State Tax Reforms and FairTax Act Reintroduced

Rep. Earl 'Buddy' Carter has reintroduced the FairTax Act of 2025, which aims to replace the federal income tax with a 23% national sales tax and abolish the IRS, with exceptions for used goods and business purchases. Meanwhile, Kentucky's House Appropriations and Revenue Committee has passed a bill to reduce the state's income tax from 4% to 3.5%, though concerns about revenue losses remain. In Mississippi, lawmakers are discussing cutting the grocery tax and eliminating state income tax, amid debates on Medicaid expansion and ballot initiatives. Pennsylvania's legislative session begins with proposals addressing paid family leave and child care costs, indicating a focus on alleviating financial burdens for parents.