U.S. Economy and Household Finance

A Tax Foundation analysis, cited by CBS News, finds that nine U.S. states — including Georgia, Indiana, Kentucky, Mississippi, Montana, Nebraska, North Carolina and Ohio — will reduce individual income tax rates on January 1, 2026 under previously enacted laws, continuing a post‑pandemic trend of state tax cutting. The changes include new flat or lower top rates, multi‑year phase‑downs and mechanisms tied to revenue or reserve thresholds, even as groups like the Center on Budget and Policy Priorities warn that shrinking income taxes is contributing to emerging budget shortfalls and may constrain funding for services such as education.