State Tax Policies: A Path Forward Beyond Trump and Harris's Approaches

State Tax Policies: A Path Forward Beyond Trump and Harris's Proposals

State tax policies in light of Trump and Harris's proposals can pave the way for businesses that invest locally. As debates heat up, states are exploring methods to incentivize real community investments. A shift in policy could foster local economic growth and resilience amid national debates.

Current Landscape of Tax Policies

As the 2025 tax policy discussions unfold, state governments are examining ways to attract businesses committed to local economic development. North Carolina is leading the way by planning to eliminate its corporate income tax by 2030, while states like New York and Maryland are considering tax hikes to address budget issues.

• Tax policy should differentiate between businesses that invest locally and those that do not.
• Legislators should reward companies that contribute to the communities where they operate.
• States must create incentives for businesses engaged in building local infrastructure and creating jobs.

Creating Sustainable Economic Growth

• The Department of Treasury estimates that each dollar invested in infrastructure generates approximately $1.50 in economic output.
• Stocks and investments from local enterprises foster job creation and contribute to economic stability.
• State legislators are encouraged to consider employee-to-profit ratios for tax rate determination.

The Importance of Local Focus

Supporting small businesses as they hire locally and purchase supplies enhances community engagement and sustainability. An effective locally focused tax policy could significantly impact the economy as it transitions to reliance on artificial intelligence.

As states debate tax policy reform, they would be wise to consider the impact of businesses that make real investments in the local economy, versus those that view the locals as merely a market to be reached remotely.