Institute on Taxation and Economic Policy

ITEP Work in Action

North Carolina Jusice Center: North Carolina’s Business Tax Deduction – Who Benefits?

March 27, 2013

In the 2011 budget, the North Carolina General Assembly created a deduction for the first $50,000 in non-passive income for businesses filing through the personal income tax. Proponents of the temporary tax break intended it to provide tax relief to small businesses and support job creation. However, in recent months there has been considerable debate […]

Public Assets Institute: Vermont Has Options to Raise Revenue for Smart Investments

March 20, 2013

Gov. Peter Shumlin has the right idea when he says we should invest in expanding the availability of child care for working Vermonters. However, it just doesn’t make sense to take money from low-wage working families to pay for this initiative. Other changes to Vermont’s income tax code could produce about as much revenue as […]

Utah Foundation: Fueling Our Future, 2013-2040

March 20, 2013

Policy Options to Address Utah’s Future Transportation Needs Funding Utah’s transportation needs is a significant economic and fiscal challenge for state policymakers. Over the next three decades, Utah’s population is set to increase by over 60% from 2.8 million to 4.5 million.1 Coupled with this signifi cant growth is the possibility of an increase in […]

Louisiana Budget Project: Eliminating Louisiana’s Income Taxes Will Hurt the State’s Economy

March 19, 2013

Gov. Bobby Jindal’s plan to abolish Louisiana’s income taxes is based on a flawed economic analysis and is likely to hurt the state’s economy rather than boost it, according to a new report by the Louisiana Budget Project. Read the Full Report

Policy Matters Ohio: Small Investment, Big Difference

March 15, 2013

If Ohio is going to broaden the tax base, the state should adopt a state Earned Income Tax Credit (EITC), as 25 states (including the District of Columbia) have done. It is good policy at any time, especially when legislators are considering raising taxes on those least able to pay. An EITC not only helps […]

Massachusetts Budget and Policy Center: Effects of Raising Rates and Exemptions on the State Income Tax

March 12, 2013

This Facts At A Glance updates MassBudget’s analysis of a reform option that would make changes to the way the Commonwealth taxes wage and salary income as well as investment income. The Department of Revenue (DOR) recently examined this reform option and estimated that the proposal’s combined changes would generate between $1.99 billion and $2.11 […]

Massachusetts Budget and Policy Center: Examining Tax Fairness

March 12, 2013

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 […]

Massachusetts Budget and Policy Center: Possible Reforms to the Governor’s Tax Plan

March 12, 2013

In his FY 2014 budget, the Governor proposes making significant new investments in education and transportation, as well as limiting cuts to other program areas. He proposes paying for these investments with a tax increase, one that would raise an estimated $1.9 billion in new, annual revenue and would do so in a progressive manner […]

Missouri Budget Project: Racing to the Bottom

March 12, 2013

Senate Gives Initial Approval to Extreme Tax Cut Bill Which Would Devastate Missouri Services, Infrastructure, and the State’s Economy An extreme tax cut proposal, perfected this week by the Missouri Senate would slash Missouri’s general revenue budget by nearly $1 billion when fully implemented, resulting in devastating cuts to services throughout the state. Further, the […]

Missouri Budget Project: Senate Ways & Means Tax Cut Would Devastate Services, Infrastructure, and Economy

March 1, 2013

An extreme tax cut proposal approved by a Senate Committee this week would slash MO’s general revenue by more than one-fifth, resulting in devastating cuts to services throughout the state and undermining Missouri’s ability to invest in the very services that make it attractive to business. MBP’s latest report outlines the bill and its impact […]

Oklahoma Policy Institute: What’s unaffordable?

February 26, 2013

The Governor’s assertion that extending Medicaid is unaffordable to Oklahoma is unconvincing in at least two respects. First, the study on which she bases her cost estimates makes clear that extending Medicaid would have a very modest fiscal cost to the state and would bring in over twelve new federal dollars for every additional dollar […]

The Commonwealth Institute: Senate’s Version of HB2313 Still Lacks Offsetting Relief Measures

February 21, 2013

While the Senate’s version of Governor McDonnell’s transportation bill looks very different from the bill passed by the House – and it is – the two versions have one major problem in common: they rely on regressive tax increases that will have low-income Virginians paying a greater share of their income towards funding transportation. As […]

Oklahoma Policy Institute: Governor Fallin’s tax cut would do little to nothing for the average Oklahoman

February 19, 2013

In her State of the State address, Governor Fallin unveiled yet another proposal to cut Oklahoma’s income tax. Her plan is drastically scaled back from last year’s proposal, which attempted to stretch out Oklahoma’s tax brackets, cut the top rate in half, and eliminate dozen of tax credits, exemptions, and deductions. This year, the Governor […]

