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  • report   January 25, 2017

    Alaska’s Motor Fuel Tax: A National and Historical Outlier

    Alaska Gov. Bill Walker recently proposed tripling his state’s motor fuel tax rates.[1] While a variety of fuel types would be affected by this proposal, three-fourths (or $60 million) of the revenue raised each year would come from higher taxes on gasoline and diesel fuel–sometimes referred to as highway fuels–purchased by Alaska motorists.

    Absent any national or historical context, tripling Alaska’s gasoline and diesel fuel tax rates may sound like a radical policy change. But an adjustment of this size is necessary because Alaska lawmakers have not updated the state’s basic highway fuel tax rate since May 1970–almost 47 years ago.[2] Because of this inaction, Alaska’s highway fuel tax has become an outlier when compared to other states’ tax rates, or when compared to Alaska’s own history.

    This brief discusses four ways in which Alaska’s highway fuel tax is an outlier:

  • blog   January 19, 2017

    Tax Justice Digest: Kansas again, state budget woes, and corporate tax cuts

    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…
  • ITEP Work in Action   January 19, 2017

    Policy Matters Ohio: Flat tax would mean more taxes for most

      Nearly three-quarters of Ohioans would pay more in state income taxes under flat-rate tax plans for which a joint legislative commission is developing an implementation plan. At the same…
  • ITEP Work in Action   January 19, 2017

    Maine Center for Economic Policy Releases Findings Related to Distributional Impacts of Governor LePage’s Budget Proposal

      MECEP finds that Governor LePage’s budget proposal includes an upside down tax plan that will lead to the following outcomes: Taxes will go up on average for Maine families…
  • blog   January 18, 2017

    Trump Plan to Give Billions in Tax Breaks to Multinational Corporations May Have Bipartisan Support

    There are a lot of troubling components of the tax reform packages being proposed by President-Elect Donald Trump and the House GOP, but one that especially stands out is the…
  • report   January 18, 2017

    Multinational Corporations Would Receive Half a Trillion in Tax Breaks from Trump’s Repatriation Tax Proposal

    One of the central questions for lawmakers looking to reform the federal tax code this year is how to address the $2.5 trillion in earnings that U.S. companies are holding offshore to avoid taxes. Lawmakers on both sides of the aisle have supported proposals that would either require or allow companies to repatriate these earnings to the United States at a discounted tax rate. These proposals have ranged from letting companies repatriate their earnings tax-free to requiring them to immediately pay a discounted rate of 20 percent. All of the proposals would give corporations a substantial tax discount and forego much-needed revenue.

  • news release   January 18, 2017

    Trump/Congressional Tax Holiday Would Net $514 Billion Corporate Tax Break

    Fortune 500 corporations stand to reap $514 billion in tax breaks under President-elect Trump’s proposal to allow companies to pay only a 10 percent tax rate on offshore profits. And the 10 firms that have most aggressively shifted their profits offshore would glean fully 25 percent of this massive corporate tax break, the Institute on Taxation and Economic Policy (ITEP) said today.

  • blog   January 17, 2017

    Congress Shouldn’t Defy Public Opinion and Good Policy by Cutting Taxes for Corporations and the Wealthy

    Members of Congress have floated fundamental changes to the tax code for years, but last week marked a ramping up of these efforts as Republican Speaker of the House Paul…
  • blog   January 17, 2017

    State of Play: The Coming Debate Over the Ryan and Trump Tax Plans

    If the incoming Trump Administration and Republican-lead Congress have their way, fundamental changes to the tax code are afoot. The most important similarity between the Ryan and Trump tax plans…
  • brief   January 17, 2017

    Most Americans Live in States with Variable-Rate Gas Taxes

    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 own gas tax rates.

  • brief   January 17, 2017

    How Long Has It Been Since Your State Raised Its Gas Tax?

    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.

  • ITEP Work in Action   January 10, 2017

    The Economic Progress Institute: Rhode Island Standard of Need

      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…
  • ITEP Work in Action   January 10, 2017

    Third and State: Undocumented Immigrants Already Paying Billions in State/Local Taxes

    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…
  • ITEP Work in Action   January 10, 2017

    Pennsylvania Budget and Policy Center: Who Pays For An Increase in the PIT to 4% on Income From Wealth

    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…
  • ITEP Work in Action   January 10, 2017

    Oklahoma Policy Institute: Private school tax subsidy blurs the line between charitable gift and money laundering

    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…
  • ITEP Work in Action   January 10, 2017

    Oklahoma Policy Institute: The tax shift rears its head

      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…
  • ITEP Work in Action   January 10, 2017

    Maryland Center for Economic Policy:To Support a Strong Economy, All Marylanders Must Pay Their Fair Share in Taxes

      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”…
  • ITEP Work in Action   January 10, 2017

    Kentucky Center for Economic Policy: A Preview of the 2016-2018 Kentucky State Budget

      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…
  • ITEP Work in Action   January 10, 2017

    Kentucky Center for Economic Policy: 2016 Kentucky Budget Primer

      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,…
  • ITEP Work in Action   January 10, 2017

    Kentucky Center for Economic Policy: Inheritance Tax Repeal Is Giveaway to the Top Kentucky Can’t Afford

      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…
  • ITEP Work in Action   January 10, 2017

    Iowa Fiscal Partnership: Understanding Iowa Taxes

    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…
  • ITEP Work in Action   January 9, 2017

    Indiana Institute for Working Families: Tax Rate Cuts to Offset Gas and Cigarette Tax Increases? There are Better Ways

      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…
  • ITEP Work in Action   January 9, 2017

    Voices for Illinois Children: Fair Tax Bill Introduced

    Representative Lou Lang introduced a fair tax rate structure (House Bill 689), which would provide over 99% of income taxpayers with a tax cut while raising $1.9 billion to prevent…
  • ITEP Work in Action   January 9, 2017

    Connecticut Voices for Children: Impact of the Final FY 2017 Budget on Children and Families

    “Following hundreds of millions of dollars in budget cuts in Fiscal Year 2016, Connecticut policymakers tackled the nearly $1 billion budget deficit in Fiscal Year 2017 (FY 17) by adopting…
  • ITEP Work in Action   January 9, 2017

    California Budget & Policy Center: Should California Maintain Higher Taxes on the Wealthiest to Fund Education, Health Care, and Other Services?

    “Proposition 30, approved by voters in 2012, provided critical revenues to California at a time when the state faced daunting budgetary challenges. Prop. 30’s tax rate increases are scheduled to…
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