Institute on Taxation and Economic Policy

ITEP's Research Priorities

Georgia Budget & Policy Institute: Young Immigrants Vital to Georgia’s Workforce, Healthy Economy

February 1, 2017

Potential harsher federal immigration policies under the new presidential administration pose special concern for young Georgians whose parents brought them to the United States as children. A new federal crackdown threatens havoc for tens of thousands of young Georgians who now enjoy some limited legal protections which allow them to work, go to school and […]

New Mexico Voices for Children: NM’s Working Families Tax Credits

January 30, 2017

As a group, those who claim the EITC and WFTC pay a large share of their incomes in taxes. In fact, in addition to the federal payroll taxes they pay, New Mexico’s lowest-income households pay a larger share of their income in state and local taxes than the households in every other income group. Those […]

Open Sky Policy Institute: Some facts about LB 337 — the governor’s tax plan

January 30, 2017

Below are some facts regarding, LB 337, the governor’s income tax cut plan: The example middle-class Nebraska taxpayer used to roll out the plan would not receive a tax cut under LB 337. Once the standard deduction is applied, this taxpayer, who earns $29,831, would not pay the top tax rate on any income, and therefore would […]

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What to Watch in the States Series: Tax Policy 2017

January 27, 2017 • By Lisa Christensen Gee

Over the next few weeks we will be blogging about what we’re watching in state tax policy during 2017 legislative sessions. In this “What to Watch in the States” series, we will look at the following: State responses to short- and long-term revenue deficits Boosting funding for infrastructure, though sometimes at the expense of other […]

Policy Matters Ohio: Common Sense Reform for Working Ohio

January 27, 2017

Tax modeling from the Institute on Taxation and Economic Policy (ITEP), a national organization with a sophisticated model of the state tax system, shows that Ohio’s current EITC reaches only about 8 percent of the state’s neediest working families and 11 percent of middle income workers. A 20 percent, refundable, non-capped, EITC would extend the […]

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An Overview of State Tax Trends in 2017

January 26, 2017 • By Meg Wiehe

Since the 2007-2009 economic crisis, rising income inequality and the role our public policies play in aiding or easing this trend have been an ongoing part of the public discourse. In spite of what we know about the growing gap between the rich and the rest of us, federal and state policymakers continue to sell […]

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State Rundown 1/25: Revenue Shortfalls and How to Avoid Them

January 25, 2017 • By ITEP Staff

This week brings more news of states facing budget crunches, a new state looking to eliminate income taxes, and plans to raise gas taxes to fund transportation projects.  Be sure to check out the What We’re Reading section for a look at how repealing federal health reform could add to those crunches and a review […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Gov. Hutchinson’s low-income tax plan: A good start, but needs work

January 25, 2017

Governor Asa Hutchinson’s new tax cut proposal includes a break, at long last, for some of the lowest income working families in our state. The bones of this plan are good – it isn’t too expensive, and it includes a portion of the families making less than $21,000 a year who were left out of […]

Statement on Governor Hutchinson’s Low-Income Tax Plan

January 25, 2017

The following is a statement from Rich Huddleston, executive director of Arkansas Advocates for Children and Families: Read more here

The Arizona Center for Economic Progress: Questions and Answers About Arizona’s State Budget and Taxes 2017

January 24, 2017

State budgets and taxes are the foundation for achieving our common priorities that will lead to more quality jobs, a strong economy, and thriving communities. This publication provides information and analysis to help policymakers, community leaders, and community-based organizations make good decisions about Arizona’s state budget and taxes to reach those goals. These questions and […]

Washington State Budget & Policy Center: Closing the Tax Break on Capital Gains

January 20, 2017

A capital gain is the profit an individual receives from the sale of a financial asset. Currently, Washingtonians receive a tax break on the profits they make from the sale of high-end capital assets. This tax break contributes to our state having the most upside-down tax code in the nation, in which people with low […]

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Kansas State of the State: Worlds Apart

January 18, 2017 • By Lisa Christensen Gee

Back in December, Kansas Gov. Sam Brownback gave an interview with the Wall Street Journal and suggested President-elect Trump should follow his state’s example and cut taxes as well as spending. The sheer gall of the suggestion belies the fact that Kansas’s tax cuts have resulted in credit downgrades, lack of adequate funding for essential […]

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State Rundown 1/18: Revenue Woes Piling Up Faster Than Solutions

