January 17, 2017 • By Carl Davis
The federal government and many states are unable to adequately maintain the nation's transportation infrastructure in part because the gasoline taxes intended to fund infrastructure projects are often poorly designed. Thirty states and the federal government levy fixed-rate gas taxes where the tax rate does not change even when the cost of infrastructure materials rises or when drivers transition toward more fuel-efficient vehicles and pay less in gas tax. The federal government's 18.4 cent gas tax, for example, has not increased in over twenty-three years. Likewise, more than twenty states have waited a decade or more since last raising their…
January 17, 2017 • By Carl Davis
Many state governments are struggling to repair and expand their transportation infrastructure because they are attempting to cover the rising cost of asphalt, machinery, and other construction materials with fixed-rate gasoline taxes that are rarely increased. The chart accompanying this brief shows (as of January 1, 2017) the number of years that have elapsed since each state's gas tax was last increased.
January 14, 2017 • By ITEP Staff
“Using a sophisticated model of Ohio’s tax system, the national research group, Institute on Taxation and Economic Policy (ITEP), found that with a 3.5 percent flat tax, 72 percent of Ohioans would pay more state income tax, while just 4 percent would pay less. The remaining 24 percent would pay the same amount as they […]
January 14, 2017 • By ITEP Staff
“Undocumented immigrants paid $13 billion in payroll taxes in 2010, according to an estimate by the U.S. Social Security Administration. At least 50 percent of undocumented immigrant households file tax returns using Individual Tax Identification Numbers, according to the non-partisan research Institute on Taxation and Economic Policy. The group also estimated undocumented immigrants pay $11.64 […]
January 14, 2017 • By ITEP Staff
“Whatever one’s political view, the fate of New York’s immigrant population could have a significant impact on state and local economies. Undocumented immigrants make up a large portion of the workforce in New York industries like construction, landscaping, food and cleaning services, and farming operations upstate and on Long Island. The non-profit Institute on Taxation […]
January 12, 2017 • By ITEP Staff
“Despite all the ink spilled over the state’s supposedly high tax burden, Vermont’s effective tax rate is roughly average. And according to a 2015 study by the left-leaning Institute on Taxation and Economic Policy, “Vermont’s tax system is among the least regressive in the nation because it has a highly progressive income tax and low […]
January 12, 2017 • By Matthew Gardner
“In fact, as with most businesses, most of Trump’s are registered in Delaware, known for its business-friendly courts and tax policies, but also the lack of disclosure requirements, according to Matthew Gardner, a fellow at the Institute on Taxation and Economic Policy.” Read more
January 12, 2017 • By Carl Davis
“That means, however unpopular, “residents are going to have to pay more” to maintain local governments and their services, Carl Davis, an analyst at the Institute on Taxation and Economic Policy, told Bloomberg BNA.” Read more
January 12, 2017 • By Carl Davis
“Raising fuel taxes helped the state in the 1980s, and lawmakers might try it again. Carl Davis, research director at the Institute on Taxation and Economic Policy, says Oklahoma lawmakers have good reason to raise taxes at the pump. “The state has one of the oldest gas tax rates in the country,” he says. “It’s […]
January 12, 2017 • By ITEP Staff
“The state also supplements the federal Earned Income Tax Credit for joint filers with income less than $50,000. According to the Institute on Taxation and Economic Policy, these adjustments resulted in the lowest 20 percent of Massachusetts filers paying an effective state income tax rate of 0.8 percent in 2015. The next quintile pays an […]
January 12, 2017 • By ITEP Staff
“The LLC exemption — which eliminated taxes on pass-through business income and relieved the tax burden for more than 330,000 Kansas business owners — was passed and signed almost half a decade ago. The exemption has cost our state hundreds of millions of dollars since then (the Institute on Taxation and Economic Policy says it […]
January 11, 2017 • By ITEP Staff
This week brings still more states looking for solutions to revenue shortfalls, multiple governors’ State of The State addresses, important reading on counter-transparency and local-preemption efforts, and more. — Meg Wiehe, ITEP State Policy Director, @megwiehe A Nebraska legislator this week diagnosed the state’s $900 million revenue shortfall in plain terms, describing it as “self-inflicted […]
