Institute on Taxation and Economic Policy (ITEP)

Arizona

Conforming to the ‘No Tax on Tips’ Gimmick Just Got Riskier and Costlier for States

An unknown number of workers who previously were assumed to be ineligible for the tax break may nonetheless claim it.

State Rundown 11/24: States Say ‘No Thank You’ to Federal Tax Cuts Reducing State Revenue

Lawmakers in two more states have wisely said “no thank you” to federal tax cuts that would have flowed through to their state tax codes and undermined funding for their priorities

State Rundown 11/5: Voters Say “Yes!” to Public Investments

Despite being an off-year election, voters made a call for shared public investments at the polls.

report  

The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy

October 30, 2025 • By Sarah Austin, Carl Davis

The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy

Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.

report  

The Potential of Local Child Tax Credits to Reduce Child Poverty

October 8, 2025 • By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson

The Potential of Local Child Tax Credits to Reduce Child Poverty

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

State Child Tax Credits Boosted Financial Security for Families and Children in 2025

Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.

Colorado Lawmakers Help Fill Trump-Induced Shortfall by Tackling Offshore Corporate Tax Avoidance 

As the Trump megabill blows holes in state budgets, Colorado is leading with reforms to curb offshore tax avoidance and roll back wasteful corporate subsidies.

State Rundown 7/24: States Begin Preparing for Federal Megabill Fallout

All eyes in statehouses in recent weeks have been on federal budget negotiations, and now that the “megabill” has passed, they are focused in on their own budgets in search of ways to cope with the enormous consequences coming their way. All states will see fewer federal dollars flowing through their coffers, higher needs due […]

brief  

States Should Move Quickly to Chart Their Own Course on SALT Deductions

July 17, 2025 • By Dylan Grundman O'Neill, Nick Johnson

States Should Move Quickly to Chart Their Own Course on SALT Deductions

While a federal SALT cap is hotly debated, capping deductibility at $10,000 was an unambiguously good idea at the state level. States would be smart to stick with the current cap or, better yet, go even farther and repeal SALT deductions outright. Going along with a higher federal SALT cap would double down on a regressive tax cut that will mostly benefit a small number of relatively wealthy state residents and cost states significant revenue.