January 18, 2017 • By ITEP Staff

This week we continue to track revenue shortfalls, governors’ budget proposals, and other tax news around the country, finding most proposals to be focused on slashing taxes and reducing public investments despite public opinion and economic research showing the benefits of well-funded state services and progressive tax policies. — Meg Wiehe, ITEP State Policy Director, […]

Connecticut Voices for Children: Revenue Options are Key to Addressing Budget Shortfalls and Supporting Thriving Communities

January 18, 2017

Long-term investments in children and families have been the cornerstone of the state’s prosperity. To preserve these investments and support long term economic health, a balanced approach to the upcoming biennial budget must include new resources. Read more here

Hawaii Tax Fairness Coalition: Tax Fairness Flyer

January 18, 2017

Hawaiʻi has the lowest wages in the nation after adjusting for our cost of living, which is the highest in the nation. We also place the 2nd highest tax burden in the country on our low-income households. Faced with this one-two-three punch, almost half of our state’s residents are living paycheck-to-paycheck. Read more here

Hawaii Tax Fairness Coalition:

January 18, 2017

Hawaiʻi ranks second nationally in how heavily we tax our low-income households. In fact, we are in the minority of states that actually pushes low-income people deeper into poverty with taxes. As a result, nearly half of our state’s residents live paycheck-to-paycheck. Read more here

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State Rundown 1/11: State Legislative Sessions Kick Off Amid Uncertainty

January 11, 2017 • By ITEP Staff

This week brings still more states looking for solutions to revenue shortfalls, multiple governors’ State of The State addresses, important reading on counter-transparency and local-preemption efforts, and more.  — Meg Wiehe, ITEP State Policy Director, @megwiehe A Nebraska legislator this week diagnosed the state’s $900 million revenue shortfall in plain terms, describing it as “self-inflicted […]

Akransas Advocates for Children & Families: 6 ways to make 2017 more prosperous for all Arkansans

January 11, 2017

Legislators have just kicked off the 2017 legislative session, and ideas for big changes are buzzing around the Capitol. AACF will be on the ground advocating for bills that are best for kids and families in our state. In order to make Arkansas a better place for all of us, AACF hopes that this year: […]

The Arizona Center for Economic Progress: Arizona’s State Budget and Taxes: What Every Arizonan Needs to Know About Growing Our Economy

January 10, 2017

When all types of state and local taxes are combined—income, sales and property—families with incomes in the bottom fifth pay nearly three times what families in the top 1 percent do—$12.50 for every $100 of income compared to $4.58 for the highest income families and $8.20 for middle income families. Sales taxes make up the […]

Kansas Center for Economic Growth: KCEG Testimony to the House Taxation Committee as Neutral on HB 2023.

January 9, 2017

The LLC Loophole is unfair, expensive, and failed to create jobs. According to the Institute on Taxation and Economic Policy, the LLC loophole costs Kansas nearly $290 million per year. It was originally touted as the plan’s signature feature, but now legislators and business leaders of all political stripes publicly acknowledge that it failed to […]

Policy Matters Ohio: Flat Tax Would Make Most Ohioans Pay More

January 5, 2017

Using a sophisticated model of Ohio’s tax system, the national research group, Institute on Taxation and Economic Policy (ITEP), found that with a 3.5 percent flat tax, 72 percent of Ohioans would pay more state income tax, while just 4 percent would pay less. The remaining 24 percent would pay the same amount as they […]

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State Rundown 1/4: Revenue Shortfalls, Gas Tax Changes Dominate Early Debates

January 4, 2017 • By ITEP Staff

This week we bring you updates on major revenue shortfalls looming in Nebraska, Oklahoma, and Pennsylvania, as well as gas tax changes taking effect in some states and being debated in others. — Meg Wiehe, ITEP State Policy Director, @megwiehe Oklahoma lawmakers are weighing options to close the state’s $870 million shortfall. Up for discussion are […]

Montana Budget & Policy Center: Montana Corporate Income Taxes

December 31, 2016

For generations, our tax dollars have served as shared investments in the programs and services that make our state a great place to live, work, and play. Tax dollars enable Montanans to work together to achieve things which we could not do alone - educate our children, build and maintain infrastructure, provide public safety through police and fire protection, keep our air and water clean, and pave the way to a stronger and more inclusive economy.