Institute on Taxation and Economic Policy

ITEP Work in Action

The Commonwealth Institute: Support Virginia Families Through a Commonwealth Kids Credit

January 17, 2023

True economic prosperity means that families are doing well and have the resources and opportunity to thrive. By coming together, people in Virginia have won an improved Earned Income Tax Credit (EITC), increased minimum wage, and expanded workers rights in recent years — policy wins that lift families up. Yet more must be done to […]

Better Wyoming: Want to Slow Wyo’s Boom-and-Bust Cycle? Tax Jackson.

January 6, 2023

According to a new report by the Institute on Taxation and Economic Policy (ITEP), Wyoming has several options to generate new tax revenue from our ultra-wealthy residents and decrease the state’s reliance on boom-and-bust fossil fuels—even while keeping taxes low on the middle class. All we need to do is tax Jackson. Read more.

Montana Budget & Policy Center: Tax Credits for Workers and Families

November 23, 2022

Montana has an opportunity to invest high state revenues to support families and individuals and improve our tax system. State tax credits targeted to those in most need of assistance help Montanans struggling to afford necessities. By expanding the state Earned Income Tax Credit (EITC), establishing a refundable state Child Tax Credit (CTC), and passing […]

The Economic Progress Institute: Rhode Island Standard of Need

November 18, 2022

With scenic beaches, culinary and arts communities, higher education institutions, and a vibrant celebration of culture, Rhode Island can be a wonderful place to live and to raise a family. Yet many Rhode Islanders work at jobs with wages that pay too little to meet even the most basic living costs. They experience multiple barriers […]

Policy Matters Ohio: Increase Family Security and Expand Opportunity in Ohio

November 14, 2022

The expanded federal child tax credit (CTC) improved the lives of millions of children and families. We outline how a simple solution — direct payments to families with children — helped families pay for basic household expenses, relieved parents of stress, and made families more stable and secure. But now, because Congress failed to act, […]

Fiscal Policy Institute: Inequality in New York & Options for Progressive Tax Reform

November 11, 2022

Income statistics have long shown that the top earners in New York State earn relatively more than their counterparts elsewhere in the U.S. Income inequality alone, however, provides an incomplete picture of the wealthiest households’ economic resources. In order to understand real economic power, we have to look at households’ wealth (their total net assets). […]

Oregon Center for Public Policy: Wealth Inequality in Oregon Is Extreme

November 3, 2022

How extreme is wealth inequality in Oregon? So extreme that, together, three billionaires residing in the state have about twice the wealth as that of the entire bottom half of Oregonians. Read more.

Virginia Joint Legislative Audit and Review Commission: Options to Make Virginia’s Individual Income Tax More Progressive

October 24, 2022

Though Virginia has substantially reduced taxes for low and lower-middle income filers, it could further reduce the tax burden for these filers and make the income tax even more progressive. Read more.

North Carolina Budget & Tax Center: Missing the Mark for North Carolina

September 28, 2022

Inflation isn’t just a pocketbook problem, it’s a budget problem as well. Governments feel the pinch of gas prices climbing higher, food becoming more expensive, and increased competition from private sector employers as well as most of the impacts of inflation that affect consumers and businesses. Unfortunately, the 2022-23 budget allows inflation to undermine the […]

Idaho Center for Fiscal Policy: 2022 Special Legislative Session: Understanding Impacts of the Tax and Education Bill

September 1, 2022

State surpluses and strong revenue growth are leaving many states with a big opportunity this year. Idaho is no exception and is faced with options to advance policies that directly improve people’s lives in education, health care, housing, child care, transportation, and other budget areas. A 2022 Special Legislative Session bill that reduces taxes and […]

Maine Center for Economic Policy: New Tax Relief Plan Will Disproportionately Benefit Wealthy Seniors

August 30, 2022

This year, lawmakers included a tax change in the state’s budget that will significantly expand tax benefits for pension recipients in Maine. Beginning in 2023, pension recipients will be allowed to exempt up to $25,000 in pension income from state income taxes, and that amount will increase to $35,000 for tax years 2025 and after. […]

Missouri Budget Project: Special Session Tax Proposal Leaves Out 1/3 of Missouri Taxpayers, Weighted to Benefit Wealthiest

August 28, 2022

Governor Parson’s recently released tax proposal would leave out about one-third of Missourians, including many of those who pay the highest proportion of their income in state & local taxes, and set the state up for a Kansas-like budget bomb that would require significant cuts to schools, public safety, healthcare, and other critical needs. Read […]

Georgia Budget and Policy Institute: New Tax Plan Risks State’s Long-Term Fiscal Health, Worsens Income and Racial Inequities

