Institute on Taxation and Economic Policy

ITEP's Research Priorities

Iowa Fiscal Partnership: Tax Plan Facts vs. Spin

May 5, 2018

As Iowa lawmakers consider the agreed-upon tax plan developed by Republican leadership and Governor Reynolds, sharp differences are clear from earlier proposals by the Governor and the House Ways and Means Committee.

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In the Face of the Trump Administration’s Anti-Immigrant Agenda, We Must Rely on Evidence to Highlight the Contributions of and Dispel Myths About Dreamers

May 4, 2018 • By Misha Hill

Immigrants face tremendous uncertainty and little hope under the Trump Administration. The administration’s actions—banning travel from residents of primarily Muslim countries, the deportation of Christian Iraqi asylum seekers, and the rescission of DACA, the program that provides temporary reprieve to young immigrants; public statements on the value of immigrants from countries like Norway; and leaked […]

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Newly Unveiled Ballot Initiative Aims to Tax Arizona’s Top 1 Percent to Fund Education

May 1, 2018 • By Aidan Davis

Today marks Day 4 of the Arizona teachers’ walkout. After decades of tax cuts and underfunding of public education, education advocates are now driving the debate and urging lawmakers to act. Their newest proposal would raise taxes on incomes above half a million dollars for married couples, or above $250,000 for single taxpayers—that is, the same wealthy taxpayers that just received a generous tax cuts under last year’s federal tax overhaul.

Center for Tax and Budget Accountability: Cutting Taxes for the Middle Class and Shrinking the Deficit

April 30, 2018

According to the Institute for Taxation and Economic Policy, Illinois ranks as the fifth-most-regressive state and local tax system in the country — and the most regressive in the Midwest. In Illinois, the top one percent of income earners pay just 4.6 percent of their income in state and local taxes, while the middle 20 percent of workers pay more than double that, coming in at 10.8 percent of income, and the bottom 20 percent of earners have almost three times the tax burden of the wealthiest, coming in at 13.2 percent.

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State & Local Tax Contributions of Young Undocumented Immigrants

April 30, 2018 • By Meg Wiehe, Misha Hill

This report specifically examines the state and local tax contributions of undocumented immigrants who are currently enrolled or immediately eligible for DACA and the fiscal implications of various policy changes. The report includes information on the national impact (Chart 1) and provides a state-by-state breakdown (Appendices 1 and 2).

Beacon Journal/Ohio.Com Editorial Board: Agenda For The Governor’s Race

April 30, 2018

In one week, Democratic and Republican voters will choose their candidates for the November election. That includes the selections for governor, the job coming open after eight years with John Kasich. The governor has his achievements, most notably, the Medicaid expansion. His tenure also frames a worthy debate for this campaign. Fortunately, Innovation Ohio and Policy Matters Ohio, two think tanks, highlighted that discussion last week in unveiling their report “A Winning Economic Agenda for Ohio’s Working Families.”

Iowa Fiscal Partnership: IFP’s Tax Policy Kit

April 29, 2018

IFP's Tax Policy Kit offers resources for the public, advocates and policy makers who want to better understand the stakes — and sort away the spin — on state tax debates.

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Trump Administration’s Spending Priorities Echo Tax Cut Priorities: Punish the Poor and Lavish the Rich

April 27, 2018 • By ITEP Staff, Jenice Robinson, Misha Hill

In 2017, the Trump Administration released a budget proposal filled with loaded language about “welfare reform” and moving able-bodied people from welfare to work. This narrative is designed to perpetuate the pernicious idea that poor people have personal shortcomings and are taking something that rightly belongs to others.

Vox: Arizona Teacher Walkout: How 3 Decades of Tax Cuts Suffocated Public Schools

April 26, 2018

Republican Gov. Doug Ducey tried to avert the strike by promising a 20 percent raise over the next three years — a promise that some say is tied to overly optimistic growth projections. But it’s important to understand why Arizona teachers aren’t just happy with a raise, and why their demands include restoring education funding […]

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Trends We’re Watching in 2018, Part 5: 21st Century Consumption Taxes

April 20, 2018 • By Misha Hill

We're highlighting the progress of a few newer trends in consumption taxation. This includes using the tax code to discourage consumption of everything from plastic bags to carbon and collecting revenue from emerging industries like ride sharing services and legalized cannabis sales.

Kentucky Center for Economic Policy: New Tax Law Shifts from the Wealthy to Kentuckians of Color and Economically Distressed Regions of State

April 20, 2018

In the waning days of the 2018 General Assembly, legislators passed House Bill 366 (HB 366), a regressive tax reform package that gives a tax break to the wealthiest but asks more of everyone else, especially low-income Kentuckians. In addition to widening income disparities, these changes will exacerbate existing racial and geographic inequality in our state.

New Mexico Voices for Children: Celebrate Democracy- It’s Tax Day!

