Institute on Taxation and Economic Policy (ITEP)

ITEP Work in Action

Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.

Every Texan: Highest Tax Rates in the State Fall on Texans of Color

December 19, 2025

The income groups paying the highest tax rates in Texas are disproportionately Hispanic and Black, whereas the lowest-taxed group (the wealthiest 5%) is predominantly white. Read more.

Every Texan: Texas Taxes Are Upside-Down. Big Tax Cuts Don’t Help.

March 18, 2025

Texas’ tax system is upside-down. When it comes to funding our public services, schools, and state and local governments, Texans with lower incomes are expected to pay more than their fair share. Read more.

Every Texan: Current Border Militarization Operations Are a Wasteful Attempt at Deterrence

January 31, 2025

There is little return to show on past border militarization investments. Beginning in 2021, the Governor launched a multi-year campaign called Operation Lone Star that, in part, allowed his Trusteed Programs office to distribute billions of dollars in grants to once resource-starved border communities. SB 1 prepares to double down on this failed investment with […]

Sen. Warren: Warren, Whitehouse, Casar, Lawmakers Slam 35 Companies for Paying Their Executives More Than They Pay in Federal Income Taxes

September 30, 2024

U.S. Senators Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.), and Representative Greg Casar (D-Texas) led their colleagues in slamming 35 major companies that have been paying their executives more than they pay in federal income taxes. The lawmakers point to this as an additional reason why Congress must reform the tax code in 2025 to […]

Every Texan: Undocumented Texans Paid $4.9 billion in State and Local Taxes in 2022.

August 8, 2024

Undocumented immigrants are essential contributors to Texas’ economy and robust job growth. Regardless of their citizenship or immigration status, immigrant families pay state and local taxes to support vital public services that benefit all of us, such as schools and colleges, roads, parks, and libraries. A new report from the Institute on Taxation and Economic Policy (ITEP) confirms in 2022 1.9 million undocumented Texans paid a hefty $4.9 billion in state and local taxes. 

Every Texan: Proposition 3 Will Maintain Texas’ Extreme Wealth Inequality

October 21, 2023

We all benefit when everyday Texans, regardless of where we live or what we look like, have a fair opportunity to prosper. Contrarily, a state tax system designed to favor the ultra-wealthy undermines all of us. In Texas, the wealth gap is so extreme that 66 billionaires living in the state own more wealth than 70% […]

Testimony of ITEP’s Marco Guzman Before the Nevada Assembly Committee on Revenue

April 10, 2023

For a video of Marco’s testimony, click here. Thank you, Assemblywoman Anderson, and thank you chairman and members of the Assembly for the opportunity to speak on the topic of Nevada’s state tax system. My name is Marco Guzman, and I am a Senior State Policy Analyst with the Institute on Taxation and Economic Policy […]

Washington Examiner: Think tank: Texas Isn’t a Low-tax State if You’re Poor

October 23, 2018

Carl Davis for the Institute on Taxation and Economic Policy: [ M]any states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers in particular often do not experience these states as being even remotely “low tax.”

CPPP: The Staggering Unfairness of Our State Tax System

October 19, 2018

Here’s one way to think about it: Families at the top of the income ladder receive 20 percent of all personal income in Texas, but pay only 8.5 percent of all state and local taxes. Families at the bottom of the scale receive only three percent of all income, but pay 5.7 percent of all taxes.

Politico Morning Tax: Desperately Seeking Clarity

October 17, 2018

MOST STATE TAX SYSTEMS REGRESSIVE: No state has more regressive taxes on its citizens than Washington, followed by Texas, Florida, South Dakota and Nevada, according to a distributional analysis of state tax systems that will be released today by the Institute on Taxation and Economic Policy. Most states take a larger share of income from low- and middle-income families than from wealthy families, it said. The 10 most regressive in the rankings tax their residents in the bottom 20 percent of the income scale at rates up to six times higher than the wealthy, while their middle-income families pay a rate up to…

Center for Public Policy Priorities: The National Dream Act: What’s at stake for Texas?

December 18, 2017

Researchers estimate that approximately 177,000 young Texas immigrants are potentially eligible for DACA, and they currently contribute a total of $241 million to local and state taxes annually through sales and excise taxes, property taxes and income tax. Without the national Dream Act, Texas can expect to lose at least $79 million in state and […]

Dallas Fed: Texas Taxes: Who Bears the Burden?

September 26, 2017

...Overall, the state’s tax system is less equal across income quintiles than the national average. A key reason is the state’s reliance on the sales tax, which as a share of income is 8.6 percent for those in the bottom quintile but only 2.2 percent in the top quintile...

Center for Public Policy Priorities: The Best Choice for a Prosperous Texas: A Texas-Style Personal Income Tax

January 15, 2013

The quality of life in Texas depends on our producing a well-educated workforce that can meet the demands of a global economy. A strong and vibrant public education for all Texas children is an essential precondition for a prepared workforce and a prosperous, competitive economy. In fact, providing public education is one of the constitutionally […]

Center for Public Policy Priorities: Who Pays Texas Taxes?

January 14, 2013

The Comptroller has just released her biennial study of the fairness of the Texas tax system, Texas Exemptions and Tax Incidence,1 which demonstrates conclusively that low-and moderate-income Texas families bear a disproportionate share of state and local taxes. Read the Original Full Report

Center for Public Policy Priorities: Who Pays Texas Taxes

January 14, 2013

Our quality of life in Texas depends on our public structures-including public education, child health services, and transportation infrastructure–maintained by Texas tax dollars, A good tax system would not only provide adequate revenue to maintain these structures, but would also match the share of taxes paid with the share of income earned by each Texas […]