Institute on Taxation and Economic Policy

ITEP's Research Priorities

Missouri Budget Project: Sales Taxes on Groceries & the Importance of a Refundable EITC

February 28, 2018

A state Earned Income Tax Credit (EITC), like the recently proposed Missouri Working Families Credit, could benefit as many as 515,000 working families with modest wages, providing hardworking families the ability to achieve a better future and a pathway to the middle class. By making the credit refundable, like the federal EITC and most other […]

CBPP: North Carolina Tax Cuts Have Worsened Racial Wealth Inequities

February 27, 2018

The top 1 percent of North Carolinians are getting about $21,780 in average tax breaks per year — 59 times the average break for people in the middle fifth of the income scale and 1,361 times the average break for people in the lowest fifth, the Institute on Taxation and Economic Policy found in its analysis of the 2013 tax changes.

Associated Press: GOP Tax Law Boosts Income Taxes, Budgets in Some States

February 26, 2018

The Republican tax overhaul is giving most Americans a break on their federal income taxes. But fallout from the same law means many people could actually see their state income taxes rise.  For some state governments, the prospect of getting more revenue without actively raising taxes is almost too good to be true, but it also […]

blog  

Why the Minute Federal 529 Provision Has Huge Consequences for States

February 23, 2018 • By Ronald Mak

When Republican leaders rushed through an overhaul to the federal tax code over a seven-week legislative period, they failed to acknowledge that many provisions in their bill would have negative consequences for states. One such provision of the Tax Cuts and Jobs Act that undermines state laws is the expansion of federal tax breaks that now allows taxpayers to use 529 savings plans to pay for private K-12 education.

Georgia Budget and Policy Institute: Lawmakers Might Come to Regret Georgia’s Risky Tax Plan

February 22, 2018

Bill Analysis: House Bill 918 Substitute (LC 34 5383-ECS); Feb. 22, 2018 Georgia leaders are now rushing a massive tax package through the state’s General Assembly with limited debate and without a clear tally of the plan’s true cost. Gov. Nathan Deal and legislative leaders introduced a revised tax package Feb. 20, 2018, designed to […]

Idaho Center for Fiscal Policy: Additional Analysis: Impacts of House Bill 463 Including the Pass-Through Deduction (199A) Provision

February 20, 2018

House Bill 463 would make substantial changes to Idaho’s tax code, in part as a response to recent federal tax cuts. The legislation would also cut Idaho’s state income tax rates for households and corporations, changing significantly the way the income tax load is carried by residents. The proposal also includes a nonrefundable state child tax credit, although this does not offset the tax increases for some Idaho families from full conformity.

Oregon Center for Public Policy: Repealing Oregon’s Tax Haven Law is a $20 Million Gamble

February 19, 2018

The Oregon legislature should act prudently and refrain from hastily eliminating the state’s tax haven law. Otherwise, the legislature could be making it easier for multinational corporations to avoid paying Oregon corporate taxes, potentially costing the state millions.

Georgia Budget and Policy Institute: Governor’s Tax Plan Carries $1 Billion Price

February 16, 2018

Gov. Nathan Deal’s administration introduced a multifaceted tax package on Feb. 13, 2018 designed to reduce state revenues by about $1 billion a year over the next decade. House Bill 918 comes in response to recent news that the federal tax changes signed into law by President Donald Trump in December could generate a so-called […]

Idaho Center for Fiscal Policy: Exploring Working Family Tax Credit Options in Idaho

February 16, 2018

Idahoans believe that everyone should pay their fair share. But the passage of the federal Tax Cuts and Jobs Act in December 2017 raised concerns about potential negative impacts on Idaho families with children. If Idaho chooses to update its tax code to align fully with the federal changes (a policy choice called ‘conformity’), an estimated 66 percent of Idaho families with 1 to 2 dependents will see a state tax increase and 80 percent of Idaho families with 3 or more dependents will see a state tax increase. To mitigate these negative impacts, Idaho lawmakers are considering the creation…

Kansas Center for Economic Growth: New KCEG Blog Series Documents Equity Issues Facing Kansas

February 15, 2018

systemic barriers facing Kansans can strengthen our state’s economy. Using data broken out by race and ethnicity, gender, and immigration status, the entries highlight areas for policymakers to address to ensure continued economic prosperity for every Kansan. Policy and research analyst Emily Fetsch examined data in recent reports from the Kansas Health Institute and the Institute on Taxation and Economic Policy.

New Jersey Policy Perspective: Op-Ed: How to Counter the GOP Tax Plan with Bold Action

February 14, 2018

The new federal tax law has generated a lot of press, sparked a fair amount of outrage and led many elected officials scrambling to respond with sound policies. Unfortunately, there seems to be widespread confusion about the winners and losers under the new law – confusion that is complicating efforts to clean up New Jersey’s tax code and raise new resources to invest in critical public services.

