North Carolina Constitutional Amendments, Michigan Property Tax Reform, and More: Jonathan Williams on The Hugh Hewitt Show
North Carolina's strategic move to cap its income tax to ensure long-term economic stability.
Hugh Hewitt spoke with ALEC President and Chief Economist Jonathan Williams about recent legislative developments in Michigan, North Carolina, and South Carolina, including efforts to reduce income taxes and address regulatory reforms.
The conversation started in Michigan, covering the recent policy efforts that have sought to improve its economic outlook. Williams highlighted a significant bipartisan property tax reform bill passed in Michigan, which eliminates the state mill levy portion of the property tax.
“It’s a beautiful move for the future of Michigan,” Williams emphasized, “and you know it’s something where we see property taxes rising all across the country because of these out-of-control assessments and big spending going on at the local units of government, and so Michigan just did a huge favor to taxpayers by eliminating that state portion of it.”
Turning toward the Carolinas, Hewitt discussed North Carolina’s consideration of a cap on its income tax, comparing it to Tennessee’s zero income tax rate. Williams explained North Carolina’s strategic move to cap its income tax to ensure long-term economic stability.
“They’re saying wisely in North Carolina, what if we’re not in power 10 or 15 years from now,” he remarked. “Let’s put some things in the Constitution, such as a cap on the income tax rate, like they’re talking about right now, and getting done in Raleigh, to think ahead.”
Hewitt then inquired about South Carolina’s tax reforms, noting the competitive pressure from neighboring states. Williams explained South Carolina’s efforts to reduce personal income tax rates and implement triggers for a flat tax and eventual income tax elimination.
“South Carolina really ran the risk of falling behind by standing still in the most competitive region, really in America, when it comes to tax cuts and states without income taxes,” he noted. “They had very little margin for error this year and thankfully, the legislature came together, reduced tax rates on personal income, but also put in place triggers to get to a flat tax, and to eventually eliminate the income tax altogether.”
The final section of the interview covered Texas’ efforts in addressing the regulatory review process. Williams discussed the Texas Deregulation (TED) bill sponsored by Senator Phil King and its impact on regulatory review.
“Senator King sponsored the Texas DOGE bill back a couple of years ago, which is just phenomenal to see this play out in Governor Abbott’s office with their regulatory review process,” Williams noted. “This Texas Regulatory Review Agency takes a look at and also provides transparency for businesses and taxpayers to review the regs, the forms, and what they need to do to continue to be competitive there in the Lone Star State.”