WillowTree
Diamond Member
- Sep 15, 2008
- 84,532
- 16,092
- 2,180
Several Republican governors are proposing an end to their state income taxes in exchange for closing loopholes including mortgage deductions -- plans to make their states more competitive in the U.S. economy but already being criticized by Democrats.
Gov. Dave Heineman, Nebraska, and Bobby Jindal, Louisiana, earlier this week proposed eliminating the tax on residents and corporations.
Meanwhile, Kansas Gov. Sam Brownback proposed lower taxes for all residents in exchange for eliminating the tax deduction for interest paid on home mortgages.
Brownbacks mortgage-interest proposal is to help close a budget shortfall and was rejected last year by the states General Assembly.
He has been working for at least a year toward ending state income taxes and announced his plan Tuesday as part of his balanced budget proposal for fiscal 2014 and 2015.
Alaska, Texas, Florida, Nevada, South Dakota, Washington and Wyoming have no individual income taxes. Nevada, South Dakota and Wyoming have no corporate income taxes, according to the nonprofit Tax Foundation.
Brownback wants to drop the tax rate for the lowest earners from 3 percent to 2.5 percent, then to 1.9 percent in fiscal 2016. The top rate would go from 4.9 percent to 3.5 percent by 2017.
Part of the governors proposal includes taking the next step on the states path to no state income tax, the governors office said.
His proposals, including other real estate deductions, provide an additional $541 million in revenues for the fiscal year beginning July 1.
Brownbacks office also vowed the glide path to zero would not increase the sales tax nor include cuts to schools, higher education and essential safety-net programs.
However, Democrats and others have already criticized the proposal.
Read more: Republican governors' plans for no state income tax lauded, criticized | Fox News
it's none of the demon craps business what Republican Govenors do in their states. It's in Florida's constitution that there will never be a state income tax. It's so very loverly.
Gov. Dave Heineman, Nebraska, and Bobby Jindal, Louisiana, earlier this week proposed eliminating the tax on residents and corporations.
Meanwhile, Kansas Gov. Sam Brownback proposed lower taxes for all residents in exchange for eliminating the tax deduction for interest paid on home mortgages.
Brownbacks mortgage-interest proposal is to help close a budget shortfall and was rejected last year by the states General Assembly.
He has been working for at least a year toward ending state income taxes and announced his plan Tuesday as part of his balanced budget proposal for fiscal 2014 and 2015.
Alaska, Texas, Florida, Nevada, South Dakota, Washington and Wyoming have no individual income taxes. Nevada, South Dakota and Wyoming have no corporate income taxes, according to the nonprofit Tax Foundation.
Brownback wants to drop the tax rate for the lowest earners from 3 percent to 2.5 percent, then to 1.9 percent in fiscal 2016. The top rate would go from 4.9 percent to 3.5 percent by 2017.
Part of the governors proposal includes taking the next step on the states path to no state income tax, the governors office said.
His proposals, including other real estate deductions, provide an additional $541 million in revenues for the fiscal year beginning July 1.
Brownbacks office also vowed the glide path to zero would not increase the sales tax nor include cuts to schools, higher education and essential safety-net programs.
However, Democrats and others have already criticized the proposal.
Read more: Republican governors' plans for no state income tax lauded, criticized | Fox News
it's none of the demon craps business what Republican Govenors do in their states. It's in Florida's constitution that there will never be a state income tax. It's so very loverly.