Despite attending the Future State of Taxation forum in Harrisonburg, PA in 2016 with Nina Olsen, the tax advocate at that time, I have remained quiet for the last several years due to the national speaker stating that we (accountants/tax preparers) should only comment on tax law that has been passed. Of course (a side note) he broke his own rule this past year in seminars due to the fact that we were discussing tax planning without knowing the outcome of the Tax Cuts and Jobs Act being renewed when it is due to expire.
Part of the Future State of Taxation was that the government was not collecting enough payroll taxes . At the time, I found that to be shockingly untrue; however, we are an aging population which reduces the payroll tax collection. From all that I have read during the following years property taxes are going to increase substantially.
The proof: A friend of mine just moved to South Carolina. She stated that she does not have to file income taxes. I disagreed as the only states that pay no income tax are (and have been forever that I am aware):
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Wyoming
Washington (state
But during our conversation, I googled South Carolina eliminating their income tax. As of this year, it will do so by 1% annually until it is gone. It is currently at 6%. This made me wonder if other states were doing the same, so I googled what states were eliminating income tax (article dated January 1, 2025). The following were listed:
Indiana
Iowa
Louisianna
MIssissippi
Missouri
Nebraska
New Mexico
North Carolina
West Virginia
Since it did not list South Carolina, I wonder how many more are doing so as well. As it stands now with this list, 37% are eliminating income tax at the state level.
I am here to warn that the government still needs more money (a never-ending money-hungry pit), so it will need to increase in other ways. My theory (educated due to all the reading) is that the housing prices are overly-inflated and assessments are being calculated on fair market value not assessed value, and the rates of assessment are increasing.
Better to be prepared for increases then to let them just happen to you.
Here is to hoping I am wrong, but doubtful
Barbara