2010

Dear Wall Street Journal: No Need to File a Missing Persons Report, Oregon's High-Income Taxpayers Have Not "Vanished"

The Wall Street Journal recently published an editorial suggesting that a 2 percentage point increase in Oregon’s top income tax rate caused up to 10,000 wealthy Oregonians to flee the  state. In support of its claim, the Journal points to...

How the Bush Tax Cuts Affect State Revenues

Less than one month from now, federal tax cuts pushed through by President George W. Bush are scheduled to expire—and Congressional tax writers have spent much of this year debating how these tax cuts should be extended. This debate has...

The Good, the Bad and the Ugly: 2010 State Tax Policy Changes

Compared to previous years, the budget outlook for the states improved only slightly in 2010 and virtually every state continued to face a budget shortfall. As a result, the overwhelming majority of state policymakers were put in the unenviable position...

Testimony before the Maryland Business Tax Commission: Combined Reporting

I’m here to talk about combined reporting, which ITEP views as a vital step towards ensuring the vitality of the Maryland corporate income tax going forward.  I’d like to use my allotted time to discuss one important policy choice that...

Census Data Reveal Washington's Fundamental Tax Mismatch: Washington is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall Washington could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Washington as a low tax state -- instead, they...

Census Data Reveal Texas' Fundamental Tax Mismatch: Texas is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall Texas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Texas as a low tax state -- instead, they...

Census Data Reveal Tennessee's Fundamental Tax Mismatch: Tennessee is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall, Tennessee could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Tennessee as a low tax state -- instead, they...

Census Data Reveal Florida's Fundamental Tax Mismatch: Florida is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall, Florida could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Florida as a low tax state -- instead, they...

Census Data Reveal Arkansas Fundamental Tax Mismatch: Arkansas is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall, Arkansas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arkansas as a low tax state -- instead, they...

Census Data Reveal Arizona's Fundamental Tax Mismatch: Arizona is a Low Tax State, But Not for Families Living in Poverty

Recently released data from the Census Bureau confirms that overall Arizona could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arizona as a low tax state -- instead, they...

Credit Where Credit is (Over) Due: Four State Tax Policies Could Lessen the Effect that State Tax Systems Have in Exacerbating Poverty

The ongoing recession has had an unrelenting impact on families and communities in every state across the country. Millions of Americans are without work and in many cases those with jobs are experiencing reduced work hours and wages. New poverty...

"Writing Off" Tax Giveaways: How States Can Help Balance Their Budgets by Reforming or Repealing Itemized Deductions

"Writing Off" Tax Giveaways examines options for reforming itemized deductions in the thirty-one states, plus DC, that offer such deductions. The study, released on August 24, 2010, focuses on five potential reforms: repealing itemized deductions entirely, capping the maximum size...

ITEP's Testimony on TRAC Sales and Use Tax Proposal

My testimony today offers several broad thoughts on the implications of the proposals for sales and use tax reform laid out so far by the Tax Realignment Commission (TRAC). The testimony stresses that while base-broadening is of paramount importance in...

ITEP Podcast on Maine Voters' Rejection of Tax Reform - download audio (.mp3)

Download the MP3...

Pending Georgia Tax Changes Would Redistribute Income From the Poorest Families to the Rich

In the 2010 legislative session, Georgia lawmakers have ratified, or are poised to ratify, a set of tax changes which would dramatically reshape the fairness of the state’s tax system. A new ITEP analysis shows that these changes would increase...

Massey Pays One-Sixth of 35% Federal Tax Rate, Little in State Income Tax

A new analysis shows that Massey Energy, which owned the Upper Big Branch mine where 29 West Virginia miners were killed last week, paid an average of 5.6 percent of its profits in federal income taxes over the last three...

Leaving Money on the Table: "Federal Offset" Provides Incentive for States to Rely on Progressive Income Taxes

Seven states—Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming—have chosen to make up for the lack of an income tax by increasing their reliance on general sales taxes.1 The result is an “upside down” state tax system, which imposes...

Does Alabama's Tax System "Redistribute Wealth"?

Last week, an Alabama legislative committee approved a bill, House Bill 1, that would take an important step towards making one of the most unfair tax systems in the nation somewhat less unfair. Some opponents of the bill have characterized...

Maryland's Millionaire Migration Debate: Understanding the Relevance of the New Jersey Migration Studies

As the debate over extending the Maryland “millionaires’ tax” continues, numerous lawmakers and advocates have recently begun to look toward New Jersey’s experience with its own “halfmillionaires’ tax” to help inform their understanding of the issues at work. In particular,...

Proposed Repeal of Refundable Low Income Credit Would Hurt the Poorest Georgians

Earlier this week, the tax writing committee in the Georgia House of Representatives quietly approved a bill, HB 1219, that would increase Georgia taxes by about $20 million a year by paring back a tax credit that only affects the...

ITEP's Testimony Before the MD House Ways & Means Committee on Preserving Maryland's "Millionaires' Tax"

My testimony today focuses on Senate Bill 913, which would temporarily extend, through 2014, the “millionaires’ tax” that is currently scheduled to expire at the end of 2010. This testimony emphasizes that the “millionaires’ tax” makes Maryland’s tax system at...

ITEP's Testimony on HB 2034 Income Tax Reforms

My testimony today focuses on one bill introduced in the Missouri House of Representatives: HB 2034, which would reform the state’s individual income tax structure. My testimony will discuss the impact of this bill on the yield and fairness of...

ITEP's Testimony Before the MD Senate Budget and Tax Committee on Preserving Maryland's "Millionaires' Tax"

My testimony today focuses on Senate Bill 913, which would temporarily extend, through 2014, the “millionaires’ tax” that is currently scheduled to expire at the end of 2010. This testimony emphasizes that the “millionaires’ tax” makes Maryland’s tax system at...

Leadership Tax Plan Hits Poor Hardest

Media outlets are reporting that leaders in the New Mexico legislature reached a tentative agreement in the days leading up to this week’s special legislative session that would impose over $220 million a year in new Gross Receipts Taxes (GRT)...

Evaluating Special Session Revenue-Raising Options

In a special legislative session starting March 1, the New Mexico Legislature will consider a variety of revenue-raising options to close the state’s budget deficit. Some of the options under consideration—especially those approved by the state Senate earlier this year—would...

Determining the Statewide Sales Tax Rate Under SJR 29 and HJR 56

Senate Joint Resolution 29 and House Joint Resolution 56 are currently being debated in the Missouri Legislature. The proposals would place a constitutional amendment on the ballot to dramatically change the state’s revenue structure by eliminating the individual income and...

Testimony on SJR 29: Income Tax Repeal

In evaluating SJR 29, policymakers should have a clear understanding of how broad the tax base could actually be under such a plan, what the tax rate would actually have to be in order to make the plan revenue-neutral overall,...

Five Reasons to Preserve Maryland's "Millionaires' Tax"

In 2008, to compensate for the anticipated loss of revenue due to the repeal of a law subjecting the provision of computer services to the state’s sales tax, Maryland enacted a temporary change in its income tax. That change, which...