States are the Secret Weapon in the Federal Tax Debate: Jonathan Williams on The Hugh Hewitt Show
“We relaunched our ALEC legislator letter with now 550 state legislators from 48 states calling for permanency in tax reform and a SALT cap that promotes competition.”
Appearing on The Hugh Hewitt Show, ALEC President and Chief Economist Jonathan Williams discussed the economic implications of the “Big, Beautiful Bill” and the importance of achieving GDP growth to tackle the national debt. Williams also emphasized the need to control spending, make tax cuts permanent, and look to state lawmakers who are calling for permanency in tax reform and a SALT cap that promotes competition.
“We cannot be content with one or two percent GDP growth,” Williams told Hewitt at the start of the interview. “That’s what some of these doom-and-gloom economists are talking about. But if we get to 3% or better growth, that absolutely can be a major driver in getting us out from under the $36 trillion of national debt we’re under.”
At the center of this economic inflection point is the so-called Big, Beautiful Bill—a sweeping legislative package under consideration in Congress that includes permanent extensions of the 2017 Trump tax cuts. For Williams, the bill marks a decisive turning point.
“I certainly think the Big, Beautiful Bill moves us in the direction of 3% economic growth,” he said, highlighting its inclusion of work requirements for Medicaid, expanded small business tax relief, and, crucially, the permanency of pro-growth policies.
The interview then turned to the potential compromise on the state and local tax (SALT) deduction. Williams pointed to the ALEC letter signed by more than 550 state legislators across 48 states as a key signal of support for the $10,000 cap imposed by the TCJA in 2017.
“Our legislators continue to stress the importance of not rewarding the big-government states that are spending and taxing too much,” he said. “We relaunched our ALEC legislator letter with now 550 state legislators from 48 states calling for permanency in tax reform and a SALT cap that promotes competition.”
Williams and Hewitt also discussed the importance of maintaining a competitive tax environment for small businesses—and how states are taking the lead to ensure new job creation.
“This is one of the things why states are taking such a keen role in reducing individual income taxes,” Williams said. “Sometimes we forget almost all the net new job creation in this country has happened because of small businesses and entrepreneurs.”
Williams also pointed out that Washington should follow the lead of the states. “We need to make sure whatever is coming out of Washington or states when it comes to tax policy doesn’t disadvantage entrepreneurs and small businesses.”
Ultimately, Williams emphasized that states are the secret weapon in the federal tax debate. He stressed the importance of state voices in advocating for pro-growth, pro-taxpayer policies.
“There are only two states missing from our letter: Vermont and Hawaii,” Williams noted. “That means 48 states are weighing in. The voice of the states is awfully important right now.”
The roadmap to prosperity is clear: make the tax cuts permanent, support small businesses, and empower the states. As Williams put it, “We need to stop making unforced errors—and start thinking about growth again.”