could also claim a $1,500 exemption per year per each dependent child for 2023.
Another state, Iowa, saw historic tax reform when Gov. Kim Reynolds signed a bill, which her office touted as bipartisan. The bill, as a press release mentioned, "lowers the individual income tax rate for all Iowans to a flat and fair 3.9% rate by 2026, eliminates income tax on all retirement income starting in 2023, and overhauls Iowa’s corporate tax system."
"Beginning in Tax Year 2023, the tax liability for nearly 295,000 Iowa taxpayers will be eliminated under the retirement provision of this new tax law and 98% of Iowa taxpayers with $10,000 or more of taxable income will see a decrease in tax liability by Tax Year 2026," the release also noted.
Reynolds had touted such a plan the month before.
In Mississippi, Gov. Tate Reeves signed a law in April of last year, An October report from the Magnolia Tribune noted that it resulted in "the largest tax cut in Mississippi history. But more specifically, one that focuses first on everyday workers."
As the report laid out:
Beginning this year, Mississippi now has the highest tax exemption in the country among states that collect income taxes. Single filers will not pay any income taxes on the first $18,300 of their income this year. Married couples filing jointly will not pay any income taxes on the first $36,600 in income this year.
For context, the federal poverty level is $14,580 for a single-person household and $35,140 for a five-person household. This means that the overwhelming majority of people in the category of “working poor” in Mississippi will not pay any income tax starting this year.
It also means that middle class families who are struggling to make ends meet in a high inflation environment will be able to take home more tax free dollars before any income tax liability kicks in.
For the dollars earned above the exemption levels, the Tax Freedom Act also includes relief. Over a three-year period between 2024 and 2026, the tax rate applied to all income over the exemption threshold will be reduced to a simple and low four percent flat tax.
Missouri's Department of Revenue (DOR) in January put out a press release highlighting how "Missouri Taxpayers to Benefit from Historic Tax Cuts in 2023." Last October, Gov. Mike Parson had signed into law legislation allowing for nearly all Missouri filers to pay a lower rate in 2023.
In Montana, Gov. Greg Gianforte also touted in March how he had signed the "largest tax cut in state history," which included "six bills to provide Montanans immediate tax rebates and permanent, long-term tax relief."
A press release from Gianforte's office noted such accomplishments as "$500 Million in Permanent Income Tax Relief," "$280 Million in Property Tax Relief," "Income Tax Rebates up to $1,250 for Montanans," "Fourth Lowest Capital Gains Tax Rate in the Nation," "5,000 Businesses Removed from Business Equipment Tax Rolls," and "Corporate Tax Code Modernization."
Yet another historic tax package came from Nebraska, where Gov. Jim Pillen in March signed legislation in particular offers tax credits for child care, families and providers and also lowers the top individual and business income tax rates to 3.99 percent by 2027.
North Carolina is governed by Democrat Roy Cooper, but the Republican-led state legislature with a veto proof supermajority has been able to accomplish priorities, including when it comes to tax relief. Cooper announced in September he was allowing for the 2023 Appropriations Act to become law without his signature.
Specifically, the budget reduces the personal income tax to 4.5 percent in 2024, 4.25 percent in 2025, and 3.99 percent for after 2025. There's also one of the lowest income tax rate in the nation for corporations at 2.5 percent, with a full phaseout planned.
In North Dakota, Gov. Doug Burgum highlighted how the 2023 session was one that "provides historic tax relief and invests in key priorities including workforce, child care and infrastructure." That included $515 million in tax cuts.
Relief to Ohio had to do with income tax rates, as legislation Gov. Mike DeWine signed in March reduces the individual tax income rate from 3.99 percent to 3.75 percent. Plante Moran also noted that the legislation "[f]lattens and consolidates Ohio income tax brackets from four to two by tax year 2024," and that "the top two income tax brackets will be consolidated and the rate reduced to 3.5%" in 2024.
There will also be relief in 2024 via sales tax holidays. The Republican-led state legislature authorizes the Ohio Tax Commissioner to extend sales tax holidays to between 3 and 14 days.
Residents saw another "historic" tax cut thanks to Republican state legislatures, including in Utah. Gov. Spencer Cox in March signed legislation to provide $400 million tax cuts, which also reduces the income tax rate from 4.85 percent to 4.65 percent.
In West Virginia, Gov. Jim Justice in March signed the largest tax cut in the state history, which reduces the income tax rates by an average of 21.25 percent, with a hope that people will spend more.
"While hardworking Americans feel the failure of Bidenomics in their pockets, Republican-led state legislatures have come to the rescue by passing tax cuts to provide relief," said RSLC Communications Director Mike Joyce about the relief. "Christmas shoppers have state Republicans to thank this holiday season by finding economic solutions to offset Joe Biden’s failed economic agenda."
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