Institute on Taxation and Economic Policy (ITEP)

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A Growing Number of States Are Taxing the Sale of Advertising

• By Nick Johnson

ITEP’s report on taxing advertising identifies some reasons why states are curtailing longstanding sales tax exemptions for the ad sector.

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State Rundown 5/7: Federal Showers Make States Dour

• By ITEP Staff

The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.

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State Rundown 4/30: Aloha to Tax Cuts, Hawaiʻi Lawmakers Address Revenue Gap with High-End Tax Changes

• By ITEP Staff

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

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State Rundown 3/26: Sobering Revenue Projections Keep States on Their Toes

• By ITEP Staff

This week, troubling revenue projections are making headlines, with many lawmakers scrambling to determine how the tax changes at the federal level, plus price hikes driven by national policy decisions, will impact their states.

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State Rundown 3/18: New Mexico Enacts Most Significant Corporate Tax Reform of the Year

• By ITEP Staff

As states lawmakers continue to weigh their linkages to the federal tax code in light of the recent federal tax law, New Mexico provides a blueprint for limiting multinational corporate tax avoidance.

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State Rundown 3/4: Budget Realities Set In

• By ITEP Staff

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

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States Can Push Back Against Reckless Federal Tax Policy. Here’s How.

• By Aidan Davis, Wesley Tharpe

They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.

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States Can Create or Expand Refundable Credits by Taxing Wealth, Addressing Federal Conformity

• By Zachary Sarver

Many states already recognize the potential of these credits to boost low- and moderate-income households. Other states should follow suit.

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State Rundown 12/17: Tax Policy ‘Naughty or Nice’ List Has Late Entrants

• By ITEP Staff

With a little over a week left, some states are solidifying their spots on the tax policy “naughty or nice” list.

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State Rundown 9/18: Lawmakers Confront Revenue Loss from Federal Policy Changes

• By ITEP Staff

Some states are trying to avoid revenue loss while others are welcoming it and doubling down.

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Trump’s Tax Law Clobbers State Budgets. Now’s the Time to Prepare.

• By ITEP Staff

The Trump megabill hands the richest 1% a trillion-dollar windfall while gutting funding for health care, education, and disaster relief — leaving communities to pick up the pieces. State and local leaders must step up, tax the wealthiest fairly, and safeguard the essentials that keep America healthy, educated, and safe.

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State Rundown 8/6: Tax Policy is Hot in the Middle of Summer

• By ITEP Staff

As states prepare for the revenue loss and disruption resulting from the federal tax bill, tax policy is being considered in legislatures across the country.

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Which States Expanded Refundable Credits in 2025?

• By Neva Butkus

Refundable tax credits were a big part of state tax policy conversations this year. In 2025, nine states improved or created Child Tax Credits or Earned Income Tax Credits.

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State Rundown 7/24: States Begin Preparing for Federal Megabill Fallout

• By ITEP Staff

All eyes in statehouses in recent weeks have been on federal budget negotiations, and now that the “megabill” has passed, they are focused in on their own budgets in search of ways to cope with the enormous consequences coming their way. All states will see fewer federal dollars flowing through their coffers, higher needs due […]

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How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

• By Michael Ettlinger

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

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Trump Megabill Will Give $117 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?

• By Michael Ettlinger

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

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How Much Do the Top 1% in Each State Get from the Trump Megabill?

• By Carl Davis

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

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State Rundown 6/11: States in The Eye of a Fiscal Hurricane?

• By ITEP Staff

State legislatures are enjoying a relatively quiet period right now, though it is merely a temporary calm before the storm of the federal tax and budget debate begins raging again.

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State Rundown 5/15: State Tax Debates Carry On in the Midst of Chaotic Federal Tax Landscape

• By ITEP Staff

Even as most major headlines have been about the ever-changing landscape of federal tax policy, the latest “ideas of the week," and now the House tax bill, state tax policy continues to be a priority for lawmakers.

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State Rundown 5/7: As Budget Season Heats Up, Tax Proposals Are Getting Serious

• By ITEP Staff

With spring in full bloom ,many state lawmakers are reaching tax policy agreements. Out west, lawmakers in North Dakota and Texas have moved major property tax cuts. Meanwhile, in the east and south, Vermont appears likely to pass an expansion to its Child Tax Credit and Earned Income Tax Credit, and South Carolina lawmakers are aiming to make deep, drastic cuts to the state’s income tax.

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State Rundown 4/16: No Vacation from Spring Tax Breaks as Bills Advance

• By ITEP Staff

While students and families are enjoying spring break vacations, legislative sessions are still in full swing. And some are poised for a spring tax break season as proposals advance with major implications for the sustainability of state budgets.  

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IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy

• By Marco Guzman

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

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State Rundown 4/9: A Progressive Pushback

• By ITEP Staff

Residents and state lawmakers across the country are pushing back against anti-tax measures and are looking for ways to protect revenue and advance proposals that would raise revenue in progressive ways. This comes at a time when federal policy brings significant risks for state tax revenue.

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State Rundown 4/3: Amidst Tariff Uncertainty, State Lawmakers Talk Taxes

• By ITEP Staff

While all eyes are on the Trump administration’s tariffs on foreign imports, state lawmakers are moving forward with a mix of deep, regressive tax cuts and progressive revenue raisers.

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Wide-Ranging 2025 State Tax Debates Come into Focus

• By Aidan Davis

In the face of immense uncertainty around looming federal tax and budget decisions, many of which could threaten state budgets, state lawmakers have an opportunity to show up for their constituents by raising and protecting the revenue needed to fund shared priorities. Lawmakers have a choice: advance tax policies that improve equity and help communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder…