Indiana
Indiana Institute for Working Families: New Analysis: Indiana’s Tax System is Among the Dozen Most Regressive in the Country
• By ITEP Staff
The new ‘Who Pays?’ analysis follows the Institute’s August report ‘The Status of Working Families in Indiana, 2018’ which found the wealthiest Indiana earners have received an extra $2,446 from combined state income, corporate, and fuel tax changes since 2012, while taxes for the bottom 60% of middle class and working families have increased by an average $36.
Low-Tax States Are Often High-Tax for the Poor
• By Carl Davis
ITEP analysis reveals that many states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers often…
Low Tax for Whom? Indiana is a “Low Tax State” Overall, But Not for Families Living in Poverty
• By ITEP Staff
Indiana’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Hoosiers contribute 12.8 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Indiana is far from being a low tax state; in fact, it is the eighth highest-tax state in the country for low-income families.
Indiana: Who Pays? 6th Edition
• By ITEP Staff
INDIANA Read as PDF INDIANA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $18,800 $18,800 to $36,100 $36,100 to $58,000 $58,000 to $92,300 $92,300 to $183,500 $183,500 to $436,100 over $436,100 […]
Tax Cuts 2.0 – Indiana
• By ITEP Staff
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. And they falsely claim that making these provisions permanent will benefit […]
State Rundown 9/19: Don’t Call it a Comeback
• By ITEP Staff
The Rundown is back after a few-week hiatus, with lots of state fiscal news and quality research to share! Maine lawmakers found agreement on a response to the federal tax-cut bill, states continue to sort out how they’ll collect online sales taxes in the wake of the Wayfair decision, and policymakers in several states have been working on summer tax studies and other preparations for 2019 legislative sessions. Meanwhile, work on ballot measures and candidate tax plans to go before…
State Rundown 8/1: States Stay Busy During Summer “Break”
• By ITEP Staff
Although most state legislatures are out of session during the summer, the pursuit of better fiscal policy has no "off-season." Here at ITEP, we've been revamping the State Rundown to bring you your favorite summary of state budget and tax news in the new-and-improved format you see here. Meanwhile, leaders in Massachusetts and New Jersey have been hard at work in recent weeks and are already looking ahead their next round of budget and tax…
Indiana Institute for Working Families: The Status of Working Families in Indiana: 2018 Report
• By ITEP Staff
Indiana faces a choice of whether to continue down a southward-leading path of low-road policies, or to rebuild its economy for Hoosier families. By adopting a policy agenda for working families that improves Indiana’s jobs with higher wage and labor standards; strengthens protections for Hoosier families including repairing the safety net and crafting consumer and job safeguards; and increases economic mobility through improved access to education, rebalancing the state’s regressive tax and budget structure, and…
State Rundown 7/19: Wayfair Fallout and Ballot Preparation Dominate State Tax Talk
• By ITEP Staff
In the wake of the U.S. Supreme Court's recent Wayfair decision authorizing states to collect taxes owed on online sales, Utah lawmakers held a one-day special session that included (among other tax topics) legislation to ensure the state will be ready to collect those taxes, and a Nebraska lawmaker began pushing for a special session for the same reason. Voters in Colorado and Montana got more clarity on tax-related items they'll see on the ballot…
An Update on State Responses to the Federal Tax Bill
• By Dylan Grundman O'Neill
With many state fiscal years beginning July 1, most states that will make decisions this year about federal tax conformity have now done so, so it is now time for an update on how well state policymakers have kept to, or veered from, the path we charted out earlier this year. Most states that have enacted laws in response to the federal changes have adhered to some but not all of the principles we laid…
Gas Taxes Rise in Seven States, Including an Historic Increase in Oklahoma
• By Carl Davis
A rare sight is coming to Oklahoma. The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing, and Congress was debating whether to ban smoking on flights shorter than two hours. Fast forward 31 years, and Oklahoma is finally at it again. On Sunday, the state’s gas tax rate will rise by 3 cents and its diesel tax rate by 6 cents. Both taxes will now stand at…
SALT/Charitable Workaround Credits Require a Broad Fix, Not a Narrow One
• By Carl Davis
The federal Tax Cuts and Jobs Act (TCJA) enacted last year temporarily capped deductions for state and local tax (SALT) payments at $10,000 per year. The cap, which expires at the end of 2025, disproportionately impacts taxpayers in higher-income states and in states and localities more reliant on income or property taxes, as opposed to sales taxes. Increasingly, lawmakers in those states who feel their residents were unfairly targeted by the federal law are debating…
Most States Have Raised Gas Taxes in Recent Years
• By Carl Davis
An updated version of this blog was published in April 2019. State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
State Rundown 5/17: Don’t Bet on Legal Sports Betting Solving State Budget Woes
• By ITEP Staff
This week the U.S. Supreme Court opened the door to legal sports gambling in the states (see our What We're Reading section), which will surely be a hot topic in state legislative chambers, but most states currently have more pressing matters before them. The teacher pay crisis made news in North Carolina, Alabama, and nationally. Louisiana, Oregon, and Vermont lawmakers are headed for special sessions over tax and budget issues. And several other states have recently reached or are very near the end of their legislative sessions.
