2,364 posts
State Rundown 9/27: Some States are Looking to Paint the Budgets Red
• By ITEP Staff
When it comes to investments, state lawmakers across the country are positioning their states to be in the red as they pass or debate further tax cuts that will overwhelmingly benefit the wealthy – and some states are now adding an additional coat of red paint...
State Rundown 9/13: The (Policy) Choices We Make
• By ITEP Staff
The U.S. Census Bureau released its annual assessment of poverty in America this week...
State Tax Credits Have Transformative Power to Improve Economic Security
• By Aidan Davis
The latest analysis from the U.S. Census Bureau provides an important reminder of the compelling link between public investments and families’ economic well-being. Policy decisions can drastically reduce poverty and improve family economic stability for low- and middle-income families alike, as today’s data release shows.
States are Boosting Economic Security with Child Tax Credits in 2023
• By Aidan Davis, Neva Butkus
Fourteen states now provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. This year alone, lawmakers in three states created new Child Tax Credits while lawmakers in seven states expanded existing credits. To maximize impact, lawmakers should consider making their credits fully refundable, not including an earnings requirement, setting a maximum amount per child instead of per household, setting state-specific phase-out ranges that target low- and middle-income families, indexing to…
Lapse of Expanded Child Tax Credit Led to Unprecedented Rise in Child Poverty
• By Joe Hughes
The new Census data should provide both concern and optimism for lawmakers. The steep rise in child poverty is an inexcusable tragedy. But it shows that child poverty is avoidable when Congress makes the decision to make tax policy for those who need the hand up rather than for the rich and powerful.
Boosting Incomes, Improving Equity: State Earned Income Tax Credits in 2023
• By Aidan Davis, Neva Butkus
Nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit, an effective tool that boosts low-paid workers’ incomes and helps lower-income families achieve greater economic security. This year, 12 states expanded and improved EITCs.
Expanding the Child Tax Credit Would Advance Racial Equity in the Tax Code
• By Emma Sifre, Joe Hughes
Expanding the federal Child Tax Credit to 2021 levels would help nearly 60 million children next year. It would help the lowest-income children the most and would particularly help children and families of color.
State Rundown 8/23: Tax and Effect
• By ITEP Staff
While a number of state tax laws are debated, approved, and vetoed in any given year, many go unnoticed...
The Innovative Non-Tax Tax Parts of the Inflation Reduction Act
• By Michael Ettlinger
In the year since Congress enacted the Inflation Reduction Act (IRA), ITEP has written extensively on the law’s provisions to increase tax fairness and raise revenue for public investments. The IRA, however, also includes tax provisions that serve purposes other than ensuring that we raise adequate revenue and that we do so in a fair […]
State Rundown 8/10: Pump the ‘Breaks’ on Sales Tax Holiday Celebrations
• By ITEP Staff
August is here, school is starting, and with that comes back to school shopping...
Weakening the SALT Cap Would Make House Tax Package More Expensive and More Tilted in Favor of the Wealthiest
• By Steve Wamhoff
The three tax bills that cleared the House Ways and Means Committee in June are reportedly stalled due to some House Republicans’ demands that the package include provisions weakening the $10,000 cap on deductions for state and local taxes (SALT). Modifying the House tax package in this way would make it much more expensive while benefiting the richest fifth of taxpayers almost exclusively.
What States Have Sales Tax Holidays in 2023?
• By ITEP Staff
The number of states with sales tax holidays on the books fell to 19 in 2023 from 20 in 2022. Yet even as slightly fewer states have them, they are estimated to cost much more. In 2023, sales tax holidays will cost states and localities nearly $1.6 billion in lost revenue, up from an estimated $1 billion just a year ago.
Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
• By Marco Guzman
Nineteen states have sales tax holidays on the books in 2023, and these suspensions will cost nearly $1.6 billion in lost revenue this year. Sales tax holidays are poorly targeted and too temporary to meaningfully change the regressive nature of a state’s tax system. Overall, the benefits of sales tax holidays are minimal while their downsides are significant.
State Rundown 7/26: The Dog Days of Summer Tax News
• By ITEP Staff
The Dog Days of summer are upon us, and with most states out of session and extreme heat waves making their way across the country, it’s a perfect time to sit back and catch up on all your favorite state tax happenings (ideally with a cool drink in hand)...
States and Localities are Making Progress on Curbing Unjust Fees and Fines
• By Andrew Boardman
Too many state and local governments tap legal-system collections, rather than adequate tax systems, to fund shared essentials like public safety and education. But a growing number of states and localities are choosing a better approach. Momentum for change has continued to build in 2023, with no fewer than seven states enacting substantial improvements.
State Rundown 7/12: The Mid-Year Legislative Session Roundup
• By ITEP Staff
Most state legislatures have adjourned for 2023, and that means it’s a perfect time to look at the tax policy trends that have formed thus far...
‘Fair Share Act’ Would Strengthen Medicare and Social Security Taxes
• By Joe Hughes, Steve Wamhoff
The Medicare and Social Security Fair Share Act would reform the taxes that Americans pay to finance these two important programs so that the richest 2 percent of Americans pay these taxes on most of their income the way that middle-class taxpayers already do.
State Rundown 7/6: Tax Policy Keeping Governors Busy from Coast to Coast
• By ITEP Staff
From coast to coast, state governors have been busy inking their signature on a growing list of consequential budget and tax bills...
Corporations Reap Billions in Tax Breaks Under ‘Bonus Depreciation’
• By Matthew Gardner, Steve Wamhoff
Since TCJA expanded tax breaks for “accelerated depreciation” starting in 2018, it has reduced taxes by nearly $67 billion for the 25 profitable corporations that benefited the most. Congress is now looking at extending this policy.
State Rundown 6/28: Movement on Refundable Credits Remains Hot Topic in 2023
• By ITEP Staff
The trend of state lawmakers taking big steps on important tax credits like the Child Tax Credit and Earned Income Tax Credit is coming out in full force this week...
State Action on Child Tax Credits and Earned Income Tax Credits in 2023
• By ITEP Staff
In 2023 so far, 17 states have either adopted or expanded a Child Tax Credit or Earned Income Tax Credit. Both these policies can help bolster the economic security of low- and middle-income families and position the next generation for success.
State Rundown 6/22: Some Tax Debates Heat Up as Others Cool Off
• By ITEP Staff
Summer is here and many states nearing the end of their legislative sessions. Temperatures are rising in more ways than one in some state legislatures while others seem to be cooling off.
State Rundown 6/14: Summer Breeze & State Tax Policies
• By ITEP Staff
As the sweet days of summer pass, the scent of jasmine isn't the only thing blowing through the minds of state lawmakers, as tax policy discussions remain at the forefront...
Expanding the Child Tax Credit Would Help Nearly 60 Million Kids, Especially Those in Families with Low Incomes
• By Joe Hughes
Restoring the federal Child Tax Credit to 2021 levels would benefit nearly 60 million children. Three-quarters of the benefit would go to families in the bottom three quintiles, consisting of households with less than $86,600 in income.
Trio of GOP Tax Bills Would Expand Corporate Tax Breaks While Doing Little for Americans Who Most Need Help
• By Steve Wamhoff
The trio of tax bills that cleared the House Ways and Means Committee in June include tax cuts that would mostly benefit the richest one percent of Americans and foreign investors.
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