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You Can’t Tax Stolen Land
• By Misha Hill
The Montana Senate this week stopped a bill to restructure the state's temporary tribal tax exemption program, making tribal governments the only sovereignties on which Montana levies a tax and making it more difficult for leaders to buy back illegally seized land. Still, the success of the bill in the House is troubling.
State Rundown 4/11: An Estate Tax Win, Opioid Progress, and Teacher Uprising Updates
• By ITEP Staff
Hawaii made progress in pushing back against the increasing concentration of wealth and power by beefing up its estate tax. Delaware, New Jersey, and Rhode Island all took steps toward taxing opioid producers to raise funds to address the ongoing opioid crisis. Oregon lawmakers continue to try to address their chronic school underfunding with a $2 billion annual investment, in contrast to some of their counterparts in North Carolina who are responding to similar issues…
State Rundown 4/4: Ohio Gas Tax and Maryland Minimum Wage Get Needed Updates
• By ITEP Staff
Transportation funding was a hot topic this week, as OHIO lawmakers responsibly voted to update their gas tax and offset some of its impact on lower-income families with an Earned Income Tax Credit (EITC) boost, while NEW YORK enacted the nation’s first “congestion pricing” charge, and LOUISIANA and VIRGINIA leaders looked at gas tax updates as well—a trend ITEP’s Carl Davis explored in depth today here. Broad tax packages are also being hashed out in LOUISIANA,…
What to Watch for When the IRS Releases Its SALT Workaround Regulations
• By Carl Davis
The Treasury Department and IRS last summer proposed regulations that would make it more difficult for taxpayers to avoid the $10,000 cap on deductions for state and local taxes (SALT). Now, likely days away from the unveiling of the final version of IRS regulations on SALT cap workarounds, Carl Davis recaps the finer points ITEP will be watching for when the regulations become public.
State Rundown 3/27: Spring Bringing Smart State Tax Policy So Far
• By ITEP Staff
Though a long winter and a rough start to spring weather have wreaked havoc in much of the country, lawmakers are off to a good start in the world of state fiscal policy so far. In the last week, a progressive revenue package was passed in the nick of time in NEW MEXICO, a service-sapping tax cut was vetoed in KANSAS, and a regressive and unsustainable tax shift was soundly defeated in NORTH DAKOTA. Meanwhile, gas tax updates…
State Rundown 3/14: Tax Fairness Proposed in Illinois
• By ITEP Staff
More than three billion dollars could be raised under a major progressive tax plan proposed by Illinois Gov. J.B. Pritzker this week, the point being to simultaneously improve the state’s upside-down tax code and address its notorious budget gap issues. One state, Utah, may already be looking at a special session to revisit the sales tax reform debate that ended this week without resolution, in contrast to Alabama and Arkansas, where leaders finally resolved years-long…
North Dakota Senate Should Put the Freeze on House Tax-Cut Plan
• By Dylan Grundman O'Neill
Lawmakers in Bismarck were treated last weekend to the largest single day of snowfall the city has ever seen. As state senators begin weighing a bill recently passed by the House that would replace the state's income taxes with oil revenue, they might want to reflect on how similar oil revenue is to the snow: although both are in extreme abundance right now, both are volatile and unpredictable and will melt away sooner than later.…
State Rundown 3/6: March Tax Debates Contain Sanity Amid Usual Madness
• By ITEP Staff
State policymakers around the nation this week served up a handful of harmful and upside-down tax proposals, but these were refreshingly outnumbered by sound tax and budget policy proposals in several other states. NEW JERSEY Gov. Phil Murphy made tax fairness an explicit priority in his budget address, the NEW MEXICO House passed progressive reforms to improve the state’s schools and tax code, states such as VERMONT are looking to raise funds from legalized cannabis…
How State Tax Systems Worsen the Economic Divide – in Charts
• By Carl Davis
The nation is currently engaging in serious discourse about how to expand economic opportunity and remedy income inequality via the federal tax code. State tax systems are also important and have a dismal effect on the growing economic divide. In a new report, Fairness Matters: A Chart Book on Who Pays State and Local Taxes, we further parse our Who Pays? data.
State Rundown 2/27: Temperatures and Tax Fights Continue to Polarize
• By ITEP Staff
As another polar vortex heads for large swaths of the country, state tax debates this week were highly polarized in another way. Lawmakers and advocates in MICHIGAN, OHIO, OREGON, UTAH, and elsewhere fought to enact or improve state Earned Income Tax Credits to give a boost to low- and middle-income working families. But the opposite extreme was heavily represented as well, as others pushed for regressive tax cuts for wealthy individuals and corporations, including in…
Overdue Gas Tax Hikes are Back on the Agenda in Statehouses
• By Carl Davis
State tax policy can be a contentious topic, but one issue on which lawmakers largely agree is that higher gas tax rates are necessary to keep our nation’s infrastructure operating safely and efficiently. Lawmakers in 27 states have approved gas tax increases since 2013.
State Rundown 2/20: February and Regressive Tax Cuts, The “Meanest Moons of Winter”
• By ITEP Staff
Tom Robbins called February “the meanest moon of winter, all the more cruel because it will masquerade as spring, occasionally for hours at a time, only to rip off its mask with a sadistic laugh and spit icicles into every gullible face, behavior that grows quickly old.” Observers of state fiscal debates might think he was writing about similarly tiresome regressive tax cut proposals, which recently succeeded in Arkansas and advanced in North Dakota despite…
State Rundown 2/14: We ♥ Taxes!
