5 States Vote for Major Changes to Income Tax
Voters back sharply different approaches to income taxes, reshaping state revenue and tax policy.
In the November 3 midterm elections, voters in five U.S. states approved significant changes to income tax policy. Colorado and California voted to increase or preserve higher rates on top earners, while Washington voters rejected an attempt to repeal a new tax on millionaires. North Carolina and Iowa approved measures making future income tax increases more difficult.
These results highlight contrasting approaches to taxation, with implications for taxpayers, state budgets, and public services. Colorado voters approved Amendment 87, replacing the state's flat 4.4 percent income tax rate with six graduated rates ranging from 3.7 percent to 8.4 percent, starting with the 2027 tax year. California voters approved Proposition 3, making permanent higher income tax rates on the state's highest earners that were due to expire in 2031.
Washington voters rejected Initiative 645, turning down an attempt to repeal the state's new 9.9 percent income tax on annual income above $1 million.
Brief written by urgent.news from Newsweek's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
