A new report singles out West Virginia for the state's costly tax cuts enacted this year, and the drastic lost in revenue expected to exacerbate existing budget shortfalls in higher education and other state services.
The report from the Center on Budget and Policy Priorities found that beginning in 2025, the Mountain State will collect more than $800 million a year less in personal income tax revenue than it was previously.
The Center's Senior Advisor for State Tax Policy, Wesley Tharpe, said the gains from that personal income tax cut are going to flow overwhelmingly to people at the top of the income-tax scale.
"West Virginia is one of many states that already has a history of underinvestment in public services," said Tharpe. "The state of saying things like a very strained funding for colleges and universities, a state foster care system that is really struggling to keep up with need."
According to the report, the cuts will result in the bottom 20% of West Virginia filers - those making under $19,000 a year - receiving $21 per year on average, while the top one percent will take an extra $10,000 a year.
Tharpe added that income taxes help buffer states against hard times.
"States really want to be raising enough revenue so that they have that cushion for things that may be entirely unexpected," said Tharpe, "like, say, the COVID-19 pandemic, or things like an economic downturn."
According to the report, twenty-six states cut their personal income tax rates and/or corporate income tax rates in 2023, thirteen of them multiple times.
Supporters of slashing personal income taxes argue such measures put more money in the pockets of residents and boost local economies.
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In an effort to make up for President Donald Trump moving his inauguration indoors to the Capitol Rotunda, leaving many ticket holders to watch from an overflow arena, Rep. Darren Soto, D-Fla., offered his constituents a unique gesture: a guided tour of the Capitol for those affected by the change in venue.
Just after leading the tour, Soto sat in his office and reacted to breaking news of Trump's sweeping pardons for more than 1,500 individuals charged in connection with the Jan. 6 Capitol riot.
"It is extremely disappointing and sets the wrong tone for his new incoming administration," Soto contended. "When you side with criminals over police officers on the first day, it sends the wrong message. I was in the chamber on January 6. The Capitol police saved my life."
The vast majority of Jan. 6 cases have already been resolved in court, resulting in guilty pleas or trial convictions. However, the final section of Trump's proclamation ordered the dismissal of approximately 300 pending cases. Among those pardoned was Robert Palmer, a Florida man who assaulted police officers with a fire extinguisher, a wooden plank and a pole.
Trump's proclamation commuted the sentences of 14 far-right extremists, including members of the Proud Boys and Oath Keepers. Among them was Kelly Meggs, leader of the Oath Keepers' Florida chapter, who had been sentenced to a decade in prison for seditious conspiracy. While Soto acknowledged leniency for nonviolent offenders who have served significant time, he emphasized others must fully serve their sentences.
"Those who violently attacked police officers should be forced to serve their whole sentence just like any other American who did such a heinous crime would expect," Soto argued.
Michael Fanone is a former D.C. police officer who was attacked by people now pardoned by Trump. He told CNN he feels deeply betrayed by the decision.
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Mississippi is embracing the future of artificial intelligence with Gov. Tate Reeves' executive order establishing a framework for its responsible use across state agencies.
The order tasks the Department of Information Technology Services with inventorying AI technologies and working with stakeholders to develop ethical policies. While seen as a step forward, it raises questions about implementation and oversight.
Kollin Napier, director of the Mississippi Artificial Intelligence Network, said his organization is helping to boost the state's role in AI education and innovation.
"We're already leading on that forefront and with involvement from the governor, with involvement from ITS and bringing even more people into the fold," Napier explained. "We're just continuing that momentum and even amplifying it on a greater scale."
Mississippi joins other states in adopting AI policies following previous failed legislative efforts, including Senate Bill 2062, which aimed to create a task force to explore AI's role in government. Attempts to regulate AI in political advertising also stalled last year, raising concerns about the pace of progress.
Napier emphasizes AI is hardly a new concept but it is now taking center stage and he encourages viewing it as an opportunity for job creation and economic growth, rather than a threat to employment.
"I like to say AI, in and of itself, will not displace you, but the people who are taking the time to learn and integrate that into their day-to-day lives -- their professional lives -- can and will take your job," Napier emphasized. "Because as we're seeing, that's where the future going."
Reeves' executive order has ignited discussions about balancing innovation with regulation, as advocates express hope the initiative will drive economic growth while mitigating potential risks.
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Gov. Brian Kemp delivered his 2025 State of the State address Thursday, emphasizing tax cuts and tort reform as key priorities for Georgia.
Kemp also highlighted the state's resilience following Hurricane Helene and praised its economic strength. He is convinced one of the best ways to continue growing Georgia's economy is by "putting more money in the pockets of Georgians." He announced plans to reduce the state income tax rate by 20 basis points, bringing it down to 5.19%.
"Because at the end of the day, that's your money, not the government's," Kemp stated. "And here in Georgia, we believe you should keep more of it."
The governor said his proposed tax cut would save residents about $7.5 billion over the next decade. During the last legislative session, the state income tax rate was already reduced to 5.39%, a total decrease of 36 basis points since 2022.
Another major priority outlined by Kemp is tort reform, which are changes to the judicial system to discourage what some see as "frivolous" lawsuits or large settlements. He noted while Georgia has maintained its title as the "best state to do business," many industries struggle with high business insurance premiums and the cost of legal actions. Kemp argued the challenges hinder their ability to operate, hire employees and expand. He mentioned the effects on health care around the state.
"We heard firsthand the challenges our legal environment poses to critical services, our health care workforce and the ability for hospitals and clinics to operate," Kemp outlined.
Kemp also addressed expanding funding for law enforcement units to prosecute gangs and human traffickers, and to increase access to health care. And he promoted state programs like Georgia Access and Georgia Pathways as alternatives to traditional Medicaid expansion, saying they provide better health coverage for more than 200,000 Georgians.
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