Institute on Taxation and Economic Policy

ITEP's Research Priorities

Kentucky Center for Economic Policy: State EITC Would Make a Regressive Tax System Fairer

May 22, 2014

Previous posts have described how a state Earned Income Tax Credit (EITC) would help working low-income Kentuckians make ends meet and reach every corner of the state. A state EITC would also make the tax system fairer, as shown in a new report by the Institute on Taxation and Economic Policy (ITEP). Kentucky’s tax system […]

Louisiana Budget Project: Increasing EITC improves tax fairness, reduces poverty, invests in children

May 22, 2014

Efforts to modestly raise the minimum wage in Louisiana failed this legislative session — even though the wage isn’t high enough to keep a full-time worker with a child out of poverty. But some opponents of giving the lowest-paid workers a raise have suggested another pro-work, anti-poverty policy as an alternative: increasing the value of […]

Maine Center for Economic Policy: Statement at Hearing on L.D. 1664, An Act To Encourage Charitable Contributions to Nonprofit Organizations

May 22, 2014

Honorable Senator Haskell, Representative Goode, members of the Joint Standing Committee on Taxation, I am Garrett Martin, Executive Director of the Maine Center for Economic Policy (MECEP). I am here today to speak in opposition to LD 1664. Since 2011, Maine’s tax code has gotten less, not more, fair. Reductions to the top income tax […]

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STAMP is an Unsound Tool for Gauging the Economic Impact of Taxes

May 21, 2014 • By Carl Davis

The Beacon Hill Institute (BHI), a free-market think tank located at Suffolk University, frequently uses its State Tax Analysis Modeling Program (STAMP) to perform analyses purporting to show that lowering taxes, or not raising them, will benefit state economies. But STAMP suffers from a number of serious methodological problems and should not be relied upon by anybody seeking to under­stand the economic impacts of state tax policies.

Connecticut Voices for Children: Making Children Visible in Connecticut’s Tax Code

May 21, 2014

This issue brief from the Fiscal Policy Center at Connecticut Voices for Children identifies a feature of the Connecticut tax system that effectively penalizes households with children, relative to households without kids. Across the country, nearly all states that have enacted an income tax have also enacted some form of tax exemption, deduction or credit […]

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State Gasoline Taxes: Built to Fail, But Fixable

May 20, 2014 • By Carl Davis

An updated version of this brief was published on February 9, 2017.   Read this report in pdf. 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 […]

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The Federal Gas Tax: Long Overdue for Reform

May 20, 2014 • By Carl Davis

The federal gas tax is a critical source of funding for the nation's transportation system, but its design is fundamentally flawed. In recent years, the consequences of those flaws have become increasingly obvious, as the federal government has struggled to fund a 21st century transportation network with a gas tax that has predictably failed to keep pace with the nation's growing infrastructure needs. This ITEP Policy Brief explains how the federal gas tax works, its importance as a transportation revenue source, the problems confronting the gas tax, and the reforms that are needed to overcome these problems.

Connecticut Voices for Children: Pro-Family Tax Reform in Connecticut: A Roadmap for Improvement

May 16, 2014

This report from the Fiscal Policy Center at Connecticut Voices for Children compares Connecticut’s tax system to those of other states and finds: Connecticut is nearly alone among states in not making broad-based tax adjustments for families with dependent children.  More than half of states with an income tax (24 of 41 states) offset the […]

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Improving Tax Fairness with a State Earned Income Tax Credit

May 15, 2014 • By Meg Wiehe

The simplest, most effective, and most targeted way to begin to counteract regressive state tax codes is a refundable state Earned Income Tax Credit (EITC). Twenty-five states and the District of Columbia already have some version of a state EITC. Each one is modeled on the federal credit, making it easy for taxpayers to claim and simple for state tax officials to administer. This report explains how all states - even those who already have some form of the credit - can use the state EITC as a tool for improving the fairness of their state tax code.

The Missouri Budget Project: Senate-Approved Tax Scheme Would Cost Nearly $800 Million SB 509 Would Require Cuts to Critical Services

May 12, 2014

The Missouri Senate approved Senate Bill 509 this week. The measure would require sharp cuts to state services, undermining Missouri’s economy by starving it of the resources it needs to offer quality education from preschool to college, a state of the art infrastructure, and safe, healthy and stable communities. Moreover, the minor tax reduction for […]

Michigan League for Public Policy: Testimony to the Senate Finance Committee on SB 402

May 12, 2014

The Michigan League for Public Policy opposes Senate Bill 402. Across‐the‐board cuts in the state’s personal income tax will not create jobs or grow the economy in Michigan. They could, however, affect long-term prosperity by locking in cuts in funding for public schools, colleges and universities, and local communities—the very services and public structures that […]

Michigan League for Public Policy: Testimony to the House Tax Policy Committee on HB 5265-5267

