The corporate tax cuts described above mean profitable businesses chip in less for the public services that help them succeed. And the result of less reliance on income and inheritance taxes is clear (see graph below): those at the top in Tennessee and Indiana pay an even smaller share of their income in state and local taxes than the wealthiest Kentuckians do, and their lowest-income residents pay an even higher share than the poorest Kentuckians.
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 June 8, 2017 Kentucky Center for Economic Policy: Troubling Hints About Direction for Tax Reform
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ITEP Work in Action June 6, 2017 A Better Wyoming: Everything You Know About Wyoming Taxes is Wrong
Wrong. According to the Institute on Taxation and Economic Policy (ITEP), a D.C. think tank that studies state tax policy, Wyoming’s wealthiest residents pay the lowest tax rate in the country. Meanwhile, people at the bottom 20 percent of Wyoming’s shaky economic ladder pay taxes at seven-times the rate that the top one percent of earners do. That’s the largest tax rate discrepancy between rich and poor in the United States.
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ITEP Work in Action May 26, 2017 The Cost Of Trickle-Down Economics For North Carolina
Since 2013, state lawmakers have passed significant income tax cuts that largely benefit the state’s highest income earners and profitable corporations. These costly tax cuts have made the state’s tax… -
ITEP Work in Action May 24, 2017 Evidence Counts: Senate Tax Plan Punches More Holes Into Budget (Updated)
Similar to previous tax plans from the Senate, this plan increase taxes on most West Virginians while lowering them for higher-income residents. According to the Institute on Taxation and Economic Policy, the Senate tax plan increases taxes on 60 percent of West Virginia households while lowering taxes on the top 40 percent of households. This is because lower income West Virginians pay more in sales taxes than income taxes, while the opposite is true for higher income people.
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ITEP Work in Action May 24, 2017 New Hampshire Fiscal Policy Institute: Revenue in Review: An Overview of New Hampshire’s Tax System and Major Revenue Sources
New Hampshire’s revenue system is relatively unique in the United States, as it lacks broad-based income and sales taxes and instead relies on a diversity of more narrowly-based taxes, fees, and other revenue sources to fund public services. This system presents both advantages and disadvantages to stable, adequate, and sustainable revenue generation.
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ITEP Work in Action May 22, 2017 Kentucky Center for Economic Policy: Any Way You Slice It, A Shift To Consumption Taxes Will Hurt Kentucky
According to ITEP, replacing all of Kentucky’s income tax revenue with sales tax revenue would require an increase in our sales tax rate to 13.3 percent – more than double… -
ITEP Work in Action May 19, 2017 Florida Policy Institute: New Report Finds Shortcomings in Florida’s Scholarship Tax Credit Program
State tax policies are undermining high-quality public education by redirecting public dollars for K-12 education toward private schools via tuition tax credits, according to a new report published by the… -
ITEP Work in Action May 10, 2017 Evidence Counts: Latest Compromise Tax Plan Still a Bad Deal for West Virginia
Last week, the governor called the legislature back into special session to continue work on the state budget. The actual budget bill, however, was not part of the call, instead… -
ITEP Work in Action May 5, 2017 Maryland’s Money Matters: ‘Dreamers’ Make Important Contributions to Maryland
It is unclear, as of now, whether the Trump administration will choose to end protections for young adults who came to the U.S. as children and have legal status through the Deferred Action for Childhood Arrivals (DACA) program. If the administration elects to end the program, thousands of Marylanders could lose their jobs and ability to attend college, many business could lose valued workers, and Maryland could lose nearly $14 million annually in state and local tax revenue.
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ITEP Work in Action May 3, 2017 The Progressive Pulse: Young Undocumented Immigrants’ Tax Contributions Would Drop by Nearly Half Without the Protection of the DACA Program
Young immigrants eligible for DACA (Deferred Action for Childhood Arrivals) annually contribute $2 billion in state and local taxes, according to new analysis from the Institute on Taxation and Economic Policy. The ITEP report finds that this number would drop by nearly half without DACA protection at a time when the Trump Administration has sent mixed signals on whether it intends to honor the DACA executive order in the long term.
