Voters to Decide on Tax Proposals in November: Jonathan Williams on The Hugh Hewitt Show
These proposals, if enacted, would put these states at an economic disadvantage.
Hugh Hewitt spoke with ALEC President and Chief Economist Jonathan Williams about the potential economic effects of California’s Prop 40 and other state tax proposals, emphasizing taxpayer mobility and competitiveness.
The conversation began with Hewitt and Williams giving a general overview of California’s Prop 40. Williams characterized Prop 40 as a one-time wealth tax on billionaires that would apply retroactively to California residents as of January 1.
“If even Gavin Newsom opposes this proposal as something that’s dangerous for the state of California,” Williams emphasized, “that should send shivers down the spine of every taxpayer because obviously it directly impacts civilians, but it’s going to have a huge adverse impact on California’s success in the years ahead.”
The conversation then focused on how other states, such as Hawaii, Maine, Massachusetts, New York, and Washington, are considering new tax brackets for millionaires. Williams explained how these proposals, if enacted, would put these states at an economic disadvantage.
“It’s just a travesty what they’ve done to some of these just incredibly beautiful states”, Williams emphasized. “To see the progressives now look to really tax those that really have made Maine great for so many years, and in places even like Hawaii, but you know another one that’s very concerning, concerning, is what is being proposed right now in Colorado as well.”
Williams continued his explanation, noting how Colorado is considering replacing its flat income tax with a progressive tax exceeding 8%, creating disadvantages relative to Wyoming, Arizona, and Utah.
“That would nearly double the state’s income tax and take it from a flat income tax that has been such a great thing for Colorado over the years to a progressive income tax. It’d be you know California of the Rocky Mountain West.”
The conversation ended with good news, with Williams highlighting how North Carolina is considering lowering its constitutional income-tax cap to 3.5% after tax reductions helped improve its economic position.
“It has been one of the great success stories in the last decade with tax cuts,” he explained. “I think the conservatives there that are looking to pass this measure are thinking ahead to say we want to preserve this advantage that we’ve created based on the great tax reform of the last decade in North Carolina.”