698 posts
State Rundown 2/26: House Budget Plan Could Further Strain State Budgets
• By ITEP Staff
States would be wise to keep a close eye on happenings in Washington, D.C. Republicans in the House of Representatives recently passed their budget resolution, which could spell trouble for state budgets. The plan tees up major cuts to Medicaid, SNAP, and college tuition assistance—all likely to allow for tax cuts that will overwhelmingly benefit the wealthy. If approved, trillions of dollars would be cut from programs supported by federal dollars and states and localities…
Bloomberg: Trump’s SALT Tax Promise Hinges on an Obscure Loophole
February 26, 2025
Over the coming months, President Donald Trump and his congressional allies will try to rewrite the nation’s tax laws, with promises of cuts for companies, workers and retirees. There are trillions of dollars on the line with those changes. But a certain segment of Americans will be focused on just one question: How much of their state and local taxes (SALT) will they be allowed to deduct?
Learn from Prop 13 History to Avoid Repeating Past Mistakes
• By Rita Jefferson
Worries about housing costs and property tax bills are leading people to check the history books for solutions, but there’s a danger that they’ll repeat past mistakes. If anti-tax lawmakers carelessly weaken property taxes as they did in the 1970s, as they did with California’s Proposition 13, they will undercut public finances, making municipalities, school districts, and other special districts worse off.
USA Today: President Trump’s Social Security Changes So Far: 4 Things You Should Know
February 25, 2025
During his presidential campaign, Donald Trump promised to end federal taxation of Social Security retirement benefits. This isn't something he can do unilaterally. White House press secretary Karoline Leavitt told reporters that the president and Republican lawmakers have discussed including this move in a budget package. But so far in his second term, President Trump has made some changes on his own that affect Social Security either directly or indirectly. Here are four things you…
Florida Policy Institute: A Risky Proposition: Weakening Local Governments by Eliminating Property Tax Revenue
• By ITEP Staff
In Florida, the ability of local governments to raise revenue for operations is limited by the state constitution.[1] With the exception of fees, special assessments,[2] and the property tax, also known as an ad valorem tax, local governments are dependent on the Legislature and state laws for authority to levy other forms of taxation and raise revenue. Consequently, as a matter of fiscal management and local autonomy, the property tax is paramount. Considering recent policy proposals to…
State Rundown 2/20: Tools to Address Corporate Tax Avoidance and Property Tax Affordability
• By ITEP Staff
A new ITEP report finds that states could raise $19 billion a year with one policy change targeting corporate tax avoidance. That policy, worldwide combined reporting, strengthens state corporate taxation by giving states a full view of multinational corporate profits, essentially eliminating the tax savings that companies currently see by pretending their profits were earned in Switzerland, the Cayman Islands, and other international tax havens.
Wide-Ranging 2025 State Tax Debates Come into Focus
• By Aidan Davis
In the face of immense uncertainty around looming federal tax and budget decisions, many of which could threaten state budgets, state lawmakers have an opportunity to show up for their constituents by raising and protecting the revenue needed to fund shared priorities. Lawmakers have a choice: advance tax policies that improve equity and help communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder…
New York Times: Trump Orders End to Federal Benefits for Undocumented Migrants
February 20, 2025
President Trump on Wednesday signed an executive order aimed at eliminating federal benefits for undocumented migrants in the United States, describing the benefits as an improper use of taxpayer resources.
U.S. News and World Report: How Trump’s Mass Deportations Could Lower the Social Security Trust Funds
February 19, 2025
On his first day in office, President Donald Trump signed a flurry of executive orders, including one aimed at “the efficient and expedited removal of aliens from the United States.” It calls for the Department of Homeland Security to expand its reach and deport “removable aliens” in every state. Those efforts have run into obstacles – most notably a lack of detention space and funding – but if successful, mass deportations could have unintended consequences. For one,…
Newsweek: Donald Trump’s Immigration Plans Could Push Up Retirement Costs
February 13, 2025
While there is widespread support for Trump's policies, it could have a negative impact on retirees across the U.S. by reducing the pool of funding available to pay benefits, increasing costs and contributing to an increase in inflation.
State Rundown 2/12: State Tax Policy Heats Up as Winter Storms Sweep Much of the Country
• By ITEP Staff
Tax policy proposals are a hot topic of conversation across the country. Both North and South Dakota are considering property taxes cuts, while proposed cuts in Florida, Mississippi, and Texas are percolating. Meanwhile, fiscal conditions are tight in states like Alaska, Tennessee, Oklahoma, and West Virginia. None are on the cusp of passing new revenue, but years of recent tax cuts and inflation have caught up to states and many lawmakers have revenue gaps to…
New York Times: Opinion | Democrats Need to Learn How to Throw a Punch
February 12, 2025
For most of the past decade, progressives presented the battle over immigration as simply a fight against Republican cruelty, racism and xenophobia. Such messaging does not amount to a political strategy. By 2024, Joe Biden and Kamala Harris seemed to stop trying to win the debate. As border-state governments grappled with newcomers, Republican leaders saw a crisis they could seize and weaponize — while Democratic leaders offered no compelling case of their own.
