Muda69 Posted October 13, 2022 Share Posted October 13, 2022 https://www.cato.org/white-paper/fiscal-policy-report-card-americas-governors-2022 Quote ... Five governors receive a grade of A: Kim Reynolds of Iowa, Chris Sununu of New Hampshire, Pete Ricketts of Nebraska, Brad Little of Idaho, and Doug Ducey of Arizona. Eight governors receive an F: Tim Walz of Minnesota, Tom Wolf of Pennsylvania, J. B. Pritzker of Illinois, Gretchen Whitmer of Michigan, Phil Murphy of New Jersey, Kate Brown of Oregon, Gavin Newsom of California, and Jay Inslee of Washington. The report examines the tax and spending choices made by the governors and discusses recent policy trends. Twenty‐one states have cut individual or corporate income tax rates since 2020, and about 20 states have provided one‐time tax rebates. Meanwhile, many states have expanded tax revenues from marijuana, gaming, and online sales. Another important trend is the interstate migration of residents from high‐tax states to low‐tax states. Current state budget surpluses may diminish if the U.S. economy continues to stagnate. Fortunately, most states have built large rainy day funds, which they can tap if tax revenues fall in the months ahead. Governors should focus on pruning low‐value programs from budgets and pursuing growth‐enhancing reforms such as income tax rate cuts. Mr. Holcomb and Indiana get a "C": Quote Eric Holcomb entered the governor’s office in 2017 after a career in the U.S. Navy and other positions in public service, including being an adviser to former Indiana governor Mitch Daniels. Early in Holcomb’s tenure, he supported tax increases, including hikes to gas taxes and vehicle fees. More recently, Holcomb switched to tax cutting. In 2022, he signed legislation eliminating the state’s tax on utility services, which will save residents about $220 million a year. He also approved reforms cutting the individual income tax rate from 3.23 percent to 3.15 percent effective in 2023.95 If revenue targets are met, the tax rate will decline to 2.9 percent by 2029. The tax cut will save Indiana residents $180 million the first year and increasing amounts after that. In 2022, Indiana taxpayers received automatic refunds of $125 per person because surpluses topped a specified threshold in the general fund budget.96 Holcomb pushed for a second round of rebates, and in August the legislature handed out another $200 per person. In his 2022 state of the state address, Holcomb raised a business tax issue: “We must eliminate the 30 percent business personal property tax floor on new equipment to instantly ensure Indiana is more competitive with surrounding states, encouraging further capital investment here, and positioning us to become an even more dominant player in the advanced manufacturing age.”97 That would be a sensible reform because property taxes on business equipment undermine investment and growth. Holcomb scored a bit above average on spending in this report. The state’s general fund budget rose at a modest 3.3 percent annual average rate between 2017 and 2022. Link to comment Share on other sites More sharing options...
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