(The Center Square) — Florida Gov. Ron DeSantis, Alabama Gov. Kay Ivey and Mississippi Gov. Tate Reeves received “C” grades for their fiscal policies in a new ranking of state governors.
The libertarian Cato Institute issued its annual ranking of state governors for their taxing and spending policies.
DeSantis and Reeves tied with 52 out of a possible 100 points while Ivey scored a 49. The governors were scored on seven variables that included two on spending, one on revenue and four on tax rates. Also receiving a “C” was Tennessee Gov. Bill Lee with a 47.
Georgia Gov. Brian Kemp received a “B” for his fiscal policies, as did South Carolina Gov. Henry McMaster.
First-year Louisiana Gov. Jeff Landry wasn’t scored since he’s only been office less than a year.
The report said Florida was the second-freest state according to Cato’s annual state freedom report, and receives good marks for its lack of an individual income tax.
The report also praised DeSantis for signing a temporary reduction in the corporate tax rate and a bill to avoid business tax increases related to the federal Tax Cuts and Jobs Act.
In addition, the report said that instead of temporary tax breaks, such as sales tax holidays and a gas tax suspension, DeSantis should’ve enacted permanent tax reforms. The authors also said that while DeSantis proposes lean spending plans, he is often overruled by lawmakers.
The authors credited him for cutting the sales tax on commercial leases from 5.5% to 4.5% before it shrinked to 2.4% this year, a reform the report says will save Florida businesses more than $1 billion a year.
Another business-friendly proposal is doubling the maximum sales tax collection allowance, something that the authors say will save retailers $165 million a year.
The report said Alabama’s Ivey hadn’t passed any large-scale tax reforms. In 2022, she signed an increase to the income tax standard deduction into law, a partial exemption of retirement income and a trimming of small business taxes.
In 2023, Ivey also signed a reduction in the sales tax on food from 4% to 3%. In 2024, she put her signature on a bill that created an education savings account program in the state.
Mississippi’s Reeves drew praise from the authors for the state’s move to a flat tax rate for its personal income tax, which he seeks to eliminate. In 2023, he signed a bill allowing companies to immediately write off investment in business equipment. As lieutenant governor, he championed the elimination of the state’s corporate franchise tax.
Six governors, all Republicans, received “A” grades: Iowa Gov. Kim Reynolds, Nebraska Gov. Jim Pillen, West Virginia Gov. Jim Justice, Arkansas Gov. Sarah Huckabee Sanders, South Dakota Gov. Kristi Noem and Montana Gov. Greg Gianforte.
Failing grades went to six governors, all Democrats. They were: Wisconsin Gov. Tony Evers, Delaware Gov. John Carney, Washington Gov. Jay Inslee, Maine Gov. Janet Mills, New York Gov. Kathy Hochul and Minnesota Gov. Tim Walz, who is the Democratic candidate for vice president.
