ITEP

.ITEP Staff

State leaders have begun releasing budget projections for 2023 and a familiar theme has resurfaced: large budget surpluses, with many state lawmakers pushing for tax cuts despite It is a huge challenge that we face as a country that requires sustainable income. . For example, in Mississippi SY North Dakota, Lawmakers are considering using the temporary surplus to make deep, permanent cuts in the form of a phase-out of state taxes. Other states like that Utah, meanwhile, devoted a large portion of disposable income to tax cuts and more modest (though still significant) rebates. In New Mexicothe governor plans to send one more tax cut to residents, and then some Connecticut Legislators want to explore more ways and establish long-term loans for children. Like other government officials Colorado Gov. Jared Polis is heading into the new year cautiously, focusing on his top priority of strengthening the treasury, while lawmakers in Missouri may be forced to lower their tax cut priorities due to lower revenue projections than a portion of recent tax cuts.

State Roundup

  • CONNECTICUT Gov. Ned Lamont is considering a tax cut for families with incomes up to $150,000 as part of his goal to “focus everything we do on economic growth.” Lamont is lucky, because the priority for the legislature in many states is to establish a permanent version of the Tax Rebate that succeeded this year in raising the targeted revenue. for middle- and low-income families through the tax code, known policies. promote a prosperous society and a strong economy. Lamont also plans to end tax breaks on large corporations.
  • During the FLORIDA The special session of the legislature focused on reducing the rising cost of home insurance in the state, lawmakers are also expected to pass various bills that would provide property tax relief to of people whose homes or businesses are uninhabitable due to Hurricane Ian and provide a 50 percent loan. for transporters using 35 national highways in a month for the year 2023, which was proposed as a way to use the government surplus to deal with the increase in the cost of living.
  • MISSOURI Legislators have filed several tax-related bills ahead of the 2023 session. However, the increase in public funds is expected to decrease significantly due to the previous tax cuts.
  • Republican leaders there MISSISSIPPI disagree on how to use the state surplus during next year’s legislative session. Some leaders want the tax to be rolled back, like Lt. Gov. Delbert Hosemann and the leaders of the Senate, while others want the repeal of the personal income tax, such as Gov. Tate Reeves and Senate President Philip Gunn.
  • NEW MEXICO Gov. Michelle Lujan Grisham is expected to call for an additional round of tax cuts in the upcoming legislative session after forecasting up to $3.6 billion in additional revenue. The cost of the bailout package could exceed $1 billion, but the size and specific scope have yet to be determined.
  • SOME NEW YORK Last week, lawmakers released a proposal to consolidate the child credit and state income tax credit into a tax credit for working families. The purpose of the proposal is to consolidate two credits into one credit, to fill the gap in the existing children’s credit that limits it to children over four years old, to increase or maintain the general benefits for current borrowers, and compliance with best practices for use. reducing poverty and promoting thriving communities and economies.
  • NORTH DAKOTA Gov. Doug Burgum’s proposed 2023-2025 budget included cuts in state income taxes, including a tax exemption for three out of five taxpayers, after exceeding projections by law due to the increase in the price of oil the revenue of the government in general. Burgum also called on lawmakers to completely eliminate the income tax.
  • The president of the Senate there OKLAHOMA said tax cuts will be the focus of next year’s legislative session during his annual state House floor. He did not elaborate during his speech, but he highlighted the personal income tax. On the Senate side, the Republican caucus chair is currently leading a tax reform task force to study specific policy ideas.
  • UTAHThe executive committee will allocate $400 million in tax cuts in the upcoming 2023 legislative session. The money is separate from Gov. Spencer Cox’s budget proposal, which includes a one-time property tax cut and about $1 billion in tax rebates.
  • WISCONSINHouse Speaker Robin Vos said he wants to cut taxes more than the $3.4 billion cut last year with a focus on reducing the top portion of the tax bracket. government revenue. With a budget surplus projected at $6.6 billion, Speaker Vos will have to negotiate with Governor Tony Evers on how to spend the money because House members cannot override Evers’ veto. Republican state.

What we read

  • Fifty Street explores how federal funding agreements may affect state and local finances and other priorities.
  • The event explains the importance of the Rainy Day Fund from data and best practices for weathering high and low economic conditions. -Pew public funds.
  • A study on the impact of the soda tax by James Flynn-researcher at the Colorado University—recently published in the press Health Economics. His research suggests that, in addition to not slowing down as previously feared, consumption has also decreased, giving an improvement focused on non-white and female respondents.

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