Institute on Taxation and Economic Policy (ITEP)

Citations

ITEP's Citations Research Priorities

Louisiana Budget Project: On the Brink of Collapse

March 5, 2018 • By ITEP Staff

The backbiting and bitterness surrounding the revenue debate in Baton Rouge is wildly disproportionate to the effect on Louisiana families. As The Advocate’s Tyler Bridges reports, none of the tax bills would cost any Louisiana family more than 1 percent of their income per year. What’s really at stake in the tax debate – besides trying to fill a $1 billion hole in the budget – is whether to continue relying on a regressive sales tax, or if the burden should be shifted slightly to high-income taxpayers.

Louisiana is $440 million short of the revenue needed to fund state government at current levels in next year’s budget. The problem gets much worse in the 2018-19 fiscal year, when more than $1.3 billion in temporary taxes are due to expire – creating a “fiscal cliff” that would require drastic cuts to state services […]

Louisiana’s tax system is broken. It doesn’t bring in enough revenue to pay for the things that allow communities to thrive- strong schools, good hospitals and public safety. It taxes people with low incomes at higher levels than the rich. It doesn’t keep up with economic growth. And it’s riddled with special-interest exemptions and tax […]

American Prospect: How States Turn K-12 Scholarships Into Money-Laundering Schemes

March 3, 2017

This article was originally published in The American Prospect. By Carl Davis Politicians have long had a knack for framing policy proposals, however controversial, in terms that make them more palatable to voters. This is why unpopular tax cuts for the wealthy are often sold as plans to “invest” in America or to stimulate “growth.” […]

Bloomberg BNA: Congress, Courts, Oil Among Pressures on State Budgets

January 23, 2017

“A further problem facing oil states such as Oklahoma, Louisiana, North Dakota and West Virginia is deep cuts they made to severance and other taxes “when times were good,” Carl Davis, research director at the Institute on Taxation and Economic Policy, told Bloomberg BNA.” Read more

The Governor’s Task Force on Transportation Infrastructure Investment​ is an 18-member Task Force established by Governor Edwards to recommend community-driven solutions for Louisiana’s transportation infrastructure investment needs. The Task Force submitted its formal recommendations to the Governor in December 2016. Read the full report here

Pursuant to the charges of JBE 2016-23, the Governor’s Task Force on Transportation Infrastructure Investment (Task Force) worked diligently over a six-month period to determine what must be done to address Louisiana’s vast multimodal transportation issues. Through the course of six formal meetings at the capitol and by attending eight regional meetings across the State […]

Pursuant to the charges of JBE 2016-23, the Governor’s Task Force on Transportation Infrastructure Investment (Task Force) worked diligently over a six-month period to determine what must be done to address Louisiana’s vast multimodal transportation issues. Through the course of six formal meetings at the capitol and by attending eight regional meetings across the State […]

Yahoo! Finance: New Jersey just hiked its gas tax by 159%. Is your state next?

November 7, 2016

“Of course, New Jersey isn’t the only state that has or is toying with raising gasoline taxes. Georgia, Idaho, Iowa, Kentucky, Michigan, Nebraska, North Carolina, South Dakota, Utah, and Washington upped their gas taxes in 2015, notes the Institute on Taxation and Economic Policy. Louisiana, Tennessee, Alaska, Alabama and Minnesota are contemplating increases in 2017.” […]

The Acadiana Advocate: Task force reveals budget, tax recommendations for Legislature

November 3, 2016

“Meanwhile, the Louisiana Budget Project, which advocates on behalf of low and moderate income people, said “more is needed to put Louisiana’s budget back in the black.” “A preliminary analysis from the Institute on Taxation and Economic Policy shows that even if the Legislature agrees to the sales tax and income-tax changes recommended by the […]

Politico: The Problem for Energy States

August 5, 2016

The liberal Institute on Taxation and Economic Policy is out with a new paper arguing that energy-rich states cut corners and relied too heavily on their wealth of natural resources, instead of setting up tax systems based on more solid footing. States like Alaska and Louisiana, ITEP writes, showered tax cuts on both individuals and […]

American Press: Tax changes allow for lower income tax rate

June 20, 2016

“As costly and unfair as the deduction is right now, it’s very likely that it will become even more so in the next couple of years,” ITEP said. “States that offer this deduction are especially susceptible to federal tax changes and it seems likely that the federal income taxes paid by the best-off Americans will […]

