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.
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 January 10, 2022 Investing in a Joint Future: Harnessing State Tax Codes
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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…
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report November 4, 2021 The Impact of Work From Home on Commercial Property Values and the Property Tax in U.S. Cities
The fiscal implications of a decline in commercial property values are important because the property tax is the dominant local source of taxes, and commercial property makes up a significant portion of the property base in cities.
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blog November 3, 2021 Senators Menendez and Sanders Show the Way Forward on the SALT Cap
Amending the Build Back Better bill to fully repeal the SALT cap would mean that the richest 1 percent could pay less in personal income taxes than they do now, which goes against everything President Biden has said for the past year as he promoted this legislation.
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blog October 27, 2021 State Rundown 10/27: Pumpkin Spice & Everything Nice
The end of Spooky Season is near but that hasn’t stopped state lawmakers from adding their frightening plans into the bubbling cauldron of bad tax policy ideas…
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ITEP Work in Action October 27, 2021 Oklahoma Policy Institute: A Budget and Tax Roadmap for Oklahoma
A more just tax system will level the playing field for all Oklahomans, providing more opportunity to save and build wealth. It will also benefit the economy, as equal opportunity… -
brief October 21, 2021 Boosting Incomes and Improving Tax Equity with State Earned Income Tax Credits in 2021
The EITC benefits low-income people of all races and ethnicities. But it is particularly impactful in historically excluded Black and Hispanic communities where discrimination in the labor market, inequitable educational systems, and countless other inequities have relegated a disproportionate share of people to low-wage jobs.
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blog October 13, 2021 State Rundown 10/13: Haven Sent Edition
The release of the ‘Pandora Papers’ showed once again that states and their tax systems play an important role in wealth inequality, and in this case, worsening it…
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ITEP Work in Action October 8, 2021 Arkansas Advocates for Children and Families: Proposed Cuts to the Top Tax Rate Are Costly and Heavily Favor the Rich
As the Arkansas Legislature concludes the 2021 general session, our attention must turn to the special session they are preparing to begin to discuss personal income tax cuts. Although income… -
blog October 4, 2021 State Income Tax Reform Can Bring Us Closer to Racial Equity
To pave the way for a more racially equitable future, states must move away from poorly designed, regressive policies that solidify the vast inequalities that exist today.
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report October 4, 2021 State Income Taxes and Racial Equity: Narrowing Racial Income and Wealth Gaps with State Personal Income Taxes
10 state personal income tax reforms that offer the most promising routes toward narrowing racial income and wealth gaps through the tax code.
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blog September 29, 2021 State Rundown 9/29: Where There’s Smoke, There’s Revenue?
One of the few industries to excel during the economic downturn brought on by the pandemic has been the marijuana business, and lawmakers around the country are taking notice as they try to ensure that sales in their state are both legal and subject to tax…
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report September 23, 2021 Repealing the SALT Cap Would Wipe Out Revenue Raised by the House Ways and Means Bill’s Income Tax Provisions
There are several ways that the House leadership could avoid this problem. One approach is for lawmakers to replace the SALT cap with a different kind of limit on tax breaks for the rich that actually raises revenue and avoids disfavoring some states compared to others as the SALT cap does. ITEP has suggested a way to do this.
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blog September 15, 2021 State Rundown 9/15: It’s a Little Too Quiet…
Though we can’t fault anyone for being distracted by the major stories of the day, we at ITEP remain committed to keeping you up to date on what’s happening in the tax world around you…
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blog September 14, 2021 New Census Data Highlight Need for Permanent Child Tax Credit Expansion
The status quo was a choice, but the Census data released today shows that different policy choices can create drastically different outcomes for children and families. It is time for our state and federal legislators to put people first when it comes to recovery.
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blog September 1, 2021 State Rundown 9/1: Labor Day Edition
Labor Day is around the corner and in the spirit of celebrating the achievements of workers around the country, we here at ITEP want to call attention to the states (and territories) that are using tax policy to support workers and residents alike…
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report August 26, 2021 Options to Reduce the Revenue Loss from Adjusting the SALT Cap
If lawmakers are unwilling to replace the SALT cap with a new limit on tax breaks that raises revenue, then any modification they make to the cap in the current environment will lose revenue and make the federal tax code less progressive. Given this, lawmakers should choose a policy option that loses as little revenue as possible and that does the smallest amount of damage possible to the progressivity of the federal tax code.
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blog August 25, 2021 Eliminating the State Income Tax Would Wreak Havoc on Mississippi
History has repeatedly shown that such policies harm state economies, dismantle basic public services, and exacerbate tax inequities.
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blog August 18, 2021 State Rundown 8/18: End of Summer Tax Update
Summer is quickly (and sadly) coming to an end and if you’ve been away enjoying the great outdoors or off the grid, we’re here to help keep you up to date on what’s been happening on the tax front around the country…
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blog August 4, 2021 State Rundown 8/4: Tis the Season…for Unnecessary Sales Tax Holidays
It’s beginning to look a lot like that time of year again. That’s right, it’s sales tax holiday season and states across the country are doing their best to induce spending that would probably occur regardless…