Institute on Taxation and Economic Policy

ITEP Work in Action

Kentucky Center for Economic Policy: Extending Federal Tax Cuts Would Double the Deficit for the Benefit of the Wealthiest

January 14, 2013

Ten years ago, large federal tax cuts were signed into law by President Bush. Those cuts are now set to expire at the end of 2012. Extending them beyond that date would almost double the size of the federal budget deficit, and in Kentucky close to half of the tax cuts from an extension would […]

Kentucky Center for Economic Policy: 2011 Revenue Results a Reminder of Importance of State Income Taxes

January 14, 2013

The $166 million in state revenues above projections for the fiscal year that just ended are helping prevent additional cuts to critical state services. They are also a reminder of the advantages of a broad-based tax system and in particular the importance of Kentucky’s individual and corporate income taxes. Read the Full Report (PDF)

Connecticut Voices for Children: After 2011 Tax Reforms, Connecticut’s Wealthy Still Pay Smallest Share of Income in State and Local Taxes

January 14, 2013

Despite recent efforts to make the Connecticut tax system fairer, the wealthiest 1% of our residents will still pay only half as much of their income in state and local taxes as the poor and middle class, according to a new analysis by the Institute on Taxation and Economic Policy. The state and local tax […]

Connecticut Voices for Children: Benchmarking Connecticut

January 14, 2013

As Connecticut works towards a plan for economic growth and job creation, it is essential that we understand our strengths and weaknesses. This brief fact sheet outlines several indicators — “benchmarks — that should inform our policy discussion about jobs, economic competitiveness, and shared prosperity for all Connecticut families. Read the Full Report (PDF)

Washington State Budget & Policy Center: A Capital Reform

January 14, 2013

To create jobs, spur long-term economic growth, and foster prosperity, Washington state desperately needs to rebuild its eroding education, public health, and community safety infrastructure. Our state has a powerful, but untapped resource to accomplish this: capital gains. A modest tax on some capital gains would help fuel economic recovery and opportunity for future generations […]

Fiscal Policy Institute: The Tax Shift

January 8, 2013

New York State is at a crossroads. Our tax structure is scheduled to change in a way that will render state revenues inadequate for the budget years ahead. Hundreds of thousands of households struggle to pay property tax bills that represent an inordinate share of their incomes. And, in the aftermath of the Great Recession, […]

Oregon Center for Public Policy: Undocumented Workers Are Taxpayers, Too

December 17, 2012

“It’s essential that Oregonians recognize the important contribution undocumented workers make to our state’s economy. Undocumented immigrants perform vital work in certain industries. Together they earn roughly $2.3 billion to $4.5 billion a year, much of it undoubtedly spent on goods and services purchased from Oregon businesses. And beside labor and purchasing power, undocumented immigrants […]

Connecticut Voices for Children: Taking Stock: Four Decades of State Revenues, Expenditures, and Deficits

December 17, 2012

This report puts Connecticut’s budget in perspective. It compares our response to the current downturn with our reaction to the previous two, it assesses the impact of recent changes on the progressivity of our tax code, and it places our current expenditures and taxes in historical context. Taking this broad view yields a set of […]

Arizona Children’s Action Alliance: Skin in the Game: Who really Pays Arizona taxes?

December 17, 2012

“In political talking points, the phrase “everyone should have skin in the game” is being used to push unfair revenue schemes around the country. The phrase is used under the false assumption that low-income Americans aren’t paying their fair share of taxes. In Arizona, some proponents of the so-called flat tax are using this slogan […]

Connecticut Voices for Children: Making Sense of the Rankings: Where Connecticut Stands on Business Taxes

December 17, 2012

In recent months, there has been a steady stream of reports about state business taxation. The Council on State Taxation (COST), a trade association of large corporations, released its annual ranking of state and local business taxes, naming Connecticut the lowest-tax state in America. Then, Good Jobs First graded states on accountability provisions in their […]

Oklahoma Policy Institute: The Tax Shift

December 17, 2012

“On the last Friday of 2011, the legislature’s tax reform task force released its proposals for changing Oklahoma’s tax system. The most significant recommendation was to cut the top income tax rate from 5.25 percent to 4.75 percent. This would be paid for by eliminating numerous tax credits and exemptions, including broad-based credits going to […]

Michigan League for Human Services: Tax Changes Hit Low-Income Families the Hardest

December 17, 2012

The tax package adopted by Gov. Rick Snyder and the Legislature last year will begin to take effect in 2012. Michigan’s business taxes will be reduced by $1.6 billion, while individual income taxes will increase by $1.4 billion, when fully implemented in Fiscal Year 13.1 These tax changes make Michigan’s tax structure even more regressive. […]

