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

Missouri Budget Project: Senate Ways & Means Tax Cut Would Devastate Services, Infrastructure, and Economy

• By ITEP Staff

An extreme tax cut proposal approved by a Senate Committee this week would slash MO’s general revenue by more than one-fifth, resulting in devastating cuts to services throughout the state and undermining Missouri’s ability to invest in the very services that make it attractive to business. MBP’s latest report outlines the bill and its impact […]

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States with “High Rate” Income Taxes are Still Outperforming No-Tax States

• By Carl Davis

Lawmakers in about a dozen states are giving serious consideration to either cutting or eliminating their state personal income taxes. In each case, these proposals are being touted as a way to boost economic growth.

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Laffer’s New Job Growth Factoid is All Rhetoric and No Substance

• By Carl Davis

A new talking point printed on the opinion page of The Wall Street Journal is proving irresistible to state lawmakers looking for an excuse to reduce or eliminate their states' income taxes: A new analysis by economist Art Laffer for the American Legislative Exchange Council finds that, from 2002 to 2012, 62% of the three million net new jobs in America were created in the nine states without an income tax, though these states account…

Oklahoma Policy Institute: What’s unaffordable?

• By ITEP Staff

The Governor’s assertion that extending Medicaid is unaffordable to Oklahoma is unconvincing in at least two respects. First, the study on which she bases her cost estimates makes clear that extending Medicaid would have a very modest fiscal cost to the state and would bring in over twelve new federal dollars for every additional dollar […]

The Commonwealth Institute: Senate’s Version of HB2313 Still Lacks Offsetting Relief Measures

• By ITEP Staff

While the Senate’s version of Governor McDonnell’s transportation bill looks very different from the bill passed by the House – and it is – the two versions have one major problem in common: they rely on regressive tax increases that will have low-income Virginians paying a greater share of their income towards funding transportation. As […]

Oklahoma Policy Institute: Governor Fallin’s tax cut would do little to nothing for the average Oklahoman

• By ITEP Staff

In her State of the State address, Governor Fallin unveiled yet another proposal to cut Oklahoma’s income tax. Her plan is drastically scaled back from last year’s proposal, which attempted to stretch out Oklahoma’s tax brackets, cut the top rate in half, and eliminate dozen of tax credits, exemptions, and deductions. This year, the Governor […]

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IDACorp– Biggest Winner Under Property Tax Plan– Pays Nothing in State Income Taxes

• By Carl Davis

Idaho Governor Butch Otter and the state legislature are seriously considering repealing the personal property tax on business equipment. The governor claims that repealing the tax would help the state's economy, but says that he is "painfully aware" that repeal would dramatically cut into the revenues that many local governments depend on to provide public services. 1 The tax generates $141 million in revenue every year for cities, counties, and public schools. As a result,…

Policy Matters Ohio: Kasich tax proposal would further tilt tax system in favor of Ohio’s affluent

• By ITEP Staff

Income tax cuts will increase inequality in Ohio and do little for our economy. The Kasich administration proposal to broaden the sales tax base, if done carefully, is helpful because our economy has shifted to services, many of which have been untaxed. However, this will disproportionately affect low- and middle-income Ohioans, so steps should be […]

Open Sky Policy Institute: 80 percent of Nebraskans would see tax increases if income taxes are cut

• By ITEP Staff

A move to cut income taxes in favor of higher sales taxes will lead to tax increases for 80 percent of Nebraskans, a report by the OpenSky Policy Institute shows. “State economies flourish when policies are enacted that strengthen the middle class. LB 405 and LB 406 don’t work in that way,” said Renee Fry, […]

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Kansas Governor’s New Plan Increases Taxes on Poor Yet Slashes Revenue by $340 Million

• By Meg Wiehe

Kansas Governor Sam Brownback proposed, for the second straight year, major tax changes during his State of the State speech. These new changes include lowering the tax rates to 1.9 and 3.5 percent, eliminating itemized deductions for mortgage interest and property taxes paid, and raising the sales tax.

Voices for Utah Children: Analysis of a Three-Part Proposal to Reform Utah’s Sales Tax

• By ITEP Staff

A proposal that will be discussed during the 2013 General Session would return Utah’s state sales tax on groceries to the general sales tax rate, while offering two kinds of tax credits to mitigate the negative impacts on vulnerable households. A detailed economic analysis from the Institute on Taxation and Economic Policy (ITEP), a non-partisan […]

Georgia Budget and Policy Institute: Menu of Revenue Options to Pave Way for Georgia’s Rebound

• By ITEP Staff

Georgia is one of the most under-funded states in the country, but state lawmakers can remedy structural budget shortfalls by implementing revenue options used successfully by other states. Annual deep cuts in state funding the past five years means fewer teachers in Georgia’s classrooms, roads and bridges that continue to crumble and an unappealing environment […]

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More Inaccuracies, Bigger Omissions: Arthur Laffer’s Newest Study of Income Tax Repeal Falls Short

• By Carl Davis

Arthur Laffer's consulting firm--Arduin, Laffer & Moore Econometrics (ALME)--has released a report purporting to show that North Carolina could usher in an economic boom if it repeals its personal and corporate income taxes and replaces them primarily with a much larger sales tax. Prepared for the Civitas Institute, "More Jobs, Bigger Paychecks" relies on an economic analysis that is fundamentally flawed to the point of making it entirely useless.

