Recent Work by ITEP

State Rundown 10/18: States Learn “Who Pays”!

October 18, 2018 • By ITEP Staff

Policymakers and residents in all 50 states and the District of Columbia got new ITEP data this week on how their tax structures and decisions affect their high-, middle-, and low-income residents. As our “Who Pays?” report outlines, most state and local tax codes exacerbate economic inequalities and all states have room to improve. The data can serve as an important informative backdrop to all state and local tax policy debates, such as whether to change the valuation of commercial property in California, how to improve funding for early childhood education in Indiana, and how to evaluate tax-related ballot measures…

New Report Finds that Upside-down State and Local Tax Systems Persist, Contributing to Inequality in Most States

October 17, 2018 • By Aidan Davis

State and local tax systems in 45 states worsen income inequality by making incomes more unequal after taxes. The worst among these are identified in ITEP’s Terrible 10. Washington, Texas, Florida, South Dakota, Nevada, Tennessee, Pennsylvania, Illinois, Oklahoma, and Wyoming hold the dubious honor of having the most regressive state and local tax systems in the nation. These states ask far more of their lower- and middle-income residents than of their wealthiest taxpayers.

Low-Tax States Are Often High-Tax for the Poor

October 17, 2018 • 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 do not experience these states as being even remotely “low tax.”

Low Tax for Whom? Indiana is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • 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.

Low Tax for Whom? Oklahoma is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Oklahoma’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Oklahomans contribute 13.2 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Oklahoma is far from being a low tax state; in fact, it is the fifth highest-tax state in the country for low-income families.

Low Tax for Whom? Florida is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Florida’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Floridians contribute 12.7 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Florida is far from being a low tax state; in fact, it is the ninth highest-tax state in the country for low-income families.

State Rundown 10/12: Local Jurisdictions Fighting for Revenues, Independence

October 12, 2018 • By ITEP Staff

Voters all around the country are educating themselves for the upcoming elections, notably this week around ballot initiatives in Arizona and Colorado and competing gubernatorial tax proposals in Georgia and Illinois. But not all eyes are on the elections, as the relationship between state and local policy made news in Delaware, Idaho, North Dakota, and Ohio.

ITEP Comments and Recommendations on Proposed Section 170 Regulation (REG-112176-18)

October 11, 2018 • By Carl Davis

The IRS recently proposed a commonsense improvement to the federal charitable deduction. If finalized, the regulation would prevent not just the newest workarounds to the $10,000 deduction for state and local taxes (SALT), but also a longer-running tax shelter abused by wealthy donors to private K-12 school voucher programs. ITEP has submitted official comments outlining four key recommendations related to the proposed regulation.

Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide

October 11, 2018 • By Meg Wiehe

A newly released report by Prosperity Now and the Institution on Taxation and Economic Policy, Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, finds that the TCJA not only adds unnecessary fuel to the growing problem of overall economic inequality, but also supercharges an already massive racial wealth divide to an alarming extent.

‘Financial Exposure’ Showcases Tax Misconduct by Powerful Individuals and Corporations

October 10, 2018 • By Peter Della-Rocca

Elise J. Bean’s Financial Exposure reiterates the point that tax avoidance and tax evasion were endemic to our financial system long before allegations against a sitting president brought them to the forefront of the public consciousness.