Institute on Taxation and Economic Policy

ITEP Work in Action

Arkansas Advocates for Children and Families: Arkansas ranks 11th in tax burden on poor

January 16, 2015

Arkansas ranks eleventh in the nation when it comes to taxing the poor. The poorest Arkansans, those making under $9,600 per year, pay two times more in taxes as a percentage of their income than wealthy Arkansans who make over $209,800 per year. A new study released today by the Institute on Taxation and Economic […]

Kentucky Center for Economic Policy: Kentucky’s Upside Down Tax System Asks the Least of Those at the Top

January 16, 2015

In Kentucky, the wealthiest residents pay the lowest overall state and local tax rate as documented in a new edition of a study by the Institute on Taxation and Economic Policy. “Who Pays: A Distributional Analysis of the Tax Systems in 50 States” analyzes all major state and local taxes including personal and corporate income, […]

Louisiana Budget Project: Taxing the Poor

January 16, 2015

In less than three months, Louisiana legislators will convene for their annual session. It’s an odd-numbered year, which means it’s a two-month “fiscal” session that’s supposed to be focused on tax policy. But if predictions around the Capitol are to be believed, there is little reason to expect fundamental change to a tax structure that […]

Maryland Center on Economic Policy: Low-Earners Paying More in Taxes than the Well-Off in Maryland

January 16, 2015

Those earning the most in Maryland pay the lowest share of their income in state and local taxes, at just 6.7 percent, according to the Institute on Taxation and Economic Policy’s (ITEP) new “Who Pays?” report. Those in the top 1 percent, making over $481,000, pay the least in sales and excise taxes and property […]

Economic Progress Institute: Making Work Pay for Working Families: Increasing the State’s Earned Income Tax Credit

January 16, 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 […]

Economic Progress Institute: 2014 Rhode Island Standard of Need

December 19, 2014

What it costs to live and raise a family in Rhode Island and how work supports help families meet basic needs Rhode Island is a beautiful state with sandy beaches, world class restaurants, and a vibrant arts and culture scene. Yet many workers in our state struggle just to pay for the basics, making it […]

North Carolina Budget and Tax Center: 2015 Budget Undermines North Carolina’s Competitiveness

December 11, 2014

The 2015 state budget, passed by the NC General Assembly and signed by Governor McCrory, undermines North Carolina’s competitive position in the 21st century global economy. Lawmakers failed to provide a high-quality education for all children, protect natural resources, support community-based economic development, or provide adequate health and human services to North Carolina residents. By […]

North Carolina Budget and Tax Center: 2015 Budget Undermines North Carolina’s Competitiveness

December 11, 2014

The 2015 state budget, passed by the NC General Assembly and signed by Governor McCrory, undermines North Carolina’s competitive position in the 21st century global economy. Lawmakers failed to provide a high-quality education for all children, protect natural resources, support community-based economic development, or provide adequate health and human services to North Carolina residents. By […]

California Budget Project: A State EITC- Making California’s Tax System Work Better for Working Families

December 4, 2014

A new CBP report discusses the benefits of establishing a California Earned Income Tax Credit (EITC) and the key policy considerations in creating this state credit. Read the full report.

Massachusetts Budget and Policy Center: Automatic Income Tax Rate Cuts – Frequently Asked Questions

December 4, 2014

A thriving state economy – one that delivers broadly shared prosperity to workers, families and businesses – depends on key public investments in schools and colleges, subways and highways, public safety and more. We pay for these essential investments with our tax dollars. A series of tax cuts dating from the late 1990s and early […]

Michigan League for Public Policy: Let’s Not Make it Harder for People to Get to Work!

November 25, 2014

Improving the state’s roads is critical to economic growth in Michigan. Not only do people depend on the roads and public transportation to get to work, but businesses—and potential businesses—rely on safe roads to transport goods. It is imperative, however, to ensure that people can still afford to get to work if taxes are increased. […]

Policy Matters Ohio: Ohio’s Affluent are Big Beneficiaries of 2013-2014 Tax Changes

November 24, 2014

State tax changes approved over the past two years have further tilted Ohio’s tax system in favor of the wealthiest. Read the full report

New Mexico Voices for Children: Expanding New Mexico’s Working Families Tax Credit Would Generate Economic Activity and Help Hard-Working Families

November 3, 2014

New Mexico’s Working Families Tax Credit not only lifts tens of thousands of low-income families out of poverty each year, it also generates economic activity because the money is spent quickly and locally. Increasing the value of the credit would help with New Mexico’s sluggish recovery and cost the state much less than recently enacted […]

Oregon Center for Public Policy: Move Across State Lines for $40 a Month?

