By DAVID A. LIEB, Associated Press

About 45 years have passed since a U.S. state last eliminated its income tax on wages and salaries. But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing.

The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses.

But it comes during a time of greater uncertainty for states, as they wait to see whether President Donald Trump’s cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy.

Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor.

Which governments charge income tax?

The 16th Amendment to the U.S. Constitution grants Congress the power to levy income taxes. It was ratified by states in 1913. Since then, most states have adopted their own income taxes.

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Eight states currently charge no personal income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas and Wyoming. A ninth state, Washington, charges no personal income tax on wages and salaries but does tax certain capital gains income over $270,000.

When Alaska repealed its personal income tax in 1980, it did so because state coffers were overflowing with billions of dollars in oil money.

Though income tax eliminations have been proposed elsewhere, they have not been successful.

“It’s a lot easier to go without an individual income tax if you’ve never levied one,” said Katherine Loughead, a senior analyst and research manager at the nonprofit Tax Foundation. “But once you become dependent on that revenue, it is a lot more difficult to phase out or eliminate that tax.”

What is Mississippi doing?

Republican Mississippi Gov. Tate Reeves recently signed a law gradually reducing the state’s income tax rate from 4% to 3% by 2030 and setting state revenue growth benchmarks that could trigger additional incremental cuts until the tax is eliminated. The law also reduces the sales tax on groceries and raises the gasoline tax.

If cash reserves are fully funded and revenue triggers are met each year, Mississippi’s income tax could be gone by 2040.

Supporters of an income tax repeal hope it will attract both businesses and residents, elevating the state’s economy to the likes of Florida, Tennessee and Texas. Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections.

The tax repeal “puts us in a rare class of elite, competitive states,” Reeves said in a statement. He added, “Mississippi has the potential to be a magnet for opportunity, for investment, for talent –- and for families looking to build a better life.”

Mississippi is among the most impoverished states and relies heavily on federal funding. Democratic lawmakers warned the state could face a financial crises if cuts in federal funding come at the same time as state income tax reductions.

The income tax provides “a huge percentage of what the state brings in to fund things like schools and health care and services that everybody relies on,” said Neva Butkus, senior analyst at the nonprofit Institute on Taxation and Economic Policy.

What has Kentucky done?

A 2022 Kentucky law reduced the state’s income tax rate and set a series of revenue-based triggers that could gradually lower the tax to zero. But unlike in Mississippi, the triggers aren’t automatic. Rather, the Kentucky General Assembly must approve each additional decrease in the tax rate.

FILE – The Kentucky state Capitol in Frankfort, Ky., is pictured on April 7, 2021. (AP Photo/Timothy D. Easley, File)

That has led to a series of tax-cutting measures, including two new laws this year. One implements the next tax rate reduction from 4% to 3.5% starting in 2026. The second makes it easier to continue cutting the tax rate in the future by allowing smaller incremental reductions if revenue growth isn’t sufficient to trigger a 0.5 percentage point reduction.

Democratic Gov. Andy Beshear signed the legislation for next year’s tax cut but let the other measure passed by the Republican-led legislature become law without his signature. Beshear called it a “bait-and-switch” bill, contending lawmakers had assured the guardrails for income tax reductions would remain in place while pushing for the 2026 tax cut, then later in the session altered the triggers for future years.

What actions have other states taken?

New Hampshire and Tennessee already did not tax income from wages and salaries, but both states had taxed certain types of income.

In 2021, Tennessee ended an income tax on interest from bonds and stock dividends that had been levied since 1929.

New Hampshire halted its tax on interest and dividends at the start of this year.

Some other states also are pushing to repeal income taxes. The Oklahoma House passed legislation in March that would gradually cut the personal income tax rate to zero if revenue growth benchmarks are met. That bill now is in the Senate.

New Missouri Gov. Mike Kehoe, a Republican, also wants to phase out the income tax. The House and Senate have advanced legislation that would take an incremental step by exempting capital gains income from taxes.

By ALEX VEIGA, Associated Press

LOS ANGELES (AP) — This spring homebuying season is shaping up to be more favorable for home shoppers than it’s been in recent years — as long as they can afford to buy.

Home prices are rising more slowly. Mortgage rates remain elevated, but have been mostly easing and could be headed lower if the U.S. economic outlook continues to darken over the Trump administration’s widespread tariffs, which have rattled financial markets and stoked fears of a recession.

Most importantly, the number of homes on the market is up sharply from a year ago.

While the inventory of homes for sale nationally is still low by historical standards, active listings — a tally that encompasses all homes on the market except those pending a finalized sale — surged 28.5% last month from a year earlier, according to data from Realtor.com. Listings jumped between 44% and 68% in many large metro areas, including San Diego, Las Vegas, Atlanta and Washington D.C.

