ITEP's Research Priorities
Pilot Tribune:
February 14, 2017
An analysis by the Institute on Taxation and Economic Policy shows the average annual nominal tax cut for the wealthiest 1 percent of Nebraskans would be $5,810, while the average nominal cut for middle-class taxpayers would be $39. Read more
The Tennessean: Bill aims to exempt feminine products, diapers, food from sales tax
February 14, 2017
Several organizations have rated Tennessee’s tax system poorly because of the high sales tax and no state income tax. The Institute on Taxation and Economic Policy rated Tennessee as one of the “Terrible Ten” and among the worst tax structures in the country because it says the tax system is unfairly weighted on the poorest individuals. Read more
The Cinnicinati Enquirer: Kasich budget doubles down on approach that hasn’t worked
February 14, 2017
We asked the Institute on Taxation and Economic Policy, a national nonprofit research group with a model of state and local tax systems, to analyze how the proposal would affect Ohioans in different income groups. The news is not good. ITEP found that: The middle fifth of income earners, who made between $36,000 and $56,000 […]
Omaha World Herald: Ricketts’ tax plan is unfair to average Nebraskans
February 14, 2017
The bottom 80 percent of Nebraska earners pay 9 percent to 11 percent of their income in state and local taxes. The top 20 percent pay less — just 8 percent. The top 1 percent pay least — just over 6 percent, all according to the Institute on Taxation and Economic Policy.
‘IMPROVE’ Act Fails to Improve Tennessee’s Regressive Tax Code
February 13, 2017 • By Dylan Grundman O'Neill
Tennessee Gov. Bill Haslam’s proposal (dubbed the IMPROVE Act) to raise the state’s gas tax while cutting three other taxes would essentially be a tax cut for the state’s wealthiest residents and a tax increase for the lowest-income Tennesseans. While the gas tax is badly in need of an update to fund maintenance and investment […]
Policy Matters Ohio: Ohio Nees a Strong Income Tax
February 10, 2017
Ohio’s income tax is the only major tax that is based on ability to pay. This principle was embraced by the founders of our democracy, such as Thomas Jefferson, as well as by the intellectual father of capitalism, Adam Smith. As your taxable income goes up, you pay a higher rate; for instance, income between […]
Tax Justice Digest: What to watch in the states, debunking the supply-side myth
February 9, 2017 • By ITEP Staff
In the Tax Justice Digest we recap the latest reports, blog posts, and analyses from Citizens for Tax Justice and the Institute on Taxation and Economic Policy. Here’s a rundown of what we’ve been working on lately. What to Watch in the States in 2017 State and federal gas taxes are the cornerstone of our […]
DC Fiscal Policy Institute: Revenue: Where DC Gets Its Money
February 9, 2017
The DC government collects revenue in a variety of ways from its residents, businesses, and the federal government. These revenues are used to fund the wide array of services provided by the District, from schools to health care to libraries to road construction. The DC government collected about $10.5 billion in revenue in fiscal year […]
State Gasoline Taxes: Built to Fail, But Fixable
February 9, 2017 • By Carl Davis
Every state levies taxes on gasoline and diesel fuel, usually just called "gas taxes." These taxes are an important source of state revenue--particularly for transportation--but their poor design has resulted in sluggish revenue growth that fails to keep pace with state infrastructure needs. This ITEP Policy Brief explains how state gas taxes work, their importance as a transportation revenue source, the problems confronting gas taxes, and the types of gas tax reforms that are needed to overcome these problems.
Lawmakers Should Not Use Disproven Trickle-Down Myth to Ramrod Tax Cuts for the Rich
February 8, 2017 • By Misha Hill
For more than four decades, supply-side ideologues have promoted the myth that tax cuts for the wealthy are self-financing and the benefits eventually trickle down to everyone else, despite real-life evidence that tax cuts for the rich benefit the rich. Not even the reality of 40 years of widening income inequality or the current economic […]
State Rundown 2/8: Lessons of Kansas Tax-Cut Disaster Taking Hold in Kansas, Still Lost on Some in Other States
February 8, 2017 • By ITEP Staff
This week we bring news of Kansas lawmakers attempting to fix ill-advised tax cuts that have wreaked havoc on the state’s budget and schools, while their counterparts in Nebraska and Idaho debate bills that would create similar problems for their own states, as well as tax cuts in Arkansas that were proven unaffordable within one […]
KPNG: It’s About Time for Tax Fairness
February 8, 2017
An analyst with the Institute on Taxation and Economic Policy in Washington, D.C., examined the net effect of Amazon collecting the 4.225 percent state sales tax, starting Feb. 1, in Missouri. He says this could mean $30 million to $34 million annually in new tax revenues, based on revenue generated in other states. Read more
The Denver Post: 19 states have raised gas taxes since 2013. In Colorado, Republicans want to cut them
February 8, 2017
“This is highly unusual, what’s being talked about in Colorado right now,” said Carl Davis, research director with the Institute on Taxation and Economic Policy. And it can largely be explained by one thing: TABOR. Read more
Bloomberg: Texas Prepares to Battle Its Sanctuary Cities
February 8, 2017
The Institute on Taxation and Economic Policy estimates that undocumented immigrants in Texas pay about $1.5 billion in state and local taxes. (Texas has no state income tax, but it has a 6.25 percent state sales and use tax.) Read more
Policy Matters Ohio: Kasich Budget Shifts Taxes Again
February 7, 2017
New analysis for Policy Matters Ohio by the Institute on Taxation & Economic Policy, a national nonprofit research institute with a sophisticated model of the state and local tax system, shows the governor’s tax plan raises taxes for many Ohioans. It reduces state income tax rates and cuts the number of brackets from nine to five.
