Institute on Taxation and Economic Policy

ITEP Work in Action

Iowa Fiscal Partnership: Balanced approach on gas tax

March 6, 2015

Raising Iowa’s tax on gasoline and diesel fuel by 10 cents per gallon would go a long way toward financing needed street and highway repairs and improvements. Critical needs most recently were estimated at $215 million annually, and the 10 cents is projected to raise that amount by fiscal year 2018. Read the full report […]

Children’s Action Alliance: HB 2069 – S/E Online TPT/Income Tax Reduction Fact Sheet

March 6, 2015

HB 2069 shifts taxes from the wealthiest Arizonans to low and middle income taxpayers, attempts to limit options available to future legislatures, and depends on a “best guess” to make sure that state revenues aren’t cut back too far with no chance of correction….This ill-advised legislation has many problems: At a time when Arizona is […]

Fiscal Policy Institute: Policy Brief: Property Tax Relief (Circuit Breaker)

March 6, 2015

Those at the bottom of the income scale [in New York] would benefit most—62 percent of homeowners and 37 percent of renters with incomes below $19,000 would receive a circuit breaker refund according to an analysis of the governor’s proposal by the Institute on Taxation and Economic Policy. Some 27 percent of homeowners and renters […]

Mississippi Economic Policy Center: House and Senate Tax Plans Do Little for Struggling Working Families

March 6, 2015

The personal income tax cuts from both the [state] House and Senate plans benefit wealthier families more than lower and middle-income earners. Further, the high cost of these plans may require raising revenue through increases in the property tax or sales tax, both of which hit lower and middle-income earners hard. This combination would result […]

Michigan League for Public Policy: A Solution at Last to Michigan’s Crumbling Roads

March 3, 2015

Analysis by the Institute on Taxation and Economic Policy shows that the sales tax increase and the increase of the EITC will help low-income working people. After all of the changes in the package are accounted for, Michigan’s lowest earners (annual incomes under $20,000) will experience a net tax decrease. Read full report here.   […]

Pennsylvania Budget and Policy Center: Better Choices Coalition Releases 19 Ideas to Make Pa.’s Tax System Fairer

March 3, 2015

“A recent study by the Institute on Taxation and Economic Policy named Pennsylvania the sixth most unfair state and local tax system for low- to moderate-income families. The recommendations we are making today not only raise sustainable revenue for critical services like education and health care, but also make our tax system fairer for all […]

Maryland Center on Economic Policy: Maryland’s Poor Taxed More Than Rich; Communities of Color Feel Biggest Pinch

February 28, 2015

The state’s highest income households pay the lowest percentage of their yearly earnings in state and local taxes compared to middle-class and low-income households. Residents struggling the most to make ends meet — Maryland’s poor and minorities — also are being taxed to a greater extent than the wealthiest. This unfortunate reality reinforces both economic […]

Idaho Center for Fiscal Policy: Complex Tax Proposal Would Have Uneven Impacts on Idahoans

February 23, 2015

A new proposal in the Idaho Legislature would dramatically shift the way taxes are collected and generate a new revenue source for our neglected roads and bridges. The proposal has several components which in combination mean that taxpayers across the bottom 95% of the distribution will pay more, on average. The proposal is designed to […]

Open Sky Policy Institute: LB 357 would lead to budget cuts, benefits top earners

February 19, 2015

LB 357 calls for significant reductions in personal and corporate income tax rates over several years. It also transfers $160 million out of the cash reserve, $80 million to the Property Tax Credit Program and another $80 million to the General Fund to fill in for the loss of income tax revenue in the first […]

Policy Matters Ohio: Kasich tax proposal would skew tax system further in favor of Ohio’s affluent

February 10, 2015

The Kasich administration proposal to cut income taxes and expand sales and other taxes would produce big tax cuts for Ohio’s most affluent residents, while increasing taxes on lower- and moderate-income families. The proposal would provide an $11,906 annual tax cut on average to taxpayers in the top 1 percent of the income spectrum, who […]

Connecticut Voices for Children: Families First, Prosperity for All: Making Connecticut’s Tax and Benefit System More Family-Friendly

February 9, 2015

Connecticut’s tax system is uniquely unfriendly to families. Connecticut is one of only two states with an income tax that does not offer tax credits or exemptions to adjust for the cost of caring for children and other dependents. Read the full report here. 