May 12, 2014

The Michigan League for Public Policy opposes House Bills 5265, 5266, and 5267 because across-the-board cuts in the state’s personal income tax will not create jobs or grow Michigan’s economy. In fact, revenue reductions associated with income tax reductions could affect long-term prosperity by locking in cuts in funding for colleges and universities, local communities, […]

Michigan League for Public Policy: Slicing Up the Income Tax Cut Proposal

May 12, 2014

Proposals to roll back the personal income tax in Michigan will not create jobs or grow our economy and will disproportionately benefit the wealthiest taxpayers the most. In fact, most of the benefits of a cut in the state’s personal income tax from 4.25% to 3.9% would flow to Michigan’s wealthiest taxpayers, according to an […]

Georgia Budget & Policy Institute: Georgia Lawmakers Still Flirting With Dangerous Tax Shift Ideas

May 12, 2014

The debate over changing Georgia’s tax system is quieter than usual at the Georgia General Assembly this year. Still, some efforts are afoot to push Georgia in a radical tax direction over time. Two resolutions gaining traction would put new tax restrictions in the state constitution. Senate Resolutions 412 and 415, sponsored by Senate Pro […]

DC Fiscal Policy Institute: Making DC’s Tax System Fair: Progress in the 2015 Budget

May 12, 2014

Most DC residents — like most Americans — agree that income tax rates should be graduated by income. Low-income households should pay the lowest rate, so that there is an incentive to work and they can support their basic needs. This kind of progressive approach also means tax rates get higher as incomes rise and […]

North Carolina Justice Center: Raising the Bar in the Budget Debate

May 9, 2014

The Legislature’s upcoming budget debate is an opportunity to change the state’s direction and ensure a stronger recovery from the Great Recession. To do so, policymakers must make the critical investments needed to alleviate the economic struggles of North Carolina families, create pathways to the middle class, and strengthen communities across the state. Read the […]

D.C. Tax Revision Commission: Final Report

May 8, 2014

On Dec. 18, 2013, the D.C. Tax Revision Commission unanimously approved a set of recommendations designed to improve the District’s tax system and help its residents and businesses prosper.The Commission’s recommendations are a roadmap to a more fair, competitive, and efficient tax system. Read the Full Report

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Gas Tax Hits Rock Bottom in Ten States

May 8, 2014 • By Carl Davis

In most states, the gasoline tax is set at a fixed number of cents per gallon of gas. South Carolina drivers, for example, have been paying 16 cents per gallon in state tax for more than a quarter century.1 But while this type of fixed-rate gas tax may appear to be flat over time, its lack of change in the face of inflation means that its "real" value, or purchasing power, is steadily declining. In ten states, this decline has brought the state's inflation-adjusted gas tax rate to its lowest level in the state's history.

Policy Matters Ohio: Income-Tax Repeal – A Bad Deal for Ohio

April 28, 2014

Repealing the Ohio income tax would blow an enormous hole in the state budget. It would have to be paid for with gigantic budget cuts or major increases in other taxes. Read the Full Report

Maryland Center on Economic Policy: Tax Day: What Do We Pay For, and Who Pays?

April 28, 2014

Tax Day is a good day to remind ourselves that taxes allow our state to make investments that benefit our economy and all Maryland’s residents, and that we must continue to work to make our tax code fairer. Read the Full Report

Oregon Center for Public Policy: Tax Facts That Matter – 2014 Edition

April 15, 2014

Tax Facts That Matter – 2014 Edition Read the Full Report

Kansas Center for Economic Growth: Kansas Taxes in 2013 – Who Pays?

April 15, 2014

The tax cuts in Kansas disproportionately affect our poorest residents. While the wealthiest Kansans take home enough money to purchase more than 14,000 loaves of bread, low-income families OWE more taxes, which means 125 fewer loaves of bread for them. Read the Full Report

Montana Budget & Policy Center: Montana’s Tax System – How Do We Stack Up?

April 15, 2014

On Tax Day, we all spend some extra time thinking about how much we pay in taxes. Even more so for low- and middle-income families, who contribute a larger share of their income than high income people do. The difference is significant – Montana low-income families pay 6.4% of their income in taxes, compared to […]

Pennsylvania Budget and Policy Center: What Our Taxes Support and Why We Need to Close Loopholes

April 15, 2014

With the deadline for filing state and federal tax returns upon us, the Pennsylvania Budget and Policy Center has put together the following resources to help you understand what your tax dollars support and why it is so important that we close corporate tax loopholes at the state and federal level. Read the Full Report

Oklahoma Policy Institute: 5 things you should know about Oklahoma taxes

April 15, 2014

It’s tax day — the annual event when procrastinators, or those who just like to live on the edge, rush to get their tax returns filed before the midnight deadline. If your return is safely filed, or if you just want another excuse to procrastinate, here are 5 things in 5 charts that everyone should […]