The Rise Credit would replace the existing EITC. In most cases, the Rise Credit would be $4,000 for single people and $8,000 for married couples. Eligible taxpayers would be allowed a credit equal to the maximum amount or their earnings, whichever is less.
May 21, 2019 • By Carl Davis
The upcoming Memorial Day weekend marks the start of the traditional summer driving season. In most states, summer road-trippers are paying more gas tax than they did a few years ago and are benefiting from smoother and safer roads as a result. In total, 30 states have raised or reformed their gas taxes in the last six years.
May 20, 2019 • By ITEP Staff
Because of these reforms, more than 193 million people (or 59 percent of the U.S. population) now live in places where the state gas tax rate automatically varies over time.
Twenty-six states and the District of Columbia tax these two fuel types at the same rate or very similar rates, as of April 2019, according to data from the American Petroleum Institute.
Consumption taxes (including general sales taxes, excise taxes on specific products, and gross receipts taxes) are an important revenue source for state and local governments. While five states lack state-level general sales taxes (Alaska, Delaware, Montana, New Hampshire, and Oregon), every state levies taxes on some types of consumption.
The property tax is the oldest major revenue source for state and local governments and remains an important mechanism for funding education and other local services. This map shows the share of state and local general revenue in each state that is raised through property taxes.
The tax rates identified in this map include state and local excise and sales taxes on diesel fuel, as well as various fees, as calculated by the American Petroleum Institute (API). These taxes are levied in addition to the federal government’s 24.4-cent-per-gallon diesel tax.
Income taxes vary considerably in their structure across states, though the best taxes are fine-tuned to taxpayers’ ability-to-pay.
Policymakers and the public widely agree that economic inequality is the social policy problem of our age. It threatens the livelihoods of millions of children and adults, and it even threatens our democracy. Although some say Americans could fix it themselves by simply rolling up their sleeves, as a sub-headline in a March U.S. News and World Report column implied, the reality is different.
May 15, 2019
The tax plan approved by the Ohio House last week would sharply limit an income-tax break for business owners that costs more than $1 billion a year while providing few benefits to the Ohio economy. At the same time, it would eliminate the bottom two brackets of the income tax and cut rates by 6.6%. […]
Corporate income taxes are an important source of revenue for state governments and ensure that profitable corporations benefiting from public services pay toward the maintenance of those services.
May 10, 2019
Staff experts from our national partners – Elizabeth McNichol of the Center on Budget and Policy Priorities and Aidan Davis of the Institute on Taxation and Economic Policy – joined Jamie Mills of Connecticut Voices for Children in submitting powerful testimony before the Finance Committee in support of a modest surcharge on capital gains earned […]
May 10, 2019 • By Carl Davis
ITEP Research Director Carl Davis presented to the National Conference of State Legislatures (NCSL) Task Force on State and Local Taxation on approaches to cannabis taxation and the recent report Taxing Cannabis.
May 7, 2019
Refundable tax credits like the Earned Income Tax Credit and the Child Tax Credit make an important difference for working families, together bringing more than 100,000 Marylanders’ family incomes above the federal poverty line each year. Maryland has built on these successful policies by supplementing the federal Earned Income Tax Credit with a state credit and extending […]
May 6, 2019 • By Steve Wamhoff
Sen. Chuck Grassley, the chairman of the Senate Finance Committee, today has an op-ed defending Trump-GOP tax law. “One of the most-covered falsehoods being spread about tax reform,” as he calls the law, “is that it’s a middle-class tax hike.” He cites ITEP’s estimates to back up his point that most people in every income group have lower taxes because of the law. As Sen. Grassley and his staff know full well, this leaves out the important point of our findings.
May 1, 2019
Apple, like a lot of corporations, wasn’t paying the full 35 percent corporate tax rate even before the tax cut bill was passed, but the new legislation has been very good to it. According to the liberal-leaning Institute on Taxation and Economic Policy, dozens of profitable Fortune 500 companies paid no federal income taxes at all […]
Teachers in North Carolina and South Carolina are walking out and rallying this week for increased education funding, teacher and staff pay, and other improvements to benefit students—if you’re unsure why be sure to check out research on the teacher shortage and pay gap under “What We’re Reading” below. Meanwhile, budget debates have recently wrapped up in Indiana, Iowa, Massachusetts, New Hampshire, and Washington. And major tax debates are kicking into high gear in both Louisiana and Nebraska.
May 1, 2019
Despite earning billions of dollars in profits, companies such as the California oil major Chevron, the Houston independent oil companies Occidental Petroleum and EOG Resources, and the Houston oil field services company Halliburton were able to claim tens of millions in tax rebates, according to a study earlier this month by the Institute on Taxation and Economic Policy.
May 1, 2019
Some 30 states have raised their fuel taxes since 2003 -- including Republican-led Ohio, Arkansas and Alabama this year -- according to the Institute on Taxation and Economic Policy. States tack on an average tax of nearly 29 cents per gallon, according to the U.S. Energy Information Administration.
April 30, 2019
"The 2017 tax act, through its omission of true tax reform, really does leave a lot of opportunities available to Congress, starting in 2020, to broaden the tax base in a way that could raise a substantial amount of money," says Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy. The Trump administration's tax legislation, known as the Tax Cuts and Jobs Act, did little to close corporate tax breaks enjoyed by oil and gas and other industries, according to Gardner, "and in fact made some of the biggest tax breaks even bigger."
April 30, 2019
Despite earning billions of dollars in profits, companies like Halliburton, Chevron, Occidental Petroleum and EOG Resources were able to claim tens of millions in tax rebates, according to a study earlier this month by the Institute on Taxation and Economic Policy.
April 30, 2019
Minnesota’s current tax system is considered one of the nation’s most progressive. The Institute on Taxation and Economic Policy, a nonpartisan think tank that assesses state and federal tax policies, ranks the state the fourth most-equitable in the way it taxes lower-income residents. It’s the provider tax and that proposed gas tax hike — two inherently regressive taxes — that drag down the overall progressivity of the plans.
April 30, 2019
When it repatriated its cash under the new tax law, Apple paid $43 billion less than it would have under previous rates, bigger savings than any other American company, according to the Institute on Taxation and Economic Policy, a research group in Washington. Apple has also saved billions of dollars under the lower corporate tax rate. Apple says it is spending billions in the United States, hiring new workers, building data centers, expanding offices in Texas and investing in some outside manufacturers.
April 30, 2019
“A lot of these claims were knee-jerk, political reactions,” said Carl Davis, a tax analyst for the Institute on Taxation and Economic Policy, a left-leaning think tank. “Some perspective is needed on some of the wild claims about how it would damage blue states’ economies.”
April 29, 2019
The list of profitable companies that pay no corporate taxes, compiled by the Institute on Taxation and Economic Policy, a left-leaning think tank, also includes Goodyear and three other Ohio companies, including the Akron-based electric utility FirstEnergy. The company, which has the naming rights to the Cleveland Browns’ stadium, paid no taxes last year on $1.5 billion in income, according to the analysis, and will receive additional tax credits that can be used in the future. In a win for consumers, some of that will be returned to the utility’s customers.