Institute on Taxation and Economic Policy (ITEP)

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State Rundown 8/13: Income Tax Elimination Fails in Missouri

• By ITEP Staff

In a win for Missouri workers and families, voters overwhelmingly rejected a proposed amendment that would have allowed lawmakers to replace the state's income tax with increased or expanded sales taxes.

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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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State Rundown 2/25: Sausage-Making Season Is Upon Us

• By ITEP Staff

National Sausage Month isn’t until October, but now is the time of year when state lawmakers are really diving into their sausage-making processes, as separate legislative houses and oftentimes political parties send competing bills, budgets, and visions back and forth to grind out their differences.

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State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

• By ITEP Staff

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

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State Rundown 2/11: This Valentine’s Day, Conscious Decoupling Is Our Love Language

• By ITEP Staff

While some may be excited for a romantic Valentine’s Day this weekend, many state lawmakers are breaking up and decoupling from recent federal tax changes that are poised to leave states with revenue shortfalls – much like a bad date who forgets their wallet and asks you to pick up the tab.

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State Rundown 1/7: New Year, New Opportunities for Progressive Revenue

• By ITEP Staff

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.

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State Rundown 11/24: States Say ‘No Thank You’ to Federal Tax Cuts Reducing State Revenue

• By ITEP Staff

Lawmakers in two more states have wisely said “no thank you” to federal tax cuts that would have flowed through to their state tax codes and undermined funding for their priorities

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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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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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With Fiscal Uncertainty Looming, Louisiana Senate Did the Right Thing on Tax Bills

• By Neva Butkus

If you find yourself in a hole, stop digging. This is exactly what Louisiana Senators did when they rejected two tax-cut bills that would have created a billion-dollar shortfall in the coming fiscal years.

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

• By ITEP Staff

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…

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Turning IRS Agents to Deportation Will Reduce Public Revenues

• By Carl Davis, Jon Whiten

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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State Rundown 10/24: Tricks, Treats, and Tax Policy

• By ITEP Staff

Louisiana Gov. Jeff Landry is proposing a regressive tax reform package that would enact a flat personal and corporate income tax while expanding the state’s sales tax base and eliminating certain exemptions to make up for a portion of the lost revenue. West Virginia continues to chip away at its personal income tax, one of the state’s few progressive revenue options. And advocates in New York are rallying around a package of progressive tax legislation…

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State Rundown 10/10: More Special Sessions, More Proposed Tax Cuts

• By ITEP Staff

This week several states are getting an early start at writing new tax policy in special sessions. In West Virginia, the legislature has come to an agreement with Gov. Justice on an additional tax cut—on top of already-planned cuts. The 2 percent cut will cost the state $49 million a year and come from spending […]

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State Rundown 9/18: Special Tax Session Results? “Reply Hazy, Try Again”

• By ITEP Staff

As the dust settles...

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

• By ITEP Staff

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

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Five Tax Takeaways from 2024 State Legislative Sessions 

• By Aidan Davis

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

• By ITEP Staff

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.

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Reality Interrupts the Fever Dream of Income Tax Elimination in Kentucky

• By Eli Byerly-Duke

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.