Arkansas is part of a shrinking group of states that haven’t started using tax credits, like the Earned Income Tax Credit (EITC), to build their middle class and help people move permanently out of poverty. Arkansas remains among the worst states for overtaxing the poor.
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.
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ITEP Work in Action January 31, 2018 Here’s Why Arkansas Needs a State EITC
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ITEP Work in Action January 30, 2018 Economic Progress Institute: Budget Matters: Making Rhode Island’s Tax Structure More Equitable and Adequate
For Rhode Island to achieve its potential as a first-class place to live and do business we need to ensure that we have the public services and amenities that enhance the quality of life and work in our state. Rhode Islanders make a collective investment through taxes, fees, and other forms of revenue to fund the services that businesses and residents count on.
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ITEP Work in Action January 29, 2018 Colorado Fiscal Institute: Colorado State Tax Basics
The Colorado Fiscal Institute (CFI) promotes tax and budget policies that are effective, efficient, equitable, transparent and accountable. Each year, CFI takes positions on new legislation that affects the sustainability and equity in Colorado’s state budget and tax system.
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ITEP Work in Action January 27, 2018 Third and State: Fact Check: Undocumented Immigrants like the Dreamers are not a Drag on State and Local Governments
A recent study by the Institute on Tax and Economic Policy (ITEP) shows that the estimated 137,000 undocumented immigrants in Pennsylvania pay our state and local governments almost $135 million… -
ITEP Work in Action January 26, 2018 Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate
According to modeling by the Institute on Taxation and Economic Policy, in 2019 about 1,400 fewer filers (about 0.4%) will qualify for the credit, resulting in $7 million in fewer federal credits being distributed to the state. By 2027 about 14,500 fewer filers (about 2%) will qualify for the credit, resulting in a loss of $96 million of federal credit value. The same filers who lose their federal EITC will also lose their ability to claim their state EITC, resulting in a loss of additional local economic support.
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ITEP Work in Action January 25, 2018 NJPP: A Grain of ‘SALT’: New Jersey Needs More Than Workarounds to Respond to GOP Tax Plan
That’s because these workarounds would disproportionately benefit the wealthiest households in New Jersey, to make no mention of the fact that the Trump administration is unlikely to allow them to stand.
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ITEP Work in Action January 22, 2018 DCFPI: As High-Income DC Taxpayers Reap Large Federal Tax Windfalls, DC Can Make Our Tax Code More Progressive
According to recent estimates from the Institute for Taxation and Economic Policy (ITEP), District of Columbia residents can expect to receive an $850 million federal tax break this year.
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ITEP Work in Action January 22, 2018 MassBudget: What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?
The tax cuts are also skewed toward high-income tax filers when measured as a portion of their own incomes.
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ITEP Work in Action January 22, 2018 Pennsylvania Budget and Policy Center: The Pennsylvania Promise: Making College Affordable and Securing Pennsylvania’s Economic Future
Three recent briefs by the Keystone Research Center laid out the case for more affordable access to post-secondary education in Pennsylvania. The global race for raising incomes and increasing opportunity hinges critically on access to post-secondary education and training. If Pennsylvania does not expand access to higher education to more of its citizens, the Commonwealth’s economy will suffer and living standards will lag behind growth elsewhere. With a modest and smart investment, Pennsylvania can build a more prosperous future for its citizens and reinvigorate the American Dream in every corner of the keystone state. “The Pennsylvania Promise,” outlined below, shows how.
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ITEP Work in Action January 11, 2018 MassBudget: Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT Losses
For Massachusetts’ highest-income households – those with annual incomes over $1 million – the average tax cuts from other federal changes in the law are more than twice the average size of the impact from the loss of SALT deductibility.
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ITEP Work in Action January 10, 2018 It’s All About the Context: A Closer Look at Arkansas’s Income Tax
The tax task force is rounding out its extensive review of the Arkansas tax code this week by looking at one of the most contentious tax topics these days: income taxes. So, are we a high-income-tax state or a low-income-tax state? In Arkansas, it depends a lot on how much money you make, and how you make it. For example, retirement income is exempt for the first $6,000; military retirement income is completely exempt; there are border-city exemptions if you work in Texarkana; and capital gains income from things like stocks or real estate sales is taxed much more leniently than wage income. To sort this all out, you have to look at the tax code as a whole.