Bayou Buzz: Tax Decision Commeth in Louisiana House Committee today

June 16, 2016

“An economic analysis by the independent Institute on Taxation and Economic Policy (ITEP) found that these bills – House Bills 7 and 17 – would result in $113 million per year in lost revenue to the state. That’s money Louisiana can ill afford to sacrifice at a time when critical health, education and public safety […]

The Advocate: If Gov. John Bel Edwards calls another special session, here’s his gameplan and how it could affect taxpayers

May 23, 2016

“A study by the Institute for Taxation and Economic Policy, a Washington, D.C.-based group, shows that taxpayers who earn more than $103,000 would shoulder 76 percent of the tax increase.” Read more

“There are two key questions confronting Louisiana officials as they grapple with the most serious budget crisis in a generation: How much new tax revenue does Louisiana need in order to maintain the critical services that citizens expect? And secondly – who should pay those extra taxes? As things stand, Louisianans as a whole are […]

The Advocate: At Baton Rouge events, John Bel Edwards attempts to build support for budget changes, Medicaid expansion

May 3, 2016

“The Rev. Theron Jackson, of Shreveport, citing an analysis from the Washington-based Institute on Taxation and Economic Policy, said tax hikes from the special legislative session earlier this year will disproportionately affect poorer residents. Legislators raised about $1.1 billion for the coming year’s budget — much of that through temporarily increasing the state’s sales tax.” […]

Greater Baton Rouge Business Report: Capitol Views: Bill to hike state’s minimum wage temporarily stalls; Edwards talks overhauling state’s tax structure

May 3, 2016

“Held at Mount Zion First Baptist Church and hosted by Together Louisiana, a coalition of religious congregations and civic organizations, the event highlighted an analysis of the special session conducted by the Institute on Taxation and Economic Policy.” Read more

The Advocate: From business owners to Girl Scouts, Louisiana about to feel pinch from higher taxes starting Friday

April 4, 2016

“For a worker who earns between $19,000 and $37,000 a year, he or she will pay an average of $210 more in sales tax dollars for a 1 percent sales tax increase, according to the Institute on Taxation and Economic Policy. For someone who earns between $103,000 and $209,000 a year, the average tax change […]

American Press: Where did Louisiana go wrong?

March 18, 2016

“Semuels talked with Carl Davis, the research director of the Institute on Taxation and Economic Policy. She said Davis told her state legislatures are making decisions about taxation that “don’t jive with the 21st-century economy.” Illinois is one of eight states with a flat income-tax rate. It was 5 percent, but was lowered to 3.75 […]

The Advocate: Local governments, businesses say consumers sour when sale taxes hit ‘double-digit ceiling’

March 7, 2016

“For a worker who earns between $19,000 and $37,000 a year, he or she will pay an average of $210 more dollars in sales tax dollars for a 1 percent sales tax increase, according to the Institute on Taxation and Economic Policy. For someone who earns between $103,000 and $209,000 a year, the average tax […]

American Press: Lawmakers examine income tax

February 22, 2016

“Three identical measures would allow voters to decide whether they want to eliminate the federal income tax deduction that is allowed on state income tax forms. The deduction is in the constitution. The change would raise $748 million annually, and the vote to decide the issue would take place Nov. 8. Only three states — […]

  The Institute on Taxation and Economic Policy (ITEP) calculates that the poorest 40 percent of Louisiana households paid 10 percent of their family income in state and local taxes last year. The richest 1 percent of households paid only 4.2 percent of their total income in state and local taxes. The main reason for […]

Bayou Buzz: Governor Jon Bel Edwards transition report not serious for Louisiana budget hole

January 19, 2016

“Yet plenty of other material in its pages serves to covey the unserious nature of the effort. For example, in its discussion of tax reform, it exhorts any changes to make the system even more regressive than already – even though, according to a metric created by the leftist Institute on Taxation and Economic Policy, […]

Slate: Don’t Fall for Back-to-School Tax Holidays

August 14, 2015

If shoppers are simply shifting their spending to save on taxes, that means the states are losing revenue. That’s certainly the position of the Institute on Taxation and Economic Policy, a nonpartisan think tank that estimates the popular break will cost the states offering it $300 million this year. “Revenues lost through sales tax holidays […]

CNBC: Tax-Free Shopping Ahead for These States

July 24, 2015

Research by the nonpartisan Institute on Taxation and Economic Policy, however, contends that increased sales during the tax holidays “have been shown to be primarily the result of consumers’ shifting the timing of their planned purchases.” That organization estimates sales tax holidays will cost states $300 million in 2015. “A two- to three-day sales tax […]