North Carolina Justice Center: A “Laffable” Plan for Tax Reform

• By ITEP Staff

EXECUTIVE SUMMARY This tax plan, if implemented, will provide the wealthiest 20 percent of taxpayers a significant tax cut, which would be paid for by increasing taxes on 60 percent of the state’s taxpayers, primarily middle- and low-income taxpayers. The plan eliminates the personal income, corporate income and franchise taxes, which, combined, generate $12 billion […]

The Commonwealth Institute: Governor’s Transportation Tax Hike Hits Low-Income Virginians Hardest

• By ITEP Staff

The tax and fee hikes proposed by Governor McDonnell to fund transportation will take a far larger share of income from Virginians at the low end of the income spectrum than those with higher incomes who are better able to pay. The governor proposes to increase the state sales tax to 5.8 percent, eliminate the […]

Tennesseans for Fair Taxation: Tax Modernization & Economic Stimulus Act

• By ITEP Staff

This plan will provide much needed tax breaks to 60% of Tennesseans, those low- and middle-income families most likely to put that money back into the local economy. For example:     -A family of four making $20,000 will save over $550 per year.    -A family of four making $35,000 will save over $700 per year.    […]

Oregon Center for Public Policy: No Special Treatment: Seven Reasons Why Oregon Should Not Reduce or Eliminate the Income Tax on Capital Gains

• By ITEP Staff

This issue brief examines seven reasons why giving special treatment to income from capital gains is a terrible idea: it would not stimulate additional economic growth, it would not attract much venture capital, it would waste millions chasing after the few Oregonians who move to Washington to avoid Oregon income taxes, it would mainly benefit […]

Mississippi Economic Policy Center: Investing for Growth, Enhancing Our Prospects: Tax Reform in Mississippi

• By ITEP Staff

In any given year, the state of Mississippi and its residents accomplish a lot. Through the collective investment of our tax dollars, we maintain over 10,000 miles of roads, help educate more than 800,000 children and adults from kindergarten to university and support more than 7,000 law enforcement officers in our local communities. With tax […]

Indiana Association for Community Economic Development: Indiana Property Taxes: Is Property Tax Relief or Tax Restructuring the Solution?

• By ITEP Staff

Many Indiana communities are once again experiencing what is perceived to be a property tax “crisis.” However, by its most common definition, a crisis implies a situation that is characterized by unexpectedness and sudden change. Although the drastic increase in property tax bills is sudden for many homeowners, the implementation of Indiana’s property tax assessment […]

Center for Tax and Budget Accountability: Issue Brief: Why Taxation in Illinois is Unfair

• By ITEP Staff

Tax policy is by its nature a contentious subject. In the end, individuals pay different proportions of their incomes in taxes to fund public services and a completely different matrix of individuals used those services. Given this dichotomy, establishing a definition of what constitutes the most fair way to levy taxes that is acceptable to […]

Center for Tax and Budget Accountability: Citizens Guide to the Illinois State Budget & Tax System

• By ITEP Staff

The Illinois State Budget is the state’s fundamental policy document. It defines what programs and services will receive financial support from the state. In a standard, non-overtime legislative year, Illinois adopts its budget on a fiscal year basis, beginning on July 1 of each calendar year and ending on June 31 of the next succeeding […]

New Jersey Policy Perspective: Gas Tax Talk Leads Down the Right Road

• By ITEP Staff

In the wake of restructuring proposals made by Governor Corzine, the gasoline tax is starting to be talked about as part of a solution to New Jersey’s financial crisis. This is a welcome development. For too long, New Jersey has shied away from greater use of gas taxes and other driving-related fees, to the detriment […]

Iowa Fiscal Partnership: Putting Fairness First: Questions for Financing State and Local Government in Iowa

• By ITEP Staff

As state legislators close out the 2008 legislative session and confront the tasks of maintaining commitments and investing in Iowa’s future, they will have to deal with a basic question: How is the budget gap to be financed? Each financing decision has a different set of consequences for Iowans at different income levels. This means […]

Economic Opportunity Institute: Fairer Taxes for Washington: Taxing High Incomes to Reduce Regressive Taxes and Improve Public Services

• By ITEP Staff

Washington State’s seventy year-old tax structure is built on an ever-shrinking base, and taxes fall most heavily on those least able to afford them. This discussion brief outlines options for a limited tax on the highest income households, coupled with a reduction in sales or property tax. The result would be a fairer tax system […]

Policy Matters Ohio: A Step Toward Fiscal Balance? Options for Ohio’s Income Tax

• By ITEP Staff

In the spring of 2008, Ohio’s state government finds itself in familiar territory – facing a budget shortfall because of an inadequate revenue system and a slowing economy. Despite the worsening economic outlook, state policy makers refuse to consider revenue-raising alternatives and are committed to allowing a scheduled cut in income tax rates to take […]