Cindy Holscher on Tax Reform

Oppose automatic income tax cuts based on revenues

Summary by Beacon News, 3/31/25Future income taxes would be tied to increases in revenue & the state's rainy day fund. The bill requires the state to cut income taxes if it collects more in revenue than in the past year, when adjusted for inflation. The bill also requires the state's rainy day fund to be less than 15% of the prior fiscal year's tax revenues.

Veto message, 4/10/25This bill could cost the state up to $1.3 billion annually. The triggers for those tax cuts are such that as soon as the state sees an uptick in revenue, taxes will be automatically cut regardless of any other economic factors or policy and budgetary considerations.

Legislative Outcome:Vetoed by Gov. Kelly on Apr/10/25; Senate Veto overridden 30-10-0 on Apr/10/25; State Sen. Cindy Holscher voted NO; House Veto overridden 87-37-1 on Apr/10/25.

Repeal business exemption, increase personal income tax