Institute on Taxation and Economic Policy (ITEP)

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Legislative Momentum in 2022: New and Expanded Child Tax Credits and EITCs

State legislatures across the country made investments in their future, centering children, families, and workers by enacting and expanding state Earned Income Tax Credits (EITCs), Child Tax Credits (CTCs), and other refundable credits this session. In total, seven states either expanded or created CTCs this session. Connecticut, New Mexico, New Jersey, Rhode Island and Vermont […]

Most States Used Surpluses to Reduce Taxes But Not in Sustainable or Progressive Ways

The average person on the street would have no idea that many states experienced unprecedented budget surpluses this year. Iowa, for instance, has the most structurally deficient bridges of any state with nearly 1 in 5 falling apart. The Iowa Board of Regents proposed a 4.25 percent tuition increase for all three state universities and […]

New ITEP Brief Shows How State Sales Tax Holidays Fail to Live Up to the Hype

Twenty states this year have decided to go so far as to forgo a combined $1 billion in vital tax revenue in favor of conveniently popular yet ultimately ineffective sales tax holidays. Whether it’s a state looking for a way to help families manage the rising cost of goods or to celebrate back-to-school shopping season, these policy options are poorly targeted and an inadequate use of state tax revenue that could be doing more to make childcare more affordable, health care more accessible and high-quality education available to everyone.

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State Rundown 7/13: Let’s Make a Deal

July 13, 2022 • By ITEP Staff

State Rundown 7/13: Let’s Make a Deal

From the Bay State to the Golden State, lawmakers across the nation are making deals and negotiating budgets with major tax implications...

State Rundown 6/29: Sun’s Out, Session’s (Still) In

Although the sun is shining and Independence Day is right around the corner, many state lawmakers are still indoors hammering out the details of future budgets or still hard at work passing laws...

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State Rundown 6/22: Southern States Edition

June 22, 2022 • By ITEP Staff

State Rundown 6/22: Southern States Edition

With many state legislative sessions wrapped or wrapping up, we at ITEP want to take a moment to direct your attention south, and specifically, to the American South...

New ITEP Report Examines the Path to Equitable Tax Policy in the South

“From the inception of the emerging American nation, the South is a central battleground in the struggles for freedom, justice, and equality. It is the location of the most intense repression, exploitation, and reaction directed toward Africans Americans, as well as Native Americans and working people generally. At the same time the South is the […]

State Rundown 6/15: States on Alert as Inflation Concerns Rise

With inflation dominating headlines both nationally and locally, state lawmakers around the U.S. are searching for ways to put their revenues to good use, and not surprisingly, some options are better than others...

Rising Prices: Another Reason to Be Wary of Tax Cutting Right Now

Many state lawmakers see any economic challenge as an excuse to cut taxes and in 2022, some are citing inflation as a reason to do so. All eyes today are on the inflation rate facing consumers which, spurred on in part by rising corporate profits, is now running at its fastest pace in decades. But […]

State Rundown 6/8: Tax Policy Features Prominently During Budget and Primary Season

As voters head to the polls to weigh in on their state’s primary elections and legislators convene to hash out budget deals, tax policy remains atop the agenda...

State Rundown 5/25: Tax Discussions Heating Up as Summer Begins

While the temperature ticks up outside, the temperature in state legislatures around the country has fallen slightly. But with several states still dealing with ongoing tax and budget issues, this summer could be a hot one...

State Rundown 5/11: Mid-Year Special Elections and Primary Season Kicks Off with Taxes in the Spotlight

As 2022 inches closer to its midpoint, important tax policy decisions are being put in the hands of voters, as special elections and the primary season begin...

State Rundown 4/27: States Remain Active on the Tax Front

While tax discussions among federal lawmakers continue in fits and starts, major tax news continues to make waves across the nation...

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State Rundown 4/20: New Tax Changes in Full Bloom

April 20, 2022 • By ITEP Staff

State Rundown 4/20: New Tax Changes in Full Bloom

This Spring looks to be bringing a mix of showers and flowers as states around the nation continue to act on a range of tax proposals...

Some Lawmakers Continue to Mythologize Income Tax Elimination Despite Widespread Opposition

One of the most surprising trends this legislative session is that conservative leaders and the business community joined with progressive advocates to oppose income tax repeal plans. There is a general consensus that income tax repeal is a step too far.

Cannabis Taxes Outraised Alcohol by 20 Percent in States with Legal Sales Last Year

In 2021, the 11 states that allowed legal sales within their borders raised nearly $3 billion in  cannabis excise tax revenue, an increase of 33 percent compared to a year earlier. While the tax remains a small part of state budgets, it’s beginning to eclipse other “sin taxes” that states have long had on the books.

State Rundown 4/13: Recent State Budgets Prove Not All Tax Cuts are the Same

Two prominent blue states made headlines this past week when they passed budget agreements that include relief for taxpayers, and fortunately, the budget plans don’t include costly tax cuts that primarily benefit the wealthy...

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State Rundown 4/6: Late-Session Surprises Pt. 2

April 6, 2022 • By ITEP Staff

State Rundown 4/6: Late-Session Surprises Pt. 2

Last week we highlighted how several states were pushing through regressive tax cuts as their legislative sessions are coming to a close. Well, this week many of those same states took further actions on those bills and it’s safe to say we’re even less impressed than before...

Racial Discrimination in Home Appraisals Is a Problem That’s Now Getting Federal Attention

With both assessments and appraisals being unfair, homeowners of color are stuck between a rock and a hard place when it comes to determining the worth of what is, for most homeowners, their most valuable asset.

State Rundown 3/30: Late-Session Surprises Leave Us Unimpressed

Several states have dropped a few late-session surprises, and from the looks of it, they’re not the good kind...

State Rundown 3/23: Spring Brings More Tax Happenings

Spring is around the corner and like those pesky allergies that come along with it, equally pesky tax proposals continue to pop up in states across the U.S....

Arizona Ruling Preserves High-Income Interests Over Education Investments, Popular Vote

An Arizona court decision delivered an unfortunate blow to voters and those in the state who favor a progressive, adequate tax system that can fund critical priorities including K-12 education.

State Rundown 3/16: The Scramble to Curb Rising Gas Prices is On

Rising gas prices have lawmakers around the country searching for ways to ease the pressure on consumers and almost half the states are considering reducing or temporarily repealing their gas tax, but another idea is taking hold...

State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts

The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity...

A Better Alternative: New Mexico Prioritizes Targeted, Temporary Tax Cuts

New Mexico stands in stark contrast to the many examples of poorly targeted tax-cut proposals currently being considered around the country.