
March 22, 2016 • By Carl Davis
Read full report in PDF Download detailed appendix with state-by-state information on deductions and credits (Excel) Every state levying a personal income tax offers at least one deduction or credit designed to defray the cost of higher education. In theory, these policies help families cope with rising tuition prices by incentivizing college savings or partially […]
February 24, 2016 • By Lisa Christensen Gee, Meg Wiehe
This report was updated in March 2017 Read as a PDF. (Includes Full Appendix of State-by-State Data) Report Landing Page Public debates over federal immigration reform often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants particularly at the state level. The truth is that undocumented immigrants living in the United […]
Many states' transportation budgets are in disarray, in part because they are trying to cover the rising cost of asphalt, machinery, and other construction materials with a gasoline tax rate that is rarely increased. A growing number of states have recognized the problem with this approach and have switched to a "variable-rate" gas tax under which the tax rate tends to rise over time alongside either inflation or gas prices. A majority of Americans live in a state where the gas tax is automatically adjusted in this way.
January 28, 2016 • By Jenice Robinson
The Michigan legislature just approved a $28 million appropriation to provide immediate aid in response to the water crisis in Flint, Mich., where vulnerable children and families have been poisoned by toxic lead. This avoidable crisis partly has roots in the misguided movement to cut taxes so much that state and local governments have difficulty […]
December 18, 2015
“Finally, the income tax rollback that was thrown in as a sweetener has implications on the budget as well as tax fairness. Under the plan, if General Fund revenues grow by more than the rate of inflation, the rate of the income tax would be reduced. According to the House Fiscal Agency analysis, if these […]
November 30, 2015
“YOUR CYBER MONDAY TAX UPDATE: Carl Davis of the left-leaning Institute on Taxation and Economic Policy notes that this year will be the first holiday season that Amazon — in the midst of a massive national expansion of its distribution network — collects sales tax in a majority of states. In fact, ITEP notes that […]
November 2, 2015
“The Institute on Taxation and Economic Policy, a left-leaning think tank, crunched numbers on the overall House road funding plan and found that if the income tax rate was cut to 3.92 percent people earning between $21,000 and $185,000 would end up saving between $49 and $140 a year.” Read more
November 2, 2015
Cutting business taxes has not been an effective way to grow jobs and the Michigan economy as promised. This is particularly true when combined with increased taxes on individuals, disproportionately affecting low- and middle-income people and families. In 2011, the Legislature and governor gave businesses a generous $1.6 billion tax cut by repealing a business […]
October 21, 2015
Undocumented immigrants already contribute a significant amount to our state’s tax system. Under President Obama’s 2012 and 2014 executive actions, the amount will increase and could be even more with comprehensive reform. Read full report here
October 21, 2015
The House Republican plan to fix Michigan’s roads by eliminating the state Earned Income Tax Credit raises taxes for the second time in five years on workers already struggling to get by on low wages.Eliminating the EITC to pay for roads amounts to robbing poor Peter to pay Paul. The $117 million saved by eliminating […]
October 21, 2015
House Bill 4609, which would eliminate the Michigan Earned Income Tax Credit, is a tax hike on 820,000 working families who are raising 1 million children. It punishes working families who are playing by all the rules but still not getting ahead. Read full testimony here
The U.S. Census Bureau released data in September showing that the share of Americans living in poverty remains high. In 2014, the national poverty rate was 14.8 percent - statistically unchanged from the previous year. However, the poverty rate remains 2.3 percentage points higher than it was in 2007, before the Great Recession, indicating that recent economic gains have not yet reached all households and that there is much room for improvement. The 2014 measure translates to more than 46.7 million - more than 1 in 7 - Americans living in poverty. Most state poverty rates also held steady between…
July 22, 2015 • By Lisa Christensen Gee
Lawmakers in many states have enacted "sales tax holidays" (at least 17 states will hold them in 2015), to provide a temporary break on paying the tax on purchases of clothing, computers and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. This policy brief examines the many problems associated with sales tax holidays and concludes that they have more political than policy benefits.
July 22, 2015
As states from Connecticut to California scramble to find money to fix crumbling highways, Congress once again is expected this week to put a short-term patch on the nearly insolvent federal highway trust fund. To make up the shortfall, Congress has transferred more than $53 billion from other tax revenue over the past five years, […]
July 13, 2015
Eight states, all but one of them headed by Republican governors, have either hiked gas taxes or scaled back planned cuts in order to fund road repairs this year, according to a new Stateline report from The Pew Charitable Trusts. “A lot of states realized they couldn’t put off this issue any longer,” Carl Davis, […]
July 6, 2015
The Michigan Chamber of Commerce today applauded the Michigan Senate for their leadership in passing a comprehensive plan to fix Michigan’s roads. Gas taxes in six other states are to rise Wednesday, according to the Institute on Taxation and Economic Policy, as legislators in Vermont, Nebraska, Rhode Island, Maryland, Georgia and Idaho, raised gas taxes to make […]
July 2, 2015
Hey, Michigan, look over here. Look west. OK, that’s Ironwood, which is still in Michigan. A little further. There you go. Hi. Minnesota’s the name. So you’ve got some state budget issues and you want to increase the gasoline tax. In Michigan, families earning from $17,000 to $34,000 pay 9.4 percent of that income in […]
June 30, 2015
LANSING – A 15-cent increase in the tax on gasoline, phased in over three years, would be the centerpiece of a funding plan the state Senate is expected to consider this week as legislators scramble to find a way to repair Michigan’s crater-marked roads and bring relief to drivers. Gas taxes in six other states […]
Read this report in PDF form Introduction For years, academics and transportation experts have been discussing the possibility of taxing drivers for each mile they travel on the nation’s roads. This “vehicle miles traveled tax” (VMT tax) could either supplement or replace the existing gas tax as the primary method of funding transportation infrastructure. To […]
April 28, 2015
The average tax hike for the middle fifth of Michigan households — those making $40,000 to $64,000 a year — would be $267, or $22 a month, according to an analysis by the Washington-based Institute on Taxation and Economic Policy for the Michigan League for Public Policy, an advocacy group in Lansing focused on poverty. […]
April 21, 2015
Sales taxes, which would increase under Proposal 1, are considered “regressive” because they can disproportionally affect low-income workers, who tend to spend a larger portion of their earnings on taxable goods than wealthier residents. The Institute for Tax and Economic Policy, a left-leaning research group, currently ranks Michigan in the middle of the pack for […]
April 21, 2015
The average tax hike for the middle fifth of Michigan households — those making $40,000 to $64,000 a year — would be $267, or $22 a month, according to an analysis by the Washington-based Institute on Taxation and Economic Policy for the Michigan League for Public Policy, an advocacy group in Lansing focused on poverty. […]
April 15, 2015 • By Matthew Gardner, Meg Wiehe
This report was updated February 2016 Read as a PDF. (Includes Full Appendix of State-by-State Data) Report Landing Page In the public debates over federal immigration reform, sufficient and accurate information about the tax contributions of undocumented immigrants is often lacking. The reality is the 11.4 million undocumented immigrants living in the United States pay billions […]
April 13, 2015
The average tax hike for the middle fifth of Michigan households — those making $40,000 to $64,000 a year — would be $267, or $22 a month, according to an analysis by the Washington-based Institute on Taxation and Economic Policy for the Michigan League for Public Policy, an advocacy group in Lansing focused on poverty. […]
April 13, 2015
The Institute on Taxation and Economic Policy, in an analysis conducted for the Michigan League for Public Policy, estimates a small net tax break of $24 for the average Michigan EITC recipient who earns less than $20,000. Read more