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ITEP Work in Action December 21, 2017 Kentucky Center for Economic Policy: Passage of the Dream Act Would Benefit Kentucky
The Institute on Taxation and Economic Policy (ITEP) estimates that 6,000 (formerly) DACA-eligible Kentuckians currently contribute a total of $8.1 million in local and state taxes annually through sales and… -
ITEP Work in Action December 21, 2017 Policy Matters Ohio: Crackdown on Dreamers could cost Ohio millions
If DACA recipients stay in Ohio after losing work authorization they could earn lower wages and become less likely to file income tax returns. Without the Dream Act, Ohio can… -
ITEP Work in Action December 20, 2017 Wisconsin Budget Project: Giving Young Immigrants a Pathway to Citizenship Would Boost Wisconsin’s Farm Economy
According to a new report from the Wisconsin Budget Project, passing the Dream Act and establishing a pathway to citizenship for immigrant youth would help Wisconsin farms and communities by:… -
ITEP Work in Action December 20, 2017 Wisconsin Budget Project: Dream Act Would Boost Wisconsin Economy and Tax Revenues: Revoking DACA Hurts Both
There are 10,000 young immigrants potentially eligible for DACA who call Wisconsin home. They currently contribute a total of $16 million to local and state taxes annually through sales and… -
ITEP Work in Action December 20, 2017 Michigan League for Public Policy: The benefits of Deferred Action for Childhood Arrivals (DACA) on immigrants in Michigan
Researchers at the Institute on Taxation and Economic Policy (ITEP) estimate that nationwide, DACA enrollees contribute $2 billion in state and local taxes each year. In Michigan, these young adults… -
ITEP Work in Action December 20, 2017 New Jersey Policy Perspectives: Failure to Act on DACA and Dream Act Would Harm New Jersey’s Tax Revenues
There are 53,000 young immigrants who were potentially eligible for DACA that call New Jersey home. They have attended our public schools, graduated high school and many have enrolled in… -
ITEP Work in Action December 20, 2017 Florida Policy Institute: Dream Act: What’s at Stake for Florida?
There are 72,000 young immigrants who were potentially eligible for DACA that call Florida home. They currently contribute a total of $78 million to local and state taxes annually through… -
ITEP Work in Action December 20, 2017 The Commonwealth Institute: Dream Act Would Boost Virginia Families, Communities, State Economy, and Tax Revenues; Revoking DACA Hurts All
There are 30,000 young immigrants who were potentially eligible for DACA and call Virginia home. They currently contribute a total of $29.3 million to local and state taxes annually through… -
ITEP Work in Action December 20, 2017 NC Policy Watch: Devastating consequences if Congress fails to replace DACA in three months
State and local government coffers would also take a hit if Congress fails to pass the Dream Act, or another effective solution. The Institute for Taxation and Economic Policy estimates… -
ITEP Work in Action December 18, 2017 Center for Public Policy Priorities: The National Dream Act: What’s at stake for Texas?
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… -
ITEP Work in Action December 18, 2017 Minnesota Budget Project: 4 Reasons DACA should be restored ASAP
DACA results in increased economic activity in our communities and increased tax revenues. DACA recipients in Minnesota contribute an estimated $15 million in state and local taxes annually. Read more… -
ITEP Work in Action December 1, 2017 Fiscal Policy Institute: Dream Act: What’s At Stake for New York
There are 76,000 young immigrants who were potentially eligible for DACA that call New York home. They currently contribute a total of $115 million to local and state taxes annually… -
ITEP Work in Action November 21, 2017 Senate Tax Plan Harms Low- and Middle-Income Kentuckians to Pay for Giveaways to Those at the Top
Senators will return to Capitol Hill next week after the Thanksgiving recess for a potential vote on their revised plan. According to estimates from the Institute on Taxation and Economic Policy (ITEP), the bottom 60 percent of Kentuckians, who make an average of $37,500 a year, will actually face more taxes from the plan with an average increase of $80 in 2027.
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ITEP Work in Action November 14, 2017 National Priorities Project: What Else Could a Tax Cut for the Richest 1% Buy? A 50-State Perspective
According to estimates by the Institute on Taxation and Economic Policy, the Tax Cuts and Jobs Act introduced in the House of Representatives would disproportionately benefit the richest 1 percent of Americans.