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

February 7, 2013

Income tax cuts will increase inequality in Ohio and do little for our economy. The Kasich administration proposal to broaden the sales tax base, if done carefully, is helpful because our economy has shifted to services, many of which have been untaxed. However, this will disproportionately affect low- and middle-income Ohioans, so steps should be […]

Open Sky Policy Institute: 80 percent of Nebraskans would see tax increases if income taxes are cut

February 4, 2013

A move to cut income taxes in favor of higher sales taxes will lead to tax increases for 80 percent of Nebraskans, a report by the OpenSky Policy Institute shows. “State economies flourish when policies are enacted that strengthen the middle class. LB 405 and LB 406 don’t work in that way,” said Renee Fry, […]

Voices for Utah Children: Analysis of a Three-Part Proposal to Reform Utah’s Sales Tax

January 31, 2013

A proposal that will be discussed during the 2013 General Session would return Utah’s state sales tax on groceries to the general sales tax rate, while offering two kinds of tax credits to mitigate the negative impacts on vulnerable households. A detailed economic analysis from the Institute on Taxation and Economic Policy (ITEP), a non-partisan […]

Georgia Budget and Policy Institute: Menu of Revenue Options to Pave Way for Georgia’s Rebound

January 28, 2013

Georgia is one of the most under-funded states in the country, but state lawmakers can remedy structural budget shortfalls by implementing revenue options used successfully by other states. Annual deep cuts in state funding the past five years means fewer teachers in Georgia’s classrooms, roads and bridges that continue to crumble and an unappealing environment […]

North Carolina Justice Center: A “Laffable” Plan for Tax Reform

January 23, 2013

EXECUTIVE SUMMARY This tax plan, if implemented, will provide the wealthiest 20 percent of taxpayers a significant tax cut, which would be paid for by increasing taxes on 60 percent of the state’s taxpayers, primarily middle- and low-income taxpayers. The plan eliminates the personal income, corporate income and franchise taxes, which, combined, generate $12 billion […]

The Commonwealth Institute: Governor’s Transportation Tax Hike Hits Low-Income Virginians Hardest

January 17, 2013

The tax and fee hikes proposed by Governor McDonnell to fund transportation will take a far larger share of income from Virginians at the low end of the income spectrum than those with higher incomes who are better able to pay. The governor proposes to increase the state sales tax to 5.8 percent, eliminate the […]

Tennesseans for Fair Taxation: Tax Modernization & Economic Stimulus Act

January 15, 2013

This plan will provide much needed tax breaks to 60% of Tennesseans, those low- and middle-income families most likely to put that money back into the local economy. For example:     -A family of four making $20,000 will save over $550 per year.    -A family of four making $35,000 will save over $700 per year.    […]

Oregon Center for Public Policy: No Special Treatment: Seven Reasons Why Oregon Should Not Reduce or Eliminate the Income Tax on Capital Gains

January 15, 2013

This issue brief examines seven reasons why giving special treatment to income from capital gains is a terrible idea: it would not stimulate additional economic growth, it would not attract much venture capital, it would waste millions chasing after the few Oregonians who move to Washington to avoid Oregon income taxes, it would mainly benefit […]

Mississippi Economic Policy Center: Investing for Growth, Enhancing Our Prospects: Tax Reform in Mississippi

January 15, 2013

In any given year, the state of Mississippi and its residents accomplish a lot. Through the collective investment of our tax dollars, we maintain over 10,000 miles of roads, help educate more than 800,000 children and adults from kindergarten to university and support more than 7,000 law enforcement officers in our local communities. With tax […]

Indiana Association for Community Economic Development: Indiana Property Taxes: Is Property Tax Relief or Tax Restructuring the Solution?

January 15, 2013

Many Indiana communities are once again experiencing what is perceived to be a property tax “crisis.” However, by its most common definition, a crisis implies a situation that is characterized by unexpectedness and sudden change. Although the drastic increase in property tax bills is sudden for many homeowners, the implementation of Indiana’s property tax assessment […]

Center for Tax and Budget Accountability: Issue Brief: Why Taxation in Illinois is Unfair

January 15, 2013

Tax policy is by its nature a contentious subject. In the end, individuals pay different proportions of their incomes in taxes to fund public services and a completely different matrix of individuals used those services. Given this dichotomy, establishing a definition of what constitutes the most fair way to levy taxes that is acceptable to […]

Center for Tax and Budget Accountability: Citizens Guide to the Illinois State Budget & Tax System

January 15, 2013

The Illinois State Budget is the state’s fundamental policy document. It defines what programs and services will receive financial support from the state. In a standard, non-overtime legislative year, Illinois adopts its budget on a fiscal year basis, beginning on July 1 of each calendar year and ending on June 31 of the next succeeding […]

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.