Hi everybody, Cheryl Atkinson here. Welcome to another edition of full measure after hours.

Today, eliminating state income taxes. More states are cutting and even considering eliminating state income taxes. It's a popular idea, but is it feasible? If you talk about cutting or

eliminating state income taxes in places where they have a state income tax, well, that's pretty

popular among most people. It promises, say, advocates, bigger paychecks, booming businesses,

and it can be a magnet for population growth.

Proponents also say it's a growth engine that is taking a big part in reshaping America's map.

But is it feasible? Sunday, December 14th on my TV show Full Measure, I'll be reporting from Arizona,

which reports some pretty remarkable

results since changing its taxing strategy. The state enacted a flat tax in 2021. I've heard a lot of

misunderstanding over the years as to what a flat tax is. It is not a sales tax. A flat tax means

everybody's charged, everybody who pays taxes, that is,

the same percentage. So whether you're rich or middle income, let's say the tax is 5%. Everybody

pays 5%. That's not how it is at the federal level or in many states. The way it works at the federal level, wealthier people not only

pay more naturally because a percentage of their greater income, let's say we're talking

5%. 5% of a wealthier person's income is a lot more money than 5% of a lower income person's money. So wealthier people

are already paying more money if everybody pays 5%. That's a flat tax. But under our progressive

tax system, most places, including at the federal level, wealthier people not only pay more

as they would under a flat tax, but exponentially more because

their percentages go higher. Arizona enacted its flat tax in 2021. It once had a progressive

taxing system. The more you made, the greater percentage of your income you had to pay.

But starting a few years back, they collapsed their

five different brackets, their five different percentages into four, and then down to one,

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