FRANKFORT/JACKSON: It is been about 45 years since a U.S. state last got rid of its income tax on wages and salaries. But now, Mississippi and Kentucky are working toward doing just that—if their economies keep growing.

Getting rid of income taxes is the boldest example of a more significant trend across many states. After the COVID-19 pandemic, states saw more money coming in and started cutting taxes. But now, there's more uncertainty. Some worry that if former President Donald Trump returns and cuts federal spending or adds tariffs, it could reduce the money states get from the federal government and hurt the economy.

Experts also warn that cutting income taxes could make states rely more on sales taxes, which often affect poorer people more.

The federal government got the power to collect income taxes in 1913, and most states later added their own. Today, eight states do not charge personal income tax: Alaska, Florida, Nevada, South Dakota, Texas, Tennessee, Wyoming, and New Hampshire. Washington state doesn't tax wages but does tax certain capital gains income.

Alaska eliminated its income tax in 1980, thanks to a big boost in oil revenue. Other states tax wages, but now Mississippi and Kentucky are taking steps to join the tax-free group.

Mississippi's Republican Governor, Tate Reeves, recently signed a law to slowly cut the state income tax from 4 percent to 3 percent by 2030. If the economy keeps growing and financial goals are met, the tax could be gone by 2040. The law also lowers the sales tax on groceries and raises the gas tax.

Supporters say getting rid of income taxes will attract businesses and new residents, helping the economy grow. Reeves said it could make Mississippi more competitive, like Florida and Texas. "Mississippi can be a magnet for opportunity," he said.

However, critics worry that Mississippi, one of the poorest states that relies heavily on federal money, could face big problems if federal funding is cut while income taxes are also reduced. Income taxes help pay for important services like schools and healthcare, said Neva Butkus, a tax policy expert.

In Kentucky, a 2022 law started cutting the state's income tax and creating a system based on how much money the state brings in. The legislature must approve each new tax cut. This year, two new laws were passed. One cuts the tax rate from 4 percent to 3.5 percent starting in 2026. The other law makes it easier to approve future tax cuts, even if the state doesn't meet big growth targets.

Governor Andy Beshear, a Democrat, signed the 2026 tax cut law but did not support the second bill. He said lawmakers changed the rules after promising they wouldn't.

Other states are also considering income tax cuts. Oklahoma passed a bill to gradually remove its income tax if the economy keeps growing. Missouri's new Republican governor wants to phase out the income tax, too, and start by eliminating taxes on capital gains.

Tennessee and New Hampshire recently removed their last remaining income taxes on interest and dividends. Tennessee's tax ended in 2021, and New Hampshire's ended this year.