Highest-Scoring Governors
Table 1 presents the overall grades for the governors. Scores ranging from 0 to 100 were calculated for each governor based on seven tax and spending variables. Scores closer to 100 indicate governors who favor smaller government policies. The numerical scores were converted to the letter grades A to F.The following six governors received grades of A:
- Kim Reynolds of Iowa has been a lean budgeter and dedicated tax reformer since entering office in 2017. She received the highest score on this report. Iowa general fund spending has risen at just 2.3 percent annually since Reynolds took office. She has greatly simplified and reduced Iowa’s income taxes. The individual income tax was converted from a nine-bracket system with a top rate of 8.98 percent to a 3.8 percent flat tax; the corporate tax rate was slashed from 9.8 percent to 5.5 percent. The governor also approved school choice reforms allowing all students to opt for education savings accounts (ESAs) to cover private schooling costs.
- Jim Pillen of Nebraska is a veterinarian and entrepreneur elected governor in 2022. He cut the corporate tax rate and top individual income tax rate from a planned 5.84 percent to 3.99 percent, to be phased in by 2027. He also ended taxes on Social Security benefits, allowed businesses to expense their equipment purchases, and achieved major property tax reductions.
- Jim Justice of West Virginia is a wealthy entrepreneur elected governor in 2016. For years, he pushed to cut the income tax to increase growth and attract residents to his state. The legislature acceded in 2023 and passed, as he put it, the “largest tax cut in West Virginia history.”2 Individual income tax rates were cut across the board, with the top rate cut from 6.5 percent to 4.9 percent. It is the largest tax cut relative to state tax revenues in this year’s report. Justice also approved school choice reforms allowing all students to opt for ESAs to cover private schooling costs.
- Sarah Huckabee Sanders of Arkansas has pursued major tax reforms since her election in 2022. In a series of bills, she cut the top individual income tax rate from 4.9 percent to 3.9 percent and the corporate rate from 5.3 percent to 4.3 percent. Sanders says she is “committed to responsibly phasing out our state income tax rate and letting everyone keep more of their hard-earned money.”3 She has kept the lid on spending increases and Arkansas has one of the largest rainy day funds in the nation. Sanders also approved major school choice reforms in 2023 based on ESAs and universal eligibility.
- Kristi Noem of South Dakota has defended her state’s low-tax policies since her election in 2018. As one of the freest states in the nation, South Dakota enjoys net domestic in-migration, while most of its neighbors suffer out-migration. Noem cut the general sales tax rate from 4.5 percent to 4.2 percent—a significant reduction, as the state has no income tax and relies heavily on sales taxes. Noem consistently proposes flat budgets.
- Greg Gianforte was elected Montana governor in 2020. He was determined to cut income tax rates and succeeded in a series of bills. In 2021, he cut the top individual income tax rate from 6.9 percent to 6.5 percent and collapsed seven income tax brackets to two. He expanded the standard deduction and repealed tax credits. Further reforms in 2023 cut the top individual income tax rate to 5.9 percent. He has also cut the capital gains tax rate and increased the exemption level for taxing business equipment.
We have millions of Taxpayers. So who among Taxpayers likes F grades?
Elect Trump to get many more A Grades.
