Institute on Taxation and Economic Policy (ITEP)

District of Columbia

While States Debate New Trump Tax Changes, Equity Must Be at the Core

States continue to debate whether and how to link their state tax codes to the 2025 federal tax law. This is not just a technical debate.

State Rundown 4/16: Tax Day, a New Millionaires’ Tax and Late Blooming State Tax Action

Yesterday was Tax Day, and with many state legislative sessions wrapping, some tax changes are gearing up or crossing over the finish line.

Tax Break for Ultra-wealthy Investors Takes a Hit in Maine and Oregon

Policymakers in Maine and Oregon wisely said “no” last week to an income tax break for deep-pocketed tech investors and venture capitalists that was expanded in last year’s federal tax bill.

State Rundown 4/1: No Fooling Around Anymore in Washington, But Cruel Pranks in South Carolina

In Washington, Gov. Bob Ferguson and lawmakers decided to stop fooling around with one of the nation’s most upside-down tax codes and finally brought to life a new millionaires’ tax, the first new income tax created in a state since 1991.

State Rundown 3/12: Washington Lawmakers Pass Millionaires’ Tax, Expand Working Families Tax Credit

Washington is on its way to making history after the legislature approved the “millionaires’ tax,” a 9.9 percent tax on income over $1 million. The bill, which is expected to raise more than $3 billion a year, making significant investments in public education and childcare, will also expand the Working Families Tax Credit – the […]

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State Rundown 3/4: Budget Realities Set In

March 4, 2026 • By ITEP Staff

State Rundown 3/4: Budget Realities Set In

As many state legislative sessions near or cross the halfway point, lawmakers are facing tough choices.

D.C Fiscal Policy Institute: DC Can Raise $121 Million or More with a Simple Tax on Proceeds from Wealth

February 24, 2026

DC can raise needed revenue and address tax inequity by taxing more of the gains, or proceeds, generated by wealth—such as capital gains, dividends, and other forms of passive income. DC’s tax system protects and grows wealth concentration through myriad preferences and loopholes, exacerbating racial and economic inequality. This special treatment also prevents the District […]

State Rundown 2/19: Necktie (NCTI) Offers a Way Out of a Knotty Situation

State lawmakers are grappling with a range of challenges as their fiscal outlooks deteriorate, federal tax enforcement wanes (after the Trump administration cut the IRS workforce by 25 percent), and a rewritten federal tax code sends states scrambling to decide what changes they might want to make in their own codes.

Center for American Progress: Overturning D.C.’s Tax Law Would Infringe on Common State Tax Practices and Threaten the District’s Budget and Fiscal Autonomy

February 12, 2026

Overruling the jurisdiction’s control of its own state tax code would deprive Washington, D.C., of $658 million in revenue, raise child poverty, and throw the tax-filing system into disarray. Read more.