May 27, 2022

House Bill 1437, signed into law by Gov. Kemp after a final version emerged during the last hours of Sine Die 2022, sets Georgia on course to make fundamental changes to its income tax that primarily benefit the state’s highest earners at an annual cost greater than $2 billion when fully implemented. Beyond adding to […]

Arizona Center for Economic Progress: $2 Billion Tax Cuts for the Rich are Irresponsible

May 13, 2022

Last year, the legislature passed huge tax cuts whose benefits will only be seen by the richest Arizonans. Once these new tax cuts go into effect, they will reduce state revenues by an estimated $2 billion a year. The state approved a flat tax that will not result in a meaningful tax cut for most […]

DC Fiscal Policy Institute: DC’s Earned Income Tax Credit – The Most Generous in the Nation, but not the Most Inclusive

April 6, 2022

The DC Earned Income Tax Credit (EITC) is a powerful tool for advancing racial, gender, and economic equity. Modeled after the federal tax credit by the same name, DC’s EITC goes to families and individuals earning low and moderate incomes to help them keep more of what they earn and meet basic needs. It is claimed […]

The Commonwealth Institute for Fiscal Analysis: Gas Tax Proposal Misses the Mark

March 29, 2022

Earlier this month, Virginia Gov. Glenn Youngkin announced a new policy proposal to suspend the state’s 26-cents per gallon gas tax for three months and to cap gas tax rates in future years. If enacted, this policy is likely to miss the mark on helping families in Virginia who are struggling with higher costs, while […]

New Hampshire Fiscal Policy Institute: Expansions of the Earned Income Tax Credit and Child Tax Credit in New Hampshire

March 23, 2022

Prior to the temporary expansions, nearly one in five likely eligible Granite Staters did not claim the EITC, and approximately 7,745 children were estimated to be eligible for the CTC while the credit was not claimed on their household’s tax return. The potential under enrollment in key assistance programs, along with underutilization of the EITC […]

Georgia Budget and Policy Institute: House Proposes Massive Tax Cuts for Wealthiest, Slashing State Revenues

March 14, 2022

Members of the Georgia General Assembly are considering legislation that would fundamentally change the structure of the tax code and result in disproportionately large tax cuts for the wealthiest while hundreds of thousands of families would see tax increases or few benefits. This is due to the package’s proposed flat personal income tax rate and […]

California Budget & Policy Center: California’s Tax & Revenue System Isn’t Fair for All

March 10, 2022

Californians need quality public health and schools, access to affordable housing and clean water, and safe roads and neighborhoods along with many more services to live and thrive – no matter one’s zip code. Accordingly, the state’s tax and revenue system must raise adequate revenue to cover the services provided by state and local governments and make […]

New Jersey Policy Perspective: Making New Jersey Affordable for Families – The Case for a State-Level Child Tax Credit

February 23, 2022

A state-level child tax credit would recognize the unique costs of raising children and the support that most families need to care for their kids and set them up for success. When families can pay for basic expenses and save for their children’s futures, it improves child well-being immediately by reducing key costs like food […]

West Virginia Center on Budget and Policy: House Personal Income Tax Cut Plan Largely Benefits Wealthy, Not Fiscally Sustainable

February 15, 2022

The West Virginia Legislature has introduced a bill to cut and eventually eliminate the state’s personal income tax. The House Finance Committee voted to advance that bill to the House floor with no discussion or questions asked. Like previous attempts to eliminate the state’s income tax, HB 4007 would lead to major revenue losses for the […]

Oklahoma Policy Institute: Strengthening the Grocery Tax Credit Would Provide Fiscally Smart Tax Relief to Working Oklahomans

February 14, 2022

Oklahoma can effectively eliminate the state and local sales tax on groceries for most low-income families by strengthening the Sales Tax Relief Credit. At a time when many Oklahomans are struggling to put food on the table and are at risk of eviction, a more robust Sales Tax Relief Credit can help put money back into the pockets […]

Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and Inequity

February 10, 2022

Iowa lawmakers have repeatedly cut taxes over the last three decades in ways that provide the greatest benefits to the highest-income taxpayers while ratcheting down investments that historically made the state attractive to raise a family or do business — including public schools and public health. Now, within months of passing tax cuts that when […]

Idaho Center for Fiscal Policy: HB 436 Tax Cuts Benefit Wealthy Idahoans

February 7, 2022

The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income tax rate on the wealthiest tax bracket from 6.5% to 6%. Read more

Idaho Center for Fiscal Policy: Idaho Families Would Benefit From Move to Include More Children in State’s Child Tax Credit

February 7, 2022

From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC). In the American Rescue Plan Act (ARPA), Congress approved a temporary change to expand the definition of “child” to include 17-year-olds in tax year 2021. […]

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.