January 11, 2017 • By ITEP Staff
Legislators have just kicked off the 2017 legislative session, and ideas for big changes are buzzing around the Capitol. AACF will be on the ground advocating for bills that are best for kids and families in our state. In order to make Arkansas a better place for all of us, AACF hopes that this year: […]
January 10, 2017 • By ITEP Staff
When all types of state and local taxes are combined—income, sales and property—families with incomes in the bottom fifth pay nearly three times what families in the top 1 percent do—$12.50 for every $100 of income compared to $4.58 for the highest income families and $8.20 for middle income families. Sales taxes make up the […]
January 10, 2017 • By ITEP Staff
The Economic Progress Institute publishes the Rhode Island Standard of Need (RISN) to answer two fundamental questions: What is the cost of meeting basic needs for families and individuals in Rhode Island? How do state and federal work and income supports help households meet the cost of basic needs? The RISN calculates a no-frills […]
January 10, 2017 • By ITEP Staff
Just this week, the Institute on Taxation and Economic Policy released a comprehensive report on the state and local tax contributions of undocumented immigrants. In the public debate about immigration policy, there are often gross inaccuracies about undocumented immigrants that are presented as facts. This important report provides state-by-state and national estimates on undocumented immigrants’ […]
January 10, 2017 • By ITEP Staff
Legislators are currently working to find the revenues necessary to fund the appropriations bill that passed the House and Senate this week. They are finding it difficult to agree on a proposal that raises genuine, recurring revenues in a way that does not make our already inequitable tax system more unfair. One constitutional way to […]
January 10, 2017 • By ITEP Staff
Carl Davis is Research Director at the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan research organization that works on federal, state, and local tax policy issues. Photo by ccPixs.com / CC BY 2.0 Photo by ccPixs.com / CC BY 3.0 When is a charitable contribution not a “donation” at all? If a […]
January 10, 2017 • By ITEP Staff
Last week the Oklahoma Senate Finance Committee approved SB 977, a bill that would suspend 23 tax credits for the next two years as a way to partially address the state’s massive budget shortfall. While the bill targets numerous credits, a large majority of the impact would come from ending three important tax credits […]
January 10, 2017 • By ITEP Staff
Maryland’s success today is due to our past public investment in good schools, a strong transportation system and other building blocks of a prosperous economy. As another “tax day” rolls around, it’s worth remembering that the income taxes we pay help make these investments possible. Cutting state income taxes or corporate taxes would undermine […]
January 10, 2017 • By ITEP Staff
A comprehensive preview of the upcoming two-year Kentucky state budget confirms both a massive funding gap facing the state for the next two years and a need for reinvestment in many areas post-recession. Authored by the Kentucky Center for Economic Policy (KCEP), the report notes that expected growth in state revenue the first year […]
January 10, 2017 • By ITEP Staff
The Budget of the Commonwealth is a financial plan, enacted every two years by Kentucky’s General Assembly, that maps out our state’s investments in education, health, transportation, public safety, human services and other areas that build a strong state economy. As such, the budget is a statement of Kentucky’s priorities: How we invest reflects […]
January 10, 2017 • By ITEP Staff
Since 1906, Kentucky has relied on the inheritance tax to help pay for the good schools, infrastructure and other investments that strengthen the Commonwealth. A repeal of the inheritance tax would be a $51 million tax cut tilted to the very wealthy that would weaken those investments and make economic progress harder in the […]
January 10, 2017 • By ITEP Staff
The Iowa Fiscal Partnership is pleased to distribute a new report by the Institute on Taxation and Economic Policy: The ITEP Guide to Fair State and Local Taxes. We hope you will find this useful in understanding and evaluating state and local tax policy. Many of the general tax principles and issues presented in the […]
January 9, 2017 • By ITEP Staff
Ensuring Indiana has funding needed to adequately repair its roads and bridges over the next several years is a top priority among lawmakers this legislative session. Among the proposed infrastructure improvement plans is HB 1001, which would raise the state’s gasoline tax by 4 cents per gallon, the tax on diesel fuel by 7 […]