Institute on Taxation and Economic Policy

ITEP Work in Action

West Virginia Center on Budget & Policy: Income Tax Cuts and Shifting to Sales Tax a Poor Strategy for Growing West Virginia’s Economy

February 15, 2017

Even though faced with a $600 million budget deficit, some West Virginia lawmakers are proposing reducing or eliminating the state’s income tax, and replacing that lost revenue with an increase in the sales tax. This plan is unlikely to produce the economic growth, instead it dramatically shifts tax responsibility responsibilities from the wealthy onto low […]

ITEP Testimony Regarding Kansas Senate Bill 188

February 14, 2017

ITEP analysis of Kansas tax changes enacted between 2012 and 2015 shows the state lost over $1 billion in revenue annually from changes to its personal income tax, including lowering income tax rates and exempting business pass-through income from taxation (see Figure 1). While the state subsequently made up some of these revenue losses through […]

Policy Matters Ohio: Kasich plan continues tax shift

February 14, 2017

Governor John Kasich’s new 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 […]

Policy Matters Ohio: Ohio Nees a Strong Income Tax

February 10, 2017

Ohio’s income tax is the only major tax that is based on ability to pay. This principle was embraced by the founders of our democracy, such as Thomas Jefferson, as well as by the intellectual father of capitalism, Adam Smith. As your taxable income goes up, you pay a higher rate; for instance, income between […]

DC Fiscal Policy Institute: Revenue: Where DC Gets Its Money

February 9, 2017

The DC government collects revenue in a variety of ways from its residents, businesses, and the federal government.  These revenues are used to fund the wide array of services provided by the District, from schools to health care to libraries to road construction.  The DC government collected about $10.5 billion in revenue in fiscal year […]

Policy Matters Ohio: Kasich Budget Shifts Taxes Again

February 7, 2017

New analysis for Policy Matters Ohio by the Institute on Taxation & Economic Policy, a national nonprofit research institute with a sophisticated model of the state and local tax system, shows the governor’s tax plan raises taxes for many Ohioans. It reduces state income tax rates and cuts the number of brackets from nine to five.

ITEP Testimony Regarding Kansas Senate Bill 2237

February 7, 2017

ITEP analysis of Kansas tax changes enacted between 2012 and 2015 shows the state lost over $1 billion in revenue annually from changes to its personal income tax, including lowering income tax rates and exempting business pass-through income from taxation (see Figure 1). While the state subsequently made up some of these revenue losses through […]

Maine Center for Economic Policy: Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s budget proposal

February 2, 2017

At a time when Maine families are falling out of the middle-class, when experienced workers need new skills to secure good paying jobs in a modern economy, and when state infrastructure is in need of improvement and expansion, the state budget presents an opportunity to solve shared problems and return our quality of life to […]

The Sycamore Institute: Tennessee State Budget Primer

February 2, 2017

It is our pleasure to present to you the Sycamore Institute’s first Tennessee State Budget Primer. We hope this report – the information, the graphics, and the discussion – will demonstrate our commitment to putting reliable data and research in the hands of our state leaders, policymakers, and the general public. Below you will find […]

South Dakota Budget and Policy Institute: HB 1182 Raising teacher salaries – how much would taxes change for your household?

February 2, 2017

The combination of property tax savings and sales tax increases will affect each household differently. Raising sales tax by 1/2 cent will raise about $107 million dollars.  And decreasing property tax will cost about $40 million dollars.  But how much will your household pay to support the change?  You can figure that out by answering two questions.

