Eight U.S. states reduced their individual income tax rates effective January 1, 2026, aiming to boost economic growth, attract talent, and increase investment. States like Nebraska, Indiana, Ohio, North Carolina, Kentucky, and Montana are among those implementing lower top marginal or flat tax rates. While proponents suggest these cuts will increase consumer spending and economic activity, some critics express concern over potential strain on public services due to revenue losses if not managed with strong long-term budget planning.