Institute on Taxation and Economic Policy (ITEP)

Massachusetts

States Should Opt Into IRS Direct File as the Program is Made Permanent

While there is plenty of room to expand Direct File at the federal level, states can take matters into their own hands and bring this benefit to their residents by opting into the program.

State Rundown 5/22: When One Legislative Session Closes, Another Opens

State legislatures are wrapping up, but don’t stray too far from your state capital or you’ll miss out on the action...

blog  

Better Tax Codes Help Boost Teacher Pay

May 16, 2024 • By Alex Welch

Better Tax Codes Help Boost Teacher Pay

There are a variety of factors that affect teacher pay. But one often overlooked factor is progressive tax policies that allow states to raise and provide the funding educators and their students deserve.

blog  

State Rundown 5/9: Special Sessions in the Air

May 9, 2024 • By ITEP Staff

State Rundown 5/9: Special Sessions in the Air

This week, special sessions with major tax implications are in the air...

Iowa Flat Tax Shows Why Such Policies Are a Problem Everywhere

As Iowa lawmakers change the state’s graduated personal income tax to a single flat rate, they are designing a state tax code where the rich will pay a lower rate overall than families with modest means.

Mansion Global: Massachusetts Weighs Mansion Tax on $1 Million-Plus Homes

May 9, 2024

Massachusetts could join the growing number of cities and states with a mansion tax on high-value properties, as it considers a proposal to levy an additional transfer fee on commercial and residential sales above $1 million. Read more.

State Rundown 5/2: Vetoes and New Major Tax Proposals

This week, many states took steps toward enacting tax cuts...

Fairness Matters: A Chart Book on Who Pays State and Local Taxes

State and local tax codes can do a lot to reduce inequality. But they add to the nation’s growing income inequality problem when they capture a greater share of income from low- or moderate-income taxpayers. These regressive tax codes also result in higher tax rates on communities of color, further worsening racial income and wealth divides.

Five Things to Know About Tax Foundation’s Critique of Maryland’s Worldwide Combined Reporting Proposal

Maryland lawmakers are considering enacting worldwide combined reporting (WWCR), also known as complete reporting. This policy offers a more accurate, and less gameable, way to calculate the amount of profit subject to state corporate tax. Enacting WWCR in Maryland would represent a huge step toward eliminating state corporate tax avoidance as it neutralizes a wide […]

blog  

Our Taxes Can Set Kids Up for Success

March 26, 2024 • By Brakeyshia Samms

Our Taxes Can Set Kids Up for Success

Every child deserves the opportunity to succeed in society – and tax policy has a huge role to play in making that happen. Better tax policy can help prepare our young children with skills to become successful and thriving adults.

blog  

States Move to Tax the Top in 2024

March 20, 2024 • By Marco Guzman, Miles Trinidad

States Move to Tax the Top in 2024

These forward-thinking states are demonstrating the wide variety of options for policymakers who want to raise more from the wealthiest people, rein in corporate tax avoidance, create fair tax codes and build strong communities.  

blog  

State Rundown 3/14: Sessions are Heating Up

March 14, 2024 • By ITEP Staff

State Rundown 3/14: Sessions are Heating Up

Many state legislative sessions are in the final stretch...

ITEP’s Marco Guzman Testifies in Favor of Tax Fairness Bills in Connecticut

March 11, 2024

Good afternoon, Senator Fonfara, Representative Horn, and members of the Committee, and thank you for this opportunity to testify. My name is Marco Guzman and I'm a senior policy analyst with the Institute on Taxation and Economic Policy, or ITEP, and we’re a nonprofit research organization that focuses on state, local, and federal tax policy issues. 

State Rundown 3/6: Tax Cuts Aren’t Forever, or for Evers

Anti-tax interests finally found the end of the tax cutting appetite in a few states this week...

ITEP’s Kamolika Das Testifies on Pennsylvania’s Upside-Down Tax Code

March 4, 2024

Below is written testimony delivered by ITEP Local Policy Director Kamolika Das before the Pennsylvania House Finance Subcommittee on Tax Modernization & Reform on March 1, 2024. Good afternoon and thank you for this opportunity to testify. My name is Kamolika Das, I live in South Philly, and I’m the Local Tax Policy Director at […]

blog  

Moving the Needle Toward Tax Fairness in the States

March 4, 2024 • By Jon Whiten

Moving the Needle Toward Tax Fairness in the States

While many state lawmakers have spent the past few years debating deep and damaging tax cuts that disproportionately help the rich, more forward-thinking lawmakers have improved tax equity by raising new revenue from the well-off and creating or expanding refundable tax credits for low- and moderate-income families.

Massachusetts Budget & Policy Center: Ending the Tax Penalty Against Working Immigrants

March 4, 2024

In recent years, lawmakers have enacted some important legislation helping Massachusetts residents, regardless of their immigration status, to take full part in commerce and civic life. Laws providing access to drivers’ licenses and in-state tuition, for instance, have opened opportunities that support employment and advance economic growth. Yet tens of thousands of workers, and their families, who pay taxes in Massachusetts are prevented from receiving the Earned Income Tax Credit (EITC) because they are ineligible for a Social Security Number. Extending eligibility to all workers filing taxes, regardless of their immigration status, would increase the impact of Massachusetts’ EITC, help…

State Rundown 2/28: States Keep Busy While Washington Stalls

State legislative sessions are in full swing with New Jersey and Oklahoma both particularly active this week...

The ‘Low-Tax’ Lie: States Hyped for Low Taxes Usually Only Low-Tax for the Rich

It’s hard to go a week without seeing a politician or a news article hype up a state as the place that everyone is moving to – or should move to – because of low taxes. However, there’s a big problem with these proclamations: they aren’t true.  

IRS Commissioner, New GAO Report Highlight Importance of Proper IRS Funding

A new GAO report and Commissioner Werfel’s testimony highlight the value and necessity of a well-funded and functioning IRS. Most families and businesses do their best to pay taxes accurately and on time. The nation benefits from a modern revenue agency that can make this process as easy and simple as possible and identify complex tax schemes that deprive the country of revenues.

blog  

Three Things to Know This Tax Filing Season

January 26, 2024 • By Joe Hughes

Three Things to Know This Tax Filing Season

The IRS Direct File pilot is currently open to eligible taxpayers here. Millions of American families have now received their W-2s for 2023, signaling the start to a new tax filing season. The IRS has set January 29 as the first date that people can file their tax returns for the previous year, and the […]

State Rundown 1/26: Wealth Taxes Drawing Interest Early in Legislative Sessions

Bills are moving and state legislative sessions are picking up across the country, giving elected officials the opportunity to consider two distinct paths when it comes to tax policy...

State Tax Watch 2024

January 23, 2024 • By ITEP Staff

State Tax Watch 2024

Updated July 15, 2024 In 2024, state lawmakers have a choice: advance tax policy that improves equity and helps communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for low-income and working families to get ahead. Despite worsening state fiscal conditions, we expect […]

How the Fairness of State Tax Codes Affects Public Education

The findings of Who Pays? go a long way toward explaining why so many states are failing to raise the amount of revenue needed to provide full and robust support for our public schools.

Massachusetts Budget & Policy Center: How Much Does the Millionaire Tax Improve Tax Fairness? How Does Massachusetts Compare Now to Other States?

January 10, 2024

A new 50-state analysis from the Institute on Taxation and Economic Policy (ITEP) finds that Massachusetts’ recently adopted millionaire tax makes Massachusetts’ state and local tax system much more equitable. Even under current law, however, those with incomes over $1 million still will pay a smaller share of their income in state and local taxes […]