Citations

The Institute on Taxation and Economic Policy argues that tax holidays may slightly reduce the regressive nature of sales taxes but produce minimal overall benefit. Read more.

On September 30, Policy Analyst Neva Butkus discussed Indiana property taxes and how Hoosiers could benefit from a circuit breaker policy at an event hosted by the Indiana Fiscal Policy Institute and Prosperity Indiana. Check out her slides here, and an article on the panel here.

On January 10, Andrew Bradley, Policy Director at Prosperity Indiana, testified before the State and Local Tax Review Task Force of the Indiana General Assembly. During his presentation, Bradley highlighted Prosperity Indiana’s tax policy priorities and ITEP’s Who Pays? findings. To watch the video, click here (Bradley’s testimony begins at 1:55:40) To read written testimony […]

Today ITEP State Policy Analyst Neva Butkus presented to the Indiana State and Local Tax Review Task Force. For a related blog from Neva, click here. For her slide deck, click here. Good morning members of the State and Local Tax Review Task Force, Thank you for providing me the opportunity to share ITEP’s findings […]

TERRE HAUTE -- Low-earning residents of Indiana and Illinois pay a greater share of state and local taxes than those in all other Midwestern states, and those in most states nationally, according to a new study by a non-partisan think tank.

The new ‘Who Pays?’ analysis follows the Institute’s August report ‘The Status of Working Families in Indiana, 2018’ which found the wealthiest Indiana earners have received an extra $2,446 from combined state income, corporate, and fuel tax changes since 2012, while taxes for the bottom 60% of middle class and working families have increased by an average $36.

Indiana faces a choice of whether to continue down a southward-leading path of low-road policies, or to rebuild its economy for Hoosier families. By adopting a policy agenda for working families that improves Indiana’s jobs with higher wage and labor standards; strengthens protections for Hoosier families including repairing the safety net and crafting consumer and job safeguards; and increases economic mobility through improved access to education, rebalancing the state’s regressive tax and budget structure, and focusing economic development on strengthening Hoosier families and communities, Indiana can reclaim its place as a leader in the Midwest and in the nation.

A new analysis of the Trump tax plan from the Institute for Taxation and Economic Policy shows that Indiana would only get an 87% share of tax cuts relative to the state’s ratio of the U.S. population. This is the 23rd-smallest share among states. In part because the plan is aimed at high-income households and Indiana is a poorer state, no matter how you slice it, Indiana gets shortchanged compared to the average state by Trump’s plan.

The corporate tax cuts described above mean profitable businesses chip in less for the public services that help them succeed. And the result of less reliance on income and inheritance taxes is clear (see graph below): those at the top in Tennessee and Indiana pay an even smaller share of their income in state and local taxes than the wealthiest Kentuckians do, and their lowest-income residents pay an even higher share than the poorest Kentuckians.

  Ensuring Indiana has funding needed to adequately repair its roads and bridges over the next several years is a top priority among lawmakers this legislative session. Among the proposed infrastructure improvement plans is HB 1001, which would raise the state’s gasoline tax by 4 cents per gallon, the tax on diesel fuel by 7 […]