Marketplace: Tax cuts: Have they benefited Indiana’s economy?
May 11, 2018
As for the potential long-term consequences, the richest Indiana taxpayers will receive the largest average tax cuts in 2027 (with an average cut of $4,840), while taxes would go up slightly for the poorest 20 percent (with an average increase of $160), according to an analysis from the Institute on Taxation and Economic Policy. Read more
State Rundown 5/3: Progressive Revenue Solutions to Fiscal Woes Gaining Traction
• By ITEP Staff
This week, Arizona teachers continued to strike over pay issues and advocates unveiled a progressive revenue solution they hope to put before voters, while a progressive income tax also gained support as part of a resolution to Illinois's budget troubles. Iowa and Missouri legislators continued to try to push through unsustainable tax cuts before their sessions end. And Minnesota and South Carolina focused on responding to the federal tax-cut bill.
State Rundown 12/31/9999: IRS Glitch and Legislative Impasses Extend Tax Season
• By ITEP Staff
This week the IRS website asked some would-be tax filers to return after December 31, 9999. State legislators don't have quite that much time, but are struggling to wrap up their tax debates on schedule as well. Iowa legislators, for example, are ironically still debating tax cuts despite having run out of money to cover their daily expenses for the year. Nebraska's session wrapped up, but its tax debate continues in the form of a…
State Rundown 3/30: Several Major Tax Debates Will March on into April
• By ITEP Staff
This week, after the recent teacher strike in West Virginia, teacher pay crises brought on by years of irresponsible tax cuts also made headlines in Arizona and Oklahoma. Maine and New York lawmakers continue to hash out how they will respond to the federal tax bill. And their counterparts in Missouri and Nebraska attempt to push forward their tax cutting agendas.
Trends We’re Watching in 2018, Part 3: Improvements to Tax Credits for Workers and Families
• By Aidan Davis
This has been a big year for state action on tax credits that support low-and moderate-income workers and families. And this makes sense given the bad hand low- and middle-income families were dealt under the recent Trump-GOP tax law, which provides most of its benefits to high-income households and wealthy investors. Many proposed changes are part of states’ broader reaction to the impact of the new federal law on state tax systems. Unfortunately, some…
State Rundown 3/8: March Tax Debates “In Like a Lion”
• By ITEP Staff
This week was very active for state tax debates. Georgia, Idaho, and Oregon passed bills reacting to the federal tax cut, as Maryland and other states made headway on their own responses. Florida lawmakers sent a harmful "supermajority" constitutional amendment to voters. New Jersey now has two progressive revenue raising proposals on the table (and a need for both). Louisiana ended one special session with talks of yet another. And online sales taxes continued to…
Preventing State Tax Subsidies for Private K-12 Education in the Wake of the New Federal 529 Law
• By Ronald Mak
This policy brief explains the federal and various state-level breaks for 529 plans and explores the potential impact that the change in federal treatment of 529 plans will have on state revenues.
A Gas Tax Hike Is the Obvious Answer to Infrastructure Funding
• By Steve Wamhoff
As part of his budget plan released Monday, President Trump offered an infrastructure proposal that he describes as a $1.5 trillion 10-year surge in infrastructure investments. The details of the proposal explain that the federal government would put up only $200 billion of this total, which the administration claims will be offset with cuts in other spending. Even this relatively meager funding amount is illusory because it would clearly be financed by cutting other federal…
What the Tax Cuts and Jobs Act Means for States – A Guide to Impacts and Options
• By ITEP Staff
The recently enacted Tax Cuts and Jobs Act (TCJA) has major implications for budgets and taxes in every state, ranging from immediate to long-term, from automatic to optional, from straightforward to indirect, from certain to unknown, and from revenue positive to negative. And every state can expect reduced federal investments in shared public priorities like health care, education, public safety, and basic infrastructure, as well as a reduced federal commitment to reducing economic inequality and…
State Rundown 1/17: Budget Deficits, Online Sales Tax, and More
• By ITEP Staff
The big news this week in state tax law is that the U.S. Supreme Court has agreed to take on the issue of online sales, nexus, and sales tax collection. States have increasingly lost out on sales tax revenues as more transactions have shifted online from brick-and-mortar stores and the laws determining who is required to collect and remit sales taxes haven't kept up. This is potentially good news for states—25 of which National Association…
How the Final GOP-Trump Tax Bill Would Affect Indiana Residents’ Federal Taxes
• By ITEP Staff
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]