Maryland Center on Economic Policy: First Look: Governor Combines Revenues, Cuts to Narrow Budget Gap
• By ITEP Staff
Gov. Moore’s budget proposal for fiscal year 2026 (July 2025–June 2026) makes a significant dent in the state’s looming shortfalls, with similar-sized contributions from tax reforms and budget cuts. The plan takes several positive steps to crack down on corporate tax avoidance and ask wealthy individuals to pay their fair share. These reforms are an important measure to protect Marylanders from much more drastic cuts to public services. At the same time, a more ambitious…
Demos: Taxes Explained: A Fair and Just Tax Code Is Critical for Improving Economic Power for the People
• By ITEP Staff
This year will be a pivotal year for tax policy and will have far-reaching consequences for our economy and democracy. It is important that the people understand what is at stake. This Tax Justice and Racial Equity Explainer Series will cover key elements of the tax code that Congress will be debating this year and their real-world significance for communities of color. The following four pieces will cover corporate taxation, the difference between wealth and…
Slate: This Is Not About Cost Cutting
February 11, 2025
As terrifying and probably illegal as Elon Musk’s tech-bro holy war against the federal government has been, it’s only Phase 1. Really, the spectacle of the past few weeks sets Donald Trump and Musk up for what they almost certainly want much more: massive tax cuts for the wealthy.
Kentucky Center for Economic Policy: Another Income Tax Cut Will Dig the Hole Deeper
• By ITEP Staff
Kentucky lawmakers are expected to vote early in the legislative session on another half-point cut to the individual income tax rate, a drop from 4% to 3.5%. This cut is expected to pass despite a projected decline in tax revenues due to the income tax reductions of the last couple of years. With this next drop, the state will get closer to the level of tax cuts Kansas put in place in 2013 and was…
The Texas Tribune: Gov. Greg Abbott Wants to Set a High Bar for Local Tax Increases
February 10, 2025
Gov. Greg Abbott, in his bid to curb Texas’ high property taxes, wants Texas voters to have the final say on any property tax hike. Local governments that collect property taxes — including cities, counties and school districts — should have to win approval from a two-thirds majority of voters if they want to raise their tax rates, Abbott said.
State Rundown 2/6: Tax Proposals in the Spotlight
• By ITEP Staff
Tax changes have been proposed or are nearing the finish line in many states. Kentucky is poised to enact an income tax cut as a bill heads to the governor’s desk. In Pennsylvania, Gov. Josh Shapiro’s budget proposal called to accelerate existing corporate tax cuts while closing corporate tax loopholes by enacting combined reporting. Ohio Gov. Mike DeWine proposed a new credit for children of working parents. And Virginia Democrats countered Gov. Glenn Youngkin’s proposed…
New Jersey Policy Perspective: Extending Trump Tax Cuts Would Benefit the Wealthiest New Jerseyans
• By ITEP Staff
Fair tax policy depends on prioritizing the well-being of all households, not just the wealthiest. New Jersey, and the nation as a whole, cannot afford to hand special tax breaks to the most affluent residents by slashing essential services such as health insurance for working families. New analysis of the Trump administration’s plan to make tax breaks from the 2017 tax law permanent shows that the proposal would do just that. It would make the…
Miami Herald: Commentary: Undocumented Immigrants Are Well Documented. Just Ask the IRS.
February 3, 2025
The phrase "undocumented immigrant" is deeply misleading, if not outright inaccurate. It implies that there is a mass of people in the U.S. that essentially live off the grid, apart from society, existing only in informal economies and off-the-book transactions. In fact, immigrants who lack permission to be in the U.S. are enmeshed in society with plenty of formal and official documents to their name, from tax returns to mortgages.
Center on Budget and Policy Priorities: President Trump, Congressional Republican Proposals Would Shift Large Costs to States, Inflict Widespread Harm
• By ITEP Staff
Emerging proposals from the Trump Administration and key congressional Republicans could wreak havoc on essential public services, leaving millions of people worse off through lost health coverage, less money for groceries, weakened access to a quality public education, and other harms.[1]
Florida Policy Institute: Deferring Dreams: The Costly Plan to Repeal Tuition Fairness for Florida Dreamers
• By ITEP Staff
Legislation[1] was introduced during the January 2025 special legislative session that would repeal Florida’s tuition fairness law.[2] This law, which passed with bipartisan support in 2014, requires that colleges, universities, and postsecondary institutions waive out-of-state tuition for certain undocumented students who graduated high school in the state.
Idaho Center for Fiscal Policy: House Bill 40 Further Cuts the Income Tax, Disproportionately Benefiting Wealthy Idahoans
• By ITEP Staff
Every year, Idaho spends millions of tax dollars to make sure families receive a good education, live in safe homes and communities, and enjoy good health. However, over the last several years, the state has passed deep and costly tax rate cuts that make our tax system more regressive- disproportionately burdening Idahoans with the lowest incomes. House Bill 40 continues to perpetuate this trend by providing relief disproportionately to wealthy households.
New York Times: What Mass Deportations Would Do to New York City’s Economy
January 31, 2025
That number comes not from a left-leaning human rights group intent on fostering sympathy for people who crossed the border illegally, but rather from the wonky Institute on Taxation and Economic Policy, a nonpartisan Washington think tank. The organization’s research also tells us that nationally, more than a third of the tax dollars paid by undocumented immigrants go toward payroll taxes, which are aimed at backing entitlement programs that these workers are not entitled to access.
Alabama Rise: 56 Alabama Groups Urge Congress to Reject Tax Cuts for the Wealthy
• By ITEP Staff
Congress should oppose efforts to increase tax breaks for wealthy Americans and highly profitable corporations this year, 56 organizations across Alabama wrote in a letter sent to Alabama’s congressional delegation Wednesday. Lawmakers instead should seek to boost tax credits that expand opportunities for working people and families, the letter said.
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