Red States Push to Eliminate Income Taxes as Blue States Move to Raise Taxes on the Wealthy

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – A growing divide is emerging across the United States as Republican-led states move to slash or eliminate personal income taxes while Democratic-led states push to raise taxes on high earners.

Since 2021, 23 states have lowered their top individual income-tax rates, with some Republican-controlled legislatures now pursuing full repeal. States such as Mississippi and Oklahoma are moving toward eliminating personal income taxes entirely.

In South Carolina, lawmakers advanced a plan that would gradually reduce the state’s top income-tax rate to 1.99%, with the possibility of eventually eliminating the tax altogether if revenue targets are met.

Supporters say lower taxes attract residents, businesses, and investment. Anti-tax advocate Grover Norquist has urged Republican-led states to flatten tax brackets, tie future tax cuts to revenue growth, and control government spending.

In Georgia, Republican Lt. Gov. Burt Jones—running to succeed term-limited Gov. Brian Kemp—has pledged to phase out the state income tax by 2032, arguing the state must compete with neighboring Florida and Tennessee, which do not tax wage income.

Meanwhile, some Democratic-led states are moving in the opposite direction. In Washington state, lawmakers approved a proposal creating a 9.9% tax on annual income above $1 million, targeting roughly the wealthiest 0.5% of households to fund education, healthcare, and other services.

The growing tax divide reflects two competing economic visions—one focused on tax reduction and growth, and the other on expanding public services funded by higher taxes on the wealthy.

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