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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ITEP Work in Action February 10, 2022 Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and Inequity
Iowa lawmakers have repeatedly cut taxes over the last three decades in ways that provide the greatest benefits to the highest-income taxpayers while ratcheting down investments that historically made the… -
ITEP Work in Action February 7, 2022 Idaho Center for Fiscal Policy: HB 436 Tax Cuts Benefit Wealthy Idahoans
The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income… -
ITEP Work in Action February 7, 2022 Idaho Center for Fiscal Policy: Idaho Families Would Benefit From Move to Include More Children in State’s Child Tax Credit
From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC).… -
ITEP Work in Action February 7, 2022 Hawai’i Budget & Policy Center: Expanding Economic Opportunity with the Hawai’i EITC
Hawai’i’s working families continue to struggle with the nation’s highest gap between median earnings and the cost of living, and this difficult reality has only been made harsher by the… -
ITEP Work in Action February 7, 2022 Arkansas Advocates for Children and Families: Tax Cut Plan Even More Expensive, Skewed Toward The Wealthy
The likely proposal for the long-discussed special session seems to have settled, and its main feature would be to cut the top personal and corporate income tax rates. This disproportionately… -
ITEP Work in Action February 7, 2022 Wisconsin Budget Project: Tax Shift Would Hike Taxes for People with Low Incomes and Give a Big Tax Cut to the Top 1%
Last month, an influential group of lobbyists released a proposal to raise Wisconsin’s sales tax to 8%, making it the highest state sales tax in the country, and eliminate the state… -
ITEP Work in Action February 7, 2022 The Commonwealth Institute: Youngkin Administration’s Proposals Would Sharply Reduce State Resources, Largely Exclude Working Families with the Lowest Incomes
The Youngkin administration’s tax plan would leave out nearly 80 percent of the over 800,000 taxpayers in Virginia who have incomes below $24,000. Gov. Youngkin’s proposed changes would also sharply… -
ITEP Work in Action February 7, 2022 One Voice: Eliminating Individual Income Tax is Bad for Mississippi
House Bill 531 would eliminate the state individual income tax. Eliminating the income tax is bad for Mississippi, especially the state’s working families, communities of color, and retirees. While some… -
ITEP Work in Action February 7, 2022 Alabama Arise: Eliminating State Grocery Tax Would Make Life Better for Alabama Families
Two bills in the 2022 regular session would end the state grocery tax while protecting school funding. The graph below shows how millions of Alabamians would benefit. Untaxing groceries quickly… -
ITEP Work in Action February 4, 2022 Open Sky Policy Institute: Most Nebraskans Left Behind by Income Tax Cut Bills
Non-Nebraskans, corporations and wealthy residents would be big winners under the latest income tax cuts proposed in in LB 938 and LB 939. Meanwhile, the bills – which would ratchet the state’s top… -
blog February 2, 2022 State Rundown 2/2: The First Tax Cut Domino Falls…
One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion…
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ITEP Work in Action February 1, 2022 Connecticut Voices for Children: Steps to a Fairer Tax System
Although Connecticut has the second highest level of per capita personal income in the US, making it exceptionally wealthy overall, many families consistently struggle because Connecticut also has the second… -
blog January 26, 2022 State Rundown 1/26: States Offering Preview of Tax Themes and Trends for 2022
Governors and legislators are beginning to settle on and advance tax bills that could drastically shape the future of their states and several trends and themes are beginning to emerge…
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blog January 20, 2022 State Rundown 1/20: Governors Eyeing Tax Cuts in Yearly Addresses
A common theme is emerging out of states, as governors around the U.S. begin the year with their annual state speeches, and the news does not bode well for long-term growth and sustainable budgets…
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blog January 19, 2022 Mississippi Is the Latest in a String of States Pursuing Short-Sighted, Top-Heavy Tax Cuts
Not only is Mississippi’s latest tax proposal deeply inequitable, the state simply cannot afford it.
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blog January 13, 2022 State Rundown 1/13: The Tax Cuts Cometh, But There Is a Better Way
As expected, with the start of many new legislative sessions around the country, lawmakers have introduced a slew of tax cut plans following better-than-expected budget outlooks that have, so far, weathered the impact of the pandemic…
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blog January 11, 2022 School’s In: Tackling College Affordability Through State Tax Codes
Given that a sweeping federal solution to the college affordability crisis does not appear to be on the immediate horizon, it is even more important that states take whatever steps they can to expand college access and affordability. While most of that effort will need to occur on the spending side of the ledger—such as through lowering tuition costs, expanding financial aid, or perhaps even funding free college outright—tax policy also has a role to play.
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blog January 10, 2022 The New Trend: Short-Sighted Tax Cuts for the Rich Will Not Grow State Economies
The same legislators who touted tax cuts for the rich as solution to our problems before the pandemic are also saying tax cuts for the rich are a solution during the pandemic. Tax cuts cannot be a solution to everything, especially at a time when the richest Americans are amassing more wealth than ever.
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blog January 10, 2022 Investing in a Joint Future: Harnessing State Tax Codes
Rather than resorting to tax cuts, which can eventually create revenue shortfalls, lawmakers should determine whether they have adequately invested in people and communities. There are better ways to leverage tax systems to help those who need it most.
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blog January 5, 2022 State Rundown 1/5: New Year, Same Old Playbook
The new year often brings with it a reinvigorated commitment to new goals and a fresh perspective on how to accomplish them, but it seems like lawmakers in states around the country are giving up already…
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blog December 15, 2021 State Rundown 12/15: Making Our State Tax Naughty or Nice List & Checking it Twice
As the holiday season kicks into full gear, we’re putting the finishing touches on our State Tax Naughty or Nice list, and it looks like some late entrants are making a good case to be included…
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ITEP Work in Action December 8, 2021 The Commonwealth Institute: Tax Proposals Would Reduce Resources for Education, Transportation, and Other Priorities
The incoming Youngkin administration and state lawmakers have proposed several major tax proposals to reduce taxes for individuals and businesses. These include one-time tax rebates, dramatically increasing the state standard… -
blog December 7, 2021 Latest Proposal from Senate Democrats Would Bar the Rich from SALT Cap Relief
Richest taxpayers would receive $0 benefit under new compromise compared with 51 percent of the benefit of House-passed SALT provision DOWNLOAD NATIONAL AND STATE-BY-STATE ESTIMATES In the latest chapter of… -
blog November 23, 2021 State Rundown 11/23: Thankful for Tax Advocates Like You!
Here at ITEP we want to give thanks and say we’re grateful for all of the hard work that advocates in states across the country are doing to secure progressive tax policy victories…
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blog November 10, 2021 State Rundown 11/10: It’s Beginning to Look a Lot Like…Election Season?!
If the leaves are turning colors and you find yourself walking out of the office into pitch-black darkness, it only means that time of the year is upon us—and no, I’m not talking about the holiday season. Before that, it’s the equally important election season…