Institute on Taxation and Economic Policy

ITEP's Research Priorities

Hawaii Appleseed: State of Poverty 2016

April 15, 2016

“In April 2016, the Hawai‘i Appleseed Center for Law and Economic Justice released a report entitled “The State of Poverty in Hawai‘i: How Hawai‘i’s Residents Are Faring Post-Recovery.” The report brings together the most recent available data to provide a snapshot of how low-income residents have fared after the economic recovery.” Read more

Center on Budget and Policy Priorities: A Fiscal Policy Agenda for Stronger State Economies

April 15, 2016

“With most state legislatures now in session, policymakers are making fiscal policy decisions that will profoundly affect future economic opportunities in communities across the country.  States face a fundamental choice:  they can provide the resources required for public investment in schools, transportation, health care, safe communities, and other building blocks of economic growth, or go […]

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Distributional Analyses of Revenue Options for Alaska

April 13, 2016 • By Aidan Davis, Carl Davis

Alaskans are faced with a stark fiscal reality. Following the discovery of oil in the 1960s and 1970s, state lawmakers repealed their personal income tax and began funding government primarily through oil tax and royalty revenues. For decades, oil revenues filled roughly 90 percent of the state's general fund.

Policy Matters Ohio: Wealthy not paying fair share of state and local taxes

April 12, 2016

“State and local taxes support schools, fix potholes, keep the snow plowed, the justice system running and the water clean. Economic prosperity depends on these public services. The wealthiest families benefit amply from our communities and state. But are they paying their fair share for these benefits? New data says they are not.” Read more

North Carolina Budget and Tax Center: North Carolina’s “Tax Swap” Gives Biggest Breaks to the Wealthiest, Undermines Public Investments for All

April 11, 2016

“Efforts to rely more on the state sales tax and less on the income tax to support public services have shifted tax obligations to less affluent North Carolinians, while saving the wealthiest the most money, and reduced resources available for public investments that build a strong economy.” Read full report

Pennsylvania Budget and Policy Center: PA Should Raise Needed Revenues in Fair Ways: Short- and Long-term Approaches to Fixing Pennsylvania’s Unfair Tax System

April 11, 2016

  This briefing paper analyzes several options for raising revenue for the Pennsylvania state budget which would fall much less on middle- and low-income families than the existing Pennsylvania state and local tax system. We first analyze the income tax increase (from 3.07% to 3.4%) and expansion of income tax forgiveness and sales tax base […]

Iowa Policy Project: $8.9 million revenue boost with immigration reform

April 6, 2016

“A new report projects a 24 percent increase in state and local tax revenues from undocumented immigrants in Iowa if they were granted permanent legal residence.” Read full report

West Virginia Center on Budget and Policy: Your Guide to the State Budget

April 5, 2016

“The state budget directly affects everyone living in West Virginia. It is the one law that makes state government function. It defines how we plan to use our resources to do the things together that cannot be done alone, such as creating good schools for our children, protecting the environment, making our communities safe, making […]

Center for American Progress: 4 Reasons Why States Suing to Stop Immigration Actions Stand to Lose Big

March 28, 2016

“Unauthorized immigrants contribute enormous sums to state and local coffers through taxes: $11.64 billion annually, according to a new report by the Institute on Taxation and Economic Policy. Full implementation of the three deferred action initiatives would increase state and local tax contributions by unauthorized immigrants by an estimated $805 million each year.” Read full […]

Georgia Budget & Policy Institute: Lawmakers Wise to Reject Reckless Income Tax Measures

March 25, 2016

This year’s General Assembly produced no shortage of big debates, with subjects from religious exemptions to rape kits grabbing statewide and even national headlines. But beneath the surface lurked a serious threat to Georgia’s well-being that didn’t make it onto many front pages or the late night shows. A pair of tax-slashing proposals, House Bill […]

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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 […]

Connecticut Voices for Children: Revenue Options are Crucial to Maintaining Public Investments that Promote Prosperity

March 15, 2016

In confronting the financial crisis looming over state budget decisions, the common-sense choice for Connecticut should be a balanced approach that includes revenue, rather than a cuts-only approach that threatens an already fragile economic recovery. Read more

Georgia Budget & Policy Institute: Tax Breaks, Income Tax Cuts Could Harm Georgia Finances

March 1, 2016

A variety of tax bills await further consideration by state legislators as the Georgia General Assembly enters its final few weeks of the 2016 session. There are 11 tax bills affecting state revenues still alive after Crossover Day, the point where bills must clear at least one legislative chamber to have a good chance at […]

Maine Center for Economic Policy: When Budgets Unravel: Unlimited deductions will jeopardize schools and safety When Budgets Unravel: Unlimited deductions will jeopardize schools and safety

February 29, 2016

Read the full report here “Legislators passed a bipartisan budget last year that funds schools, communities, and programs that give a hand up to those most in need. The budget also cuts income taxes for 83% of Mainers and improves the overall fairness of Maine’s tax system by reducing property taxes for all homeowners and […]

