Institute on Taxation and Economic Policy (ITEP)

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State Rundown 2/5: Icy Roads Do Not Slow Tax Policy Debates

Despite wintry conditions across much of the country, that hasn’t stopped state lawmakers from debating major tax policy changes.

Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

State Rundown 9/4: Colorado Tackles Offshore Corporate Tax Avoidance, Paves Way for State Conformity Best Practices

Despite an increasingly bleak state revenue outlook, state lawmakers across the country continue to prioritize regressive tax cuts.

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

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.

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

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.

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

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.

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

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.

State Rundown 3/26: Lawmakers Navigate Shortfalls, Potholes, and Pitfalls

State lawmakers around the country are navigating a range of potential hazards this week. Leaders in Maryland and Washington are facing budget holes but are smartly working to get out of them through progressive taxes on those with the most ability to pay. Both North Dakota and Washington state are looking to fill literal potholes […]

State Rundown 3/20: It’s March, Welcome to Tax Policy Madness

March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of most regressive state tax policies while others are looking to lift up best practices for more equitable outcomes.   The Mississippi legislature landed on a […]

State Rundown 3/6: In the Shadow of Chaotic Federal Policymaking States Seek to Tax the Top, Cut Taxes

Proposals from governors in both New Jersey and Wisconsin include provisions to tax high-income earners. Meanwhile, several major tax proposals are advancing in the great plains, with Iowa considering a major cut to unemployment taxes, North Dakota advancing new benefits for private schools, and Wyoming cutting property taxes. The District of Columbia is facing a more than a $1 billion revenue shortfall over the next three years, compared to previous estimates, and a mild recession due in large part to the layoffs of federal workers. 

State Rundown 2/12: State Tax Policy Heats Up as Winter Storms Sweep Much of the Country

Tax policy proposals are a hot topic of conversation across the country. Both North and South Dakota are considering property taxes cuts, while proposed cuts in Florida, Mississippi, and Texas are percolating. Meanwhile, fiscal conditions are tight in states like Alaska, Tennessee, Oklahoma, and West Virginia. None are on the cusp of passing new revenue, but years of recent tax cuts and inflation have caught up to states and many lawmakers have revenue gaps to close. 

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Turning IRS Agents to Deportation Will Reduce Public Revenues

February 11, 2025 • By Carl Davis, Jon Whiten

Turning IRS Agents to Deportation Will Reduce Public Revenues

The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.

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Tax Justice in the Crosshairs

November 8, 2024 • By Amy Hanauer

Tax Justice in the Crosshairs

Billionaires and businesses have too much power in Washington. Tax revenue is needed to pay for things we all need. If we want economic justice, racial justice and climate justice, we must have tax justice.

State Rundown 9/5: Property Tax Policy Continues to Make Headlines

Property tax bills are undeniably a concern for many low- and moderate-income households across the nation...

Five Tax Takeaways from 2024 State Legislative Sessions 

Major tax cuts were largely rejected this year, but states continue to chip away at income taxes. And while property tax cuts were a hot topic across the country, many states failed to deliver effective solutions to affordability issues.

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State Rundown 7/11: Mansion Taxes in the Spotlight

July 11, 2024 • By ITEP Staff

State Rundown 7/11: Mansion Taxes in the Spotlight

While Massachusetts legislators recently dropped a real estate transfer tax from their major housing bill, the District of Columbia council sent a budget to the mayor that includes a mansion tax that would increase the tax rate on properties valued over $2.5 million. Meanwhile, lawmakers in New Jersey and South Carolina continue to, respectively, raise and reduce needed revenues.

Reality Interrupts the Fever Dream of Income Tax Elimination in Kentucky

Keeping the Kentucky income tax on a march to zero would mean tax hikes for working families or widespread cuts to education, health care, and other public services. Reversing course is certainly the wiser course of action.

States Should Opt Into IRS Direct File as the Program is Made Permanent

While there is plenty of room to expand Direct File at the federal level, states can take matters into their own hands and bring this benefit to their residents by opting into the program.

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Better Tax Codes Help Boost Teacher Pay

May 16, 2024 • By Alex Welch

Better Tax Codes Help Boost Teacher Pay

There are a variety of factors that affect teacher pay. But one often overlooked factor is progressive tax policies that allow states to raise and provide the funding educators and their students deserve.

Iowa Flat Tax Shows Why Such Policies Are a Problem Everywhere

As Iowa lawmakers change the state’s graduated personal income tax to a single flat rate, they are designing a state tax code where the rich will pay a lower rate overall than families with modest means.

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State Rundown 4/24: It’s Crunch Time

April 24, 2024 • By ITEP Staff

State Rundown 4/24: It’s Crunch Time

Many state legislative sessions are wrapping up...

State Rundown 4/3: Some States Buck the Trend on Foolish Tax Policy

This week tax cuts were debated across the upper Midwest...

State Rundown 3/28: Tax Cut Madness, But Our Brackets Bet on Tax Fairness

While madness is typically reserved for basketball in March, several high-profile, regressive tax cuts are making their way through state legislatures this week...

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State Rundown 3/14: Sessions are Heating Up

March 14, 2024 • By ITEP Staff

State Rundown 3/14: Sessions are Heating Up

Many state legislative sessions are in the final stretch...

State Rundown 3/6: Tax Cuts Aren’t Forever, or for Evers

Anti-tax interests finally found the end of the tax cutting appetite in a few states this week...