As homes take longer to sell, prices have started dropping in many markets. The median listing price was down last month from a year earlier in most of the nation’s biggest 50 metro areas, including a more than 6% drop in Austin, Miami and Kansas City.

These trends should give prospective homebuyers more leverage as they negotiate with sellers this spring, though they are unlikely to be a game-changer for many aspiring homeowners priced out of the market after years of soaring prices.

“It’s a little hard to say that it’s a buyer’s market, but I’d call it a much more balanced market than it’s been in the last couple of years, where it’s really been a predominantly seller’s market,” said Joel Berner, senior economist at Realtor.com.

Ryan Vasko and his wife, Whitney, recently navigated both sides of the housing market equation in their move from Oregon to Colorado.

In December, the couple sold their three-bedroom, one-bath house in Portland for $505,000. That was $10,000 below their list price, but still above the $500,000 minimum they hoped to get.

Ryan Vasko and his wife are shown outside the home they just bought after moving from Oregon Thursday, April 3, 2025, in Littleton, Colo. (AP Photo/David Zalubowski)

At the same time, the couple searched for a home in the Denver metro area, which is among the markets that’s had the biggest increase in homes for sale this year. Active listings soared 67.3% in March from a year earlier. As listings jumped, the median listing price fell 5.6% to $585,000.

Last month, the Vaskos closed the deal on a four-bedroom, three-bathroom house in Littleton, Colorado, about 10 miles south of Denver, that had been on the market at least three weeks.

“We got under contract week one, we found out we were pregnant week two and we put an offer on this house week three,” said Vasko, 41, a creative director at an advertising agency.

The price: $680,000, or $5,000 above the list price. Still, the seller agreed to cover the cost of lowering the couple’s 6.9% mortgage rate for the first two years of the loan to 4.9% and 5.9%, respectively.

“It gives us a little wiggle room, if we need it,” said Vasko, noting that he’s hoping to eventually refinance to a lower fixed rate.

A mixed market

The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years. Easing mortgage rates and more homes on the market nationally helped drive sales higher in February from the previous month, though they were down year-over-year.

Last year, higher mortgage rates dampened the start of the spring homebuying season. This year, the average rate on a 30-year mortgage is down to 6.6% from just over 7% in mid-January, according to mortgage buyer Freddie Mac, although that’s still elevated relative to the 2-year low of about 6% it fell to in September.

Another plus for buyers: Lower prices. The median listing price fell in March from a year earlier in 32 of the 50 largest metro areas, including Kansas City, San Francisco, Miami and San Diego. Nationally, it was $424,900 last month, unchanged from a year earlier, according to Realtor.com.

The market shift may give home shoppers more leverage when sellers ask that buyers waive home inspections. Sellers may also be more willing to pay for closing costs, contribute cash to make repairs or make other concessions, real estate agents say.

“Pretty much every buyer is asking for concessions, unless they know that they are in a multiple offer situation,” said Afton Hartmann, a Redfin agent in Denver.

Such situations, although less common than a few years ago, still exist.

Gilad Hoffman, executive director at a synagogue, knew his home search was over when he spotted a four-bedroom, 2.5-bath house for sale in Escondido, 30 miles northeast of San Diego. He felt the home, listed by the estate of its late owner for $1.079 million, was “severely underpriced.”

Hoffman, 41, paid $13,000 above the asking price for the home in February as he fended off bids from three other prospective buyers — including one offering to pay all cash.

Elevated mortgage rates didn’t dissuade Hoffman. He accepted a 7% rate in exchange for a credit from his lender to put toward closing costs.

“My philosophy going into the whole thing was: get into something now that you can afford with these high interest rates,” Hoffman said. “Hopefully in two years, they’ll come down and then you can refinance. And that’s still my intention.”

Affordability and uncertainty are still hurdles

Despite some buyer-friendly trends, the housing market remains largely out of reach for many Americans, especially first-time buyers who don’t have home equity gains to put toward a new home. While home price growth has been slowing, the decline is negligible against the 47% gain in prices over the last five years.

And while home listings are up, many more are needed to return the market to more of a balance between buyers and sellers. Consider, there were 1.24 million unsold homes on the market at the end of February. While up 17% from a year earlier, that’s still about 44% below the 2.21 million monthly average going back to 1999, according to data from the National Association of Realtors.

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As of January, a household earning the median U.S. annual income of $79,223 would have to spend 47% of that to cover payments on a home at the median price of $390,333. That share of income matches the highest it has ever been on records going back to 2005, according to the Federal Reserve Bank of Atlanta. When the annual cost of homeownership exceeds 30% of the median U.S. household income, it’s considered unaffordable by the Department of Housing and Urban Development.