October 7, 2014

  Say that you’re the sole breadwinner for your family and you earn $100,000 a year in Oregon. Would you pack your belongings and move your family north to Washington for a $40 monthly raise? It’s hard to imagine. That is why any Oregon business worried that it might lose employees to firms in Washington […]

North Carolina Justice Center: Stronger Earned Income Tax Credit and Minimum Wage – Both Needed to Help Low-Wage Working Families

September 8, 2014

There are two critical policy tools that can help put low-wage workers on the path to economic security: the minimum wage and the Earned Income Tax Credit (EITC). Together these policies ensure that working families can maximize their take-home pay to help make ends meet. Read the full report   

Policy Matters Ohio: Out-of-Step

August 26, 2014

Changes to the Ohio EITC this summer doubled the credit, but poor design choices mean that most low-income working families won’t get the benefit. Read the full report

Policy Matters Ohio: The Great Ohio Tax Shift

August 18, 2014

Tax overhauls in the past nine years have slashed average tax bills for the top 1 percent by more than $20,000, while the bottom three-fifths pay more as a group. Read the full report

Fiscal Policy Institute: NYS Can Help Low-income Working Families with Children by Increasing its Earned Income Tax Credit

August 1, 2014

It comes as no surprise to working families that New York State’s tax system is fundamentally unfair. Low- and middle-income workers pay, on average, a much higher share of their income in state and local taxes than the highest income earners. According to analysis by the Washington, D.C.-based Institute on Taxation and Economic Policy, the […]

Missouri Budget Project: Earned Income Tax Credit: A Targeted Tax Change with Significant Impact

July 31, 2014

The federal Earned Income Tax Credit (EITC) is a federal tax credit for low- and moderate-income working people. It encourages and rewards work as well as offsets federal payroll and income taxes. Read the Full Report (PDF)

New Mexico Voices for Children: New Mexico’s Capital Gains Deduction: A Capital Loss for New Mexicans

July 31, 2014

Legislation enacted in 2003 that allows New Mexicans with capital gains income to deduct half of that income from their state taxes has failed as an economic development tool. Further, it makes the state’s overall tax system lean more heavily on low-income families and exemplifies the need for a more robust accounting of tax giveaways. […]

New Mexico Voices for Children: Citizen’s Guide to New Mexico’s Tax System

July 31, 2014

Citizen’s Guide to the New Mexico State BudgetThis guide focuses on the operating budget—the annual spending for ongoing programs and services that affect the lives of every New Mexico resident. Read the Full Report (PDF)

Maryland Center on Economic Policy: Recent EITC Expansion in MD will Make Taxes More Fair, Reduce Inequality

July 31, 2014

Working Marylanders with the lowest earnings will pay slightly less of their income in taxes — 9.9 percent compared to 10.1 percent now – once the expansion of the state’s Earned Income Tax Credit is fully phased in, according to a new study. That’s a small change, and the top 1 percent of income earners […]

Voice for Illinois for Children: Congress Must Act to Stop Corporate Inversions

July 30, 2014

A number of high-profile U.S. corporations have, or are reportedly considering, corporate “inversions,” where they move their “headquarters” overseas to avoid paying U.S. corporate income taxes. Unless Congress acts, federal and state governments are set to lose, at minimum, tens of billions in revenue to support urgent priorities such as schools, roads and bridges, and […]

Policy Matters Ohio: Cuts and Breaks

July 7, 2014

Most of the $400 million-plus in tax cuts for Fiscal Year 2015 will go the affluent. The Mid-Biennium Review also continues with an unfortunate Ohio tradition of permitting or enlarging tax benefits to special, narrow groups of taxpayers. Read the Full Report

Iowa Policy Project: Immigrants in Iowa

July 7, 2014

Undocumented immigrants pay an estimated $64 million in state and local taxes, according to a new Iowa Policy Project report. The authors suggest immigration reform that expands work authorization or access to citizenship would increase the already significant contribution to Iowa by all immigrants — documented or not. Read the Full Report  

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.