ITEP Testimony Regarding Kansas Senate Bill 2237
February 7, 2017
ITEP analysis of Kansas tax changes enacted between 2012 and 2015 shows the state lost over $1 billion in revenue annually from changes to its personal income tax, including lowering income tax rates and exempting business pass-through income from taxation (see Figure 1). While the state subsequently made up some of these revenue losses through […]
ABC News: Without Immigrants, the U.S. Economy Would Be a Disaster
February 6, 2017
According to Meg Wiehe, the director of programs for the Institute on Taxation and Economic Policy, “Undocumented immigrants contributed more than $11.6 billion in state and local taxes each year. And if the estimated 11 million undocumented immigrants here were given a pathway to citizenship or legal residential status, those tax contributions could rise by […]
Dodging Tough Fiscal Decisions with State Tax Cut Triggers and Phase-Ins
February 6, 2017 • By Carl Davis
The most challenging problem that tax-cutting state lawmakers face is dealing with the budgetary tradeoffs that tax cuts require. Should education spending be reduced? Should investments in infrastructure be halted? Should the state cut back on transfers to local governments and require them to pick up the slack? Or should other taxes and fees be […]
American Prospect: Republican Governors, Trickle-Downers of the Week
February 3, 2017
In fact, most low- and middle-income residents already pay more in consumption taxes than they do in incomes taxes, according to a new report from the Institute on Taxation and Economic policy. When flat-tax rates are instituted, most taxpayers end up paying more while the upper brackets get a tax cut. Read more
Alternet: It’s Time to Take America’s Billionaire Class Head on
February 3, 2017
The result has been to make state and local taxes, on the whole, regressive. The share of income paid by the poorest 20 percent is twice that of the richest 1 percent. Unsurprisingly, the disparity is widest in states without an income tax. The Institute on Taxation and Economic Policy reports that Washington’s working class […]
Crain’s Detroit Business Journal: In bid to eliminate Michigan income tax, fears of another Kansas
February 3, 2017
Critics of these tax cuts note that states with no income tax tend to put a higher share of the tax burden on low-income residents. According to a 2015 report by the Institute on Taxation and Economic Policy, a nonpartisan research organization, five states with no income tax are ranked among the top 10 most […]
What to Watch in the States: Gas Tax Hikes and Swaps
February 2, 2017 • By Carl Davis
This is the second installment of our six part series on 2017 state tax trends. The introduction to this series is available here. State tax policy can be a divisive issue, but no area has generated more agreement among lawmakers across the country than the need to raise new revenues to fund infrastructure improvements. The […]
What to Watch in the States: Further Attempts to Weaken or Eliminate Progressive Taxes
February 2, 2017 • By Aidan Davis
This is the third installment of our six-part series on 2017 state tax trends. The introduction to this series is available here. As we described last week, many states are gearing up for challenging budget debates this year. But the need to address revenue shortfalls has not stopped lawmakers in many states from pursuing harmful […]
Maine Center for Economic Policy: Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s budget proposal
February 2, 2017
At a time when Maine families are falling out of the middle-class, when experienced workers need new skills to secure good paying jobs in a modern economy, and when state infrastructure is in need of improvement and expansion, the state budget presents an opportunity to solve shared problems and return our quality of life to […]
The Sycamore Institute: Tennessee State Budget Primer
February 2, 2017
It is our pleasure to present to you the Sycamore Institute’s first Tennessee State Budget Primer. We hope this report – the information, the graphics, and the discussion – will demonstrate our commitment to putting reliable data and research in the hands of our state leaders, policymakers, and the general public. Below you will find […]
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