States Flirt With Major Tax Changes; Opportunity Exists -- 37 States With Single Party Control of State Government

Updates

January 17, 20113: Add Nebraska to the list. 

Original Post

Thirty-seven of fifty states (or is it 57 states?) now have single-party control of the state government: 25 Republican; 12 Democrat.

Link here to Reuters.

Across the South and Midwest, Republicans have consolidated control of state legislatures and governorships, giving them the power to test long-debated tax ideas.

Louisiana Republican Governor Bobby Jindal, for instance, called on Thursday for ending the state's income tax and corporate taxes, with sales taxes compensating for lost revenue. A similar plan is being pushed by Republicans in North Carolina. Kansas, which cut its income tax significantly last year, may trim further. Oklahoma, which tried to cut income taxes last year, is expected to try again.

The political moment may have arrived for a test.

Thirty-seven of the 50 states now have single-party control of legislatures and governorships: 25 Republican, 12 Democratic. In those states, unlike Capitol Hill, partisan gridlock is not a big issue, making difficult projects such as tax reform easier.

In addition, new ideas look attractive in states that have suffered for years from high unemployment and tight revenue.

"We have no choice but to make change," said Bob Rucho, a Republican state senator in solidly Republican North Carolina, who is leading a push in that state for major tax changes.

Good, bad, or indifferent, the national gun debate may consolidate some of these changes in the near term. 

By the way: that link above to "57 states" is very, very interesting. Snopes is splitting hairs when the site includes "3 observer states" to suggest that 57 states is not quite accurate.