Institute on Taxation and Economic Policy

ITEP's Research Priorities

Florida Center for Fiscal and Economic Policy: Poverty Rises in Florida While the State’s Tax System Benefits the Wealthy

January 14, 2013

The number of Floridians living below the federal poverty level increased between 2007 and 2009 by almost 550,000 – equal to the population of the cities of Orlando and Tampa combined. New U.S. Census figures show about 2.7 million Floridians, or 14.9 percent, lived in poverty in 2009, a sharp rise over 2007’s 12.1 percent. […]

Florida Center for Fiscal and Economic Policy: Unbalancing Florida’s Tax System: Eliminating Taxes on Wealth Has Shifted the Burden to Other Floridians

January 14, 2013

Florida’s state tax structure has become even more heavily weighted against the poor and middle class, even as the numbers of poor and near-poor Floridians increase and the share of income held by the wealthy continues to rise.1 Choices made by state political leaders and Congress in the last decade have made Florida’s tax structure […]

South Dakota Budget and Policy Project: South Dakota Budget Primer

January 14, 2013

The state budget is the ultimate policy document. It determines how much is spent on programs and services that affect the lives of all South Dakotans. Our schools, health, safety and transportation – and the basic public systems that support them – are the foundation of South Dakota’s current and future prosperity. Investing wisely and […]

New Hampshire Fiscal Policy Institute: An Overview of New Hampshire’s Tax System

January 14, 2013

Due in large measure to the recent national recession and the continuing struggle to recover from it, New Hampshire will face a budget shortfall on the order of several hundred million dollars over the upcoming FY 2012-2013 biennium.  The source and size of that deficit should compel state policymakers to use a balanced approach in […]

Arkansas Advocates for Children and Families: Capital Gains Tax Cuts Would Only Benefit Arkansas’ Super Rich

January 14, 2013

Cutting Arkansas’ already generous capital gains taxes would benefit only the super wealthy, with three quarters of the tax break going to the top 1 percent of taxpayers, according to an analysis by Arkansas Advocates for Children and Families.

Georgia Budget and Policy Institute: Reducing Exemptions is Good Tax Reform – But Taxing Groceries is Highly Regressive

January 14, 2013

All exemptions, credits, and deductions should be examined and weighed against each other and against the principles of tax reform. The grocery exemption, in particular, increases equity and should be weighed against other tax breaks with an equity lens. Eliminating the deduction for state income taxes offers an alternative worth considering. Read the Full Report […]

Public Assets Institute: Federal Tax Cuts Offer New Option

January 14, 2013

“The analysis of the effects of extending the Bush tax cuts was prepared for Public Assets Institute by the Institute on Taxation and Economic Policy in Washington, D.C. According to ITEP analysis, the top 1 percent of Vermont taxpayers will save a little more than $100 million, thanks to the tax-cut extension. The average personal […]

South Dakota Budget and Policy Project: Quick Facts – HB 1131 Food Tax Swap

January 14, 2013

On Thursday, 1-27-11, the House Taxation Committee heard testimony on HB 1131 – a proposal to take the sales tax off groceries and replace the revenue with an increase on other taxable items.  Following testimony, the Committee voted to defer the bill to the 41st legislative day, effectively killing the bill.  The SD Budget & […]

Kentucky Center for Economic Policy: Using the Federal Income Tax Cuts to Help Address Kentucky’s Budget Challenge

January 14, 2013

The federal tax compromise passed by Congress in December resulted in extensions to a number of tax changes set to expire and provided a large tax break to the wealthiest Americans. Analysis by the Institute on Taxation and Economic Policy shows that the top 5 percent of Kentuckians will receive a tax cut of over […]

Kentucky Center for Economic Policy: Reforms Needed to Bring Greater Scrutiny to “Tax Expenditures”

January 14, 2013

Every year Kentucky loses billions of dollars in revenue through special tax preferences and breaks for individuals and businesses that are written into the tax code. Yet there is very little understanding or awareness of these provisions, which are known as tax expenditures, and almost no review and assessment of their effectiveness. Tax expenditures receive […]

Florida Center for Fiscal and Economic Policy: Florida’s Tax Structure Fails Tests for Fairness, Efficiency and Simplicity

January 14, 2013

Economists, public administration professionals, and governmental experts agree on several requirements for a sound tax system at any level of government. These requirements include adequacy, fairness, efficiency, and simplicity. The National Conference on State Legislatures includes the last three of these in their publication entitled “Principles of a High-Quality State Revenue System.” They did not […]

Georgia Budget and Policy Institute: ALMOST THERE…Tax Council’s Recommendations Improve Finances,but Shift Taxes onto Vulnerable and Working Georgians

January 14, 2013

The Special Council on Tax Reform and Fairness for Georgians provided recommendations that make improvements to structural issues plaguing Georgia’s tax system. The Tax Council took strong action to broaden tax bases—a tenet of good tax policy. In the sales tax, the Tax Council recommended expanding the tax base to services, which would allow the […]

