Institute on Taxation and Economic Policy (ITEP)
1,134 posts
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Census Data Reveal Texas’ Fundamental Tax Mismatch: Texas is a Low Tax State, But Not for Families Living in Poverty

• By Meg Wiehe

Recently released data from the Census Bureau confirms that overall Texas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Texas as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

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Census Data Reveal Tennessee’s Fundamental Tax Mismatch: Tennessee is a Low Tax State, But Not for Families Living in Poverty

• By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Tennessee could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Tennessee as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

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Census Data Reveal Florida’s Fundamental Tax Mismatch: Florida is a Low Tax State, But Not for Families Living in Poverty

• By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Florida could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Florida as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

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Census Data Reveal Arkansas Fundamental Tax Mismatch: Arkansas is a Low Tax State, But Not for Families Living in Poverty

• By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Arkansas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arkansas as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

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Census Data Reveal Arizona’s Fundamental Tax Mismatch: Arizona is a Low Tax State, But Not for Families Living in Poverty

• By Meg Wiehe

Recently released data from the Census Bureau confirms that overall Arizona could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arizona as a low tax state — instead, they pay more than their fair share of state and  local taxes.   Read the Full […]

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Credit Where Credit is (Over) Due: Four State Tax Policies Could Lessen the Effect that State Tax Systems Have in Exacerbating Poverty

• By Meg Wiehe

The ongoing recession has had an unrelenting impact on families and communities in every state across the country. Millions of Americans are without work and in many cases those with jobs are experiencing reduced work hours and wages. New poverty figures from the US Census suggest that the road to economic security will be a […]

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“Writing Off” Tax Giveaways: How States Can Help Balance Their Budgets by Reforming or Repealing Itemized Deductions

• By Carl Davis, Meg Wiehe

“Writing Off” Tax Giveaways examines options for reforming itemized deductions in the thirty-one states, plus DC, that offer such deductions. The study, released on August 24, 2010, focuses on five potential reforms: repealing itemized deductions entirely, capping the maximum size of itemized deductions, converting itemized deductions to a credit, instituting a phase-out for upper-income taxpayers, […]

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ITEP’s Testimony on TRAC Sales and Use Tax Proposal

• By Carl Davis

My testimony today offers several broad thoughts on the implications of the proposals for sales and use tax reform laid out so far by the Tax Realignment Commission (TRAC). The testimony stresses that while base-broadening is of paramount importance in achieving a more sustainable state sales tax, policymakers should be aware of the need for […]

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Pending Georgia Tax Changes Would Redistribute Income From the Poorest Families to the Rich

• By Meg Wiehe

In the 2010 legislative session, Georgia lawmakers have ratified, or are poised to ratify, a set of tax changes which would dramatically reshape the fairness of the state’s tax system. A new ITEP analysis shows that these changes would increase the taxes paid by the poorest ninety five percent of Georgians, while cutting taxes for […]

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Massey Pays One-Sixth of 35% Federal Tax Rate, Little in State Income Tax

• By Matthew Gardner

A new analysis shows that Massey Energy, which owned the Upper Big Branch mine where 29 West Virginia miners were killed last week, paid an average of 5.6 percent of its profits in federal income taxes over the last three years—despite having large profits in each year. This is less than one-sixth of the statutory […]

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Leaving Money on the Table: “Federal Offset” Provides Incentive for States to Rely on Progressive Income Taxes

• By ITEP Staff

Seven states—Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming—have chosen to make up for the lack of an income tax by increasing their reliance on general sales taxes.1 The result is an “upside down” state tax system, which imposes higher effective tax rates on middle- and low-income families than on the best-off taxpayers. But […]

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Does Alabama’s Tax System “Redistribute Wealth”?