April 17, 2018

While it’s easy to tick off a list of the things we enjoy that are paid for out of our taxes, paying taxes is really a moral duty that we all participate in. It is a contract that we honor collectively because it’s the way we invest in our communities. In fact, some research shows that Americans […]

Maine Center for Economic Policy: Comparing the Democratic and GOP tax bills

April 17, 2018

Because of the federal tax overhaul spearheaded by President Trump and Congressional Republicans, the Maine Legislature is considering two competing proposals to change its own tax code. Lawmakers face a stark choice: Will Maine double down on the lopsided tax policy set at the federal level, which favors those at the top at the expense […]

On Tax Day, a Look at How Federal Tax Changes Impact Arkansans

April 17, 2018

Taxes allow us to invest in public programs that help everyone, but recent federal tax cuts are shifting those dollars to the Arkansans who need it least. Those tax cuts are expensive–to the tune of $1.5 trillion dollars over 10 years. Nearly a third of Arkansas’s total operating budget is made up of federal revenue. This means that on top of federal budget changes, our state budget will also be forced to make cuts to things that Arkansas kids and families rely on today, like parks, community colleges, and firefighters.

NC Budget and Tax Center: North Carolina’s Upside Down Tax Code

April 16, 2018

Tax season comes to a close this week, and Tax Day serves as a good time to reflect on who pays taxes in North Carolina. The income tax is, naturally, at the foremost of our minds, but often ignored as one of the best tools to align our tax code with taxpayers’ ability to contribute […]

New Jersey Policy Perspectives: Undocumented Immigrants Pay Taxes: County Breakdown of Taxes Paid

April 16, 2018

While undocumented immigrants in New Jersey now face greater threats from the federal government than ever before, new data at the state and county level released by the Institute on Taxation and Economic Policy make clear that the Garden State’s undocumented immigrants are an important economic benefit to this immigrant-rich state. Read more here

The Chronicle: Value Teachers, Unions to Better Education

April 16, 2018

It is not a coincidence these movements took place in Republican-led states in which tax cuts take precedence over funding education. An example is Kentucky House Bill 366, which would cut taxes of the state’s wealthiest residents while increasing taxes of low-wage earners, according to the Institute on Taxation and Economic Policy.

Washington Post: Kentucky’s Tax Cut for the Top 5 Percent Survives Despite Governor’s Veto

April 13, 2018

Republicans in Kentucky's state legislature overturned Gov. Matt Bevin's (R) vetoes of their tax overhaul and budget plan Friday, capping a dramatic confrontation between members of the same party that has also seen thousands of teachers descend on the state Capitol in protests for better pay.

Washington State Budget & Policy Center: Five Essential Truths About Our State Tax Code

April 12, 2018

Unfortunately, many myths permeate the public discourse about our state tax code. At the Washington State Budget & Policy Center, we are committed to making sure you know the truth about that tax code – and the real solutions that must be enacted in Olympia to make it work for everyone. Because it is a tax code that doesn’t live up to our values. It isn’t set up to invest in our communities in the short and long term. And it is set up to favor corporations, special interests, and the ultra-wealthy over everyday Washingtonians. As a result, the tax…

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ITEP Resources on Amazon and the Online Sales Tax Debate

April 11, 2018 • By Carl Davis

The U.S. Supreme Court is scheduled to consider a case next week (South Dakota v. Wayfair, Inc.) that has the potential to significantly improve states and localities’ ability to enforce their sales tax laws on Internet purchases.

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What to Expect if the Supreme Court Allows for Online Sales Tax Collection

April 11, 2018 • By Carl Davis

Online shopping is hardly a new phenomenon. And yet states and localities still lack the authority to require many Internet retailers to collect the sales taxes that their locally based, brick and mortar competitors have been collecting for decades.

CNN: Kentucky Governor Signs Controversial Pension Bill as Teachers Call for Rally

April 11, 2018

An analysis of that bill by the Institute on Taxation and Economic Policy found it would bring a huge tax cut for the richest 1% of residents, while the biggest tax increase would affect those making less than $21,000 a year.

Vox: How Tax Cuts for the Rich Led to the Oklahoma Teachers Strike

April 9, 2018

Before the strike last week, the state legislature tried to avert the work stoppage by passing a $447 million tax increase that effectively gives teachers an average annual pay bump of $6,000. That concession from the state legislature didn’t meet the teachers’ full demands, but it was a huge win considering the state legislature hadn’t approved a tax increase since 1990.

Courier Journal: Kentucky Tax Reform Bill is a Break for the Rich but a Hike for Everybody Else, Study Says

April 6, 2018

The tax bill that zipped through the General Assembly on Monday will amount to a tax break for millionaires but a tax increase for 95 percent of Kentuckians, according to an analysis by the Washington-based Institute for Taxation and Economic Policy.

WUKY: A Tale Of Two Tax Studies

April 6, 2018

"This is a complicated tax plan with a lot of moving pieces, but the net result is clear: that it is middle-class tax hike. Kentucky's poorest families and the middle class will end up paying more while the state wealthiest taxpayers are going to end up paying less," ITEP analyst Aidan Davis says.