It’s the holiday season – well, the sales tax holiday season, that is. But after taking a closer look, you may notice that there is little to celebrate…
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.
ITEP's State Policy Research Priorities
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blog July 27, 2022 State Rundown 7/27: It’s (Sales Tax) Holiday Season, But Who’s Really Celebrating?
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blog July 22, 2022 Legislative Momentum in 2022: New and Expanded Child Tax Credits and EITCs
State legislatures across the country made investments in their future, centering children, families, and workers by enacting and expanding state Earned Income Tax Credits (EITCs), Child Tax Credits (CTCs), and… -
blog July 22, 2022 Most States Used Surpluses to Reduce Taxes But Not in Sustainable or Progressive Ways
The average person on the street would have no idea that many states experienced unprecedented budget surpluses this year. Iowa, for instance, has the most structurally deficient bridges of any… -
blog July 20, 2022 New ITEP Brief Shows How State Sales Tax Holidays Fail to Live Up to the Hype
Twenty states this year have decided to go so far as to forgo a combined $1 billion in vital tax revenue in favor of conveniently popular yet ultimately ineffective sales tax holidays. Whether it’s a state looking for a way to help families manage the rising cost of goods or to celebrate back-to-school shopping season, these policy options are poorly targeted and an inadequate use of state tax revenue that could be doing more to make childcare more affordable, health care more accessible and high-quality education available to everyone.
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brief July 20, 2022 Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
Lawmakers in many states have enacted “sales tax holidays” (20 states will hold them in 2022) to temporarily suspend the tax on purchases of clothing, school supplies, and other items. These holidays may seem to lessen the regressive impacts of the sales tax, but their benefits are minimal while their downsides are significant—particularly as lawmakers have sought to apply the concept as a substitute for more meaningful, permanent reform or arbitrarily reward people with specific hobbies or in certain professions. This policy brief looks at sales tax holidays as a tax reduction device.
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blog July 13, 2022 State Rundown 7/13: Let’s Make a Deal
From the Bay State to the Golden State, lawmakers across the nation are making deals and negotiating budgets with major tax implications…
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July 13, 2022 Abortion-Restricting States Do Least for Children
Lawmakers have passed laws in 22 states that either immediately or soon will greatly restrict women’s rights to decide whether and when to have children. These states have some of the worst tax, spending and labor market policies for families in the U.S.
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blog June 29, 2022 State Rundown 6/29: Sun’s Out, Session’s (Still) In
Although the sun is shining and Independence Day is right around the corner, many state lawmakers are still indoors hammering out the details of future budgets or still hard at work passing laws…
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blog June 22, 2022 State Rundown 6/22: Southern States Edition
With many state legislative sessions wrapped or wrapping up, we at ITEP want to take a moment to direct your attention south, and specifically, to the American South…
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blog June 22, 2022 New ITEP Report Examines the Path to Equitable Tax Policy in the South
“From the inception of the emerging American nation, the South is a central battleground in the struggles for freedom, justice, and equality. It is the location of the most intense… -
report June 21, 2022 Creating Racially and Economically Equitable Tax Policy in the South
The South’s negative outcomes on measures of wellbeing are the result of a century and a half of policy choices. Lawmakers have many options available to make concrete improvements to tax policy that would raise more revenue, do so equitably, and generate resources that could improve schools, healthcare, social services, infrastructure, and other public resources.
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blog June 15, 2022 State Rundown 6/15: States on Alert as Inflation Concerns Rise
With inflation dominating headlines both nationally and locally, state lawmakers around the U.S. are searching for ways to put their revenues to good use, and not surprisingly, some options are better than others…
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blog June 10, 2022 Rising Prices: Another Reason to Be Wary of Tax Cutting Right Now
Many state lawmakers see any economic challenge as an excuse to cut taxes and in 2022, some are citing inflation as a reason to do so. All eyes today are… -
blog June 8, 2022 State Rundown 6/8: Tax Policy Features Prominently During Budget and Primary Season
As voters head to the polls to weigh in on their state’s primary elections and legislators convene to hash out budget deals, tax policy remains atop the agenda…
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blog May 25, 2022 State Rundown 5/25: Tax Discussions Heating Up as Summer Begins
While the temperature ticks up outside, the temperature in state legislatures around the country has fallen slightly. But with several states still dealing with ongoing tax and budget issues, this summer could be a hot one…
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blog May 11, 2022 State Rundown 5/11: Mid-Year Special Elections and Primary Season Kicks Off with Taxes in the Spotlight
As 2022 inches closer to its midpoint, important tax policy decisions are being put in the hands of voters, as special elections and the primary season begin…
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blog April 27, 2022 State Rundown 4/27: States Remain Active on the Tax Front
While tax discussions among federal lawmakers continue in fits and starts, major tax news continues to make waves across the nation…
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blog April 20, 2022 State Rundown 4/20: New Tax Changes in Full Bloom
This Spring looks to be bringing a mix of showers and flowers as states around the nation continue to act on a range of tax proposals…
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blog April 19, 2022 Some Lawmakers Continue to Mythologize Income Tax Elimination Despite Widespread Opposition
One of the most surprising trends this legislative session is that conservative leaders and the business community joined with progressive advocates to oppose income tax repeal plans. There is a general consensus that income tax repeal is a step too far.
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blog April 19, 2022 Cannabis Taxes Outraised Alcohol by 20 Percent in States with Legal Sales Last Year
In 2021, the 11 states that allowed legal sales within their borders raised nearly $3 billion in cannabis excise tax revenue, an increase of 33 percent compared to a year earlier. While the tax remains a small part of state budgets, it’s beginning to eclipse other “sin taxes” that states have long had on the books.
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blog April 13, 2022 State Rundown 4/13: Recent State Budgets Prove Not All Tax Cuts are the Same
Two prominent blue states made headlines this past week when they passed budget agreements that include relief for taxpayers, and fortunately, the budget plans don’t include costly tax cuts that primarily benefit the wealthy…
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blog April 6, 2022 State Rundown 4/6: Late-Session Surprises Pt. 2
Last week we highlighted how several states were pushing through regressive tax cuts as their legislative sessions are coming to a close. Well, this week many of those same states took further actions on those bills and it’s safe to say we’re even less impressed than before…
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blog March 31, 2022 Racial Discrimination in Home Appraisals Is a Problem That’s Now Getting Federal Attention
With both assessments and appraisals being unfair, homeowners of color are stuck between a rock and a hard place when it comes to determining the worth of what is, for most homeowners, their most valuable asset.
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blog March 30, 2022 State Rundown 3/30: Late-Session Surprises Leave Us Unimpressed
Several states have dropped a few late-session surprises, and from the looks of it, they’re not the good kind…
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blog March 23, 2022 State Rundown 3/23: Spring Brings More Tax Happenings
Spring is around the corner and like those pesky allergies that come along with it, equally pesky tax proposals continue to pop up in states across the U.S….