Colorado

As federal aid ends and economic uncertainty grows, local governments face tough budget choices. Now is the time for localities to protect vulnerable residents and build stronger, more equitable fiscal foundations.

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

On May 22, Congress passed the House reconciliation bill or “One Big Beautiful Bill Act” by a one-vote margin. The bill’s dozens of destructive tax provisions would supercharge inequality and force devastating cuts to health and food aid that have been bedrocks of the American safety net since the 1960s.

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

As a sprawling, regressive tax bill continues to take shape at the federal level, many states are moving forward with major tax cut proposals of their own.

Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.

While students and families are enjoying spring break vacations, legislative sessions are still in full swing. And some are poised for a spring tax break season as proposals advance with major implications for the sustainability of state budgets.  

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

Residents and state lawmakers across the country are pushing back against anti-tax measures and are looking for ways to protect revenue and advance proposals that would raise revenue in progressive ways. This comes at a time when federal policy brings significant risks for state tax revenue.

While all eyes are on the Trump administration’s tariffs on foreign imports, state lawmakers are moving forward with a mix of deep, regressive tax cuts and progressive revenue raisers.

March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of most regressive state tax policies while others are looking to lift up best practices for more equitable outcomes.   The Mississippi legislature landed on a […]

A bevy of tax cut proposals sprung to life this week while others were signed into law. In Kentucky, lawmakers are working to make it easier for the legislature to enact income and business tax cuts. The governor in Idaho signed into law a personal and corporate income tax cut.

Many states with corporate income taxes include some amount of federally defined Global Intangible Low-Taxed Income (GILTI) in their tax bases. Twenty-one states plus D.C. include some amount of GILTI in their tax calculations in 2025.

While the federal tax code has some policies focused on raising income of low earners, it contains fewer provisions designed specifically to address wealth inequality. A renter tax credit offers a simple, administratively practical means of reaching low-wealth populations through the federal tax code without requiring a comprehensive measurement of every household’s wealth.

Below is a list of tax expenditure reports published in the states.

In the face of immense uncertainty around looming federal tax and budget decisions, many of which could threaten state budgets, state lawmakers have an opportunity to show up for their constituents by raising and protecting the revenue needed to fund shared priorities. Lawmakers have a choice: advance tax policies that improve equity and help communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for most families to get ahead. 

Universal adoption of mandatory worldwide combined reporting would boost state corporate income tax revenues by roughly 14 percent. Thirty-eight states and the District of Columbia would experience revenue increases totaling $19.1 billion.

The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.

Local income taxes can be an important progressive revenue raiser, as they ask more of higher-income households and are connected to ability to pay. They can raise substantial revenue to fund key public services to make cities and regions better off.

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

Trump’s plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans. This includes all major provisions except the $10,000 cap on deductions for state and local taxes (SALT) paid.

While most states have a graduated rate income tax, some state lawmakers have recently become enamored with the idea of moving toward flat rate taxes instead. What’s the difference? And are states well served by the transition? In short: A flat tax is one where each taxpayer pays the same percentage of their income whereas […]

The anti-tax playbook has been on full display in recent weeks as state policymakers run their offenses against public services and shared priorities. As the playbook dictates, if you have a little breathing room in your budget, propose cuts to the one major tax (personal income tax) that tends to ask more of those who […]