Washington State Budget & Policy Center: Taxing Capital Gains

February 2, 2015

FAQ on Enacting a Capital Gains Tax In Washington State Read the full report

Arkansas Advocates for Children and Families: Changing how we tax capital gains

February 2, 2015

A relatively small number of wealthy Arkansans who make money from the sale of investments reaped the benefits from the capital gains tax cuts passed in 2013. These expensive tax cuts, however, are likely to be scaled back. Today the House Committee approved a version of Governor Hutchinson’s middle-income tax cut that reduces, instead of […]

Montana Budget & Policy Center: Investing in Montana’s Working Families

February 2, 2015

In Montana, thousands of families struggle to make ends meet. One of the most promising policy opportunities to support working families and boost our economy is the enactment of a state Earned Income Tax Credit (EITC). The Great Recession and other economic trends made it harder for Montana’s families to live above the poverty line. […]

Arkansas Advocates for Children and Families: Governor’s tax plan leaves out poorest Arkansans

February 2, 2015

The governor’s new tax cut plan is a step in the right direction for tax fairness, but leaves out the poorest 20 percent of Arkansans and raises concerns about how the lost revenue will impact vital programs for children and families. Despite tax breaks targeted to the middle class, and even a hike for the […]

Economic Progress Institute: Making Work Pay for Working Families

February 2, 2015

Rhode Islanders who work full-time should be able to support their families. Yet, far too many are struggling to pay for housing, heat, food, and health care. Increasing Rhode Island’s refundable Earned Income Tax Credit to 20 percent from 10 percent would put hundreds of dollars back in the pockets of working families, improving their […]

Open Sky Policy Institute: ‘Circuit breaker’ in LB 186 provides targeted property tax reductions

January 29, 2015

Property tax “circuit breakers” like the one proposed in LB 186 are a way to provide targeted tax reductions to those whose property taxes are high in relation to their incomes. They are called “circuit breakers” because the tax credits are triggered once property taxes reach a certain percentage of a person’s income, similar to […]

Mississippi Economic Policy Center: A State Earned Income Tax Credit: A Boost for Mississippi Families

January 29, 2015

Mississippi families are struggling to make ends meet despite working hard and playing by the rules. The federal Earned Income Tax Credit (EITC) gives many of these families the boost they need to be more financially secure. Mississippi can also enact a refundable state EITC to leverage the federal credit’s track record of encouraging work, […]

New Jersey Policy Perspective: Tax Increase to Fund Transportation Should Be Combined with Credit to Help Low-Income Families

January 26, 2015

As New Jersey policymakers close in on a deal to boost New Jersey’s transportation funding, a bold solution that raises at least $1 billion in new revenue a year through new gas taxes is essential if New Jersey wants to take advantage of one of its greatest economic assets – its location – and rebuild […]

Michigan League for Public Policy: Income Tax Cuts: Financially Irresponsible and No Economic Benefits

January 26, 2015

Proposals to roll back the personal income tax in Michigan will not create jobs or grow our economy and will disproportionately benefit the wealthiest taxpayers the most. It is also fiscally irresponsible to reduce taxes when the state is facing a budget shortfall due to lower than expected revenues. In fact, most of the benefits […]

North Carolina Justice Center: A Capital Loss – Eliminating taxes on capital gains would make North Carolina’s tax system more unfair

January 24, 2015

Tax cut proponents in North Carolina are pushing another plan that would benefit the wealthy at the expense of everyone else, turning their sights to eliminating the state income tax on the sale of artwork, vacation homes and other high-end capital gains that only a few North Carolinians profit from. Contrary to supporters’ claims, this […]

Colorado Fiscal Institute: The truth about taxes in Colorado

January 21, 2015

Who really pays a greater share of their income in taxes in Colorado? The rich or the poor? We answered this question by using the latest data from the Institute on Taxation and Economic Policy. The New York Times featured ITEP’s latest data in a national story today as well. Read the full report  

Fiscal Policy Center: Fair For Whom? IL Taxes the Lowest Earners at the Highest Rates

January 21, 2015

As part of his campaign platform and “Jobs and Growth Agenda,” Governor Rauner has identified the need to “overhaul the tax code so that it’s fair to all taxpayers.” We couldn’t agree more. Considering all major state and local taxes Illinoisans pay, those who earn the least — less than $19,000 a year — pay […]

West Virginia Center on Budget & Policy: Low- and Middle-Income Taxpayers in West Virginia Pay a Higher Tax Rate than the Richest West Virginians

January 21, 2015

A new study released today by the Institute on Taxation and Economic Policy (ITEP) and the West Virginia Center on Budget and Policy finds that the low- and middle-income West Virginians pay more in state and local taxes as a percent of their income compared to the state’s wealthiest residents. Read the full report

Wisconsin Budget Project: Low-income Taxpayers in Wisconsin Pay Much Higher Rate than the Richest

January 21, 2015

Wisconsin’s state and local tax system is tilted in favor of those with the highest incomes, according to a new report released today. Wisconsin taxpayers with low and middle incomes typically pay much higher rates of state and local taxes compared to taxpayers with the highest incomes. Some Wisconsin policymakers are advocating for changes that […]

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.