Republicans received a thumping defeat in the midterm elections.
asserted
Republicans → receive → elections
As voters overwhelmingly rejected GOP candidates, they didn't outright repudiate tax policies that have historically been championed by Republicans.
asserted
that → reject → Republicans
While some states passed ballot initiatives to raise taxes, there were several wins for fans of low taxes.
asserted
states → pass → taxes
Voters in North Carolina approved changes to the state constitution that would cap personal and corporate income taxes at 3.5 percent.
asserted
that → approve → percent
The measure, which passed with 61.2 percent of the vote, does not change North Carolina's taxes for now, but it does make it nearly impossible for the Legislature to raise taxes in the future.
asserted
Legislature → pass → future
The state's 2027 personal income tax rate is now expected to drop to 3.49 percent, below the new cap.
asserted
rate → expect → cap
Meanwhile, its corporate income tax rate stands at just 2 percent, following the passage of a 2021 law that will eliminate the tax by 2030.
asserted
that → stand → 2030
Voters in the Tar Heel State also approved a constitutional amendment requiring the state Legislature to impose limits on how much local governments can increase their property tax collections.
asserted
governments → approve → collections
However, unlike the income tax amendment, this measure does not specify what the tax limits should be.
asserted
limits → specify → amendment
Instead, it allows lawmakers to determine how restrictive those limits should be and whether any exemptions should apply.
asserted
exemptions → allow → ?
With property taxes accounting for more than one-third of local government funding in North Carolina, those limitations are unlikely to be drastic.
asserted
limitations → account → Carolina
Still, these votes signal statewide support for lessening the tax burden.
asserted
votes → signal → burden
Iowa
Iowa voters approved a constitutional amendment requiring a two-thirds majority in both chambers of the state Legislature to increase corporate or individual income taxes.
asserted
voters → approve → taxes
Amendment 1 was passed with 56.2 percent of the vote and follows years of income tax reductions in the state.
asserted
Amendment → pass → state
In 2025, Iowa introduced a flat personal income tax rate of 3.8 percent.
asserted
Iowa → introduce → percent
Free market think tanks praised the reform, with the Buckeye Institute arguing that "Iowa's economy is becoming more competitive because of the flat tax."
asserted
economy → praise → tax
Although Amendment 1 does not reduce taxes, it makes it harder for future legislatures to reverse its recent low-tax reforms.
3.
asserted
legislatures → reduce → reforms
Florida was among a few states to pass property tax reforms, but the Sunshine State's were the most significant.
asserted
State → pass → reforms
Amendment 3 passed with 62 percent of the vote, increasing the property tax exemption on primary residences to $250,000 and halving the maximum annual increase in assessed values for non-primary residences from 10 percent to 5 percent.
asserted
Amendment → pass → percent
While this does signal popular support for low taxes, rolling back property taxes "can be a tricky issue for libertarians to parse," notes Reason's Christian Britschgi.
asserted
Britschgi → signal → taxes
Property taxes are generally considered the least damaging tax to economic behavior.
asserted
taxes → consider → behavior
So the "wisdom of a property tax cut," Britschgi writes, "comes down to how local governments respond to the lost revenue and the design of the tax cut itself.
asserted
governments → write → cut
"If they respond by hiking sales taxes or demanding more state financial aid, the result would be the same-sized government, more inefficient taxes, and greater fiscal centralization.
asserted
result → respond → aid
4. California
California voters considered Proposition 42, a constitutional amendment that would prohibit new state taxes on personal property—including stocks, business interests, and retirement savings—as well as certain retroactive taxes.
asserted
that → consider → stocks
It was introduced to nullify Proposition 40, which would introduce a one-time 5 percent tax on billionaires' wealth.
asserted
which → introduce → wealth
(At press time, Proposition 40 is still too close to call.)
asserted
Proposition → call → time
But Proposition 42's implications are far more widespread than billionaire wealth: The measure will protect anyone with money in a savings, retirement, or investment account.
asserted
measure → protect → account
Washington voters rejected Initiative 645, a proposal to repeal the state's newly introduced 9.9 percent income tax on annual earnings above $1 million.
asserted
voters → reject → million
It would also have prohibited state and local governments from introducing personal income taxes in the future.
asserted
It → prohibit → future
The measure was rejected by 58.12 percent of voters, meaning the millionaire tax will take effect in 2028.
asserted
tax → reject → 2028
Opponents of the millionaire tax made a compelling case against it, arguing that it will likely be extended to non-millionaires, too.
asserted
it → make → millionaires
"Not one single person we talked to believes Olympia when they say [the income tax] is not coming for them," said Brian Heywood, the founder of Let's Go Washington, the organization behind Initiative 645, at a rally in July.
asserted
Heywood → talk → July
"They know it's coming for them."
asserted
it → know → them
However, fear of public spending cuts eventually outweighed fear of taxes for the Washington electorate.
asserted
fear → outweigh → electorate
Activists argued that repealing the tax would "cut funding for K-12 schools, higher education and healthcare."
asserted
repealing → argue → schools
Oklahoma voters rejected State Question 847, a constitutional amendment that would have tightened existing limits on annual increases in property valuations used to calculate property taxes.
asserted
that → reject → taxes
The proposal, which was defeated by 54.3 percent of voters, would have reduced the maximum annual increase in taxable property values from 3 percent to 1.75 percent for primary residences and agricultural land, and from 5 percent to 4 percent for other properties.
asserted
which → defeat → properties
Wyoming voters rejected Initiative 1, which would have slashed taxes on some residential property by 50 percent.
asserted
which → reject → percent
The measure came to the ballot with more than 30,000 signatures, but 55.1 percent of voters dismissed it.
asserted
percent → come → it
Voters rejected the measure in part because of their fear that it would result in cuts to public services.
asserted
it → reject → services
…and 4 more, not listed.
The Aporia
