When it comes to investments, state lawmakers across the country are positioning their states to be in the red as they pass or debate further tax cuts that will overwhelmingly benefit the wealthy – and some states are now adding an additional coat of red paint…
State Policy
State taxes pay for essential public services, from education to health care. But the ideal design of a tax system is complicated. ITEP’s state policy resources offer insights into central issues, including the impact of state tax systems on individuals, families, and businesses. Its work also analyzes the sustainability of revenue sources over time.
Find updates on tax policy across the country from our State Tax Watch.
ITEP's State Policy Research Priorities
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blog September 27, 2023 State Rundown 9/27: Some States are Looking to Paint the Budgets Red
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blog September 13, 2023 State Rundown 9/13: The (Policy) Choices We Make
The U.S. Census Bureau released its annual assessment of poverty in America this week…
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blog September 12, 2023 State Tax Credits Have Transformative Power to Improve Economic Security
The latest analysis from the U.S. Census Bureau provides an important reminder of the compelling link between public investments and families’ economic well-being. Policy decisions can drastically reduce poverty and improve family economic stability for low- and middle-income families alike, as today’s data release shows.
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brief September 12, 2023 States are Boosting Economic Security with Child Tax Credits in 2023
Fourteen states now provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. This year alone, lawmakers in three states created new Child Tax Credits while lawmakers in seven states expanded existing credits. To maximize impact, lawmakers should consider making their credits fully refundable, not including an earnings requirement, setting a maximum amount per child instead of per household, setting state-specific phase-out ranges that target low- and middle-income families, indexing to inflation, and offering the option of advanced payments.
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brief September 12, 2023 Boosting Incomes, Improving Equity: State Earned Income Tax Credits in 2023
Nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit, an effective tool that boosts low-paid workers’ incomes and helps lower-income families achieve greater economic security. This year, 12 states expanded and improved EITCs.
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blog September 7, 2023 How to Better Tax the Rich Men North (and South) of Richmond
When you examine tax policy through the lens of how much working (and poor) people are taxed compared to rich men north (and south) of Richmond, it’s hard not to take Oliver Anthony’s runaway hit as a jumping off point to amplify some important facts.
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blog August 23, 2023 State Rundown 8/23: Tax and Effect
While a number of state tax laws are debated, approved, and vetoed in any given year, many go unnoticed…
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map August 15, 2023 Does Your State Offer Tax Credits for Private K-12 School Voucher Contributions?
Twenty-one states provide public support to private and religious K-12 schools through school voucher tax credits.
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blog August 10, 2023 State Rundown 8/10: Pump the ‘Breaks’ on Sales Tax Holiday Celebrations
August is here, school is starting, and with that comes back to school shopping…
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brief August 7, 2023 Weakening the SALT Cap Would Make House Tax Package More Expensive and More Tilted in Favor of the Wealthiest
The three tax bills that cleared the House Ways and Means Committee in June are reportedly stalled due to some House Republicans’ demands that the package include provisions weakening the $10,000 cap on deductions for state and local taxes (SALT). Modifying the House tax package in this way would make it much more expensive while benefiting the richest fifth of taxpayers almost exclusively.
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media mention August 4, 2023 New York Times: What’s the Matter With Miami?
For a couple of years after the pandemic struck, there was considerable buzz to the effect that much of the financial industry might leave New York for Miami. After all,… -
blog August 3, 2023 A Lot for A Little: Gimmicky Sales Tax Holidays Are an Ineffective Substitute for Real Sales Tax Reform
This year, 19 states will forgo a combined $1.6 billion in tax revenue on sales tax holidays—politically popular, yet ultimately ineffective gimmicks with minimal benefits and significant downsides.
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brief August 2, 2023 Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
Nineteen states have sales tax holidays on the books in 2023, and these suspensions will cost nearly $1.6 billion in lost revenue this year. Sales tax holidays are poorly targeted and too temporary to meaningfully change the regressive nature of a state’s tax system. Overall, the benefits of sales tax holidays are minimal while their downsides are significant.
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blog July 26, 2023 State Rundown 7/26: The Dog Days of Summer Tax News
The Dog Days of summer are upon us, and with most states out of session and extreme heat waves making their way across the country, it’s a perfect time to sit back and catch up on all your favorite state tax happenings (ideally with a cool drink in hand)…
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blog July 12, 2023 State Rundown 7/12: The Mid-Year Legislative Session Roundup
Most state legislatures have adjourned for 2023, and that means it’s a perfect time to look at the tax policy trends that have formed thus far…
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blog July 7, 2023 The Highs and Lows of 2023 State Legislative Sessions
Nearly one-third of states took steps to improve their tax systems this year by investing in people through refundable tax credits, and in a few notable cases by raising revenue from those most able to pay. But another third of states lost ground, continuing a trend of permanent tax cuts that overwhelmingly benefit high-income households and make tax codes less adequate and equitable.
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blog July 7, 2023 Refundable Credits a Winning Policy Choice Again in 2023
State lawmakers continue to make groundbreaking progress on state tax credits, with 17 states creating or enhancing Child Tax Credits or Earned Income Tax Credits so far this year. These policies have the potential to boost family economic security and dramatically reduce the number of children living below the poverty line.
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blog July 7, 2023 Minnesota’s Tax Battle of 2023 Signals a Turning of the Tide Against Corporate Tax Avoidance
The qualified success of Minnesota’s GILTI conformity—to say nothing of the state’s serious dalliance with the game-changing worldwide combined reporting–sends a clear signal that the days may be coming to an end when big multinationals can scare state lawmakers into allowing them to game the tax system.
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blog July 6, 2023 State Rundown 7/6: Tax Policy Keeping Governors Busy from Coast to Coast
From coast to coast, state governors have been busy inking their signature on a growing list of consequential budget and tax bills…
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blog June 28, 2023 State Rundown 6/28: Movement on Refundable Credits Remains Hot Topic in 2023
The trend of state lawmakers taking big steps on important tax credits like the Child Tax Credit and Earned Income Tax Credit is coming out in full force this week…
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map June 28, 2023 State Action on Child Tax Credits and Earned Income Tax Credits in 2023
In 2023 so far, 17 states have either adopted or expanded a Child Tax Credit or Earned Income Tax Credit. Both these policies can help bolster the economic security of low- and middle-income families and position the next generation for success.
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blog June 22, 2023 State Rundown 6/22: Some Tax Debates Heat Up as Others Cool Off
Summer is here and many states nearing the end of their legislative sessions. Temperatures are rising in more ways than one in some state legislatures while others seem to be cooling off.
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media mention June 21, 2023 The Sacramento Bee: Fact Check: Does California’s Middle Class Pay Less in Taxes Than in Other States?
“The American people don’t know this. We have the highest tax rate for the 1%, but middle-class families actually paid less than the majority of states in America in California,”… -
blog June 14, 2023 State Rundown 6/14: Summer Breeze & State Tax Policies
As the sweet days of summer pass, the scent of jasmine isn’t the only thing blowing through the minds of state lawmakers, as tax policy discussions remain at the forefront…
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blog June 12, 2023 Illinois Voucher Tax Credits Don’t ‘Invest in Kids,’ They Invest in Inequality
By allowing their school privatization tax credit to expire at the end of the year, Illinois lawmakers can take a meaningful step toward better tax and education policy, and a clear show of support for our nation’s public education system.