Alabama
States Should Require Combined Reporting of Corporate Income
February 27, 2017 • By Dylan Grundman O'Neill
An important aspect of a 21st century tax code is ensuring that corporate income taxes are easy for corporations to follow, but not easy for them to avoid. As our newly updated policy brief on Combined Reporting of State Corporate Income Taxes explains, “combined reporting” remains an essential tool for states to achieve these goals. […]
This week saw a nearly successful attempt to right the fiscal ship in Kansas; regressive tax proposals introduced in WestVirginia, Georgia, and Missouri; ongoing gas tax fights in Indiana, South Carolina, and Tennessee; and further tax and budget wrangling in Illinois, New Mexico, Oklahoma, and beyond. — Meg Wiehe, ITEP State Policy Director, @megwiehe Both […]
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 […]
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 […]
This week’s Rundown brings news of tax cuts passed in Arkansas and advanced in Idaho, proposals to exempt feminine hygiene products from sales taxes in Nevada and Michigan, revenue shortfalls forcing tough choices in Louisiana and Maine, and more governors’ state of the state addresses and budget proposals setting the stage for yet more tax […]
Below is a list of notable resources for information on state taxes and revenues: Alabama Alabama Department of Revenue Alabama Department of Finance – Executive Budget Office Alabama Department of Revenue – Tax Incentives for Industry Alabama Legislative Fiscal Office Alaska Alaska Department of Revenue – Tax Division Alaska Office of Management & Budget Alaska […]
AL.com: In immigration debate, Trump and Clinton voters tussle over term ‘illegal immigrant’
January 14, 2017
“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 […]
Retail trade has been transformed by the Internet. As the popularity of "e-commerce" (that is, transactions conducted over the Internet) has grown, policymakers have engaged in a heated debate over how state and local sales taxes should be applied to these transactions. This debate is of critical importance for states as sales taxes comprise close to one-third of all state tax revenues and hundreds of billions of dollars in retail spending is now occurring online.
Yahoo! Finance: New Jersey just hiked its gas tax by 159%. Is your state next?
November 7, 2016
“Of course, New Jersey isn’t the only state that has or is toying with raising gasoline taxes. Georgia, Idaho, Iowa, Kentucky, Michigan, Nebraska, North Carolina, South Dakota, Utah, and Washington upped their gas taxes in 2015, notes the Institute on Taxation and Economic Policy. Louisiana, Tennessee, Alaska, Alabama and Minnesota are contemplating increases in 2017.” […]
CBS News: Is your state next to raise its gas tax?
October 14, 2016
“’There has been a lot of procrastination,’ said Carl Davis, research director of the Institute on Taxation and Economic Policy. ‘It’s an issue that the states cannot put off any longer. There are 21 states which have gone a decade or more since the last time they increased their gas tax rate. These states have […]
This report explains the workings, and problems, with state-level tax subsidies for private K-12 education. It also discusses how the Internal Revenue Service (IRS) has exacerbated some of these problems by allowing taxpayers to claim federal charitable deductions even on private school contributions that were not truly charitable in nature. Finally, an appendix to this report provides additional detail on the specific K-12 private school tax subsidies made available by each state.