• By ITEP Staff
Happy Valentine’s Day to all lovers of quality research, sound fiscal policy, and progressive tax reforms! This week, some leaders in ARKANSAS displayed their infatuation with the rich by advancing regressive tax cuts, but others in the state are trying to show some love to low- and middle-income families instead. WISCONSIN lawmakers are devoted to tax reductions for the middle class but have not yet decided how to express those feelings. NEBRASKA legislators are playing…
A Tale of Two States: How State Tax Systems Perpetuate Income Inequality
• By ITEP Staff
To explain how state tax systems make income inequality worse, we compared tax systems in New Jersey and Texas which, before taxes, have similar levels of income inequality. This comparison provides an example of how policymakers’ decisions affect the economic wellbeing of their constituents.
Trends We’re Watching in 2019
• By ITEP Staff
This year is full of opportunity for state policymakers and advocates seeking to improve upside-down tax systems and generate needed funding for shared priorities. In a series of blog posts, ITEP staff summarize key trends we are watching in statehouses this year, with special attention to the many efforts underway to reduce racial and economic inequities and better prepare state budgets for the next recession and reduced federal investments. Along the way, we’ll also draw…
Trends We’re Watching in 2019: Attempting to Double Down on Failed Trickle-Down Regressive Tax Cuts
• By Lisa Christensen Gee
It’s always troubling for those concerned with adequate and fair public finance systems when states prioritize tax cuts at the cost of divesting in important public priorities and exacerbating underlying tax inequalities. But it’s even more nerve-racking when it happens on the eve of what many consider to be an inevitable economic downturn.
Trends We’re Watching in 2019: Cannabis Tax Implementation and Reform
• By Carl Davis
Few areas of state tax policy have evolved as rapidly as cannabis taxation over the last few years. The first legal, taxable sale of recreational cannabis in modern U.S. history did not occur until 2014. Now, just five years later, a new ITEP report estimates that recreational cannabis is generating more than $1 billion annually in excise tax revenues and $300 million more in general sales tax dollars.
Trends We’re Watching in 2019: Consumption Taxes: the Good, Bad and the Ugly
• By ITEP Staff
Consumption taxes are a significant source of state and local revenue, and we expect that lawmakers will continue to adjust state consumption tax levies to adapt to budget needs and a changing economy.
Trends We’re Watching in 2019: Addressing Lingering Federal Conformity Questions and Opportunities
• By Dylan Grundman O'Neill
In our last update on state responses to the federal tax cut (Tax Cuts and Jobs Act, or TCJA), we noted that several states were waiting until 2019 to make their final decisions, giving them additional time to (hopefully) respond in ways that improve their fiscal situations and upside-down tax codes. The TCJA is affecting the 2018 federal taxes people are filing now, in some cases adding urgency and/or confusion to these debates.
Trends We’re Watching in 2019: Raising Revenue and Spending Surpluses to Prioritize Critical Public Investments
• By Lisa Christensen Gee
A second notable trend in 2019 is states raising revenue to address longstanding needs and states allocating their surpluses to invest in critical public priorities such as early childhood programs, education and other human services.
Trends We’re Watching in 2019: The Use of Targeted Tax Breaks to Help Address Poverty and Inequality
• By Aidan Davis
Continuing to build upon the momentum of previous years, states are taking steps to create and improve targeted tax breaks meant to lift their most in-need state residents up and out of poverty. Most notably, a range of states are exploring ways to restore, enhance or create state Earned Income Tax Credits (EITC). EITCs are an effective tool to help struggling families with low wages make ends meet and provide necessities for their children. The…
State Rundown 1/31: Governors and Teachers Dominate Headlines, Much More in Fine Print
• By ITEP Staff
Gubernatorial addresses and the prospect of teacher strikes continued to take center stage in state fiscal news this week, as governors of Connecticut, Maryland, and Utah gave speeches that all included significant tax proposals. Meanwhile, teachers walked out in Virginia, and many other states debated school funding increases to avoid similar results. State policymakers have many other debates on their hands as well, including what to do with online sales tax revenue, how to cut…
Data for the Win: Advocating for Equitable State and Local Tax Policy (Webinar)
• By Aidan Davis, Dylan Grundman O'Neill, ITEP Staff, Meg Wiehe
Watch the video recording below for discussion on how ITEP’s distributional data can be part of an advocacy and communications strategy for securing state tax policies that raise enough revenue to fund various priorities. Outline includes a brief overview of findings from the sixth edition of Who Pays? A Distributional Analysis of the Tax Systems in All 50 States as well as insight from state advocates who use Who Pays? and other tax policy analyses research…
State Rundown 1/24: States Reflect on MLK’s Dream and Teacher Uprisings
• By ITEP Staff
This week, as Americans in every state celebrated Martin Luther King Jr. Day and reflected on his dream of peaceful protest and racial and economic justice, many eyes were on the teachers’ strike pressing for parts of this dream amid the “curvaceous slopes of California.” Governors and lawmakers in many states—including Arizona, Georgia, Indiana, Louisiana, Nevada, New Mexico, South Carolina, and Wisconsin—discussed ways to raise pay for teachers and/or enhance education investments generally.
Cannabis Tax Debates are Ramping Up; Here’s What We’ve Learned from Five Years of Cannabis Taxation Thus Far
• By Carl Davis
This year lawmakers in Connecticut, Delaware, Hawaii, Illinois, New Jersey, New York, Rhode Island, and Vermont will all be debating the taxation of recreational cannabis. A new ITEP report reviews the track record of recreational cannabis taxes thus far and offers recommendations for structuring cannabis taxes to achieve stable revenue growth over the long haul.
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