Institute on Taxation and Economic Policy (ITEP)
1,134 posts

Oregon Center for Public Policy: The Misguided “Small Business Tax Cut”

• By ITEP Staff

The desire to help small business owners is understandable, as they are an important component of our economy and communities. However, the granting of preferential tax treatment for people reporting “business income,” as some lawmakers are considering under a banner of “helping small business,” is a terribly misguided idea. Read the Full Report

Oklahoma Policy Institute: Speak out against irresponsible tax cuts

• By ITEP Staff

An income tax cut deal has been reached between Governor Fallin and Legislative leadership. The proposal is moving through the Legislature as HB 2032. This fact sheet explains what’s in the latest deal and how it will affect Oklahomans. Read the Full Report

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5% Cut in Indiana’s Income Tax is Stacked in Favor of the Wealthy

• By Carl Davis

Indiana Governor Mike Pence and the state's legislative leaders recently announced a budget agreement that, among other things, phases the state's flat personal income tax rate down from 3.4 percent to 3.23 percent by 2017.

Policy Matters Ohio: Income-tax cut would favor affluent Ohioans- Middle-income residents on average would get $51 a year

• By ITEP Staff

Since the 21-percent reduction in state income taxes approved in 2005, Ohio’s economy has underperformed the nation. There is little reason to believe that another round of income-tax cuts will produce a different result.Read the Full Report

Center on Budget and Policy Priorities: Strategies to Address the State Tax Volatility Problem

• By ITEP Staff

State revenues plummet in recessions, just when states can least afford the loss.  Some proposals to address this flaw in state tax systems would change the systems’ structure — for instance, by replacing state personal income taxes with sales taxes — but wouldn’t solve the problem and would exacerbate others in state tax systems.  States […]

Minnesota Budget Project: Tax Increases Don’t Prompt High-Income Households to Move Out of State

• By ITEP Staff

As Minnesotans debate an income tax increase on the highest-income households, they should do so knowing that a large and growing body of economic research makes it clear that such factors as job opportunities, housing costs, climate and being close to family are much more often behind moves from state to state – not changes […]

North Carolina Justice Center: Profiles in corporate tax avoidance- Duke Energy

• By ITEP Staff

Duke Energy at a glance Largest electric power holding company in the U.S.; serves vast majority of NC electric consumers Assets: $114 billion 2012 Profits: $1.792 billion Net 2012 tax rate: -2.6% (rebate of $46 million) 2008-12 profits combine: $9.1 billion Net 2008-12 tax rate: -3.3% ($299 million in total rebates) Read the Full Report

North Carolina Justice Center: Profiles in corporate tax avoidance- Merck

• By ITEP Staff

Merck & Co. at a glance One of the largest pharmaceutical companies in the world; key player in global vaccine production and distribution. 2012 Sales: $14 billion 2012 Assets: Total assets of the Merck Group—$28.3 billion Total Profits 2008-12: $19.6 billion Profits held offshore: $53.4 billion as of 2012 ($22.2 billion added betweem 2008 and […]

California Budget Project: Who Pays Taxes In California?

• By ITEP Staff

Former Supreme Court Justice Oliver Wendell Holmes once noted that “Taxes are what we pay for civilized society.” State and local taxes support our public schools, colleges, and universities; streets and highways; public hospitals that form the backbone of the state’s trauma care system; parks and beaches; the public health infrastructure that ensures that our […]

The Commonwealth Institute: Destination Unknown

• By ITEP Staff

Navigating Virginia’s New Transportation Funding Package – and Potential Potholes The final transportation package passed by the General Assembly raises a lot of money for our roads, bridges and mass transit– but it creates some problems, too. The final legislation (HB2313) makes far-reaching changes in the way transportation is funded in Virginia. Among the key […]

Policy Matters Ohio: Sales-tax credit would help low-income Ohioans

• By ITEP Staff

Gov. John Kasich’s proposal to broaden the sales tax may not survive, or it could be scaled back. Legislators should consider a sales-tax credit anyway, because the existing sales tax helps slant our current state and local tax system against low- and moderate-income taxpayers. Read the Full Report

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Indiana Senate’s Income Tax Cut: Just as Lopsided as the Governor’s

• By Carl Davis

The Indiana Senate Appropriations Committee recently approved a budget cutting the state's personal income tax rate from 3.4 percent to 3.3 percent beginning in 2015. Although this proposal costs less than one-third the amount of Governor Pence's preferred cut (which would take the rate down to 3.06 percent), it would still reduce state revenues by roughly $150 million each year.

