Institute on Taxation and Economic Policy

ITEP Work in Action

Maine Center for Economic Policy: Where tax fairness is concerned, the legislative Republicans’ tax plan is the worst of all

October 21, 2015

Republican legislators released their plan for overhauling Maine’s tax system last week. Yesterday MECEP posted a chart comparing the distributional impacts of the Republican and Democratic plans. The key takeaway from that chart was that Mainers whose income is less than $89,000 – the bottom 80% of all Maine taxpayers – fare better on average […]

Maine Center for Economic Policy: Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certain Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certai

October 21, 2015

It is less clear whether or not revenues in the proposal will be adequate to maintain current spending in the future when adjusted for inflation. Both the Better Deal for Maine plan offered by Democrats in April and the majority budget proposal passed by the Appropriations Committee in a 9-4 vote, raise more revenue in […]

Maine Center for Economic Policy: Budget deal includes refundable tax credits for low- and moderate-income Mainers

October 21, 2015

The tax overhaul agreed upon by legislative leaders in their recent budget negotiations includes several major provisions that affect state and local taxes, including lower income tax rates, a broader income tax base, a doubling of the homestead property tax exemption, an estate tax cut, and permanently higher sales tax rates. Read full report here

Massachusetts Budget and Policy Center: Examining Tax Fairness

October 21, 2015

Taxes are the primary way we pay for the things that we do together through government. These include things like police and fire protection; public education; roads, bridges and public transportation; a safety net for when people face hard times; and more. Determining how much people at different income levels pay in taxes is important […]

Open Sky Policy Institute: Policy brief: More about the gas tax and inflation

October 21, 2015

On average, Nebraskans paid nearly $1,200 more annually for gas per car in 2013 than they did in 1993.However, in 2013, Nebraskans paid just $3 more in state gas taxes per car than they did in 1993, and they actually paid $12 less than they did in 2003. Read full policy brief here

Kentucky Center for Economic Policy: Reinstating Kentucky’s Tax on Extreme Wealth a Part of Making State Taxes Fair and Adequate

October 21, 2015

Kentucky loses an estimated $25 million a year because state lawmakers haven’t yet taken steps to recoup lost revenue from federal estate tax changes that essentially eliminated the state’s estate tax in the 2000s 1. Recognizing estate taxes generate revenue and make taxes fairer, many states have either decoupled from the federal changes or enacted […]

Kansas Center for Economic Growth: Brownback Tax Hike Doesn’t Solve Budget Crisis

October 21, 2015

“Every Kansas income group will pay more as a result of this tax increase, but it still doesn’t solve Kansas’ ongoing budget crisis,” said Duane Goossen, senior fellow at the Kansas Center for Economic Growth and former state budget director. “Kansas is draining over $800 million a year as a result of Gov. Brownback’s 2012 […]

Kansas Center for Economic Growth: Tax Hikes to Protect Businesses Hit Working Kansans Hardest

October 21, 2015

The end-result of this years’ historically long session was quite predictable: taxes were raised on hard-working Kansans to cover the budget shortfall caused by the unaffordable tax cuts of 2012-13. The increases recently adopted will fall primarily on low- and moderate-income Kansans because such a big chunk of the new money will come from sales […]

Georgia Budget and Policy Institute: A Bottom-Up Tax Cut to Build Georgia’s Middle Class

October 21, 2015

Building a better Georgia, with a strong economy and vibrant businesses, requires a more resilient middle class and more opportunities for working families to climb the economic ladder. One of the best tools to help ensure that Georgians broadly share in that prosperity is a state-level Earned Income Tax Credit (EITC). Read full report here

Children’s Action Alliance: Arizona’s Individual Income Tax

October 21, 2015

The balance and fairness of any tax system depends on the impact of all the taxes an individual or family pays. State and local sales taxes always take a bigger bite out of the income of taxpayers at the lowest income levels. Arizona’s graduated income tax partially offsets the impact of the sales tax on […]

Children’s Action Alliance: Questions and Answers About Arizona’s State Budget and Taxes

October 21, 2015

  State budgets and taxes are tools to reach our common goals for health, education, security and a vibrant, prosperous future. 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 answers highlight key facts […]

Alabama ARISE: 6 things to know about the FICA deduction

October 21, 2015

The Alabama Legislature may consider removing the state FICA income tax deduction during this month’s second special session. Without significant new General Fund revenue, the state may make enormous cuts to Medicaid, child care, public safety and other vital services. Read full fact sheet here

Michigan League for Public Policy: Undocumented immigrants: Reform increases their tax contributions

October 21, 2015

Undocumented immigrants already contribute a significant amount to our state’s tax system. Under President Obama’s 2012 and 2014 executive actions, the amount will increase and could be even more with comprehensive reform. Read full report here

