State Tax Policies & Legislative Changes: Jonathan Williams on The Hugh Hewitt Show
This is dynamic competitive environment, and we're going to see what those states do to respond to it.
Hugh Hewitt spoke with ALEC President and Chief Economist Jonathan Williams last week about the latest state tax proposals in 2026 – and why some states have figured out the low tax formula for economic growth. The conversation began with a friendly exchange, as Hewitt asked Williams if he was ready for the approaching snow in D.C. Williams responded with a bit of humor: “You know D.C., they freak out here with about an inch of snow. So, this is going to be real this weekend, from what it’s looking like now.”
Turning toward the latest updates occurring across the states with the start of legislative sessions, Williams and Hewitt discussed the impact of death taxes, with Williams noting that even states like New Jersey are looking to repeal their death taxes. Williams expressed concern about the new Democratic leadership in Virginia, particularly Gov. Abigail Spanberger, and their plans to implement a death tax.
“It’s really a head scratcher that you have the left-wing Democrats now in charge in Richmond, looking to put one into place. That’s also not just it, as you probably saw in their long laundry list of tax increases and bad ideas,” Williams noted.
The discussion then moved towards the impact of state tax policies across other states. Williams highlighted the economic opportunities for neighboring states like North Carolina, Tennessee, and West Virginia as Virginia considers tax increases.
“Their states are already way ahead of Virginia in many cases, according to our Rich States, Poor States index,” he said. “This is a dynamic, competitive environment, and we’re going to see what those states do to respond to it.”
Hewitt brought up the mobility of capital and people, stating he would not live in a state with a death tax. Williams followed up on that point, noting the influx of tax refugees into Washington state, which has traditionally been a no-income tax state and now faces proposals for a millionaire’s tax.
“Many of us warned that that would be under the camel’s nose under the tent and then be proposing other broad based income taxes,” Williams emphasized. “Here we go, under Governor Ferguson in the legislature, proposing a millionaire’s tax. So unfortunately, there’s some really bad ideas out there right now.”
It was not all bad news, as two positive tax policies are being implemented in states like South Carolina and Missouri, which are attracting residents and businesses.
“I have to give a hat tip to Governor Mike Kehoe, who recently mentioned it in his State of the State address,” Williams said. “He has a bold plan to completely repeal the Missouri income tax, seeing all this movement around him. They’re tired of being middle of the pack, and he has an ambitious plan to go after and repeal the personal income tax in Missouri.”
The final thoughts of the conversation focused on the importance of monitoring state tax policies and legislative actions. Williams reiterated the importance of ALEC’s work in monitoring and promoting pro-growth policies.