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ITEP Work in Action May 2, 2017 Oklahoma Policy Institute: Itemized Deduction Reform is a Promising State Budget Solution
When Oklahomans filed their state income taxes in 2016, more than 70 percent of households used the standard deduction, which was $6,300 for individuals and $12,600 for married couples filing jointly.… -
ITEP Work in Action April 27, 2017 Massachusetts Budget and Policy Center: The Evidence on Millionaire Migration and Taxes
Economists consistently find that a well-educated workforce and a high-quality transportation system are among the bedrock elements upon which a prosperous state economy is built. Providing everyone with access to the education and training they need to reach their full potential boosts the productivity of individual workers and strengthens the overall economy.
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ITEP Work in Action April 27, 2017 Oregon Center for Public Policy: State corporate income taxes continue to shrink
As Oregon lawmakers consider raising corporate taxes to prevent cuts to schools and other public services, a new report finds that many of the nation’s largest corporations are paying little… -
ITEP Work in Action April 25, 2017 Fiscal Policy Institute: Immigrant Youth Add $140 Million to New York Tax Revenues
The report, conducted by the Institute on Taxation and Economic Policy and co-released in New York by the Fiscal Policy Institute, focuses on the executive order known as Deferred Action for Childhood Arrivals, or DACA. The executive order first went into effect in 2012, and in New York State, of the estimated 820,000 undocumented immigrants, about 76,000 are eligible for DACA.
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ITEP Work in Action April 25, 2017 New Jersey Policy Perspectives: DACA-Eligible New Jerseyans Pay $66 Million a Year in Taxes
New Jersey’s young immigrants eligible for DACA (Deferred Action for Childhood Arrivals) contribute $66 million in state and local taxes each year, the seventh highest level of all the states. And those annual contributions would increase by $27 million – the sixth most of all states – under comprehensive immigration reform.
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ITEP Work in Action April 24, 2017 The Commonwealth Institute: Working, Paying Taxes, Hitting Barriers
Unauthorized immigrants in Virginia contribute more than $250 million each year in state and local taxes. That’s a lot of money. But they could contribute even more – nearly $100… -
ITEP Work in Action April 24, 2017 Evidence Counts: What is the Impact of the “Compromise Tax Proposal” on the Budget and Working Families?
Earlier this week, the West Virginia Center on Budget and Policy examined the fiscal impact of the proposed compromise tax plan between Governor Justice and Senate leadership that will influence how… -
ITEP Work in Action April 19, 2017 Louisiana Budget Project: Most would get tax cut under Gov. John Bel Edwards’ tax plan
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,… -
ITEP Work in Action April 18, 2017 California Budget & Policy Center: California Should Do More to Raise Awareness of the California Earned Income Tax Credit (CalEITC)
The California Earned Income Tax Credit (CalEITC), established in 2015, is a refundable state tax credit that helps low-earning workers and their families make ends meet and build toward economic… -
ITEP Work in Action April 18, 2017 North Carolina Justice Center: Prosperity Watch (Issue 72, No 3): Tax cuts since 2013 reinforce racial and ethnic exclusion
Changes to North Carolina’s tax system in recent years have had an impact on the level of available revenue for public investments and shifted tax responsibility among taxpayers. BTC analysis… -
ITEP Work in Action April 17, 2017 Kentucky Center for Economic Policy: What Good Tax Reform Looks Like
In contrast, HB 263 would ask more of those at the top and less of low- and middle-income people who currently pay a larger share of their income in taxes.… -
ITEP Work in Action April 17, 2017 Oregon Center for Public Policy: Undocumented Workers Pay Millions in Oregon Taxes and Would Pay Millions More Under Immigration Reform
Undocumented Oregonians pay taxes. The millions in taxes they pay to help fund schools and other public services that strengthen Oregon’s economy. Oregon would collect even more tax revenue under… -
ITEP Work in Action April 17, 2017 Public Assets Institute: Meeting Vermonters’ needs in Fiscal 2018 and beyond
Elected leaders acknowledge investments are needed to clean up Lake Champlain, provide families with child care financial assistance, and make higher education more affordable. But progress has been slow in… -
ITEP Work in Action April 17, 2017 Open Sky Policy Institute: Amid budget woes, plan calls for tax cuts for the wealthy
LB 461, the tax-cut package put forth by the Revenue Committee, is first and foremost an income tax cut for wealthy Nebraskans and the proposal does little to truly address… -
ITEP Work in Action April 14, 2017 California Budget & Policy Center: This Tax Day, Celebrating a Tax Credit That Broadens Prosperity
With Tax Day — the deadline for filing personal income taxes — coming up next Tuesday, it’s a good time to reflect on the purpose of our tax system. As…