Kansas Center for Economic Growth: New American immigrants in Kansas strengthen the economy

February 7, 2018

A recent report from the Institute of Tax and Economic Policy (ITEP) shows how undocumented immigrants in Kansas demonstrate their commitment to our state and increase state revenue through the taxes they pay. Read more here

Kansas Center for Economic Growth: New American Immigrants in Kansas Strengthen the Economy

February 7, 2018

Currently, undocumented immigrants residing in Kansas pay nearly $68 million a year in state and local taxes. By granting undocumented immigrants full and legal status, Kansas could receive an additional $11 million in state and local taxes annually, creating a nearly $79 million state and local tax contribution from the undocumented immigrant population. Read more […]

Idaho Center for Fiscal Policy: Analysis of House Bill 463

February 6, 2018

One motivation for reducing taxes this year is to offset the increase in revenue that conformity – aligning our state tax code with recent federal changes – will bring. If Idaho chooses to conform, the state will collect additional revenue in the range of $82 million to $97.4 million. This means that some Idahoans – particularly those with multiple children - will pay more in state taxes.

Georgia Budget and Policy Institute: Immigrants Make Georgia Stronger and Better Every Day

February 1, 2018

Immigrant taxpayers contribute to Georgia’s bottom line. As immigrants start businesses, buy homes, earn wages and spend disposable income at local businesses, they generate considerable state and local tax revenue regardless of citizenship status. Undocumented Georgians contributed an estimated $352 million in state and local taxes in 2014, according to the Institute on Taxation and […]

Georgia Budget & Policy Institute: People-Powered Prosperity

February 1, 2018

People-Powered Prosperity details a new vision for how state lawmakers can pursue strategies to help all Georgians thrive, as well as how the state can responsibly pay for it.

Colorado Fiscal Institute: Effect of Federal Tax Law on Revenue for Colorado and Colorado Taxpayers

January 31, 2018

The Colorado Fiscal Institute (CFI) has a long-time partnership with the Institute of Taxation and Economic Policy (ITEP) and their estimate of the impact on state revenue is significantly smaller than the current amounts predicted by the Colorado Legislature and the Colorado Governor’s Office. This brief explains the various components of the ITEP estimate.

Here’s Why Arkansas Needs a State EITC

January 31, 2018

Arkansas is part of a shrinking group of states that haven’t started using tax credits, like the Earned Income Tax Credit (EITC), to build their middle class and help people move permanently out of poverty. Arkansas remains among the worst states for overtaxing the poor. 

Economic Progress Institute: Budget Matters: Making Rhode Island’s Tax Structure More Equitable and Adequate

January 30, 2018

For Rhode Island to achieve its potential as a first-class place to live and do business we need to ensure that we have the public services and amenities that enhance the quality of life and work in our state. Rhode Islanders make a collective investment through taxes, fees, and other forms of revenue to fund the services that businesses and residents count on.

Colorado Fiscal Institute: Colorado State Tax Basics

January 29, 2018

The Colorado Fiscal Institute (CFI) promotes tax and budget policies that are effective, efficient, equitable, transparent and accountable. Each year, CFI takes positions on new legislation that affects the sustainability and equity in Colorado's state budget and tax system.

Third and State: Fact Check: Undocumented Immigrants like the Dreamers are not a Drag on State and Local Governments

January 27, 2018

A recent study by the Institute on Tax and Economic Policy (ITEP) shows that the estimated 137,000 undocumented immigrants in Pennsylvania pay our state and local governments almost $135 million in taxes each year. (They pay $11.7 billion in state and local taxes nationwide.) Read more here

Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate

January 26, 2018

According to modeling by the Institute on Taxation and Economic Policy, in 2019 about 1,400 fewer filers (about 0.4%) will qualify for the credit, resulting in $7 million in fewer federal credits being distributed to the state. By 2027 about 14,500 fewer filers (about 2%) will qualify for the credit, resulting in a loss of $96 million of federal credit value. The same filers who lose their federal EITC will also lose their ability to claim their state EITC, resulting in a loss of additional local economic support.

NJPP: A Grain of ‘SALT’: New Jersey Needs More Than Workarounds to Respond to GOP Tax Plan

January 25, 2018

That’s because these workarounds would disproportionately benefit the wealthiest households in New Jersey, to make no mention of the fact that the Trump administration is unlikely to allow them to stand.

DCFPI: As High-Income DC Taxpayers Reap Large Federal Tax Windfalls, DC Can Make Our Tax Code More Progressive

January 22, 2018

According to recent estimates from the Institute for Taxation and Economic Policy (ITEP), District of Columbia residents can expect to receive an $850 million federal tax break this year.

MassBudget: What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?

January 22, 2018

The tax cuts are also skewed toward high-income tax filers when measured as a portion of their own incomes.