If the decline in mortgage rates accelerates in coming months, that would boost homebuyers’ purchasing power.

Economic forecasts generally have the average rate on a 30-year mortgage staying around 6.5% this year, but those forecasts may be outdated now.

A sharp downward move last week in the 10-year Treasury yield as bond investors reacted to rapidly escalating trade war between the U.S. and nations around the globe points to lower mortgage rates.

The yield on the 10-year Treasury note, which banks use as a guide to pricing home loans, dropped to 4.01% Friday, its lowest level since October, as global trade tensions escalated.

Still, tariffs are typically inflationary, and the 10-year Treasury yield tends to rise on expectations of higher inflation. That could keep mortgage rates where they are, or nudge them higher.

If the trade war worries do pave the way for further mortgage rate drops, “those lower rates may be cold comfort to prospective buyers who are increasingly worried about job security and inflation,” said Lisa Sturtevant, chief economist at Bright MLS.

By MATTHEW PERRONE, AP Health Writer

WASHINGTON (AP) — Shortly before he was forced to resign, the nation’s top vaccine regulator says he refused to grant Health Secretary Robert F. Kennedy Jr.’s team unrestricted access to a tightly held vaccine safety database, fearing that the information might be manipulated or even deleted.

In an interview with The Associated Press, former Food and Drug Administration vaccine chief Dr. Peter Marks discussed his efforts to “make nice” with Kennedy and address his longstanding concerns about vaccine safety, including by developing a “vaccine transparency action plan.”

Marks agreed to give Kennedy’s associates the ability to read thousands of reports of potential vaccine-related issues sent to the government’s Vaccine Adverse Event Reporting System, or VAERS. But he would not allow them to directly edit the data.

“Why wouldn’t we? Because frankly we don’t trust (them),” he said, using a profanity. “They’d write over it or erase the whole database.”

Marks spoke to the AP on Sunday, after officials in Texas confirmed the nation’s second measles-related death in an unvaccinated child this year. Marks attributed the death to the tepid response from the U.S. Department of Health and Human Services, which again encouraged the measles, mumps and rubella vaccine on Sunday but has also promoted claims about vitamin A supplements.

During his Senate confirmation hearings, Kennedy told lawmakers he is not “antivaccine.” But since taking office, he’s promised to “investigate” children’s shots, and agencies under his watch have terminated vaccine-related research, canceled meetings of vaccine advisers and are poised to reinvestigate ties between vaccines and autism — a link debunked long ago.

Since being sworn in, “Mr. Kennedy has increased the pace by which he intends to minimize the use of vaccines in this country,” Marks said.

An HHS spokesperson said Kennedy has advocated for vaccination multiple times since becoming health secretary and pointed to a social media post Sunday in which he called the vaccine “the most effective way to prevent the spread of measles.”

The spokesperson added that it would make “perfect sense” for staffers working for Kennedy to seek access to the VAERS database to do their own analysis.

Marks is highly regarded by former FDA leaders and biotech industry executives, but his time at the agency has not been without controversy. During the COVID-19 pandemic he was alternately criticized for being too slow — under Trump— and too fast — under Biden— to authorize new vaccines and boosters.

Marks says he “tried everything” to work with Kennedy. At the center of that effort was a plan to increase publicly available information about vaccine ingredients, safety and side effects.

Marks and his team had hoped to kick off the monthslong initiative with a two-day public “listening session,” followed by an expert report written by an independent organization, such as the National Academies of Sciences.

Health and Human Services Secretary Robert F. Kennedy Jr., left, arrives at Reinlander Mennonite Church after a second measles death, Sunday, April 6, 2025, in Seminole, Texas. (AP Photo/Annie Rice)

Overhauling the VAERS system

The centerpiece of the effort would be a vast overhaul of the VAERS system, maintained by the FDA and Centers for Disease Control and Prevention.

FDA and CDC scientists monitor the database for “possible signals” of emerging problems with vaccines. But analyzing the data requires both medical and statistical expertise, because anyone can submit unverified reports of side effects, injuries and death. The public-facing website warns that the data is unverified and may be incomplete or inaccurate. Misinterpretations of VAERS have long been central to anti-vaccine groups and messaging.

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Marks notes that government scientists spend hours adjudicating each report of serious injury or death, often by tracking down death certificates and interviewing health providers. It’s not unusual for investigators to find reports of deaths that were caused by something totally unrelated to a vaccine, like a car crash, or that a death occurred months after vaccination in someone with a serious illness.