Read this Policy Brief in PDF Form Map of State Treatment of Itemized Deductions Thirty-one states and the District of Columbia allow a group of income tax breaks known as “itemized deductions.” [1] Itemized deductions are designed to help defray a wide variety of personal expenditures that affect a taxpayer’s ability to pay taxes, including charitable […]
Higher Education Income Tax Deductions and Credits in the States
March 22, 2016 • By Carl Davis
Read full report in PDF Download detailed appendix with state-by-state information on deductions and credits (Excel) Every state levying a personal income tax offers at least one deduction or credit designed to defray the cost of higher education. In theory, these policies help families cope with rising tuition prices by incentivizing college savings or partially […]
USA Today: Study: 58,000 U.S. bridges found to be ‘structurally deficient’
February 22, 2016
“The Institute on Taxation and Economic Policy counts nine states seriously considering motor fuel tax increases: Alabama, Alaska, California, Hawaii, Indiana, Mississippi, Missouri, New Jersey, and South Carolina. “Most of the gas tax increases under discussion right now would help restore at least some of the purchasing power they lost while being frozen in time […]
American Press: Lawmakers examine income tax
February 22, 2016
“Three identical measures would allow voters to decide whether they want to eliminate the federal income tax deduction that is allowed on state income tax forms. The deduction is in the constitution. The change would raise $748 million annually, and the vote to decide the issue would take place Nov. 8. Only three states — […]
Birmingham Business Journal: How immigrants fit in to Alabama’s different employment sectors
December 22, 2015
“Data from The Institute on Taxation and Economic Policy , or ITEP, highlights that undocumented workers contributed $10.6 billion in state and local taxes in 2010, but this money could slowly be leaving some states who continue to fight the inclusion of undocumented immigrants.” Read more
Alabama ARISE: 6 things to know about the FICA deduction
October 21, 2015
The Alabama Legislature may consider removing the state FICA income tax deduction during this month’s second special session. Without significant new General Fund revenue, the state may make enormous cuts to Medicaid, child care, public safety and other vital services. Read full fact sheet here
The Spokesman Review: Idaho tax balance too much for GOP?
October 5, 2015
“At this point, you’ve got to wonder why anyone would still harp about cutting taxes in Idaho. For one thing, the state is hardly overtaxed. Whenever the State Tax Commission looks at tax burdens, it finds Idaho’s near the bottom. By one recent measure, the state is ranked 49th out of the 50 states and […]
Slate: Don’t Fall for Back-to-School Tax Holidays
August 14, 2015
If shoppers are simply shifting their spending to save on taxes, that means the states are losing revenue. That’s certainly the position of the Institute on Taxation and Economic Policy, a nonpartisan think tank that estimates the popular break will cost the states offering it $300 million this year. “Revenues lost through sales tax holidays […]
Decatur Daily: BP Settlement Doesn’t Change Need for Tax Reform
July 13, 2015
The fiscal 2016 budget shortfall has been inevitable since at least fiscal 2010. Rational tax reform would not increase taxes for most Alabamians. Low- and middle-income Alabamians pay more than twice as much of their income in overall state and local taxes as do those with the highest incomes, according to a study by the […]
Read this report in PDF form Introduction For years, academics and transportation experts have been discussing the possibility of taxing drivers for each mile they travel on the nation’s roads. This “vehicle miles traveled tax” (VMT tax) could either supplement or replace the existing gas tax as the primary method of funding transportation infrastructure. To […]
The Montgomery Advertiser: Flat Tax Flawed Approach That Pinches the Poor
May 6, 2015
ur state’s place in that ranking would be secured forever under Hightower’s bill, which effectively eliminates any threshold for income tax liability. Put simply, if you have any earnings at all, you’d be subject to the income tax. Who benefits from that? Certainly not lower-income Alabamians. More than half of Alabama families earning less than […]
Decatur Daily: Concerns raised about flat-tax bill; hearing today
May 1, 2015
Forrister said his group asked the Institute on Taxation and Economic Policy, a liberal non-profit, to examine Hightower’s proposal. “They found that the only income group that would pay more on average would be the bottom 20 percent, those making less than $18,000,” Forrister said. By contrast, the state’s highest earners — the top 1 […]
AL.com: Sen. Bernie Sanders, the latest presidential hopeful, issues dire warning to Alabama
May 1, 2015
“I’m sharing this data with you in the hope you can work with your Congressional delegation and other leaders in your state on behalf of a budget that works for all Americans,” Sanders wrote. The data came from the White House Office of Management and Budget, the Economic Policy Institute and the Institute on Taxation […]
