Institute on Taxation and Economic Policy (ITEP)

Maine

Maine Center for Economic Policy: Tax Conformity Decisions Will Shape Maine’s Future (Part 1: Maine Shouldn’t Fall for Policy Gimmicks)

• By ITEP Staff

Policy gimmicks in HR 1 disguise its true nature as a huge tax giveaway to the ultra-wealthy and big corporations — Maine should not compromise the future well-being of its residents to give tax breaks to the rich. Read more.

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Linking to Tipped and Overtime Income Deductions Would Worsen State Shortfalls, Do Little to Help Workers

• By Neva Butkus, Galen Hendricks

State deductions for tips and overtime are not only ineffective at supporting working-class people, it will come at a substantial cost to state budgets.

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Conforming to the ‘No Tax on Tips’ Gimmick Just Got Riskier and Costlier for States

• By Nick Johnson

An unknown number of workers who previously were assumed to be ineligible for the tax break may nonetheless claim it.

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Local Vacancy Taxes: A Tool but Not a Panacea

• By Rita Jefferson

Vacancy taxes will not single-handedly solve problems in cities, but they are worth considering to address housing shortages, land use, and building thriving communities.

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State Rundown 10/27: As Temperatures Cool Tax Policy Heats Up

• By ITEP Staff

States across the nation are debating how best to respond to costly new federal tax cuts.

Maine Center for Economic Policy: Missed Opportunities to Advance Tax Fairness and Create a Better State

• By ITEP Staff

The State doesn’t have adequate funding for health care, housing, and many other pressing needs. The fairest way to fix this is by asking the wealthiest people and big businesses to pay more in income taxes. Read more.

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The Potential of Local Child Tax Credits to Reduce Child Poverty

• By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

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State Rundown 9/18: Lawmakers Confront Revenue Loss from Federal Policy Changes

• By ITEP Staff

Some states are trying to avoid revenue loss while others are welcoming it and doubling down.

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State Earned Income Tax Credits Support Families and Workers in 2025

• By Neva Butkus

Nearly two-thirds of states now have an Earned Income Tax Credit (EITC). Momentum continues to build on these credits that boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.

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State Child Tax Credits Boosted Financial Security for Families and Children in 2025

• By Neva Butkus

Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.

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State Tax Action in 2025: Amid Uncertainty, Tax Cuts and New Revenue

• By Aidan Davis, Neva Butkus, Marco Guzman

Federal policy choices on tariffs, taxes, and spending cuts will be deeply felt by all states, which will have less money available to fund key priorities. This year some states raised revenue to ensure that their coffers were well-funded, some proceeded with warranted caution, and many others passed large regressive tax cuts that pile on to the massive tax cuts the wealthiest just received under the federal megabill.

Maine Center for Economic Policy: How Trump’s “Big Beautiful Bill” Further Enriches the Rich and Immiserates the Poor

• By ITEP Staff

Though some of the details of the OBBBA were altered in the Senate from its original House-passed version, the overall impact remained largely the same: tax cuts for the rich, little change for the middle class, and punishing cuts for the poor.

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Which States Expanded Refundable Credits in 2025?

• By Neva Butkus

Refundable tax credits were a big part of state tax policy conversations this year. In 2025, nine states improved or created Child Tax Credits or Earned Income Tax Credits.

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States Should Move Quickly to Chart Their Own Course on SALT Deductions

• By Dylan Grundman O'Neill, Nick Johnson

While a federal SALT cap is hotly debated, capping deductibility at $10,000 was an unambiguously good idea at the state level. States would be smart to stick with the current cap or, better yet, go even farther and repeal SALT deductions outright. Going along with a higher federal SALT cap would double down on a regressive tax cut that will mostly benefit a small number of relatively wealthy state residents and cost states significant revenue.

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How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

• By Michael Ettlinger

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

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State Rundown 7/8: State Tax Cuts Continue Despite Federal Megabill Passing

• By ITEP Staff

The last states are wrapping up legislative sessions, and some are crossing the finish line with major income tax cuts.

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Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

• By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

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Trump Megabill Will Give $117 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?

• By Michael Ettlinger

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.

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How Much Do the Top 1% in Each State Get from the Trump Megabill?

• By Carl Davis

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.

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State Rundown 6/25: The Numbers Don’t Lie, State Budget Edition

• By ITEP Staff

Many states are reaching their end-of-June budget deadlines, and major tax policy changes look to have big implications as states are forced, per federal policy, to do more with less.

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State Rundown 6/20: Federal tax policy heats up, states wrap sessions and weigh impacts

• By ITEP Staff

As state legislative sessions come to a close, decisions on tax policy are being made. Several southern states have cut taxes, while the northeast is making some more measured reforms.

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Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

• By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff

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.

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State Rundown 5/21: Big and Not-So Beautiful Tax Cut Bills Abound in States

• By ITEP Staff

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.

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Trump 2025 Tax Law: Research and Resources

• By ITEP Staff

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

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IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy

• By Marco Guzman

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.