Much of that detail is redacted for legal reasons. But Marks said his office was committed to making much more information available.

“This is a legitimate thing that I actually was willing to compromise on,” Marks said “We need to make VAERS more transparent so that people can understand that we actually do the work on the backend.”

Details of Marks’ plan were confirmed by a second person with direct knowledge of the matter, who spoke on condition of anonymity because they did not have permission to speak publicly about internal agency matters.

The proposal was sent to FDA’s acting commissioner, Trump appointee Dr. Sara Brenner, in mid-February, but Marks and his team did not hear back.

By mid-March, Marks’ office was fielding multiple requests from Trump administration staffers seeking full access to the VAERS database. In responding to the requests, Marks and his staff emphasized the sensitive nature of the data, which includes confidential personal, medical and corporate information.

Marks says Kennedy is ‘walled off’ from FDA

Marks said he never spoke directly with Kennedy, whom he described as “walled off” from FDA officials.

On the day he was forced out of his post, Marks said he was summoned to a meeting at HHS headquarters.

Two senior HHS officials greeted him and recalled Marks’ work during the COVID-19 pandemic; he coined the name and developed the concept for “Operation Warp Speed,” which rapidly accelerated the development of vaccines and therapies to treat the virus.

After an awkward silence, Marks said, one of the officials told him: “Look, he wants you gone.” According to Marks, it was an obvious reference to Kennedy.

“It was pretty clear that either I was going to resign, or they were going to fire me,” Marks said.

He submitted his resignation later that day, citing Kennedy’s support for “misinformation and lies” about vaccines.

The HHS spokesperson said Kennedy is “installing scientists committed to reversing the chronic disease crisis,” and that Marks was a “rubber stamp” for the drug industry.

This week, Kennedy is making stops across the southwestern U.S. as part of a “Make America Healthy Again” tour focused on fluoridation, food dyes and other issues.

Marks said Kennedy should be working to get more children vaccinated to stop the outbreak.

“I consider these needless and senseless deaths,” Marks said. “These kids should get vaccinated. That’s how you prevent people from dying of measles.”

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

By LINDSAY WHITEHURST and MICHAEL KUNZELMAN

WASHINGTON (AP) — Two board members fired by President Donald Trump can go back to their jobs for now, a split appeals court ruled Monday ahead of a likely Supreme Court showdown on the president’s power over independent agencies.

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An appeals court in the nation’s capital handed down the 7-4 decision in lawsuits brought by two women separately fired from agencies that both deal with labor issues, including one with a key role for a federal workforce Trump is aiming to drastically downsize.

The order relies largely on a 90-year-old Supreme Court decision known as Humphrey’s Executor, which found that presidents can’t fire independent board members without cause.

But that ruling has long rankled conservative legal theorists who argue it wrongly curtails the president’s power, and experts say the current conservative majority on the Supreme Court may be poised to overturn it.

“The Supreme Court has repeatedly told the courts of appeals to follow extant Supreme Court precedent unless and until that Court itself changes it or overturns it,” the majority wrote in an unsigned opinion. All 7 members of the majority were appointed by Democratic presidents. The four dissenters are Republican appointees, including three named by Trump in his first term.

The vote was closer, 6-5, over whether to pause the decision for a week to let the Trump administration appeal to the Supreme Court right away.

The ruling isn’t a final decision on the legal merits of the case, but it does reverse a judgment from a three-judge panel from the same U.S. Court of Appeals for the District of Columbia Circuit that had allowed the firings to go forward.

Former President Joe Biden nominated both of the fired board members. Cathy Harris is from the Merit Systems Protection Board, which reviews disputes from federal workers and could be a significant stumbling block as the Trump administration seeks to carry out a dramatic downsizing of the workforce.

Gwynne Wilcox, meanwhile, has served on the National Labor Relations Board, which resolves hundreds of unfair labor practice cases every year. The five-member board lacked a quorum after Wilcox’s removal.

Government lawyers have argued that Trump can remove both board members. In Wilcox’s case, they said reinstatement “works a grave harm to the separation of powers and undermines the President’s ability to exercise his authority under the Constitution.”

They also argued that MSPB members like Harris are removable “at will” by the president.

Wilcox’s attorneys said Trump couldn’t fire her without notice, a hearing or identifying any “neglect of duty or malfeasance in office” on her part. They argued that the administration’s “only path to victory” is to persuade the U.S. Supreme Court to “adopt a more expansive view of presidential power.”

Wilcox was the first Black woman to serve on the five-member board in its 90-year history. The Senate confirmed Wilcox for a second five-year term in September 2023.

Associated Press writer Mark Sherman contributed to this story.