Colorado Fiscal Policy Institute: The Colorado Tax Primer

January 14, 2013

A tax system is the set of rules and regulations that allow a government to collect the revenue needed to fund public services. The policies underlying a tax system define the efficiency and effectiveness of the tax system. The National Conference of State Legislatures (NCSL) has articulated a set of principles that help define a […]

West Virginia Center on Budget and Policy: Giving Credit to West Virginia- A State EITC Would Help Struggling Families

January 14, 2013

Power Point Presentation before 80th West Virgina Legislature House Health and Human Resources Committee Chairman Perdue Read the Full Report (PDF)

North Carolina Justice Center: THE FUTURE IS NOW- A Plan to Modernize North Carolina’s Revenue System

January 14, 2013

A modern revenue system should improve long-term adequacy, minimize volatility and ensure equity so that the state can invest in North Carolina’s shared prosperity. Read the Full Report (PDF)

Missouri Budget Project: The “Mega Sales Tax” is Unwise Policy

January 14, 2013

There are currently nine initiative petitions and two legislative proposals to place a constitutional amendment before voters in November 2012 that would eliminate personal and corporate incomes taxes and replace them with a greatly expanded sales tax. The proposals have significant costs for the state and its residents, and are fraught with uncertainty. Read the […]

Kentucky Center for Economic Policy: Farmer’s High-Risk Overhaul Creates Imbalance in Kentucky’s Tax System

January 14, 2013

House Bill 196, sponsored by Representative Bill Farmer, proposes to overhaul Kentucky’s tax system by eliminating income taxes on individuals and corporations while greatly expanding the sales tax base. The bill is an example of a shift to a consumption-based tax system. Kentucky needs to reform its tax structure, and HB 196 considers ways to […]

Florida Center for Fiscal and Economic Policy: The Facts About Florida Taxes- Among the Lowest in the Nation

January 14, 2013

The current emphasis in Tallahassee on cutting state taxes obscures important facts about Florida’s state tax system and about choices available to balance the budget and meet the needs of Floridians. When Governor Rick Scott unveils his first budget proposal Monday, it is expected to include a reduction in the corporate income tax rate and […]

Georgia Budget and Policy Institute: Additional Adjustment Options to Improve Fairness in the Tax Recommendations

January 14, 2013

The Special Council on Tax Reform and Fairness for Georgians provided recommendations that make improvements to structural issues plaguing Georgia’s tax system. The Tax Council took strong action to broaden tax bases—a tenet of good tax policy. Although the Tax Council’s recommendations would improve Georgia’s ability to meet current and future needs, they would do […]

The Poverty Institute: Rhode Island’s Hidden Spending: Tax Expenditures

January 14, 2013

Tax expenditures result in very large revenue losses to the state.  Over the years, Rhode Island has given up billions of dollars in potential tax revenue through tax expenditures.  Every other year, the Rhode Island Department of Revenue publishes a Tax Expenditures Report detailing the more than two hundred tax expenditures and their annual costs. […]

Policy Matters Ohio: Analysis finds that cutting Ohio’s tax on capital gains would be costly, 92% of Ohioans would get nothing

January 14, 2013

Cutting the Ohio income tax on capital gains would be costly and most of the gains would go to the most affluent Ohioans, while 92 percent of Ohio taxpayers would get nothing at all. Read the Full Report (PDF)

Policy Matters Ohio: Testimony of Hannah Halbert, Policy Liaison, Policy Matters Ohio before the House Ways & Means Committee on HB 98, March 30, 2011

January 14, 2013

We asked the Institute on Taxation and Economic Policy, a Washington, D.C., research group, to examine House Bill 98. ITEP has a computer model of the tax system of all 50 states. Its analysis of HB 98 covered Ohio residents age 71 and over, a slightly smaller group than those at least 70½. ITEP found […]

Missouri Budget Project: Creating a State Earned Income Tax Credit for Missouri: Supporting Work, Families & the Local Economy

January 14, 2013

The State EITC is one of the most effective Economic Stimulus Measures: In this time of economic turmoil, one of the most effective steps state lawmakers can take to stimulate Missouri’s economy is to create a State Earned Income Tax Credit (EITC). A State EITC could benefit as many as 440,000 Missouri families and is […]

Missourians for Tax Justice: Tax Reform Committee Hears HB 581

January 14, 2013

On March 16, the Tax Reform Committee of the Missouri House of Representatives heard House Bill 581 which would create a state earned income tax credit (EITC). The bill would authorize, beginning January 1, 2011, an individual income tax credit equal to 20% of any earned income tax credit claimed by the taxpayer on his […]

Michigan League for Human Services: The Michigan EITC and Taxes Paid by Working Families

January 14, 2013

Even with a state EITC, low-income families pay more of their income in state and local taxes than the state’s wealthiest families. Read the Full Report (PDF)