Institute on Taxation and Economic Policy

ITEP Work in Action

North Carolina Tax and Justice Center: Prosperity Watch Issue 58, No. 3: State EITC allows working North Carolinians keep more of what they earn, boosts economy

February 17, 2016

  Low- and middle-income taxpayers in North Carolina pay a larger share of their income in state and local taxes than the wealthiest taxpayers in the state. This inequity in North Carolina’s tax code makes it difficult for working families to make ends meet and further challenges the state’s ability to invest in communities and […]

Missouri Budget Project: Earned Income Tax Credit: The Basics

February 10, 2016

“A Missouri EITC would boost local communities and economies while encouraging work, enhancing take-home pay, and improving long-term health and economic outcomes for more than 500,000 Missouri families. A Missouri EITC would give a much-needed break to Missourians struggling to get by on low wages. A state EITC would boost local communities and economies while […]

Hawai’i Appleseed Center for Law and Economic Justice: Cutting Taxes to Strengthen the Economy and Boost Hawai’i’s Families: A Refundable State Earned Income Tax Credit

February 10, 2016

“Building a stronger Hawai‘i for businesses and residents means creating more opportunities for working families to climb the economic ladder. The Earned Income Tax Credit (EITC) is a proven tool for fostering economic prosperity.” Read full report

West Virginia Center on Budget and Policy: A Tax Cut That Works for Working Families: A West Virginia Earned Income Tax Credit

February 10, 2016

“Too many working families in West Virginia are paid low wages and have trouble making ends meet, with basic living expenses stretching family budgets beyond their limits. With tax overhaul a main topic in front of the legislature, a bottom-up tax cut like a state Earned Income Tax Credit that would help people who work […]

South Dakota Budget and Policy Institute: WHO PAYS increased SD sales taxes to raise teacher salaries?

February 8, 2016

“There is broad consensus in South Dakota that teacher salaries need to be competitive to attract and retain good teachers – but who is going to pay for it? Two options have been floated thus far to fund the increase. Some in-depth fiscal analysis and charting helps clarify the difference between these options.” Read full […]

Kentucky Center for Economic Policy: Revenue Options that Strengthen the Commonwealth

February 8, 2016

“By generating new revenue to invest in the building blocks of our s.tate, good tax reform will make Kentucky stronger for all. This menu of tax reform options describes some of main ways to get there. Currently, too many tax breaks and loopholes in the state’s tax system drain money that is needed to shore […]

Louisiana Budget Project: A stronger EITC can mitigate sales tax increase

February 3, 2016

  The Institute on Taxation and Economic Policy (ITEP) calculates that the poorest 40 percent of Louisiana households paid 10 percent of their family income in state and local taxes last year. The richest 1 percent of households paid only 4.2 percent of their total income in state and local taxes. The main reason for […]

Idaho Center for Fiscal Policy: Analysis and Considerations Related to House Bill 380

January 29, 2016

“Idaho households with incomes between $41,000 and $64,000 a year would see a $23 decrease in their tax liability, on average. The top 1% – those with incomes of $444,000 and above – would see an $815 tax cut, on average. The exact tax cut that a household in any range would receive depends upon […]

The Commonwealth Institute: Room for Improvement

January 22, 2016

“Virginia households with an average annual income of $59,000 would save an average of just $6.45 per year – less than the price of a movie ticket. And households making roughly $14,000 a year would save an average of only $1.32 per year per household. That’s barely enough to buy the local newspaper. In fact, […]

Oklahoma Policy Institute: The Cost of Tax Cuts in Oklahoma

January 12, 2016

“Due to these cuts, Oklahoma’s top income tax rate has been slashed by almost a fourth, from 6.65 percent before 2004 to 5 percent beginning in 2016. The annual revenue loss from these cuts has now reached $1.022 billion, according to an analysis prepared for OK Policy by the Institute on Taxation and Economic Policy. […]

Massachusets Budget and Policy Center: Funding Improvements for Schools, Roads, and Public Transit with Tax Reforms that Improve Fairness

December 23, 2015

Our economic growth is not translating into significant economic progress for most of our people and this directly harms working families. The lack of more broadly shared economic progress also has harmed our state’s ability to make important investments that can make life better for working people.

