Guests including Mark Zuckerberg, Lauren Sanchez, Jeff Bezos, Sundar Pichai and Elon Musk attend the Inauguration of Donald J. Trump in the US Capitol Rotunda on January 20, 2025 in Washington, DC.
Red States Top List of Those With Biggest Tax Giveaways to Millionaires and Billionaires
“These tax cuts are not only fiscally reckless but also deeply inequitable."
A progressive think tank has found that America's wealthiest citizens aren't just benefiting from the federal tax cuts passed in Republicans' One Big Beautiful Bill Act this past summer, but from tax giveaways offered by Republican-run states.
The Institute on Taxation and Economic Policy (ITEP) released a new analysis on Thursday showing that five states—Kansas, Mississippi, Missouri, Ohio, and Oklahoma—this year have enacted income tax cuts for families that earn over $1 million per year that are projected to collectively reduce their state governments' revenues by $2.2 billion per year once fully implemented.
The two biggest tax cuts for the wealthy came in Mississippi and Oklahoma, both of which have voted to phase out their state's income taxes over the span of several years. Once the income tax is fully repealed in those two states, ITEP estimates that millionaires living in them will pay $130,000 less per year.
ITEP also poked holes in any Republican claims that the tax cuts they passed were a benefit for "working families," and showed how the GOP's policy is overwhelmingly tilted to benefit the wealthy.
"The average millionaire tax cut is more than 50 times the size of the average cut for non-millionaires in each of the five states included in this report," the think tank noted. "In Mississippi and Ohio the average tax cuts for millionaires are over 100 times the size of those for non-millionaires."
The group found that the tax cuts passed in Missouri were particularly egregious when it comes to benefiting millionaires. As reported by the Missouri Independent, Missouri lawmakers over the summer made their state the first in the nation to eliminate taxes on capital gains, which is estimated to slash state revenues by more than $100 million per year.
According to ITEP, this tax cut is projected to deliver a $43,000 average annual benefit to Missouri families making over $1 million per year, and an $80 average annual benefit to Missouri's non-millionaire households.
Aidan Davis, ITEP's state policy director, expressed dismay at how much these state governments were willing to give to their wealthiest residents, even as their own state budgets face significant cuts to programs such as Medicaid the Supplemental Nutrition Assistance Program, both of which help low-income Americans.
"These tax cuts are not only fiscally reckless but also deeply inequitable," Davis explained. "At a time when state budgets are under immense pressure, it's indefensible to hand millionaires five- and six-figure annual tax cuts while too many families struggle with affording the basics."
Dylan Grundman O’Neill, senior analyst at ITEP, argued that these states' policies "double down on inequality" and "prioritize millionaires while putting critical services like education, healthcare, and infrastructure at risk for everyone else."
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A progressive think tank has found that America's wealthiest citizens aren't just benefiting from the federal tax cuts passed in Republicans' One Big Beautiful Bill Act this past summer, but from tax giveaways offered by Republican-run states.
The Institute on Taxation and Economic Policy (ITEP) released a new analysis on Thursday showing that five states—Kansas, Mississippi, Missouri, Ohio, and Oklahoma—this year have enacted income tax cuts for families that earn over $1 million per year that are projected to collectively reduce their state governments' revenues by $2.2 billion per year once fully implemented.
The two biggest tax cuts for the wealthy came in Mississippi and Oklahoma, both of which have voted to phase out their state's income taxes over the span of several years. Once the income tax is fully repealed in those two states, ITEP estimates that millionaires living in them will pay $130,000 less per year.
ITEP also poked holes in any Republican claims that the tax cuts they passed were a benefit for "working families," and showed how the GOP's policy is overwhelmingly tilted to benefit the wealthy.
"The average millionaire tax cut is more than 50 times the size of the average cut for non-millionaires in each of the five states included in this report," the think tank noted. "In Mississippi and Ohio the average tax cuts for millionaires are over 100 times the size of those for non-millionaires."
The group found that the tax cuts passed in Missouri were particularly egregious when it comes to benefiting millionaires. As reported by the Missouri Independent, Missouri lawmakers over the summer made their state the first in the nation to eliminate taxes on capital gains, which is estimated to slash state revenues by more than $100 million per year.
According to ITEP, this tax cut is projected to deliver a $43,000 average annual benefit to Missouri families making over $1 million per year, and an $80 average annual benefit to Missouri's non-millionaire households.
Aidan Davis, ITEP's state policy director, expressed dismay at how much these state governments were willing to give to their wealthiest residents, even as their own state budgets face significant cuts to programs such as Medicaid the Supplemental Nutrition Assistance Program, both of which help low-income Americans.
"These tax cuts are not only fiscally reckless but also deeply inequitable," Davis explained. "At a time when state budgets are under immense pressure, it's indefensible to hand millionaires five- and six-figure annual tax cuts while too many families struggle with affording the basics."
Dylan Grundman O’Neill, senior analyst at ITEP, argued that these states' policies "double down on inequality" and "prioritize millionaires while putting critical services like education, healthcare, and infrastructure at risk for everyone else."
A progressive think tank has found that America's wealthiest citizens aren't just benefiting from the federal tax cuts passed in Republicans' One Big Beautiful Bill Act this past summer, but from tax giveaways offered by Republican-run states.
The Institute on Taxation and Economic Policy (ITEP) released a new analysis on Thursday showing that five states—Kansas, Mississippi, Missouri, Ohio, and Oklahoma—this year have enacted income tax cuts for families that earn over $1 million per year that are projected to collectively reduce their state governments' revenues by $2.2 billion per year once fully implemented.
The two biggest tax cuts for the wealthy came in Mississippi and Oklahoma, both of which have voted to phase out their state's income taxes over the span of several years. Once the income tax is fully repealed in those two states, ITEP estimates that millionaires living in them will pay $130,000 less per year.
ITEP also poked holes in any Republican claims that the tax cuts they passed were a benefit for "working families," and showed how the GOP's policy is overwhelmingly tilted to benefit the wealthy.
"The average millionaire tax cut is more than 50 times the size of the average cut for non-millionaires in each of the five states included in this report," the think tank noted. "In Mississippi and Ohio the average tax cuts for millionaires are over 100 times the size of those for non-millionaires."
The group found that the tax cuts passed in Missouri were particularly egregious when it comes to benefiting millionaires. As reported by the Missouri Independent, Missouri lawmakers over the summer made their state the first in the nation to eliminate taxes on capital gains, which is estimated to slash state revenues by more than $100 million per year.
According to ITEP, this tax cut is projected to deliver a $43,000 average annual benefit to Missouri families making over $1 million per year, and an $80 average annual benefit to Missouri's non-millionaire households.
Aidan Davis, ITEP's state policy director, expressed dismay at how much these state governments were willing to give to their wealthiest residents, even as their own state budgets face significant cuts to programs such as Medicaid the Supplemental Nutrition Assistance Program, both of which help low-income Americans.
"These tax cuts are not only fiscally reckless but also deeply inequitable," Davis explained. "At a time when state budgets are under immense pressure, it's indefensible to hand millionaires five- and six-figure annual tax cuts while too many families struggle with affording the basics."
Dylan Grundman O’Neill, senior analyst at ITEP, argued that these states' policies "double down on inequality" and "prioritize millionaires while putting critical services like education, healthcare, and infrastructure at risk for everyone else."