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 […]
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, […]
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. […]
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.
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. […]
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 […]
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, […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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?” […]
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 […]
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 […]
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
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 […]
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
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 […]
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 […]
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.