More states join the 'flat tax revolution'

More states join the 'flat tax revolution'

More states join the 'flat tax revolution'

While many observers are blaming inflation on federal spending, several states are doing what they can to control their own spending and tax codes.

Lee Schalk, vice president of policy at American Legislative Exchange Council (ALEC), says five states have moved from a progressive income tax structure to a flat tax in what his organization has dubbed "the state flat tax revolution."

Schalk, Lee (ALEC) Schalk

"When you talk about lowering taxes for Americans that are suffering under the policies of Washington, you're allowing people to keep more of their hard-earned paychecks. And right now, every little bit goes a long way," he tells AFN. "There are some great examples of [states] doing what they can to push back against the big government policies of Washington, but it's still a struggle for the country overall with these record inflation numbers."

Consumer prices rose 8.2% in September compared with a year earlier, the government said Thursday. On a month-to-month basis, prices increased 0.4% from August to September after having ticked up 0.1% from July to August.

In ALEC's view, government spending is at the root of this problem, as Washington has been on what Schalk calls "a reckless spending binge" since President Biden took office.

"You would think that when Americans are suffering under crushing record inflation, you would not pursue higher taxes, but that's exactly what Washington did with the Inflation Reduction Act," he tells AFN.

That included higher taxes on businesses and energy producers and price controls for healthcare.

"It's a frustrating time for our economy, and, of course, it's bad news from a political standpoint, at least for the Biden administration and for Democrats," Schalk submits.

The president, however, maintains that inflation would be worse if Republicans take over after the midterms and get rid of the Inflation Reduction Act and all the "savings" it means for Americans.

The 2022 flat tax states are Iowa, Georgia, Mississippi, Idaho, and Arizona