Institute on Taxation and Economic Policy (ITEP)

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State Rundown 5/10: Momentum on State Tax Credits Continues to Build

This week, in states across the country the momentum to center improvements to family economic security remains strong...

Minnesota Poised to Enact Landmark Loophole-Closing Corporate Tax Reforms

With Minnesota poised to enact worldwide combined reporting of corporate income taxes, business lobbyists are pulling out all the stops to make state lawmakers believe the apocalypse is upon them.

State Rundown 5/3: Policy Debates Unfold from Capitol to Capital

While the conversations on the debt ceiling heat up in the nation's capital, debates on state tax policy also continue to unfold in capitol buildings across the nation...

Minnesota Lawmakers Re-Envision State Tax System to Center Equity

Minnesota’s House, Senate and Governor’s office have each proposed their own vision as to how the state should maximize its $17.5 billion surplus and raise new revenue, and these tax plans make one thing clear: Minnesota lawmakers are serious about using tax policy to advance tax equity and improve the lives of Minnesotans.

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Taxes Save Babies’ Lives

May 1, 2023 • By Amy Hanauer

Taxes Save Babies’ Lives

A compelling new examination over multiple years and multiple states found that infants are more likely to survive to age one in states that raise more revenue and raise it from those most able to pay. Generating taxes from rich people and corporations can help babies make it to their first birthday.

Kansas Avoids Flat Tax Proposal: Narrow Victory a Cautionary Tale for Other States

Kansas lawmakers failed to override Gov. Laura Kelly’s veto of a damaging flat tax package. In doing so, the state narrowly avoided traveling again down the same disastrous yet well-worn path of deep income tax cuts. States across the country can learn from Kansas’s experience by rethinking tax policy decisions and broader statewide priorities.

State Rundown 4/27: Health, Wealth, and State Tax Policy

This week the importance of state tax policy is center stage once again...

State Rundown 4/19: Revenue Discussions Heat Up Like the Temperature

Tax season has ended for most filers, but the topic remains a hot one in states around the country...

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We Can Create a Fair, Feminist Tax Code

April 14, 2023 • By Amy Hanauer

We Can Create a Fair, Feminist Tax Code

Everything! Taxing wealthy people and corporations and using the revenue for paid leave, child care, education, health care and college would transform America for girls and women of every race and family type, in every corner of this country.

State Rundown 4/12: Tax Day 2023 – A Good Reminder of the Impact of Our Collective Investments

With Tax Day quickly approaching it’s worth taking some time to reflect not just on tax forms (though those are important!), but also on the current state of state tax policy...

Deep Public Investment Changes Lives, Yet Too Many States Continue to Seek Tax Cuts

When state budgets are strong, lawmakers should put those revenues toward building a stronger and more inclusive society for the long haul. Yet, many state lawmakers have made clear that their top priority is repeatedly cutting taxes for the wealthy.

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8 Things to Know About State Taxes

April 12, 2023 • By Jon Whiten

8 Things to Know About State Taxes

As Tax Day approaches, it’s worth thinking about not only the taxes that we individually pay but the overall condition of our tax code as well. State tax codes, while perhaps less discussed than the federal system, are critically important. Depending on how they are designed, state taxes can improve or worsen economic and racial […]

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State Rundown 4/6: More SALT, Please

April 6, 2023 • By ITEP Staff

State Rundown 4/6: More SALT, Please

This week, a bill out of Arkansas that would cut the top personal income tax rate and the corporate income tax rate found its way to the governor’s desk...

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Minnesota’s Tax Code Should Be Based on Ability to Pay, Not Year of Birth

March 31, 2023 • By Carl Davis, Eli Byerly-Duke

Minnesota’s Tax Code Should Be Based on Ability to Pay, Not Year of Birth

Minnesota lawmakers are considering a carveout that would treat seniors much more favorably than young families. The proposal would fully exempt all Social Security income from state income tax, even for seniors with exceptionally high incomes.

State Rundown 3/30: A Win for Tax Equity in The Evergreen State

Over the past week Washington state saw a major victory for tax fairness after the state Supreme Court held the state’s capital gains tax—passed in 2021—constitutional...

State Rundown 3/23: A Spring Awakening of Tax Proposals

As nature bursts into life and color with the arrival of spring, state tax proposals are doing the same as the legislative seeds planted by lawmakers earlier this year start to grow, blossom, and in some cases rot. However, some governors are not entirely happy with what state lawmakers have produced.

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States Prioritize Old Over Young in Push for Larger Senior Tax Subsidies

March 23, 2023 • By Carl Davis, Eli Byerly-Duke

States Prioritize Old Over Young in Push for Larger Senior Tax Subsidies

Under a well-designed income tax based on ability to pay, it is simply not necessary to offer special tax subsidies to older adults but not younger families. At the end of the day, your income tax bill should depend on what you can afford to pay, not the year you were born. It’s really as simple as that.

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State Rundown 3/15: Tax Madness

March 15, 2023 • By ITEP Staff

State Rundown 3/15: Tax Madness

It’s March and state lawmakers are showing why the Madness isn’t only reserved for the basketball court...

State Rundown 3/9: The Whirlwind 2023 Legislative Session Continues

State 2023 legislative sessions are proving to be eventful ones. With many states eager to make use of their budget surpluses, major tax changes are still being proposed and others signed into law. Michigan residents will soon see an increase to their state Earned Income Tax Credit (from 6 percent to 30 percent) after the […]

State Rundown 3/1: The Long March to the Finish Line

This week, several big tax proposals took strides on the march toward becoming law...

New Jersey, New York, and Connecticut Should Keep Corporate Taxes Strong, Extend Surcharges

At a time when corporations are seeing record profits while not paying their fair share of federal taxes, state corporate income taxes can and should play a role in raising sustainable revenue and adding progressivity to state tax codes. Right now, lawmakers in New Jersey, New York, and Connecticut have a unique opportunity to extend targeted tax changes that have raised billions of dollars from profitable corporations for meaningful public investments.

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Dear Ohio: Beware the Flat Tax

February 28, 2023 • By Carl Davis

Dear Ohio: Beware the Flat Tax

The flat tax plan and others being discussed that would cut even deeper would be windfalls for the wealthy, and expensive ones at that. Families with incomes over $300,000 per year, for example, could expect to gain, as a group, about a billion dollars annually under the flat tax plan. If you asked Ohio families about their top priorities for this legislative session, it’s a safe bet that very few of them would choose a billion-dollar tax cut for this group over funding for schools, parks, and infrastructure.

State Rundown 2/23: Tax Dominos Take Shape, Begin to Fall as Session Heats Up

The 2023 legislative session is in full swing, and dominos continue to be set up as others fall...

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The Five Best Tax Ideas Coming from Governors This Year

February 22, 2023 • By Carl Davis

The Five Best Tax Ideas Coming from Governors This Year

The word “tax” appears 97 times and counting in one recent summary of governors’ addresses to state legislators so far this year. The policy visions that governors are bringing, however, vary enormously. While there's good reason to worry about tax cuts for wealthy families and the flattening or elimination of income taxes, there are at least five great tax ideas coming directly out of governors’ offices this year.

State Rundown 2/15: Love You, Love You Not – Tax Edition

This week, a fresh bouquet of tax proposals was delivered by state lawmakers, but not all of them have left us with that warm, fuzzy feeling in our stomachs...