So much of the news media focuses on what the President and the U.S. Congress are doing that it’s sometimes hard to remember that state leaders like Governors and state lawmakers make significant policy and governance decisions that impact main street business owners, their employees, and their loyal customers. So far this year, 15 states have already held statewide primary elections that will decide who governs at the state level for the next four years. In the upcoming summer months, before the arrival of Labor Day, another 29 states will conduct their primary elections for these offices.
A quick review of what the candidates for Governor are saying on tax policy in just two key battleground states tells an important story – and shows the stark contrast — about where those states may be headed for the next four years after November.
In Arizona, the sitting Governor, Katie Hobbs, repeated her prior veto of a proposed $1.1 billion tax relief package earlier this year that had been passed by the Legislature. Running for re-election, she will face either Andy Biggs or David Schweikert in the general election. Both candidates openly support tax reductions. Candidate Biggs is running on a prosperity initiative in support of the $1 billion family tax reduction plan that was vetoed and other tax relief. Candidate Schweikert promises to push for common sense tax reforms and to ensure that Arizona has one of the lowest tax burdens.
This month’s primary election in Georgia’s open seat for the Governor’s race yielded a run-off between two Republican candidates, Rick Jackson and Burt Jones. Following next month’s required run-off election, one of them will face Democratic candidate Keisha Bottoms. Candidate Bottoms has voiced opposition to removing property taxes and has stated her general concerns about broad-based income tax reductions. In contrast, Candidate Jackson is pledging to freeze property taxes and to cut the Georgia income tax in four years with a goal towards eliminating it in 8 years. Likewise, candidate Jones supports cutting income taxes and cites his past record of supporting the return of $1 billion to taxpayers in the form of rebates and his support for Georgia’s planned annual state income tax rate toward a 4.99% upper top rate by 2027.
The actions of governors and state legislators make a deep impact on the bottom line of main street businesses, their owners, their employees, and their customers. While federal elections are important, local elections have vital impacts on state and local economies. Those impacts hit closer to home and make a real difference to business bottom lines.