ITEP Reports

How State Tax Changes Affect Your Federal Taxes: A Primer on the "Federal Offset"

August 22, 2016

Read this brief in PDF here. State lawmakers frequently make claims about how proposed tax changes would affect taxpayers at different income levels. Yet too many lawmakers routinely ignore one important consequence of their tax reform proposals: the effect of...

Indexing Income Taxes for Inflation: Why It Matters

August 22, 2016

Read brief in PDF here. All of us experience the effects of inflation as the price of the goods and services we buy gradually goes up over time. Fortunately, as the cost of living goes up, our incomes often tend...

The Folly of State Capital Gains Tax Cuts

August 17, 2016

Read the brief in a PDF here.  The federal tax system treats income from capital gains more favorably than income from work. A number of state tax systems do as well, offering tax breaks for profits realized from local investments...

Achieving Sustainable Infrastructure Revenue with Gas Tax Reform

August 8, 2016

This brief outlines the causes of Louisiana's infrastructure revenue shortfall and offers recommendations for how the state can achieve "sufficient increased levels of recurring funding to address the transportation backlog in highway and bridge maintenance needs in Louisiana," as per the Task Force's mandate.

Why Sales Taxes Should Apply to Services

July 27, 2016

Read this Policy Brief in PDF here.  General sales taxes are an important revenue source for state governments, accounting for close to half of state tax collections nationwide. But most state sales taxes have a damaging structural flaw: they typically...