Institute on Taxation and Economic Policy

ITEP Work in Action

Idaho Center for Fiscal Policy: Exploring Working Family Tax Credit Options in Idaho

February 16, 2018

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…

Kansas Center for Economic Growth: New KCEG Blog Series Documents Equity Issues Facing Kansas

February 15, 2018

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.

New Jersey Policy Perspective: Op-Ed: How to Counter the GOP Tax Plan with Bold Action

February 14, 2018

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.

Kansas Center for Economic Growth: New American immigrants in Kansas strengthen the economy

February 7, 2018

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 taxes they pay. Read more here

Kansas Center for Economic Growth: New American Immigrants in Kansas Strengthen the Economy

February 7, 2018

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 $11 million in state and local taxes annually, creating a nearly $79 million state and local tax contribution from the undocumented immigrant population. Read more […]

Idaho Center for Fiscal Policy: Analysis of House Bill 463

February 6, 2018

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.

Georgia Budget and Policy Institute: Immigrants Make Georgia Stronger and Better Every Day

February 1, 2018

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 regardless of citizenship status. Undocumented Georgians contributed an estimated $352 million in state and local taxes in 2014, according to the Institute on Taxation and […]

Georgia Budget & Policy Institute: People-Powered Prosperity

February 1, 2018

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.

Colorado Fiscal Institute: Effect of Federal Tax Law on Revenue for Colorado and Colorado Taxpayers

January 31, 2018

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.

Here’s Why Arkansas Needs a State EITC

January 31, 2018

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. 

Economic Progress Institute: Budget Matters: Making Rhode Island’s Tax Structure More Equitable and Adequate

January 30, 2018

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.

Colorado Fiscal Institute: Colorado State Tax Basics

January 29, 2018

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.

Third and State: Fact Check: Undocumented Immigrants like the Dreamers are not a Drag on State and Local Governments

January 27, 2018

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 in taxes each year. (They pay $11.7 billion in state and local taxes nationwide.) Read more here

Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate

January 26, 2018

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.

NJPP: A Grain of ‘SALT’: New Jersey Needs More Than Workarounds to Respond to GOP Tax Plan

January 25, 2018

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.

DCFPI: As High-Income DC Taxpayers Reap Large Federal Tax Windfalls, DC Can Make Our Tax Code More Progressive

January 22, 2018

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.

MassBudget: What Does the Federal Tax Law Mean for Massachusetts and How Might the Commonwealth Respond?

January 22, 2018

The tax cuts are also skewed toward high-income tax filers when measured as a portion of their own incomes.

Pennsylvania Budget and Policy Center: The Pennsylvania Promise: Making College Affordable and Securing Pennsylvania’s Economic Future

January 22, 2018

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…

MassBudget: Sweeter than SALT: Highest-Income Households Get Federal Tax Cuts More Than Twice SALT Losses

January 11, 2018

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.

It’s All About the Context: A Closer Look at Arkansas’s Income Tax

January 10, 2018

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…

Kentucky Center for Economic Policy: Passage of the Dream Act Would Benefit Kentucky

December 21, 2017

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 excise taxes, property taxes and income taxes. Their effective tax rate of 9.1 percent is higher than that paid by the wealthiest 1 percent of […]

Policy Matters Ohio: Crackdown on Dreamers could cost Ohio millions

December 21, 2017

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 expect to lose at least $5 million in tax revenue, according to the Institute on Taxation and Economic Policy (ITEP). Read more here

Wisconsin Budget Project: Giving Young Immigrants a Pathway to Citizenship Would Boost Wisconsin’s Farm Economy

December 20, 2017

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: Expanding Wisconsin’s economy by up to $600 million a year by improving the access that immigrants have to educational and economic opportunity; Increasing state and […]

Wisconsin Budget Project: Dream Act Would Boost Wisconsin Economy and Tax Revenues: Revoking DACA Hurts Both

December 20, 2017

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 excise taxes, property taxes, and income tax. Read more here

Michigan League for Public Policy: The benefits of Deferred Action for Childhood Arrivals (DACA) on immigrants in Michigan

December 20, 2017

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 contribute $13 million in state and local taxes annually. If federal elected officials fail to pass a replacement to DACA and beneficiaries’ work permits expire, […]

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.