North Carolina Justice Center: First Comprehensive Tax Legislation Would Not Protect Low- and Middle-Income Taxpayers from Tax Increases

• By ITEP Staff

80 percent of taxpayers would see slightly higher taxes under the first comprehensive tax legislation introduced this legislative session, while the top 1 percent of earners would get a tax cut. The proposal threatens to erode resources for schools, health care and other services North Carolina needs to be economically competitive. The proposal (Senate Bill […]

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Kansas House and Senate Proposals Set the Stage for Tax Hikes on Poor and Middle-Income Families

• By Meg Wiehe

Earlier this year, Kansas Governor Sam Brownback proposed another round of personal income tax cuts (on top of those he signed into law last year).1 The House and Senate each responded with their own tax cut plans and are expected to reconcile their differences this week. To date, much attention has been given to the major difference between the House and Senate plans -- the Senate bill includes permanently preserving a sales tax rate hike…

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Governor Jindal’s Tax Plan Would Increase Taxes on Poorest 60 Percent of Louisianans

• By Meg Wiehe

In recent weeks, Louisiana Governor Bobby Jindal has released many details of the tax plan he first sketched out in January. The Governor proposes a revenue-neutral "tax swap" that would repeal all state income taxes and increase the state's sales tax among other changes. A new ITEP analysis of the Governor's plan shows that, if fully implemented in 2013, the plan would increase taxes on the poorest sixty percent of Louisianans overall, while providing large…

Arkansas Advocates for Children and Families: Benefits of HB 1585 go mostly to wealthy

• By ITEP Staff

According to an analysis by the Institute on Taxation and Economic Policy (ITEP), House Bill 1585 would target personal income tax relief to Arkansas taxpayers who make over $155,000 per year (the top five percent of earners). This group would receive one-half (50 percent) of the total benefits resulting from the tax cut. That’s compared […]

North Carolina Jusice Center: North Carolina’s Business Tax Deduction – Who Benefits?

• By ITEP Staff

In the 2011 budget, the North Carolina General Assembly created a deduction for the first $50,000 in non-passive income for businesses filing through the personal income tax. Proponents of the temporary tax break intended it to provide tax relief to small businesses and support job creation. However, in recent months there has been considerable debate […]

Public Assets Institute: Vermont Has Options to Raise Revenue for Smart Investments

• By ITEP Staff

Gov. Peter Shumlin has the right idea when he says we should invest in expanding the availability of child care for working Vermonters. However, it just doesn’t make sense to take money from low-wage working families to pay for this initiative. Other changes to Vermont’s income tax code could produce about as much revenue as […]

Utah Foundation: Fueling Our Future, 2013-2040

• By ITEP Staff

Policy Options to Address Utah’s Future Transportation Needs Funding Utah’s transportation needs is a significant economic and fiscal challenge for state policymakers. Over the next three decades, Utah’s population is set to increase by over 60% from 2.8 million to 4.5 million.1 Coupled with this signifi cant growth is the possibility of an increase in […]

Louisiana Budget Project: Eliminating Louisiana’s Income Taxes Will Hurt the State’s Economy

• By ITEP Staff

Gov. Bobby Jindal’s plan to abolish Louisiana’s income taxes is based on a flawed economic analysis and is likely to hurt the state’s economy rather than boost it, according to a new report by the Louisiana Budget Project. Read the Full Report

Policy Matters Ohio: Small Investment, Big Difference

• By ITEP Staff

If Ohio is going to broaden the tax base, the state should adopt a state Earned Income Tax Credit (EITC), as 25 states (including the District of Columbia) have done. It is good policy at any time, especially when legislators are considering raising taxes on those least able to pay. An EITC not only helps […]

Massachusetts Budget and Policy Center: Effects of Raising Rates and Exemptions on the State Income Tax

• By ITEP Staff

This Facts At A Glance updates MassBudget’s analysis of a reform option that would make changes to the way the Commonwealth taxes wage and salary income as well as investment income. The Department of Revenue (DOR) recently examined this reform option and estimated that the proposal’s combined changes would generate between $1.99 billion and $2.11 […]

Massachusetts Budget and Policy Center: Examining Tax Fairness

• By ITEP Staff

Taxes are the primary way we pay for the things that we do together through government. These include things like police and fire protection; public education; roads, bridges and public transportation; a safety net for when people face hard times; and more. Determining how much people at different income levels pay in taxes is important […]

Massachusetts Budget and Policy Center: Possible Reforms to the Governor’s Tax Plan

• By ITEP Staff

In his FY 2014 budget, the Governor proposes making significant new investments in education and transportation, as well as limiting cuts to other program areas. He proposes paying for these investments with a tax increase, one that would raise an estimated $1.9 billion in new, annual revenue and would do so in a progressive manner […]

Missouri Budget Project: Racing to the Bottom

• By ITEP Staff

Senate Gives Initial Approval to Extreme Tax Cut Bill Which Would Devastate Missouri Services, Infrastructure, and the State’s Economy An extreme tax cut proposal, perfected this week by the Missouri Senate would slash Missouri’s general revenue budget by nearly $1 billion when fully implemented, resulting in devastating cuts to services throughout the state. Further, the […]