Florida Policy Institute: Florida’s Shadow Budget Needs Greater Scrutiny

February 2, 2017

Silent spending, in the form of numerous kinds of tax breaks, costs Florida billions of dollars in lost revenue a year. Unlike money spent through the state budget process, this “shadow budget” is not routinely examined to see if it is meeting worthwhile goals or promoting a stronger economy.  This is money that is spent […]

Florida Policy Institute: A Citizens Guide to Florida’s Budget

February 2, 2017

Florida is known worldwide as a vacation destination, but those of us who live here know that the way Florida takes in and spends money affects every aspect of our lives.  From now until 2030, people age 60 and older will account for most of Florida’s population growth, representing 56.9 percent of the gains. Adequate […]

Kentucky Center for Economic Policy: Refugees, Immigrants Important to Kentucky and the Economy: An Overview of the Research

February 1, 2017

From the promise to build a wall paid for by tariffs on Mexican imports and uncertainty about what will happen to DACA (which allows undocumented immigrants whose parents brought them to the U.S. as children to apply for a renewable reprieve from deportation), to a 120-day ban on refugee admissions and an indefinite ban for […]

Georgia Budget & Policy Institute: Georgia Stands to Lose Millions from Crackdown on Young Immigrants

February 1, 2017

The potential for harsher federal immigration policies under the new presidential administration poses special concern for young Georgians whose parents brought them to the United States as children. A new federal crackdown threatens to wreak havoc in the lives of tens of thousands of young Georgians who now enjoy some limited legal protections that allow […]

Georgia Budget & Policy Institute: Young Immigrants Vital to Georgia’s Workforce, Healthy Economy

February 1, 2017

Potential harsher federal immigration policies under the new presidential administration pose special concern for young Georgians whose parents brought them to the United States as children. A new federal crackdown threatens havoc for tens of thousands of young Georgians who now enjoy some limited legal protections which allow them to work, go to school and […]

Idaho Center for Fiscal Policy: House Bill 67

January 30, 2017

The Idaho Legislature is considering a proposal that would cut top income tax and corporate tax rates. The bill will also eliminate the income tax on the first $750 of taxable household income. This proposal would substantially reduce Idaho’s general fund revenue. Estimates of the impact range from $51 million to $56 million. A majority […]

New Mexico Voices for Children: NM’s Working Families Tax Credits

January 30, 2017

As a group, those who claim the EITC and WFTC pay a large share of their incomes in taxes. In fact, in addition to the federal payroll taxes they pay, New Mexico’s lowest-income households pay a larger share of their income in state and local taxes than the households in every other income group. Those […]

Washington State Budget & Policy Center: Creating a Safeguard Rebate Is Key to Equitable Property Tax Reform

January 30, 2017

  This is the fourth in a series of schmudget blog posts about property taxes in Washington state and the role they play in funding basic K-12 education. Any reform to the Washington state property tax code to help pay for schools must also take steps to make the tax code more equitable. In conjunction […]

Open Sky Policy Institute: Some facts about LB 337 — the governor’s tax plan

January 30, 2017

Below are some facts regarding, LB 337, the governor’s income tax cut plan: The example middle-class Nebraska taxpayer used to roll out the plan would not receive a tax cut under LB 337. Once the standard deduction is applied, this taxpayer, who earns $29,831, would not pay the top tax rate on any income, and therefore would […]

Policy Matters Ohio: Common Sense Reform for Working Ohio

January 27, 2017

Tax modeling from the Institute on Taxation and Economic Policy (ITEP), a national organization with a sophisticated model of the state tax system, shows that Ohio’s current EITC reaches only about 8 percent of the state’s neediest working families and 11 percent of middle income workers. A 20 percent, refundable, non-capped, EITC would extend the […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Gov. Hutchinson’s low-income tax plan: A good start, but needs work

January 25, 2017

Governor Asa Hutchinson’s new tax cut proposal includes a break, at long last, for some of the lowest income working families in our state. The bones of this plan are good – it isn’t too expensive, and it includes a portion of the families making less than $21,000 a year who were left out of […]

Statement on Governor Hutchinson’s Low-Income Tax Plan

January 25, 2017

The following is a statement from Rich Huddleston, executive director of Arkansas Advocates for Children and Families: Read more here

The Arizona Center for Economic Progress: Questions and Answers About Arizona’s State Budget and Taxes 2017

January 24, 2017

State budgets and taxes are the foundation for achieving our common priorities that will lead to more quality jobs, a strong economy, and thriving communities. This publication provides information and analysis to help policymakers, community leaders, and community-based organizations make good decisions about Arizona’s state budget and taxes to reach those goals. These questions and […]

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.