Republican-led states are on a tax-cutting spree, while blue states are doing the opposite—and the contrast couldn’t be clearer heading into 2025.
Since the midterms, GOP lawmakers have advanced major income tax reductions, property tax relief, and budget reforms in states like Georgia, Idaho, Mississippi, and Utah. Meanwhile, Democrat-controlled legislatures in Maryland, Washington, and Virginia are pushing tax hikes and new fees under the banner of “fairness” and expanded social spending.
Red State Relief
In Idaho, Governor Brad Little signed off on the largest income tax cut in the state’s history—$253 million in savings by dropping the rate from 5.7% to 5.3%. Utah Governor Spencer Cox went even further, cutting the rate to 4.5% and expanding the child tax credit to support working families.
Mississippi is on track to eliminate its individual income tax entirely by 2030, a move Governor Tate Reeves says will fuel economic growth. Though the bill includes a slight hike in gas taxes, the grocery tax will fall from 7% to 5% starting this summer.
Georgia, not to be outdone, passed a $3 billion tax cut over ten years, along with a separate bill that expands dependent deductions—offering families an extra $1,000 per child. Governor Brian Kemp called it “a win for every hardworking Georgian.”
Minnesota’s GOP senators unveiled a plan to cut $600 million in what they call “wasteful” spending, including left-wing pet projects like taxpayer-funded health care for non-citizens. South Carolina’s legislature passed a proposal to slash income taxes for high earners, with the long-term goal of flattening the rate to just 2.49%.
Even in battleground Virginia, Republican Governor Glenn Youngkin pushed to eliminate the deeply unpopular car tax and expand standard deductions. Democrats blocked the deeper cuts but did settle for a $1 billion rebate and modest deduction increases.
Blue State Tax Hikes
On the flip side, Democrats in Maryland approved a $67 billion budget that includes $1.6 billion in tax increases. Among the new levies? A 3% tax on tech services and a 2% capital gains tax for high earners—plus fresh taxes on cannabis and sports betting.
Washington State Democrats are plotting a property tax hike, claiming it’s needed to support schools. But critics argue it will crush homeowners and renters alike. “Without a doubt, if this property tax goes into effect, many will be forced to foreclose on their homes,” warned the state GOP.
In Virginia, Democrats stonewalled Governor Youngkin’s broader tax reform efforts and opted instead for a $200 rebate check—what critics dubbed an election-year bribe—while rejecting permanent structural relief.
Clear Party Divide
According to the Republican State Leadership Committee, the message is simple: Democrats tax and spend, while Republicans are putting money back into voters’ wallets.
“State Republicans nationwide are taking strong steps to ease the economic pressures facing working-class families,” said RSLC’s Mason Di Palma. “State Democrats have stood against Republicans at every opportunity, even voting for tax increases in some regions.”
As 2025 campaigns heat up, these policy contrasts will likely take center stage. Republicans are building their case as the party of tax relief and economic growth. Democrats? They’re doubling down on redistribution and bloated government budgets—whether voters like it or not.
