States weigh tax changes amid funding concerns

State tax debates are highlighting the tension between easing residents’ burdens and preserving public revenue. In New Mexico, a proposal would replace the six-bracket personal income tax with a 4.7% rate and eliminate income-tax liability for many lower- and middle-income filers, while reducing recurring state revenue. South Carolina lawmakers are weighing property-tax relief as local governments warn that cuts could jeopardize funding for services such as public safety and infrastructure; some counties suggest the state assume more education costs. Florida voters have approved property-tax cuts, a move that may benefit homeowners but could constrain local government budgets. Separately, high property taxes in states including New Jersey, Illinois, Connecticut and Vermont can strain retirees on fixed incomes, though relief programs are available. In Texas, establishing an individual income tax would require a constitutional amendment approved by two-thirds of both legislative chambers and voters, making a policy change difficult.