Georgia Budget and Policy Institute: Welcome Newcomers to Build a Stronger Georgia

December 18, 2015

“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. Georgia immigrants as a whole contributed nearly $1.8 billion in state and local taxes in 2012, the most recent year available. […]

Michigan League for Public Policy: The 2015 roads plan: Helps wealthy and hampers budget

December 18, 2015

“Finally, the income tax rollback that was thrown in as a sweetener has implications on the budget as well as tax fairness. Under the plan, if General Fund revenues grow by more than the rate of inflation, the rate of the income tax would be reduced. According to the House Fiscal Agency analysis, if these […]

Idaho Center for Fiscal Policy: A Summary of Four Proposals from the Legislature’s Tax Working Group

December 18, 2015

  Idaho has a graduated personal income tax, with rates increasing with household income. This has a balancing effect on the sales and property taxes,which generally cost middle and lower-earning households a larger share of their income. When all state and local taxes are combined, Idaho’s tax distribution is relatively even across the income spectrum, […]

Pennsylvania Budget and Policy Center: Expanding the Sales Tax in an Equitable Way

December 7, 2015

“There is good reason to worry about the sales tax falling heavily on low-income families. According to the Institute on Taxation and Economic Policy, the lowest-income 20% of Pennsylvania families pay an average of 5.8% of their income in sales tax. The top 20%, by contrast, pay less than 2.3% of their income in sales […]

Open Sky Policy Institute: Nebraska Taxes at a Glance

December 4, 2015

Read the full fact sheet

Third and State: Unintended Consequences? Property Tax Elimination Increases Taxes on the Middle Class to Reduce Taxes for High Income Families

November 30, 2015

“Let’s start with the impact of property tax elimination on different groups of taxpayers. While we have not examined the tax incidence of the current SB 76 bill, the Institute on Taxation and Economic Policy (ITEP) did estimate for us the tax incidence of a similar proposal several years ago. That proposal, like the current […]

Pennsylvania Budget and Policy Center: Who Pays For An Increase in the Sales Tax: Analysis of the Tax Incidence of an Increase in the Sales Tax from 6% to 7.25%

November 18, 2015

Gov. Wolf and legislative leaders are currently negotiating over the terms of a plan to cut property taxes which would be financed by an increase in the state sales tax rate from 6% to 7.25%. This brief analyzes the size of the sales tax rate increase by income. It also compares that impact to how […]

Transportation Futures: Overview of Transportation Funding

November 4, 2015

An Institute on Taxation and Economic Policy analysis shows the purchasing power of the Federal fuel tax has lost 28% from 1997 to 2011 through a combination of inflation and vehicle improved fuel efficiency as shown in the graphic below1. Increases in the state fuel tax rate have offset some of these impacts, but continuation […]

Michigan League for Public Policy: Enough is Enough: Business Tax Cuts Fail to Grow Michigan’s Economy, Hurt Budget

November 2, 2015

Cutting business taxes has not been an effective way to grow jobs and the Michigan economy as promised. This is particularly true when combined with increased taxes on individuals, disproportionately affecting low- and middle-income people and families. In 2011, the Legislature and governor gave businesses a generous $1.6 billion tax cut by repealing a business […]

Maine Center for Economic Policy: MECEP Analysis: Better Deal for Maine “Provides Bigger Tax Cuts for More Mainers”

October 21, 2015

The Maine Center for Economic Policy (MECEP) today released “Distributional Analysis: ‘Better Deal’ Provides Bigger Tax Cuts for Most Mainers while Increasing Investment in Education and Other Critical Services,” a report prepared in association with the Institute on Taxation and Economic Policy, a nationally prominent non-profit, non-partisan research organization that works on federal, state, and […]

Maine Center for Economic Policy: Eliminating Maine’s income tax: A boon to wealthy Mainers, will hurt everyone else

October 21, 2015

Two weeks ago Governor LePage notified lawmakers of his intention to amend Maine’s constitution to eliminate the state’s income tax by 2020. This may mean the governor has thrown in the towel on his budget proposal that significantly reduces Maine’s income tax and pays for it by increasing sales and property taxes. The response to […]

Maine Center for Economic Policy: Republican Tax Plan Gives Huge Tax Breaks to the Wealthy While Raising Taxes for Working Mainers and Seniors

October 21, 2015

Legislative Republicans have released a tax plan that is a bad deal for working Mainers and seniors living on fixed incomes. Based on preliminary analysis the Maine Center for Economic Policy conducted in conjunction with the Institute on Taxation and Economic Policy, Mainers with income less than $57,000 will, on average, receive a tax increase […]

Maine Center for Economic Policy: Everything you need to know about the Democratic and Republican tax plans in one chart

October 21, 2015

Last week Republican legislators released their proposal for overhauling Maine’s tax system. The plan includes income and corporate tax cuts, and eliminates the estate tax, all disproportionately  benefiting Maine’s wealthiest earners. It also continues the current 5.5% sales tax rate slated to expire later this year, and increases the meals and lodging tax rate to […]

Maine Center for Economic Policy: The one question Republican legislators need to answer

October 21, 2015

Last Friday legislative Republicans released their tax plan for the coming two-year budget cycle. In reference to the Republican plan, Maine people deserve an answer to one specific question: “The legislative Republicans’ tax proposal takes money from poor and working class Mainers and gives it to the wealthy. Is this by design or by mistake?” […]

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.