OAR Blog Post – Republican Led States, Leading the way on Tax Freedom
Tax Freedom Day. Generally this is brought up about the time we all file our state and federal taxers in April. However, as the year is winding down and small businesses and individuals throughout the nation are lining up their year-end totals, one things rings especially true; our wallets are far more protected in Republican led states than they are in Democrat led states.
For those who are not aware, Tax Freedom Day is the day on the calendar when the amount we as a state or nation have earned stops being paid to state and federal governments to cover our tax burden. That is, every dollar we earn prior to that date goes to pay taxes. Generally speaking this happens between April 2nd and May 13th in the states and on April 24th for our nation as a whole.
This past year Americans spent more on taxes than they did on food, clothing, and housing combined.
While this realization is astounding, there are a number of states that are making a difference in protecting your earnings and making sure that you have more money in your wallet.
For a simple snapshot of this situation, we can look at the Tax Foundations Tax Freedom Day annual report. The report in its entirety can be read here, but just to highlight the point that your hard-earned dollars are being better utilized in Republican led states, we need look no further than the top and bottom of this list.
Of the Top ten states mentioned in the report with the earliest Tax Freedom Days, 8 are run by Republican governors, and the other two have term limited Democrat governors with tight races leading into 2016, and Republican momentum in their favor. The state House of Representative or Assemblies in nine of these ten states are also under Republican majority control – Kentucky being the only state without a Republican majority in the lower house – and it has been trending Republican for the last three election cycles with a potential for majority control in 2016. The same can be said for New Mexico – the only State Senate on the list that isn’t in Republican control. Over the last two election cycles the Republican have consistently picked up State Senate seats. The Democrats who had a stranglehold on power have had to acquiesce on taxation and government spending in order to keep their small amount of influence noteworthy.
Over the next two years both the lower house in Kentucky and the upper chamber in New Mexico are likely to move to the right, and the taxpayers in all ten of these state will continue to see the positive effects of conservative principles on their wallets.
In stark contrast, looking at the bottom ten states in terms of Tax Freedom day, we see overwhelming Democrat control. Democrats control 90 percent of the state’s lower houses, and 70 percent of the upper chambers in these states.
While on a micro level these states are not seeing much change, we have seen some macro changes as three of these states have changed to Republican governors in the last election cycle.
As 2015 winds down, and the election season for 2016 begins to heat up – we must make changes at the top to spur growth and positive change in our tax system at the state and federal level. But, we must also work with campaigns and conservative candidates all the way to the bottom of the ticket to insure that we get the representation we deserve to secure financial responsibility for generations to come.