Institute on Taxation and Economic Policy (ITEP)

Indiana

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Boosting Incomes, Improving Equity: State Earned Income Tax Credits in 2023

• By Aidan Davis, Neva Butkus

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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States and Localities are Making Progress on Curbing Unjust Fees and Fines

• By Andrew Boardman

Too many state and local governments tap legal-system collections, rather than adequate tax systems, to fund shared essentials like public safety and education. But a growing number of states and localities are choosing a better approach. Momentum for change has continued to build in 2023, with no fewer than seven states enacting substantial improvements.

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The Highs and Lows of 2023 State Legislative Sessions

• By Aidan Davis

Nearly one-third of states took steps to improve their tax systems this year by investing in people through refundable tax credits, and in a few notable cases by raising revenue from those most able to pay. But another third of states lost ground, continuing a trend of permanent tax cuts that overwhelmingly benefit high-income households and make tax codes less adequate and equitable.

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States Looking to Make Property Taxes Affordable Should Turn to ‘Circuit Breakers’

• By ITEP Staff

Many state legislatures this year have been considering property tax cuts – but too many are ignoring the solution that speaks more directly to questions of property tax affordability than any other policy option: the “circuit breaker."

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States are Talking About the Wrong Kind of Property Tax Cuts

• By Brakeyshia Samms, Carl Davis

Concerns over property tax affordability have been at the forefront this year as housing prices have climbed and property tax bills have often increased along with them. As lawmakers mull a range of property tax cuts, circuit breakers are the best possible approach—and these policies are receiving far too little attention in the states.

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State Rundown 5/10: Momentum on State Tax Credits Continues to Build

• By ITEP Staff

This week, in states across the country the momentum to center improvements to family economic security remains strong...

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Extending Temporary Provisions of the 2017 Trump Tax Law: National and State-by-State Estimates

• By Joe Hughes, Matthew Gardner, Steve Wamhoff

The push by Congressional Republicans to make the provisions of the 2017 Tax Cuts and Jobs Act permanent would cost nearly $300 billion in the first year and deliver the bulk of the tax benefits to the wealthiest Americans.

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State Rundown 5/3: Policy Debates Unfold from Capitol to Capital

• By ITEP Staff

While the conversations on the debt ceiling heat up in the nation's capital, debates on state tax policy also continue to unfold in capitol buildings across the nation...

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State Rundown 4/19: Revenue Discussions Heat Up Like the Temperature

• By ITEP Staff

Tax season has ended for most filers, but the topic remains a hot one in states around the country...

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State Rundown 3/1: The Long March to the Finish Line

• By ITEP Staff

This week, several big tax proposals took strides on the march toward becoming law...

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State Rundown 2/23: Tax Dominos Take Shape, Begin to Fall as Session Heats Up

• By ITEP Staff

The 2023 legislative session is in full swing, and dominos continue to be set up as others fall...

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Why the States Have a Major Role to Play If We Want Tax Justice

• By Amy Hanauer

With fears of gridlock in a divided Washington, tax justice champions are building momentum in other places where there's dire need for better tax policy: the states. We can upgrade communities across the country by making 2023 a year to win tax improvements in statehouses.

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State Rundown 1/26: Tax Season Brings With it Reminder of EITC’s Impact

• By ITEP Staff

Tax season has officially kicked off and with Earned Income Tax Credit (EITC) Awareness Day right around the corner, it serves as another reminder for how important the EITC is...

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State Lawmakers Should Break the 2023 Tax Cut Fever Before It’s Too Late

• By Miles Trinidad

Despite mixed economic signals for 2023, including a possible recession, many state lawmakers plan to use temporary budget surpluses to forge ahead with permanent, regressive tax cuts that would disproportionately benefit the wealthy at the expense of low- and middle-income households. These cuts would put state finances in a precarious position and further erode public investments in education, transportation and health, all of which are crucial for creating inclusive, vibrant communities where everyone, not just…

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State Rundown 1/11: Governors Ready to Talk Tax in 2023 State Addresses

• By ITEP Staff

Governors have begun their annual trek to the podium in statehouses across the U.S. to lay out their visions for 2023, and so far, taxes look like they will play a major role in debates throughout state legislative sessions...

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State Rundown 1/5: State Taxes Coming in Hot in New Year

• By ITEP Staff

The new year often brings with it new goals and a desire to take on complex problems with a fresh perspective. Unfortunately, that doesn’t always apply to state lawmakers when considering tax policy...

report  

State Child Tax Credits and Child Poverty: A 50-State Analysis

• By Aidan Davis

Regardless of future Child Tax Credit developments at the federal level, state policies can supplement the federal credit to deliver additional benefits to children and families. State credits can be specifically tailored to meet the needs of local populations while also producing long-term benefits for society as a whole

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State Rundown 8/10: States Still Talking Taxes as IRA Dominates Headlines

• By ITEP Staff

While federal tax policy has dominated the headlines with the Senate’s recent approval of the Inflation Reduction Act, lawmakers in statehouses across the country...

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State Rundown 7/27: It’s (Sales Tax) Holiday Season, But Who’s Really Celebrating?

• By ITEP Staff

It’s the holiday season – well, the sales tax holiday season, that is. But after taking a closer look, you may notice that there is little to celebrate...

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Most States Used Surpluses to Reduce Taxes But Not in Sustainable or Progressive Ways

• By Kamolika Das

The average person on the street would have no idea that many states experienced unprecedented budget surpluses this year. Iowa, for instance, has the most structurally deficient bridges of any state with nearly 1 in 5 falling apart. The Iowa Board of Regents proposed a 4.25 percent tuition increase for all three state universities and […]

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State Rundown 6/22: Southern States Edition

• By ITEP Staff

With many state legislative sessions wrapped or wrapping up, we at ITEP want to take a moment to direct your attention south, and specifically, to the American South...

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State Rundown 6/15: States on Alert as Inflation Concerns Rise

• By ITEP Staff

With inflation dominating headlines both nationally and locally, state lawmakers around the U.S. are searching for ways to put their revenues to good use, and not surprisingly, some options are better than others...

WVTF Radio: A gas tax holiday may not lead to savings for Virginia drivers

March 30, 2022

About a third of the savings will go to the oil industry, according to research into how this worked when Indiana and Illinois had a gas tax holiday. But that doesn’t mean Virginians will see the rest of the savings. Carl Davis at the Institute on Taxation and Economic Policy says a quarter of the […]

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State Gas Tax Holidays are Nothing to Celebrate

• By Carl Davis

It’s unlikely that state gas tax holidays will meaningfully benefit consumers, and they come with risks for states’ infrastructure quality.

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State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts

• By ITEP Staff

The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity...