About 45 years have passed since a U.S. state last eliminated its income tax on wages and salaries. But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing.

The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses.

But it comes during a time of greater uncertainty for states, as they wait to see whether President Donald Trump’s cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy.

Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor.

  • bobs_monkey@lemm.ee
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    18 hours ago

    They’ll straight up disband public schools and all other public benefit before they defund police.

    • meco03211@lemmy.world
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      18 hours ago

      Jokes on them. If they cut tax revenue without a plan to cut costs, they’ll waltz right into defunding the police without even meaning to.

      • Ledericas@lemm.ee
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        11 hours ago

        police is only useful to them, asa bludgeoning device. dictatorships have a strong police force, while makign thier own military weak, its by design.

      • enkers@sh.itjust.works
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        17 hours ago

        Also, I suppose one way to get cars off the roads is to leave them in such severe disrepair that nobody can drive.

          • UnderpantsWeevil@lemmy.world
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            5 hours ago

            Fuel is, curiously, the one thing we’ve managed to get cheap.

            The rest of the economy is inflating like a blimp, but gas prices are as low as they’ve been in decades

            • Revan343@lemmy.ca
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              4 hours ago

              For now; it’ll become an issue as the refineries start needing maintenance and all the parts and equipment have gone up in cost