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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January 8, 2024 Colorado: Who Pays? 7th Edition
Colorado Download PDF All figures and charts show 2024 tax law in Colorado, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis… -
January 8, 2024 California: Who Pays? 7th Edition
California Download PDF All figures and charts show 2024 tax law in California, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis… -
January 8, 2024 Arkansas: Who Pays? 7th Edition
Arkansas Download PDF All figures and charts show 2024 tax law in Arkansas, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis… -
blog January 4, 2024 State Rundown 1/4: New Year, New Opportunities, Same Tax Cut Proposals
The year may be new, but state lawmakers seem to have the same old resolution: slashing state income taxes…
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map January 3, 2024 Which States Allow Deductions for Federal Income Taxes Paid?
Three states allow an unusual income tax deduction for federal income taxes paid. Missouri and Oregon limit these deductions by capping and/or phasing out the deduction, while Alabama, offers what… -
blog December 14, 2023 State Rundown 12/14: Tax Policy Debates Ramp Up for 2024
Even as revenue collections slow in many states, some are starting the push for 2024 tax cuts early. For instance, policymakers in Georgia and Utah are already making the case… -
blog November 29, 2023 State Rundown 11/29: Thankful for Good Tax Policy
Though Turkey Day has passed, lawmakers in states across the U.S. have yet to get their fill of delicious tax policy goodness…
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blog November 21, 2023 Hidden in Plain Sight: Race and Tax Policy in 2023 State Legislative Sessions
Race was front and center in a lot of state policy debates this year, from battles over what’s being taught in schools to disagreements over new voting laws. Less visible, but also extremely important, were the racial implications of tax policy changes. What states accomplished this year – both good and bad – will acutely affect people and families of color.
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blog November 9, 2023 Abortion-Restricting States Skimp on Funding for Children
States differ dramatically in how much they allow families to make choices about whether and when to have children and how much support they provide when families do. But there is a clear pattern: the states that compel childbirth spend less to help children once they are born.
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blog November 8, 2023 State Rundown 11/8: Election Results Bring Victories, Opportunities for More Common-Sense Tax Reform
Voters had the chance to impact tax policy across the country on election day, and some chose to enact common-sense reforms to raise revenue…
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brief November 7, 2023 Far From Radical: State Corporate Income Taxes Already Often Look Beyond the Water’s Edge
State lawmakers are increasingly interested in reforming their corporate tax bases to start from a comprehensive measure of worldwide profit. This provides a more accurate, and less gameable, starting point for calculating profits subject to state corporate tax. Mandating this kind of filing system, known as worldwide combined reporting (WWCR), would be transformative, as it would all but eliminate state corporate tax avoidance done through the artificial shifting of profits into low-tax countries.
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brief November 2, 2023 America Used to Have a Wealth Tax: The Forgotten History of the General Property Tax
Over time, broad wealth taxes were whittled away to become the narrower property taxes we have today. These selective wealth taxes apply to the kinds of wealth that make up a large share of middle-class families’ net worth (like homes and cars), but usually exempt most of the net worth of the wealthy (like business equity, bonds, and pooled investment funds).The rationale for this pared-back approach to wealth taxation has grown weaker in recent decades as inequality has worsened, the share of wealth held outside of real estate has increased, and the tools needed to administer a broad wealth tax have improved.
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blog October 26, 2023 State Rundown 10/26: Off-Year Ballot Measures and State & Local Tax Policy
November elections are creeping closer and closer and while that typically means a new batch of lawmakers are elected, it also means voters have another chance to help shape state and local tax policy…
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blog October 24, 2023 2023’s State and Local Tax Ballot Measures: Voters to Weigh in on Property Taxes, Wealth Taxes, and More
Even in this slow year for candidate elections, the decisions that voters in states and cities make could strengthen or weaken revenue for needs in their communities and could change how taxes are distributed across the income spectrum. In the places where tax fairness is on the ballot, much is at stake.
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blog October 19, 2023 Eliminating Indiana’s Income Tax Would Jeopardize Public Services & Create a Windfall for the Well-Off
Meaningful investments in Indiana’s future require a smart, and fair, tax code that recognizes current economic realities and can raise a sustainable stream of funding from those most able to pay.
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blog October 12, 2023 State Rundown 10/12: Tax Policy Debates Don’t Just Happen in the Statehouse
It may be the off-season for state legislatures, but tax policy changes could soon emerge from the ballot box or the courts. Advocates in Arkansas want voters to decide the future of taxing diapers and feminine hygiene products, and supporters of public education in Nebraska are working to make sure voters have a say on the state’s school choice tax credit. Meanwhile, cannabis firms in Missouri are suing the state over cities and counties stacking sales tax on marijuana.
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blog September 27, 2023 State Rundown 9/27: Some States are Looking to Paint the Budgets Red
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…
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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…