11/22/2025
The United States seems to have two diverging trends in state politics regarding taxes and their costs of living.
1: A race to the bottom in terms of costs which, paradoxically, is a race to the top in terms of economic prosperity
States like , , , , and are on the list of states that have been reducsing their tax liabilities on residents, and experience an overall lower cost-of-living.
Note:A key feature on the tax-side of the equation is the absence of a major tax mechanism (income tax, corporate,sales tax, etc.)
…and
1: A race to the top in terms of costs which, paradoxically, is a race to the bottom in terms of economic prosperity.
States like , , , , and are on the list of states that have been increasing their tax liabilities on residents, and experience an overrall higher cost-of-living for a variety of reasons usually directly or indirectly caused by state government policies.
The current state of these states isn’t the real ‘tell’ we want to emphasize here at Semper Veritas. But instead we want to highlight the near-term direction these states are heading in now, in terms of tax-policies that direclty impact their states’ economies, individual and family-affordability.
With budget shortfalls in both California and Washington states, both states are seeking new methods of taxing the private sector to support the spending of their state governments, as well as increasing existing rates. California has at least 6 examples of new/increasing taxes coming in 2026, and Washington’s includes an attempt that seems to defy its own state-Constitution in in the form of a selective (non-uniform) 9.9% tax on incomes over $1M.
Looking at a red state like Idaho offers an example of a budget shortfall of