On March 12 lawmakers in the Missouri House passed H.J.R. 173, allowing the bill to be sent to the state Senate. Just one day earlier, S.B. 6346 passed the final procedural hurdle in Washington’s state Senate, allowing the bill to be sent to the governor.
These temporal similarities represent the extent of the common ground between the two bills. Where Missouri H.J.R. 173 would set the state on the path to eliminate its income tax, Washington S.B. 6346 is an attempt to create one. They’re indicative of a broader divide in tax policy between states trying to become more competitive and states seeking to fund new spending.
Republicans and Democrats having differing views on tax policy is nothing new. The difference is the extent to which states’ tax policies have swung in opposing directions. Twenty-three states have cut their top individual income tax rate since 2021, while six states and D.C. have raised it. Although most states had top rates of about 6 percent two decades ago, they now diverge significantly.
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