(AbsoluteNews.com) – The pandemic has been rough on many Americans’ finances. Millions of people were out of work for months while states locked down in an attempt to stop the spread of the COVID-19 virus. Not everyone benefited from the stimulus checks sent out throughout the first year of the pandemic.
The federal government sent cities and states millions of dollars of relief funds during the pandemic to help them recover from the economic troubles, but much of the money hasn’t been spent. In some cases, it has allowed localities to free up funds allocated for other expenses. As a result, a number of states are making plans to lower income taxes for residents.
Earlier this year, the conservative Tax Foundation reported nearly a dozen states were lowering taxes. The organization’s senior policy analyst, Katherine Loughead, spoke to The Hill recently about the findings, saying some states are in a better financial position now than they were in 2019 before the pandemic. She explained a lot of budget officers are projecting their states will experience significant growth over the next few years, leading the states to look “for more ways to become more attractive to workers.”
Eleven states reduced their personal and business income taxes. All are Republican-led states except for New Hampshire. Five states — Montana, Ohio, Arizona, Iowa, and Idaho — reduced the personal income tax rates enacted laws to reduce the number of tax brackets to create a more neutral structure. Another five states — Louisiana, Ohio, Oklahoma, Arizona and Idaho — also reduced their marginal individual tax rates.
Many of the states paired their tax cuts with pro-growth reforms to keep their economies growing. Some of the reforms and cuts started in 2021, but others won’t begin until 2022 and 2023.
What Is the Left Doing?
It should come as no surprise the largest Democratic states aren’t enacting reforms or tax cuts to help citizens. In fact, the federal government, also under the control of the Left, has failed to enact many measures either, with the exception of the IRS making changes to the tax brackets.
Not only is Congress not enacting reforms to help the American people during a time of rising inflation, Democrats want to continue spending trillions of dollars on their pet projects. The difference between the way the two parties are handling the economic situation just shows who really cares about the problems the American people are facing.
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