March 29, 2017
Today, the House will vote on HB 2933, the latest version of “tax reform” in the state. HB 2933 would broaden the sales tax base, lower the sales tax rate to 5%, and create a flat 5.1% income tax rate. The bill would drastically increase West Virginia’s already regressive tax system. The vast majority of […]
March 26, 2017
The House and the Senate have advanced two similar tax bills that make substantial changes to the state’s personal income and sales tax, which account for over 75 percent of state general revenue fund collections. Both of these bills will shift the tax load from the wealthy onto working families. It is unclear how either […]
March 23, 2017
The House plan to repeal healthcare reform, known as the American Health Care Act (AHCA), provides a tax cut to the wealthiest people while reducing the number of Americans with health coverage by an estimated 24 million, according to the Congressional Budget Office. Because Kentucky has relatively few high earners, we benefit even less from the […]
March 23, 2017
This paper puts forward a plan, which we call the Fair Share Tax, that would take a major step toward fixing Pennsylvania’s broken tax system and raise the revenues we need to invest in the public goods that are critical to creating thriving communities and individual opportunity in our state: education, infrastructure, protection for our […]
March 22, 2017
The federal earned income tax credit (EITC) was designed to keep people working, lift families out of poverty, boost their income to help weather financial emergencies, and help offset payroll taxes, which hit low-income families the hardest. The EITC was founded in 1975 under President Gerald Ford and is considered the most powerful anti-poverty program […]
March 21, 2017
Governor Kasich’s tax proposal would further reinforce the shift in Ohio’s state and local tax system in favor of affluent residents and against those with lower or middle incomes. Under the plan, Ohioans who made under $56,000 last year – those in the bottom three-fifths of the income spectrum – on average would pay more tax than they do now.
March 21, 2017
According to a new report by the Institute on Taxation and Economic Policy (ITEP), it is estimated that undocumented immigrants in Mississippi pay almost $22,684,000 in state and local taxes. Nationally, undocumented immigrants pay over $11.74 billion in state and local taxes. The report, entitled “Undocumented Immigrants’ State and Local Tax Contributions,” highlights the contributions of undocumented immigrants as taxpayers to state and local governments.
March 20, 2017
Augusta, Maine (Monday, March 20, 2017) State legislators on the taxation committee will hold a public hearing today on several bills that would roll back the tax to pay for education enacted under Question 2, the ballot initiative passed by Maine voters in November 2016. As a result of Question 2, the state will have the capacity to provide 55% of school funding mandated by voters previously in 2004.
March 20, 2017
The House proposal to repeal the federal Affordable Care Act (ACA) and replace it with the American Health Care Act (AHCA), provides only a tiny fraction of very wealthy West Virginians tax cuts while reducing the number of Americans with health coverage by an estimated 24 million. The two big tax cuts included in the […]
March 19, 2017
The Motor Vehicle Tax (commonly known as the “Car Tax”) is a property tax collected by each Rhode Island municipality based on the value of each motor vehicle owned. There are three components that determine how much each individual car is taxed: valuation, tax rate and exemption. Read more here
March 19, 2017
A great deal of confusion abounds in discussions about state personal income tax rates and how they apply to income. This policy basic clarifies the difference between marginal and effective tax rates, and gives a North Carolina-specific example of how these rates work in action. Read more here
March 19, 2017
Senate leaders continue to pursue reductions to the income tax rate for wealthy taxpayers and profitable corporations even as they claim to be focused on helping low- and moderate-income taxpayers. This year they will do so without proposing immediate replacement of the revenue with sales-tax base expansions. The result is a loss of nearly $1 […]
March 19, 2017
In 2003, the Montana Legislature passed a capital gains tax credit that benefits a very narrow portion of our population at the great expense of our collective ability to adequately invest in public programs, from education to health care. Currently, Montana is one of just nine states offering a significant tax break for capital gains […]
March 18, 2017
Governor Sam Brownback’s 2012 plan to phase out the state income tax created an unprecedented fiscal crisis for Kansas. Some options presented for addressing this crisis would “flatten” Kansas’ income tax and require all Kansans to pay the same income tax rate, regardless of how much they earn. Read more here
March 17, 2017
Virginia’s tax system is upside down. Regular Virginians pay a higher share of their income in state and local taxes than the wealthy and powerful. An array of recently proposed schemes to give new handouts to the wealthy and powerful would make it even more unfair. Virginians can’t afford that. As part of our work […]
March 9, 2017
At Connecticut Voices for Children, we view the state budget as the clearest statement of Connecticut’s policy priorities. We believe that these priorities should advance long-term inclusive economic prosperity, equity of opportunity, and support for our most vulnerable residents. We believe that an effective revenue system can advance these core priorities by adhering to five […]
March 9, 2017
Undocumented immigrants play a vital role in Minnesota’s economy and currently pay an estimated $83 million in state and local taxes, according to a new report from the Institute for Taxation and Economic Policy (ITEP). Under immigration reform that provides a path to legal status, ITEP estimates these contributions would substantially increase.
March 9, 2017
Georgia lawmakers are considering a large income tax proposal with three sound tax policy reforms alongside one serious shortcoming. On the plus side, the current bill proposes to boost families with a new Georgia Earned Income Tax Credit (EITC), close an outdated loophole and index several broadly available exemptions to ensure they keep pace with […]
March 6, 2017
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 […]
March 3, 2017
Exemptions to Pensions and Social Security – Exempting retirement income would not only cause immediate revenue deterioration, but given the state’s aging population, could threaten long-term adequacy of the income tax. According to the University of Virginia’s Demographics’ Research Group, Connecticut’s share of individuals age 65 and older is expected to increase rapidly from 14 […]
February 28, 2017
Last Friday, the Senate Select Committee on Tax Reform explored the idea of amending SB 335 to include a version of a refundable state Earned Income Tax Credit. As noted previously, SB 335 would replace the personal and corporate income tax, along with the sales and use tax, with a general consumption tax of 8 […]
February 22, 2017
Tax changes passed in the 2016 legislative session reduced the income tax rate and increased reliance on the sales tax. This continued flawed approach to taxation that policymakers have followed since 2013 has proven disastrous to other states’ fiscal and economic outlook. Such an approach delivers the greatest reduction in the tax load to the […]
February 22, 2017
Members of the Georgia House are set to consider a large income tax proposal that contains a mix of positive reforms and measures that raise significant concerns. Some aspects of the bill offer benefits to working class Georgia families, while others could harm similar taxpayers or unduly jeopardize state revenues. While the bill provides a […]
February 21, 2017
Today in the House Education Committee legislators are hearing discussion of House Bill 162, a proposal to create a so-called Education Choice tax credit in Kentucky. This proposal does not target low- and moderate-income students as suggested; is expensive, taking resources away from public schools and other investments; and provides an excessively large credit under […]
February 21, 2017
Governor Jim Justice has not introduced any tax measures yet, but in his State of the State Address and his executive budget there are plans to enact several tax increases to close the Fiscal Year 2018 budget gap of $500 million and address the state’s declining road fund that pays for highway construction, maintenance, and road […]
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.