Georgia Budget & Policy Institute: Senate Resolution 756 threatens to disrupt Georgia’s long-term finances

February 26, 2016

Senate Resolution 756 threatens to undermine Georgia’s ability to remain an attractive state for families and businesses. Passing the amendment creates a rigid formula in Georgia’s constitution that inflicts a series of never-ending automatic revenue cuts based on arbitrary targets. This formula is harmful to Georgia’s growth, especially if coupled with House Bill 238’s proposal […]

Georgia Budget & Policy Institute: Slashing Income Tax Delivers Meager Benefit to Most, Jeopardizes Public Services

February 26, 2016

Georgia lawmakers are considering a pair of proposals that offer a miniscule tax cut to the majority of Georgia families and a massive benefit to the highest-income individuals who need it least, while jeopardizing lawmakers’ ability to meet the needs of a rapidly growing state. The first plan, House Bill 238, calls for a series […]

Georgia Budget & Policy Institute: Sensible Reforms Can Boost Undocumented Immigrants’ Tax Contribution

February 25, 2016

Undocumented immigrants in Georgia pay a significant share of state and local taxes each year and providing those families a path to legal status can increase their tax payments even more. That’s the key takeaway from a new analysis from the nonprofit, nonpartisan Institute on Taxation and Economic Policy (ITEP), which takes a close look […]

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Undocumented Immigrants’ State & Local Tax Contributions (2016)

February 24, 2016 • By Lisa Christensen Gee, Meg Wiehe

This report was updated in March 2017 Read as a PDF. (Includes Full Appendix of State-by-State Data) Report Landing Page Public debates over federal immigration reform often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants particularly at the state level. The truth is that undocumented immigrants living in the United […]

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Tennessee Hall Tax Repeal Would Overwhelmingly Benefit the Wealthy, Raise Tennesseans’ Federal Tax Bills by $85 Million

February 23, 2016 • By Dylan Grundman O'Neill

Read PDF of report. Tennessee lawmakers are giving serious consideration to repealing their state’s “Hall Tax” on investment income (so named for the state senator who sponsored the legislation creating the tax more than eighty years ago).  But the Hall Tax is an important revenue source for both state and local governments, and is a […]

Fiscal Policy Institute: New York’s Regressive Tax Structure and the 1% Plan for Tax Fairness

February 17, 2016

Those in the wealthiest 1% are taking home the lion’s share of income gains, yet they nevertheless pay a smaller share of their income in combined state and local taxes than lower and middle-income families. New York households with incomes under $100,000 pay higher effective state and local tax rates, ranging from 10.4% to 12%, […]

North Carolina Tax and Justice Center: Prosperity Watch Issue 58, No. 3: State EITC allows working North Carolinians keep more of what they earn, boosts economy

February 17, 2016

  Low- and middle-income taxpayers in North Carolina pay a larger share of their income in state and local taxes than the wealthiest taxpayers in the state. This inequity in North Carolina’s tax code makes it difficult for working families to make ends meet and further challenges the state’s ability to invest in communities and […]

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Rewarding Work Through State Earned Income Tax Credits

February 11, 2016 • By Aidan Davis, Lisa Christensen Gee, Meg Wiehe

See the 2016 Updated Brief Here Read the brief in a PDF here.  that time, the EITC has been improved to lift and keep more working families out of poverty. The most recent improvements enhanced the credit for families with three or more children and for married couples. First enacted temporarily as part of the […]

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Tax Foundation Model Seeks to Revive Economic Voodoo

February 11, 2016 • By Carl Davis

In recent months, the Tax Foundation has used its Taxes and Growth Model (TAG Model) to estimate the impact that a variety of tax policy changes would have on the nation's economy--including tax plans proposed by current presidential candidates. The Tax Foundation describes the underlying "logic" of its TAG Model as being rooted in the assumption that "taxes have a major impact on economic growth." More specifically, the TAG Model has concluded that proposals to lower taxes for high-income individuals and businesses would dramatically grow the economy, and that proposals to raise taxes would significantly slow economic growth.

Missouri Budget Project: Earned Income Tax Credit: The Basics

February 10, 2016

“A Missouri EITC would boost local communities and economies while encouraging work, enhancing take-home pay, and improving long-term health and economic outcomes for more than 500,000 Missouri families. A Missouri EITC would give a much-needed break to Missourians struggling to get by on low wages. A state EITC would boost local communities and economies while […]

Hawai’i Appleseed Center for Law and Economic Justice: Cutting Taxes to Strengthen the Economy and Boost Hawai’i’s Families: A Refundable State Earned Income Tax Credit

February 10, 2016

“Building a stronger Hawai‘i for businesses and residents means creating more opportunities for working families to climb the economic ladder. The Earned Income Tax Credit (EITC) is a proven tool for fostering economic prosperity.” Read full report