Institute on Taxation and Economic Policy (ITEP)

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706 posts
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New Census Data Highlight Need for Permanent Child Tax Credit Expansion

• By Neva Butkus

The status quo was a choice, but the Census data released today shows that different policy choices can create drastically different outcomes for children and families. It is time for our state and federal legislators to put people first when it comes to recovery.

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State Rundown 9/1: Labor Day Edition

• By ITEP Staff

Labor Day is around the corner and in the spirit of celebrating the achievements of workers around the country, we here at ITEP want to call attention to the states (and territories) that are using tax policy to support workers and residents alike...

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Eliminating the State Income Tax Would Wreak Havoc on Mississippi

• By Kamolika Das

History has repeatedly shown that such policies harm state economies, dismantle basic public services, and exacerbate tax inequities.

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State Rundown 8/18: End of Summer Tax Update

• By ITEP Staff

Summer is quickly (and sadly) coming to an end and if you’ve been away enjoying the great outdoors or off the grid, we’re here to help keep you up to date on what’s been happening on the tax front around the country...

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State Rundown 8/4: Tis the Season…for Unnecessary Sales Tax Holidays

• By ITEP Staff

It’s beginning to look a lot like that time of year again. That’s right, it’s sales tax holiday season and states across the country are doing their best to induce spending that would probably occur regardless...

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DC Exemplifies Trend of Tax Justice Victories on the Ground Despite Distractions in the Sky

• By Dylan Grundman O'Neill

This month, we watched billionaire space-racers with skyrocketing fortunes literally rocket themselves into the sky to look down on us from the largest gap they could put between themselves and the people, communities, and institutions that made their fortunes possible. These events have put an exclamation point on one of the clearest lessons to come […]

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State Rundown 7/21: States Go for Tax Policy Gold This Olympics Season

• By ITEP Staff

It’s Olympics season! As countries around the globe battle for first place in a plethora of sports and contests it’s as good a time as any to look around America to see which states deserve a gold medal in the ‘Equitable Tax Policy’ event...

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State Rundown 7/7: The New Fiscal Year Starts off With a Bang, And Not Just Fireworks

• By ITEP Staff

States were busy over the past week despite the Fourth of July holiday. Many are gearing up for upcoming tax and budget clashes that could shape their futures for some time...

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In Drive to Cut Taxes, States Blow an Opportunity to Invest in Underfunded Services

• By Marco Guzman

Many states find themselves in a peculiar fiscal situation right now: federal pandemic relief money has been dispersed to states and revenue projections have exceeded expectations set during the pandemic. Meanwhile, more and more workers are returning to jobs as vaccines roll out and typical economic activity resumes. Some states, however, have decided to squander their unexpected fiscal strength on tax cuts.

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Congress Should Follow States’ Lead on Inclusive Economic Recovery

• By Meg Wiehe

President Joe Biden's American Families and Jobs plans intend to “build back better” and create a more inclusive economy. To fully live up to this ideal, the final plan must include undocumented people and their families.

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State Rundown 6/30: Resolutions Are in Order for the New Fiscal Year

• By ITEP Staff

Today is the last day of the fiscal year in many states, and some lawmakers might want to take the opportunity to make some new fiscal year resolutions. Legislators in Arizona, New Hampshire, Ohio, North Carolina, and Wisconsin, for example, should really cut back on the trickle-down tax-cut Kool-Aid, which may make parties with rich donors more fun but tends to be both harmful and habit-forming...

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State-Level EITC Victories in 2021

• By Aidan Davis

A growing group of state lawmakers are recognizing the extent to which low- and middle-income Americans are struggling and the ways in which their state and local tax systems can do more to ensure the economic security of their residents over the long run. To that end, lawmakers across the country have made strides in enacting, increasing, or expanding tax credits that benefit low- and middle-income families. Here is a summary of those changes and…

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State Rundown 6/24: Late June State Fiscal Debates Unusually Active

• By ITEP Staff

Delayed legislative sessions and protracted federal aid debates have made for a busier June than normal for state fiscal debates. Arizona, New Hampshire, and North Carolina legislators, for example, are still pushing for expensive and regressive tax cuts in their states while they remain in session...

