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blog
August 22, 2018
State Rundown 8/22: Wayfair Fallout Could Hit the Pavement Soon
Arizona voters learned this week that they will have an opportunity this fall to restore school funding through a progressive tax measure. The effects of the Supreme Court’s Wayfair decision could soon be seen on Michigan and Mississippi roads, as leaders in both states have proposed devoting new online sales tax revenues to infrastructure needs. And new research highlighted in our “What We’re Reading” section discredits one-size-fits-all prescriptions for state economic growth such as supply-side tax-cut orthodoxy, advocating instead for more nuanced and state-specific policymaking.
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blog
August 16, 2018
State Rundown 8/16: November Ballots and 2019 Debates Coming into Focus
Even as the haze from western wildfires reduced visibility across the nation this week, voters got more clarity on what to expect to see on their ballots this fall, particularly in California (commercial property taxes and corporate surcharges), Colorado (income taxes for education), Missouri (gas tax update), and North Dakota (recreational cannabis). Meanwhile, although Virginia lawmakers won’t return until 2019, they got a preview of a clear-headed federal conformity plan they should strongly consider. And look to our “What We’re Reading“ section for further enlightenment from researchers on the [in]effectiveness of charitable contribution credits, the [lack of] wage growth for America’s workers, and what [a few] states are doing to prepare for the inevitable next recession.
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blog
August 15, 2018
1964: Unconditional War on Poverty; 2018: Unconditional War on the Poor
During his first State of the Union address in January 1964, Lyndon Baines Johnson declared a War on Poverty in response to a national poverty… -
blog
August 10, 2018
How Opportunity Zones Benefit Investors and Promote Displacement
The idea behind the new tax break is to provide an incentive for wealthy individuals to invest in the economies of struggling communities. Despite alleged intentions, it appears opportunity zones are turning into yet another windfall for wealthy investors and may encourage displacement of people in low-income areas, working against the provision’s intended goal.
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blog
August 9, 2018
Insult to Injury: Why Tax Cuts 2.0 Makes No Sense
In this illustrated breakdown of the Tax Cuts and Jobs Act (TCJA) and Tax Cuts 2.0, ITEP staff examine TCJA’s role in growing income inequality, broken promises from corporations pledging to invest tax savings into workers and wages, and the embarrassment of riches flowing to the wealthiest Americans as a result of these “middle-class tax cuts.”
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blog
August 8, 2018
State Rundown 8/8: States Setting Rules for Upcoming Tax Decisions
August is often a season for states to define the parameters of tax debates to come, and that is true this week in several states: a tax task force in Arkansas is nearing its final recommendations; residents of Missouri, Montana, and North Carolina await results of court challenges that will decide whether tax measures will show up on their ballots this fall; and Michigan and South Dakota are taking different approaches to making sure they’re ready to collect online sales taxes next year.
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blog
August 7, 2018
Updating Sales and Excise Taxes to Reflect Today’s Economy
Consumers’ growing interest in online shopping and “gig economy” services like Uber and Airbnb has forced states and localities to revisit their sales taxes, for instance. Meanwhile new evidence on the dangers and causes of obesity has led to rising interest in soda taxes, but the soda industry is fighting back. Carbon taxes are being discussed as a tool for combatting climate change. And changing attitudes toward cannabis use have spurred some states to move away from outright prohibition in favor of legalization, regulation and taxation.
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blog
August 1, 2018
State Rundown 8/1: States Stay Busy During Summer "Break"
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 debates. Lawmakers in many states are using their summer break to prepare for next year’s discussions over how to implement online sales tax legislation. And ballot initiative campaigns are active as well, including in Arizona, Colorado, and Montana.
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blog
August 1, 2018
The Preferential Tax Treatment of Capital Gains Income Should Be Curbed, Not Substantially Expanded
For true believers in supply-side economics, however, one major flaw of the TCJA is that it did not further cut taxes for the wealthy by reducing capital gains tax rates. But now the Trump Administration is considering using executive action to remedy this by indexing capital gains to inflation for tax purposes.
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blog
July 24, 2018
The Fight for Education Funding: State Revenue Needs and Responses in 2018
States’ need for revenue and increased investment in key public services is not unique to this legislative session. But the extent of disinvestment—particularly in education—has been a driving force behind policy discussion and state legislative action this year. In many cases ill-advised tax cuts coupled with persistent school funding cuts led states to this common fate, initiating a powerful and growing trend.
Here’s how lawmakers in a handful of state responded:
