Institute on Taxation and Economic Policy (ITEP)

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Eliminating Indiana’s Income Tax Would Jeopardize Public Services & Create a Windfall for the Well-Off

Meaningful investments in Indiana’s future require a smart, and fair, tax code that recognizes current economic realities and can raise a sustainable stream of funding  from those most able to pay.

State Rundown 10/12: Tax Policy Debates Don’t Just Happen in the Statehouse

It may be the off-season for state legislatures, but tax policy changes could soon emerge from the ballot box or the courts. Advocates in Arkansas want voters to decide the future of taxing diapers and feminine hygiene products, and supporters of public education in Nebraska are working to make sure voters have a say on the state’s school choice tax credit. Meanwhile, cannabis firms in Missouri are suing the state over cities and counties stacking sales tax on marijuana.

State Rundown 9/27: Some States are Looking to Paint the Budgets Red

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...

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State Rundown 9/13: The (Policy) Choices We Make

September 13, 2023 • By ITEP Staff

State Rundown 9/13: The (Policy) Choices We Make

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

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.

How to Better Tax the Rich Men North (and South) of Richmond

When you examine tax policy through the lens of how much working (and poor) people are taxed compared to rich men north (and south) of Richmond, it’s hard not to take Oliver Anthony's runaway hit as a jumping off point to amplify some important facts.

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State Rundown 8/23: Tax and Effect

August 23, 2023 • By ITEP Staff

State Rundown 8/23: Tax and Effect

While a number of state tax laws are debated, approved, and vetoed in any given year, many go unnoticed...

State Rundown 8/10: Pump the ‘Breaks’ on Sales Tax Holiday Celebrations

August is here, school is starting, and with that comes back to school shopping...

A Lot for A Little: Gimmicky Sales Tax Holidays Are an Ineffective Substitute for Real Sales Tax Reform

This year, 19 states will forgo a combined $1.6 billion in tax revenue on sales tax holidays—politically popular, yet ultimately ineffective gimmicks with minimal benefits and significant downsides.

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State Rundown 7/26: The Dog Days of Summer Tax News

July 26, 2023 • By ITEP Staff

State Rundown 7/26: The Dog Days of Summer Tax News

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)...

State Rundown 7/12: The Mid-Year Legislative Session Roundup

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...

The Highs and Lows of 2023 State Legislative Sessions

Nearly one-third of states took steps to improve their tax systems this year by investing in people through refundable tax credits, and in a few notable cases by raising revenue from those most able to pay. But another third of states lost ground, continuing a trend of permanent tax cuts that overwhelmingly benefit high-income households and make tax codes less adequate and equitable.

Refundable Credits a Winning Policy Choice Again in 2023

State lawmakers continue to make groundbreaking progress on state tax credits, with 17 states creating or enhancing Child Tax Credits or Earned Income Tax Credits so far this year. These policies have the potential to boost family economic security and dramatically reduce the number of children living below the poverty line.

Minnesota’s Tax Battle of 2023 Signals a Turning of the Tide Against Corporate Tax Avoidance

The qualified success of Minnesota’s GILTI conformity—to say nothing of the state’s serious dalliance with the game-changing worldwide combined reporting--sends a clear signal that the days may be coming to an end when big multinationals can scare state lawmakers into allowing them to game the tax system.

State Rundown 7/6: Tax Policy Keeping Governors Busy from Coast to Coast

From coast to coast, state governors have been busy inking their signature on a growing list of consequential budget and tax bills...

State Rundown 6/28: Movement on Refundable Credits Remains Hot Topic in 2023

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 Rundown 6/22: Some Tax Debates Heat Up as Others Cool Off

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

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...

Illinois Voucher Tax Credits Don’t ‘Invest in Kids,’ They Invest in Inequality

By allowing their school privatization tax credit to expire at the end of the year, Illinois lawmakers can take a meaningful step toward better tax and education policy, and a clear show of support for our nation’s public education system.

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State Rundown 6/7: The Budget Race Continues

June 7, 2023 • By ITEP Staff

State Rundown 6/7: The Budget Race Continues

Across the country, the marathon budget season has held pace, with a steady stream of bills continuing to cross the finish line...

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The Real Impact of State Tax Cuts

June 5, 2023 • By Aidan Davis

The Real Impact of State Tax Cuts

This op-ed was originally published by Route Fifty and co-written by ITEP State Director Aidan Davis and Center on Budget and Policy Priorities Senior Advisor for State Tax Policy Wesley Tharpe. There’s a troubling trend in state capitols across the country: Some lawmakers are pushing big, permanent tax cuts that primarily benefit the wealthy and […]

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State Rundown 6/1: State Revenue Highs and Lows

June 1, 2023 • By ITEP Staff

State Rundown 6/1: State Revenue Highs and Lows

Short-sighted tax cuts continue to make their way to Governors’ desks this week. In Florida, Gov. DeSantis signed a $1.3 billion tax cut package with $550 million of the tax cuts from sales tax holidays, alone. The Nebraska legislature also sent $6.4 billion in tax cuts to Gov. Pillen’s desk which includes an enormous personal income tax cut that will reduce taxes on the top 1 percent by tens of thousands of dollars.

State Rundown 5/25: The North Star State Leads the Way on Tax Fairness

As we approach the midpoint of 2023, it’s a good time to look back at the progress states have made in the name of tax fairness and equity...

State Rundown 5/18: Credits, Cuts, and Corporate Revenue Raisers

This past week, in statehouses around the country, tax policy decisions are moving fast as budgets were signed and budget plans were released and passed...

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States are Talking About the Wrong Kind of Property Tax Cuts

May 11, 2023 • By Brakeyshia Samms, Carl Davis

States are Talking About the Wrong Kind of Property Tax Cuts

Concerns over property tax affordability have been at the forefront this year as housing prices have climbed and property tax bills have often increased along with them. As lawmakers mull a range of property tax cuts, circuit breakers are the best possible approach—and these policies are receiving far too little attention in the states.