• By ITEP Staff

Last week, an Alabama legislative committee approved a bill, House Bill 1, that would take an important step towards making one of the most unfair tax systems in the nation somewhat less unfair. Some opponents of the bill have characterized it as a “redistribution of wealth” from the best-off families to low-income taxpayers. However, these […]

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Maryland’s Millionaire Migration Debate: Understanding the Relevance of the New Jersey Migration Studies

• By ITEP Staff

As the debate over extending the Maryland “millionaires’ tax” continues, numerous lawmakers and advocates have recently begun to look toward New Jersey’s experience with its own “halfmillionaires’ tax” to help inform their understanding of the issues at work. In particular, two studies of New Jersey’s migration patterns—one from Boston College and one from Princeton University—have […]

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Proposed Repeal of Refundable Low Income Credit Would Hurt the Poorest Georgians

• By ITEP Staff

Earlier this week, the tax writing committee in the Georgia House of Representatives quietly approved a bill, HB 1219, that would increase Georgia taxes by about $20 million a year by paring back a tax credit that only affects the very poorest Georgians. The bill’s proponents have repeatedly implied that the beneficiaries of the existing […]

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ITEP’s Testimony Before the MD House Ways & Means Committee on Preserving Maryland’s “Millionaires’ Tax”

• By ITEP Staff

My testimony today focuses on Senate Bill 913, which would temporarily extend, through 2014, the “millionaires’ tax” that is currently scheduled to expire at the end of 2010. This testimony emphasizes that the “millionaires’ tax” makes Maryland’s tax system at least somewhat less unfair than it otherwise would be; that claims about the negative impact […]

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ITEP’s Testimony on HB 2034 Income Tax Reforms

• By ITEP Staff

My testimony today focuses on one bill introduced in the Missouri House of Representatives: HB 2034, which would reform the state’s individual income tax structure. My testimony will discuss the impact of this bill on the yield and fairness of Missouri’s income tax. HB 2034 would raise over a billion dollars a year to fund […]

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ITEP’s Testimony Before the MD Senate Budget and Tax Committee on Preserving Maryland’s “Millionaires’ Tax”

• By ITEP Staff

My testimony today focuses on Senate Bill 913, which would temporarily extend, through 2014, the “millionaires’ tax” that is currently scheduled to expire at the end of 2010. This testimony emphasizes that the “millionaires’ tax” makes Maryland’s tax system at least somewhat less unfair than it otherwise would be; that claims about the negative impact […]

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Leadership Tax Plan Hits Poor Hardest

• By ITEP Staff

Media outlets are reporting that leaders in the New Mexico legislature reached a tentative agreement in the days leading up to this week’s special legislative session that would impose over $220 million a year in new Gross Receipts Taxes (GRT) and cigarette taxes. Reports also indicate that the agreement does not include any provisions to […]

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Evaluating Special Session Revenue-Raising Options

• By ITEP Staff

In a special legislative session starting March 1, the New Mexico Legislature will consider a variety of revenue-raising options to close the state’s budget deficit. Some of the options under consideration—especially those approved by the state Senate earlier this year—would fall much more heavily on low- and middle-income families than on the best-off New Mexicans. […]

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Determining the Statewide Sales Tax Rate Under SJR 29 and HJR 56

• By ITEP Staff

Senate Joint Resolution 29 and House Joint Resolution 56 are currently being debated in the Missouri Legislature. The proposals would place a constitutional amendment on the ballot to dramatically change the state’s revenue structure by eliminating the individual income and corporate income/franchise taxes and replacing them with a greatly expanded sales tax. The new statewide […]

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Testimony on SJR 29: Income Tax Repeal

• By ITEP Staff

In evaluating SJR 29, policymakers should have a clear understanding of how broad the tax base could actually be under such a plan, what the tax rate would actually have to be in order to make the plan revenue-neutral overall, and how the plan overall would affect Missourians at different income levels. My testimony presents […]

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Five Reasons to Preserve Maryland’s “Millionaires’ Tax”

• By ITEP Staff

In 2008, to compensate for the anticipated loss of revenue due to the repeal of a law subjecting the provision of computer services to the state’s sales tax, Maryland enacted a temporary change in its income tax. That change, which is in effect only through the end of this year, created a new top income […]

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Who Pays? A Distributional Analysis of the Tax Systems in All 50 States 3rd Edition

• By Carl Davis, Matthew Gardner

Who Pays? is a comprehensive analysis of state and local tax systems in all fifty states. The study, released on November 18, 2009, shows that on average, state and local tax systems require the poorest taxpayers to pay the highest effective tax rates. Read the Full Report (PDF)

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A Progressive Strategy for Meeting Illinois’ Current and Future Revenue Needs

• By Matthew Gardner

Over the course of the past year, Illinois’ personal income tax has received a great deal of attention. In March, Governor Pat Quinn put forward a plan to raise the existing income tax rate of 3 percent to 4.5 percent and to increase the value of personal and dependent exemptions from $2,000 to $6,000; the […]