Institute on Taxation and Economic Policy (ITEP)

ITEP's Research Priorities

MinnPost: Minnesota’s ‘Most Progressive’ Tax State Designation Explained

February 5, 2024

Minnesota is now the state with the nation’s most-progressive tax system in the U.S., as calculated by the left-leaning Institute on Taxation and Economic Policy. Its data-driven assessment looks at the share of state taxes that are borne by various income groups. Progressive is defined not in partisan terms but to describe tax systems that have higher income taxpayers devoting a larger percentage of their incomes to taxes than lower-income taxpayers.

The Hill: Tax Deal Likely Much More Expensive than Official Estimate, Experts Warn

January 31, 2024

“The $600B figure … is consistent with earlier estimates of the 10-year costs of these provisions if made permanent,” Joe Hughes, a policy analyst with Institute on Taxation and Economic Policy, told The Hill.

Rep. Rosa DeLauro: Fact Sheets on Tax Deal

January 30, 2024

“The tax deal fails on equity,” said Congresswoman DeLauro. “It delivers huge tax cuts for giant corporations while denying middle class families the economic security they had under the expanded, monthly Child Tax Credit.  It also leaves the poorest families behind because of a policy choice. At a time when a majority of American voters believe tax on big corporations should be increased, there is no reason we should be providing corporations a tax cut while only giving families pennies.”

Audio: ITEP’s Carl Davis Discusses Idaho’s Regressive Tax System

January 30, 2024

Idaho has the 36th most regressive tax system in the nation, according to a new study by the Institute on Taxation and Economic Policy. The Who Pays report says that low- and middle-income families in Idaho pay more in taxes than the wealthy, and the institute also says that disparity has only gotten worse over the last five years. May Roberts, Policy Analyst at the Idaho Center for Fiscal Policy, and Carl Davis, Research Director at the Institute of Taxation and Economic Policy, joined Idaho Matters to break down the study.

Policy Matters Ohio: New Data Show Just How Upside-Down Ohio’s Tax Code Is

January 29, 2024

In 2023, the lowest-paid Ohioans spent more than twice as much of their income on state and local taxes than the highest-paid, according to a new study by the Institute on Taxation and Economic Policy (ITEP).

American Progress: DACA Recipients Bolster Social Security and Medicare

January 29, 2024

Eight years of survey data have shown that DACA recipients’ average reported hourly wages have increased by 137.2 percent, from $11.92 per hour in 2015 to $28.27 per hour in 2022. This not only benefits recipients and their families but also the entire country: According to the Institute on Taxation and Economic Policy, thanks to DACA, recipients are able to contribute more in taxes as a result of increased employment rates, earnings, and tax compliance rates.

ITEP’s Carl Davis: Who Pays Vermont Taxes?

January 29, 2024

ITEP Research Director Carl Davis gave a presentation on Vermont’s tax system to that state’s Ways and Means Committee on January 25, 2024. Click here for the slide deck.  

Video: ITEP’s Neva Butkus Discusses Wisconsin’s Tax Code on ABC News

January 29, 2024

"What this really comes down to is fairness," Neva Butkus, a state policy analyst for the Institute on Taxation and Economic Policy said. She contributed to "Who Pays?," the seventh edition of a periodic analysis offered by ITEP of tax policies in all 50 states.

AP News: Kansas Governor Vetoes Tax Cuts She Says Would Favor ‘Super Wealthy’

January 29, 2024

But the left-leaning Institute on Taxation and Economic Policy reported that even with the changes designed to benefit poorer taxpayers, 70% of the savings in raw dollars will go to the 20% of filers earning more than $143,000 a year.

Fatherly: What the New Child Tax Credit Would — and Wouldn’t — Do for Families

January 29, 2024

Various efforts have been made to revive the 2021 tax credit, which was wildly popular and is considered the “gold standard,” to CTC advocates, according to Joe Hughes, a Federal Policy Analyst at the Institute on Taxation and Economic Policy, a non-profit, non-partisan tax policy organization. It’s also popular across party lines: A poll from Zero to Three and Morning Consult found that 85% of respondents want Congress to reinstate the 2021 CTC — 94% of Democrats and 77% of Republicans. But no effort in that direction has yet been successful.

CBS News: Vermont Wants to Fix Income Inequality by Raising Taxes on the Rich

January 29, 2024

Across the U.S., the rich generally pay a lower share of their income in taxes than low earners, according to the Institute on Taxation and Economic Policy (ITEP). A recent analysis by the left-leaning think tank found that the average effective state and local tax rate paid by residents to their home state is 7.2% for the top 1% of earners; for the lowest-earning 20%, that rate tops 11%.

CBS News: 14 States are Cutting Individual Income Taxes in 2024. Here are Where Taxpayers are Getting a Break

January 29, 2024

The reductions represent a continuation of "tax cut fever," as termed by the left-leaning Institute on Taxation and Economic Policy (ITEP). The drive to cut state taxes began during the pandemic when many states found themselves flush with tax revenue. With coffers fat, lawmakers sought to provide some relief to their constituents, typically through tax rebates or rate reductions.

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New Mexico Making Tremendous Progress Making Taxes Less Regressive

January 24, 2024 • By Carl Davis

New Mexico Making Tremendous Progress Making Taxes Less Regressive

Recent tax reforms have helped to bring greater balance to New Mexico's tax code. A new in-depth look at taxes in all 50 states finds New Mexico is an emerging leader, though there’s still plenty of room for improvement.

Hawai’i Appleseed Center for Law and Economic Justice: Rebalance Hawaii’s Upside-Down Tax Code to Achieve Prosperity for All

January 24, 2024

Our state tax code makes the situation worse. A comprehensive analysis of state and local taxes across the country shows that Hawaii is the third-worst state when it comes to taxing struggling working families. Households in the lowest income category pay an effective tax rate of 14.1%, while the richest 1% pay an effective tax rate of 10.1%

New York Times: Vermont Becomes Latest State to Propose Wealth Taxes

January 23, 2024

Lawmakers in Vermont are introducing legislation this week that would impose new taxes on the state’s wealthiest residents, joining a growing national campaign being pushed by Democrats who believe that the measures will gain traction as states reckon with post-pandemic budget squeezes

Oregon Center for Public Policy: Oregon’s Tax System is Fundamentally Unfair, but We Can Fix It

January 23, 2024

If you were designing a tax system from scratch, who would you tax at a higher rate: a low-income family struggling to pay the rent and put food on the table, or a rich family making way more money than they spend?

Editorial: Florida Shines at Favoring the Rich, Punishing the Poor

January 23, 2024

But there’s one category in which Florida is unarguably first — first of the worst. The state has the nation’s most regressive state and local tax structure. That’s the judgment of ITEP, the progressive Institute on Taxation and Economic Policy, which ranks states every five years

The Commonwealth Institute: How the Governor’s Proposal Increases Taxes for Low-Income Families, Gives Significant Cuts to the Wealthy

January 23, 2024

When we all pitch in our fair share, we can invest in the programs and services that help everyone to thrive, like public education, affordable housing, and more. But Virginia’s tax code is upside-down, where those with the most pay the least taxes as a share of income. 

Audio: ITEP’s Carl Davis Discusses North Carolina’s Upside-Down Tax Code

January 23, 2024

Ever since Republicans took control of the North Carolina legislature in 2011, they’ve passed income tax cut after income tax cut and bragged repeatedly of the supposed enormous benefits this has afforded to average North Carolinians