Citations

Data from the Institute on Taxation and Economic Policy (ITEP) detail how the current system of state and local taxes in Massachusetts is regressive, largely because the state uses a flat income tax rate and relies heavily on sales taxes. The chart above shows how an increase in the gas tax would make Massachusetts taxes […]

State EITCs are better targeted to people with low income than blanket tax exemptions, so they help to reduce the disproportionate impact of sales and excise taxes. According to new data from the Institute on Taxation and Economic Policy, a state EITC at 30 percent of the federal credit would reduce the share of income […]

How to untax groceries without costing education a dime It’s crucial to replace the grocery tax revenue without hurting the people who would benefit most from the tax’s elimination. Fortunately, Alabama has a way to untax groceries while protecting both struggling families and education funding. That solution would be to end an unusual tax loophole […]

To get a sense of a state’s values, one often need look no further than its tax system. What a state spends its tax dollars on and how it acquires those tax dollars typically reveals a lot about the priorities of its people—what they care about and what they stand for. In theory, it’s a […]

The Working Families Tax Credit (WFTC) is New Mexico’s equivalent of the federal Earned Income Tax Credit (EITC). The WFTC’s eligibility levels and credit amounts are based directly on the EITC, and like most states, the amount is a set percentage of the federal EITC. These tax credits reduce poverty, improve outcomes for children, and […]

While all families in Arizona help pay for health, education and public safety through state and local taxes, low-income and middle-income families pay a larger portion of their income in taxes than do wealthier families. When all types of state and local taxes are combined—income, sales, and property—families with income in the lowest 20 percent […]

In Search of State Budget That Creates Opportunity for All When all types of state and local taxes are combined—income, sales, and property—families with income in the lowest 20 percent pay twice what families in the top 1 percent do—$12.95 for every $100 of income and $8.49 for middle income families compared to $5.91 for […]