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State Rundown 6/16: Progressive Tax Policy Keeps Racking Up Wins

• By ITEP Staff

Taxing rich households and large corporations to fund vital investments in education and other shared priorities has long been a winner in the eyes of the American public, and more recently has also enjoyed a string of victories in state legislatures and at the ballot box. That win streak continued this week as Arizona’s voter-approved tax surcharge on the rich and Seattle, Washington’s payroll tax on high-profit, high-salary businesses both survived court challenges, and Massachusetts…

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State Rundown 6/7: Remaining State Legislative Sessions Are Heating up as Budget Deadlines Loom

• By ITEP Staff

Just as an early summer heatwave brought soaring temperatures this past weekend through much of the lower 48 states, several state legislative sessions are heating up as legislators scramble to make tough budget decisions. Massachusetts lawmakers are voting on a fiery new "millionaires' tax" that would support transportation and education revenue needs, and Connecticut will likely restore its state Earned Income Tax Credit (EITC) back to 30 percent. Illinois’s decision to cut back corporate tax…

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State Rundown 5/27: State Legislatures Step Back, Advocates Push Forward

• By ITEP Staff

As more and more state legislatures wrap up their sessions and we reflect on the whirlwind that is this past year, it’s easy to focus on the steps back that states like Oklahoma have taken and Nebraska, North Carolina, and Arizona are trying to take. We have had some significant wins in states over the course of the year, but not every development will be a good one. However, we know advocates are on the…

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State Rundown 5/20: You Learn Something New Every Tax Day

• By ITEP Staff

“Tax Day” was earlier this week but the debates, research, and advocacy that determine our taxes and how they are used take place every day of the year...

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State and Local Lessons on Tax Day 2021

• By ITEP Staff

Take a minute on this Tax Day to reflect on all that you survived, accomplished, and contributed to the collective good this past year, and be proud. There is always more work to be done to build the communities we desire, and paying your share is what allows that work to continue.

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State Tax Codes & Racial Inequities: An Illinois Case Study

• By Lisa Christensen Gee

Earlier this year, ITEP released a report providing an overview of the impacts of state and local tax policies on race equity. Against a backdrop of vast racial disparities in income and wealth resulting from historical and current injustices both in public policy and in broader society, the report highlights that how states raise revenue to invest in disparity-reducing investments like education, health, and childcare has important implications for race equity.  

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State Rundown 5/13: States Get Federal Aid and Guidance as Many Sessions Wind Down

• By ITEP Staff

We had our noses buried in new American Rescue Plan guidance...when we heard the refreshing news that Missouri leaders are on the verge of modernizing their tax code, not only by becoming the final state to apply sales taxes to online purchases, but also by enacting an Earned Income Tax Credit (EITC)...Meanwhile, tax debates are also highly active in California, Colorado, Louisiana, Maine, and Nebraska. We also share some of our own reporting on recent…

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Nearly 20 Million Will Benefit if Congress Makes the EITC Enhancement Permanent

• By Aidan Davis

Overall, the EITC enhancement would provide a $12.4 billion boost in 2022 if made permanent, benefiting 19.5 million workers. It would have a particularly meaningful impact on the bottom 20 percent of eligible households who would receive more than three-fourths of the total benefit. Forty-one percent of households in the bottom 20 percent of earners would benefit, receiving an average income boost of 6.3 percent, or $740 dollars.

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Arizonans Voted to Tax the Rich. Now Lawmakers Want to Undo Most of That.

• By Carl Davis

In 2018, Arizona teachers took part in a national wave of teacher walkouts, protesting inadequate education funding and some of the lowest teacher pay in the nation—direct results of the state’s penchant for deep tax cuts and its decision to levy some of the lowest tax rates in the country on high-income families.

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State Rundown 5/6: April Showers Bring Weeds As Well As Flowers

• By ITEP Staff

This week’s state fiscal news brings a reminder that even though advocates for great economic and racial justice have won some major progressive victories recently, anti-tax zealots have been hard at work too. Lawmakers advanced or enacted troubling regressive tax cuts or shifts in Idaho, Kansas, and Montana, and are actively debating them in Iowa, […]

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State Rundown 4/29: How You Like Them Washington Apples?

• By ITEP Staff

North Carolina lawmakers may have approved a massive tax subsidy giveaway to Apple, but we won’t let that news spoil our barrel this week. Nor will we be discouraged by Connecticut Gov. Ned Lamont’s threats to upset the apple cart full of positive progressive tax reforms state lawmakers recently came together to approve...Why all the optimism? Because the apple of our eye this week is Washington State, where advocates and lawmakers succeeded in a decade-long…

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Gentrification and the Property Tax: How Circuit Breakers Can Help

• By David Crawford

Property tax circuit breakers are effective because they provide property tax relief to families whose property taxes surpass a certain percentage of their income. If a family in a gentrifying area sees their property tax bill (or their rent) surge to an unaffordable level, a circuit breaker credit kicks in to offer relief. This targeted approach assists low- and middle-income families without significantly reducing overall tax revenue.