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.
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 March 5, 2018 Louisiana Budget Project: On the Brink of Collapse
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ITEP Work in Action February 28, 2018 Missouri Budget Project: Sales Taxes on Groceries & the Importance of a Refundable EITC
A state Earned Income Tax Credit (EITC), like the recently proposed Missouri Working Families Credit, could benefit as many as 515,000 working families with modest wages, providing hardworking families the… -
ITEP Work in Action February 27, 2018 CBPP: North Carolina Tax Cuts Have Worsened Racial Wealth Inequities
The top 1 percent of North Carolinians are getting about $21,780 in average tax breaks per year — 59 times the average break for people in the middle fifth of the income scale and 1,361 times the average break for people in the lowest fifth, the Institute on Taxation and Economic Policy found in its analysis of the 2013 tax changes.
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ITEP Work in Action February 22, 2018 Georgia Budget and Policy Institute: Lawmakers Might Come to Regret Georgia’s Risky Tax Plan
Bill Analysis: House Bill 918 Substitute (LC 34 5383-ECS); Feb. 22, 2018 Georgia leaders are now rushing a massive tax package through the state’s General Assembly with limited debate and… -
ITEP Work in Action February 20, 2018 Idaho Center for Fiscal Policy: Additional Analysis: Impacts of House Bill 463 Including the Pass-Through Deduction (199A) Provision
House Bill 463 would make substantial changes to Idaho’s tax code, in part as a response to recent federal tax cuts. The legislation would also cut Idaho’s state income tax rates for households and corporations, changing significantly the way the income tax load is carried by residents. The proposal also includes a nonrefundable state child tax credit, although this does not offset the tax increases for some Idaho families from full conformity.
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ITEP Work in Action February 19, 2018 Oregon Center for Public Policy: Repealing Oregon’s Tax Haven Law is a $20 Million Gamble
The Oregon legislature should act prudently and refrain from hastily eliminating the state’s tax haven law. Otherwise, the legislature could be making it easier for multinational corporations to avoid paying Oregon corporate taxes, potentially costing the state millions.
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ITEP Work in Action February 16, 2018 Georgia Budget and Policy Institute: Governor’s Tax Plan Carries $1 Billion Price
Gov. Nathan Deal’s administration introduced a multifaceted tax package on Feb. 13, 2018 designed to reduce state revenues by about $1 billion a year over the next decade. House Bill… -
ITEP Work in Action February 16, 2018 Idaho Center for Fiscal Policy: Exploring Working Family Tax Credit Options in Idaho
Idahoans believe that everyone should pay their fair share. But the passage of the federal Tax Cuts and Jobs Act in December 2017 raised concerns about potential negative impacts on Idaho families with children. If Idaho chooses to update its tax code to align fully with the federal changes (a policy choice called ‘conformity’), an estimated 66 percent of Idaho families with 1 to 2 dependents will see a state tax increase and 80 percent of Idaho families with 3 or more dependents will see a state tax increase. To mitigate these negative impacts, Idaho lawmakers are considering the creation of state tax credits for working families.
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ITEP Work in Action February 15, 2018 Kansas Center for Economic Growth: New KCEG Blog Series Documents Equity Issues Facing Kansas
systemic barriers facing Kansans can strengthen our state’s economy. Using data broken out by race and ethnicity, gender, and immigration status, the entries highlight areas for policymakers to address to ensure continued economic prosperity for every Kansan.
Policy and research analyst Emily Fetsch examined data in recent reports from the Kansas Health Institute and the Institute on Taxation and Economic Policy.
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ITEP Work in Action February 14, 2018 New Jersey Policy Perspective: Op-Ed: How to Counter the GOP Tax Plan with Bold Action
The new federal tax law has generated a lot of press, sparked a fair amount of outrage and led many elected officials scrambling to respond with sound policies.
Unfortunately, there seems to be widespread confusion about the winners and losers under the new law – confusion that is complicating efforts to clean up New Jersey’s tax code and raise new resources to invest in critical public services.
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ITEP Work in Action February 7, 2018 Kansas Center for Economic Growth: New American immigrants in Kansas strengthen the economy
A recent report from the Institute of Tax and Economic Policy (ITEP) shows how undocumented immigrants in Kansas demonstrate their commitment to our state and increase state revenue through the… -
ITEP Work in Action February 7, 2018 Kansas Center for Economic Growth: New American Immigrants in Kansas Strengthen the Economy
Currently, undocumented immigrants residing in Kansas pay nearly $68 million a year in state and local taxes. By granting undocumented immigrants full and legal status, Kansas could receive an additional… -
ITEP Work in Action February 6, 2018 Idaho Center for Fiscal Policy: Analysis of House Bill 463
One motivation for reducing taxes this year is to offset the increase in revenue that conformity – aligning our state tax code with recent federal changes – will bring. If Idaho chooses to conform, the state will collect additional revenue in the range of $82 million to $97.4 million. This means that some Idahoans – particularly those with multiple children – will pay more in state taxes.
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ITEP Work in Action February 1, 2018 Georgia Budget and Policy Institute: Immigrants Make Georgia Stronger and Better Every Day
Immigrant taxpayers contribute to Georgia’s bottom line. As immigrants start businesses, buy homes, earn wages and spend disposable income at local businesses, they generate considerable state and local tax revenue… -
ITEP Work in Action February 1, 2018 Georgia Budget & Policy Institute: People-Powered Prosperity
People-Powered Prosperity details a new vision for how state lawmakers can pursue strategies to help all Georgians thrive, as well as how the state can responsibly pay for it.
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ITEP Work in Action January 31, 2018 Colorado Fiscal Institute: Effect of Federal Tax Law on Revenue for Colorado and Colorado Taxpayers
The Colorado Fiscal Institute (CFI) has a long-time partnership with the Institute of Taxation and Economic Policy (ITEP) and their estimate of the impact on state revenue is significantly smaller than the current amounts predicted by the Colorado Legislature and the Colorado Governor’s Office. This brief explains the various components of the ITEP estimate.
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ITEP Work in Action January 31, 2018 Here’s Why Arkansas Needs a State EITC
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.
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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.