Press Release

New Report Highlights 14 States That Cut Taxes in 2014

New Report Highlights 14 States That Cut Taxes in 2014

Report finds strong trend of blue states cutting taxes

Arlington, VA (December 17, 2014)—Fourteen states cut taxes in the 2014 legislative year, with a trend of traditionally blue states cutting taxes, according to a new report by the Center for State Fiscal Reform at the American Legislative Exchange Council. The tax policy changes enacted by states reflect an emphasis on pro-growth reforms that encourage economic expansion and competition.

The states that cut taxes during the 2014 legislative year are: Arizona, Florida, Indiana, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, New York, Ohio, Oklahoma, Rhode Island and Wisconsin.

“Making sure that taxpayers are able to keep more of their hard-earned money allows them to save and invest in state economies,” said Ben Wilterdink, co-author of the report and a research analyst at the ALEC Center for State Fiscal Reform. “Reducing the tax burden will boost economic growth and enhance a state’s economic competitiveness.”

Of the 14 states that cut taxes during the 2014 legislative year, many states were repeat tax cutters: Kansas, Nebraska, Wisconsin, Florida, Indiana and Ohio all significantly reduced taxes in both the 2013 and 2014 legislative sessions. Meanwhile, Minnesota, New York, Rhode Island and Maryland all enacted reductions to death taxes in the form of increasing the amount of income exempted from the tax.

“The types of tax changes that were passed in 2014 suggest that many states are setting the stage for broader and more fundamental tax changes in the 2015 legislative session,” said Jonathan Williams, co-author of the report and director of the ALEC Center for State Fiscal Reform.

To see a summary of the tax cuts by each of the 14 states, visit www.alec.org/taxcutroundup.