Michigan League for Public Policy: Paving the roads on the backs of the working poor

October 21, 2015

The House Republican plan to fix Michigan’s roads by eliminating the state Earned Income Tax Credit raises taxes for the second time in five years on workers already struggling to get by on low wages.Eliminating the EITC to pay for roads amounts to robbing poor Peter to pay Paul. The $117 million saved by eliminating […]

Michigan League for Public Policy: Testimony Presented to the House Roads and Economic Development Committee HB 4609 – EITC Elimination

October 21, 2015

House Bill 4609, which would eliminate the Michigan Earned Income Tax Credit, is a tax hike on 820,000 working families who are raising 1 million children. It punishes working families who are playing by all the rules but still not getting ahead. Read full testimony here

Massachusetts Budget and Policy Center: Licenses for Immigrant Drivers in Massachusetts

October 21, 2015

Immigrants make important contributions to the Massachusetts economy. They spend income as consumers and contribute to state and local taxes.Yet, they often face barriers to full inclusion and economic stability. For instance, many immigrants with specific training and credentials from their home country have a difficult time finding jobs in their field because these foreign […]

Oregon Center for Public Policy: Hundreds of Corporations Escape the Minimum Tax

October 21, 2015

  Although Oregon has a minimum income tax for corporations, 492 corporations paid less than the minimum in tax year 2012.Some corporations paid nothing at all.When corporations avoid the minimum tax they deprive the state of revenue to invest in schools and other key public structures. Lawmakers should reinstate the corporate minimum tax for all […]

Policy Matters Ohio: Kasich-era tax changes reward the wealthy

October 21, 2015

The top 1 percent of Ohioans on average will see a $17,618 annual reduction in state taxes as a result of major tax changes made during the Kasich administration, while the bottom fifth will pay $17 more. This is the result of cuts in state income taxes, the major tax that is based on the […]

North Carolina Tax and Budget Center: BTC REPORTS: Doubling Down on a Losing Strategy – More Income Tax Cuts Will Grow Budget Shortfalls, Not the Economy

October 21, 2015

North Carolina policymakers have proposed another round of income tax cuts on top of those they passed in 2013. Senate Bill 526 would cost at least $1.4 billion by 2017, causing a new wave of cuts to services North Carolinians rely on each day and compounding the problems created by the tax cuts passed two […]

North Carolina Budget and Tax Center: FACTSHEET: Keep Arbitrary Tax & Spending Limits Out of North Carolina – Vote No on Senate Bill 607

October 21, 2015

A suite of severe changes to the state constitution laid out in Senate Bill 607 would undermine the foundations of the North Carolina economy and make our current challenges much worse. The bill changes the state constitution in three ways: 1. Limits spending on education, health, and other services through a rigid, arbitrary, and fundamentally […]

North Carolina Budget and Tax Center: BTC REPORTS: Diminished Expectations and the Resulting Drag on NC’s Economy – A Summary of the 2015-17 Budget

October 21, 2015

The budget North Carolina will live under through June of 2017 will sharply constrain the state’s ability to make public investments crucial to promoting widespread prosperity and a growing economy. Read the full report here

New Jersey Policy Perspective: Executive Actions on Immigration Would Help Many New Jerseyans While Boosting the Economy

October 21, 2015

President Obama’s 2014 executive actions on immigration would benefit hundreds of thousands of New Jerseyans and provide a boost to the state’s economy by allowing many undocumented residents to work legally and avoid deportation. Read the full report here

New Jersey Policy Perspective: Levied on Very Few, New Jersey’s Estate and Inheritance Taxes Support Colleges, Health Care & Other Services

October 21, 2015

An effort by some lawmakers to eliminate or drastically cut taxes for a small number of New Jerseyans – a move that would deliver the greatest benefit to the state’s wealthiest households – threatens resources needed for public colleges, safe communities, health care and other important services. Read the full report here

Georgia Budget and Policy Institute: A Tax Blueprint to Strengthen Georgia

October 21, 2015

Reforming Georgia’s rickety tax code is once again a hot topic among members of the General Assembly, and the question lawmakers must answer is how best to do it. The most prominent pending reform option would slash Georgia’s top personal income tax rate and try to make up the lost revenue with increased sales taxes, […]

Maine Center for Economic Policy: Statement on Gov. LePage’s Proposal to Seek a Ballot Initiative to Reduce Maine’s Income Tax to 4 Percent by 2021

September 22, 2015

The non-partisan Institute on Taxation and Economic Policy estimates that Mainers with annual income above $175,000 would receive almost 50 percent of the benefits from this massive tax cut. The top 1 percent of Mainers with income greater than $390,000 would get an average tax cut of over $21,000 while the 20 percent of Mainers […]

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.