Republican-led states are moving more aggressively to cut or eliminate personal income taxes, while Democratic-controlled states are pressing to raise taxes on top earners.
The disparity has widened a divide that is reshaping state budgets, economic strategy, and the political fight over who should bear more of the tax burden.
The split has accelerated in recent years.
Since 2021, 23 states have lowered their top individual income-tax rates, and some Republican-led states are now pursuing full repeal.
Mississippi and Oklahoma are among those on paths toward ending personal income taxes.
In South Carolina, lawmakers this year advanced a plan that would keep lowering the top marginal rate until it reaches 1.99%, and then continue reducing it to zero if revenue targets are met.
The tax map looks markedly different from two decades ago.
In 2006, 15 states had top income-tax rates below 5%, including states with no tax on wage income, the Tax Foundation said.
Now, more than half of states are below 5%, while five states and the District of Columbia are in double digits.
Republicans argue that lower income taxes help attract residents, employers, and investment.
Grover Norquist, the antitax activist, has urged Republican-led states to flatten tax brackets, use revenue triggers for future cuts, and hold spending growth in check.
In Georgia, Republican Lt. Gov. Burt Jones, who is running to succeed term-limited Gov. Brian Kemp, has pledged to phase out the state income tax by 2032, arguing that Georgia must compete with no-income-tax neighbors such as Florida and Tennessee.
Missouri illustrates how far some Republicans want to go to reduce taxes.
A proposed constitutional amendment approved by the Missouri House would gradually eliminate the state income tax and permit lawmakers to broaden the sales-tax base to more goods and services, though the measure would still need further approval before going to voters.
Supporters say the state risks falling behind if it does not match low-tax competitors.
Critics say the change would shift more of the burden onto ordinary consumers and threaten funding for schools, healthcare, and other services.
Democrats and progressive groups want more of your money.
They argue that higher taxes on top earners can help preserve schools, child care, healthcare, and other programs without placing more pressure on lower-income households.
The Washington Legislature approved a bill creating a 9.9% tax on annual adjusted gross income above $1 million, with the bill text stating it is aimed at funding education, healthcare, and other services, while affecting about the wealthiest 0.5% of households.
The measure is expected to face legal and political challenges because the state has long lacked a wage-and-salary tax.
Democrats cite Kansas' 2012-13 tax-cut experiment as evidence that deep reductions can erode revenue and strain public services. Republicans counter that raising taxes on high earners risks pushing out residents, investment, and businesses.
The Associated Press contributed to this report.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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