Corporation for Enterprise Development: Tax Burden by Income

December 17, 2012

States have the flexibility to design their own tax rates and structures to fund public services. Most states rely on three types of taxes: personal income, property and consumption (sales and excise) taxes. Whether the state’s tax system is regressive (taxes the poor more heavily than the rich) or progressive (taxes the rich more heavily […]

Policy Matters Ohio: Bolster the income tax to meet Ohio’s needs

December 17, 2012

Public services, though sometimes invisible, are a crucial element in a thriving economy. To restore critical services and invest in the future, Ohio should boost income-tax rates on its highest earners. Read the Full Report (PDF)

Policy Matters Ohio: Ohio needs a strong income tax

December 17, 2012

“Ohio’s income tax plays a crucial role in helping the state meet vital needs, and is the only major state tax based on ability to pay. This brief, a resource for the public and policymakers alike, explains why Ohio needs a strong income tax.” Read the Full Report (PDF)

Economic Progress Institute: A More Modern Day Sales Tax

December 17, 2012

“Rhode Island must continue to update its out of-date sales tax to be able to make investments in education, public safety, transportation and the other services that are necessary to build a strong economy. Rhode Island continues to have one of the most narrow sales tax bases in the country due in part to the […]

Economic Progress Institute: Raising Revenue from High-Income Households in Rhode Island

December 17, 2012

“Rhode Island residents and businesses make a collective investment in our state by contributing towards the cost of public services and amenities that help create jobs and enhance our quality of life. The state’s ability to protect our families and businesses, educate current and future workers, repair roads and keep buses running, and provide health […]

Policy Matters Ohio: Income-tax cut would favor affluent; Middle-class Ohioans wouldn’t get enough for a tank of gas

December 17, 2012

“Poor and middle-income Ohioans would get little out of Gov. John Kasich’s proposed income-tax cut, while the highest-income Ohioans would see reductions in the thousands of dollars. While House Republicans have sidelined the proposal for now, Rep. Ron Amstutz, chair of the Finance and Appropriations Committee, indicated it will be taken up in the future.[1] […]

Political Economy Research Institute: Raising Revenue from High-Income Households

December 17, 2012

“These anticipated reactions – changes in the timing and composition of income and other forms of tax avoidance – are not nearly as dramatic as the consequences predicted by some parties in the debate over taxes. Some, but not all, of these reactions can be expected to result in inefficiency and deadweight loss for a […]

Oklahoma Policy Institute: The “Tax Cut” Bait and Switch

December 17, 2012

“As they ponder plans to cut Oklahoma’s top income tax rate, most lawmakers admit the state cannot afford a cut without eliminating many other tax breaks. They emphasize that we should close loopholes for corporate “special-interests.” Yet as details of their plans emerge, we’ve discovered that the biggest cost would fall not on special-interests, but […]

Georgia Budget & Policy Institute: Georgia’s Income Tax: Essential for State’s Economy and Families

December 17, 2012

Plans to eliminate or drastically cut income taxes and replace them with other levies are in vogue in several states. But Georgia policymakers would do well to ignore the siren’s call. Such a tax shift would do nothing to help the state’s economy and would, in fact, hurt families and businesses by eroding support for […]

Hawai’i Appleseed Center for Law and Economic Justice: How the Great Recession disproportionately impacted Hawai’i’s disadvantaged and policy recommendations to achieve fairness

December 17, 2012

“THE HAWAI‘I APPLESEED CENTER for Law and Economic Justice has compiled this report to illustrate the crisis facing those living in poverty in Hawai‘i and who are suffering severely as they bear the heaviest burden of the recession. We also propose solutions to address the crisis by increasing revenue and implementing policies that strengthen our […]

NYS Tax Reform and Fairness Commission: Promises Made But Not Yet Kept

December 17, 2012

The Governor has called for the creation of a Tax Reform and Fairness Commission to develop recommendations on how we might modify our current tax structure so that is fair to all New Yew Yorkers. The current tax system in the State of New York tends to put more of the state and local tax […]

North Carolina Justice Center: Gas Tax Cap Would Delay Needed Repairs and Weaken North Carolina’s Transportation Budget

December 17, 2012

“Key Findings: • North Carolina’s transportation budget faces a funding gap. Since the Great Recession, North Carolina has not experienced gradual increases in revenue collections from the gas tax as generally experienced in pre-recession years. The purchasing power of construction and maintenance dollars has also eroded. • Despite revenue shortfalls for transportation projects, the price-based […]

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.