
January 30, 2015
The culprit is the state and local taxes Americans pay on top of the federal taxes. While the federal taxes are relatively progressive, meaning they take a higher percentage from the wealthy than they do the poor and therefore try to address poverty and inequality, the federal efforts are swamped by state and local taxes […]
January 30, 2015
The Institute on Taxation and Economic Policy (ITEP) released its annual “Who Pays” report. The report should be read by everyone in the state and local tax policy business. Once again, ITEP has found that state and local tax systems are decidedly regressive. In fact, ITEP concluded that the effective tax rate of the 20% […]
January 30, 2015
Lawmakers on Capitol Hill may struggle to even utter the words “gas tax hike” sometimes, but that’s not stopping action on the state level. At least a dozen states are seriously considering raising their gas taxes this year, according to Carl Davis from the Institute on Taxation and Economic Policy. That comes after eight states […]
January 30, 2015
The result? The Highway Trust Fund — which pays for both road and transit improvements — faces a $161 billion shortfall by 2024, according to the Congressional Budget Office. The Institute on Taxation and Economic Policy estimates that 78 percent of the shortfall is due to Congress’ inaction on the gas tax; 22 percent is […]
January 30, 2015
What it really comes down to is money and where that money comes from. Why doesn’t the legislature start by looking at how we collect taxes in Washington? According to a new report from the Institute on Taxation and Economic Policy, our state has the most regressive tax system in the nation. We’re one of […]
January 30, 2015
The claim that Washington has the nation’s most unfair tax system comes from the liberal Institute on Taxation and Economic Policy, which favors progressive tax policies. We may quibble about the rankings — these things aren’t easy to measure — but the institute is right: Washington’s tax burden falls more heavily on lower-income taxpayers. It’s […]
January 29, 2015 • By ITEP Staff
Property tax “circuit breakers” like the one proposed in LB 186 are a way to provide targeted tax reductions to those whose property taxes are high in relation to their incomes. They are called “circuit breakers” because the tax credits are triggered once property taxes reach a certain percentage of a person’s income, similar to […]
January 29, 2015 • By ITEP Staff
Mississippi families are struggling to make ends meet despite working hard and playing by the rules. The federal Earned Income Tax Credit (EITC) gives many of these families the boost they need to be more financially secure. Mississippi can also enact a refundable state EITC to leverage the federal credit’s track record of encouraging work, […]
January 28, 2015
But according to a new report from The Institute on Taxation and Economic Policy, the impact of those federal tax breaks is largely offset by the burden of state and local taxes. Here’s how state and local taxes break down as a percentage of income: The richest Americans pay the least. The tax mix changes […]
January 27, 2015
Every day we receive striking data on major issues which should create tumult and action, but life goes on as if those data had nothing to do with people’s lives. Well, in a just-released report, the U.S. Institute on Taxation and Economic Policy notes that in 2015 the poorest one-fifth of Americans will pay on […]
January 27, 2015
“Intangible income is so easily manipulated on paper,” said Matthew Gardner of the Institute on Taxation and Economic Policy, a liberal group that has called out U.S. multinationals for what it sees as tax avoidance strategies. “You just can’t allow people to simply call it foreign income.” Read more
January 26, 2015 • By ITEP Staff
As New Jersey policymakers close in on a deal to boost New Jersey’s transportation funding, a bold solution that raises at least $1 billion in new revenue a year through new gas taxes is essential if New Jersey wants to take advantage of one of its greatest economic assets – its location – and rebuild […]
January 26, 2015 • By ITEP Staff
Proposals to roll back the personal income tax in Michigan will not create jobs or grow our economy and will disproportionately benefit the wealthiest taxpayers the most. It is also fiscally irresponsible to reduce taxes when the state is facing a budget shortfall due to lower than expected revenues. In fact, most of the benefits […]
January 26, 2015
On Jan. 15, the Institute on Taxation and Economic Policy (ITEP) released a report ranking the states in terms of how progressive their tax systems are. A “progressive” tax system is one that asks wealthier taxpayers to pay more of their income than poorer taxpayers. Most states rely upon some form of net income tax […]
January 26, 2015
A national study out this month confirms Minnesota is doing a better job at sharing the responsibility for paying for public services among all taxpayers than most other states in the U.S. The study from the Institute on Taxation and Economic Policy assesses the fairness of state and local tax systems by measuring the state […]
January 26, 2015
Indiana has the 10th most regressive tax structure in the nation, according to the Institute on Taxation and Economic Policy. Households in the lowest percentile, excluding seniors, pay 12 percent of annual income on state and local taxes. The top 1 percent pay just 5.2 percent. Indiana’s flat income tax rate of 3.4 percent “taxes […]
January 26, 2015
Historically, gas taxes have been too low in the United States — certainly not high enough to sufficiently fund our infrastructure and transportation needs. That’s why many economists and nonpartisan think tanks, including the Institute of Taxation and Economic Policy, which tracks tax policies nationwide, support higher gas taxes to pay for road projects. Gas […]
January 26, 2015
They say nothing in this life is as certain as death and taxes, and for some taxes mean death to a living wage. A recent study by The Institute of Taxation and Economic Policy says the lowest 40-percent of workers pay 10-percent of their income toward taxes, and the top 20-percent pay between 6.9 and […]
January 26, 2015
ITEP Executive Director Matt Gardner appeared on C-SPAN’s Washington Journal on Jan. 24 to discuss President Obama’s tax proposal. Check out the video.
January 26, 2015
Meg Wiehe, ITEP state policy director, appeared on Weekends with Alex Witt, to talk about declining lotto sales. Check out the video.
January 24, 2015 • By ITEP Staff
Tax cut proponents in North Carolina are pushing another plan that would benefit the wealthy at the expense of everyone else, turning their sights to eliminating the state income tax on the sale of artwork, vacation homes and other high-end capital gains that only a few North Carolinians profit from. Contrary to supporters’ claims, this […]
January 24, 2015
In Massachusetts, lower-income people actually pay more of their money in taxes. If you are a middle-class family in Massachusetts, more than 9 percent of your income goes to state and local taxes, according to the Institute for Taxation and Economic Policy. If you’re among the very wealthiest, it’s more like 5 percent. Read more
January 24, 2015
The problem is that this shifts the tax burden from the top to the bottom. In other words, it’s upward redistribution of wealth that harms the least well-off. And while the vast majority of states have tax systems that hit low-income Americans the hardest, these effects are worst in conservative states, where the highest tax […]
January 24, 2015
The rich are certainly entitled to their own opinions — but, as the old saying goes, nobody is entitled to their own facts. With that in mind, here’s a set of tax facts that’s worth considering: Middle- and low-income Americans are facing far higher state and local tax rates than the wealthy. In all, a […]
January 24, 2015
State and local taxes are similarly regressive. According to the Institute on Taxation and Economic Policy, a non-partisan research organization, average state and local taxes as a percentage of income in 2015 are 10.9 percent for the poorest fifth of Americans, 9.4 percent for the middle fifth and 5.4 percent for the wealthiest 1 percent. […]