Americans in search of economic freedom and opportunity are flocking to Florida, Tennessee and Texas, and at least part of the attraction is that these three states, along with six others (Alaska, Nevada, South Dakota, Washington, Wyoming and New Hampshire), don’t levy an income tax.
Other states may soon follow.
“There are 10 states that are in the process of moving their personal income tax to zero,” President of Americans for Tax Reform Grover Norquist said on the John Solomon Reports podcast.
Grover Norquist, founder of Americans for Tax Reform, said on Fox News Tuesday that the expanded Internal Revenue Service wouldn’t just go after billionaires and large corporations.
“They are targeting people that they keep telling us they think are – restaurants and barber shops and so on,” Norquist told “America Reports” guest host Gillian Turner. “That’s their target, and we know this because every single Democrat in the Senate voted against, to defeat an amendment which said this law will not allow any increase in audits on people making less than $400,000 a year.”
Arizona Governor Doug Ducey is expected to sign a budget bill the Arizona Legislature sent to him on Friday that includes a historic tax reform package. HB 2900 implements the lowest flat tax in the country, 2.5%. The average Arizona family will see a 13% income tax reduction, about $350 per year. According to the nonpartisan Tax Foundation, Arizona previously had one of the highest marginal income tax rates in the country.
The budget bill also eliminates taxes on veterans’ retirement pay and prevents a 77% increase on small business taxes. It reduces property taxes by 10% on small businesses and job creators by 10%, capping the maximum tax rate on businesses at 4.5% and reducing commercial property taxes. According to a report by Ducey, 43% of Arizonans in the private sector work for small businesses. HB 2900 increases the homeowner’s rebate so the state covers half of homeowners’ primary property taxes.