Recent Work by ITEP

State Tax Codes As Poverty Fighting Tools

September 19, 2013 • By Meg Wiehe

New Census Bureau data released this month show that the share of Americans living in poverty remains high, despite other signs of economic recovery. The national 2012 poverty rate of 15 percent is essentially unchanged since 2010 , but still 2.5 percentage points higher than pre-recession levels. This means that in 2012, 46.5 million, or about 1 in 6 Americans, lived in poverty.1 The poverty rate in most states also held steady with five states experiencing an increase in either the number or share of residents living in poverty while only two states saw a decline.2

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

September 19, 2013 • By Meg Wiehe

Read the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau appear to lend support to Washington’s reputation as a “low tax state,” ranking it 36th nationally in taxes collected as a share of personal income.1 But focusing on the state’s overall tax revenues has led many […]

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

September 19, 2013 • By Meg Wiehe

Read the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau appear to lend support to Texas’ reputation as a “low tax state,” ranking it 40th nationally in taxes collected as a share of personal income. 1 But focusing on the state’s overall tax revenues has led […]

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

September 19, 2013 • By Meg Wiehe

Read the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau appear to lend support to Tennessee’s reputation as a “low tax state,” ranking it 49th nationally in taxes collected as a share of personal income.1 But focusing on the state’s overall tax revenues has led many […]

South Dakota is a “Low Tax State” Overall, But Not for Families Living in Poverty

September 19, 2013 • By Meg Wiehe

Read the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau lend support to South Dakota’s reputation as a “low tax state,” ranking it 50th nationally in taxes collected as a share of personal income, the lowest overall tax state.1 But focusing on the state’s overall tax […]

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

September 19, 2013 • By Meg Wiehe

New data from the Census Bureau appear to lend support to Florida's reputation as a "low tax state," ranking it 45th nationally in taxes collected as a share of personal income.1 But focusing on the state's overall tax revenues has led many observers to overlook the fact that different taxpayers experience Florida's tax system very differently. In particular, the poorest 20 percent of Florida residents pay significantly more of their income (13.2 percent) in state and local taxes than any other group in the state. For low-income families, Florida is far from being a low tax state.2 In fact, only…

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

September 19, 2013 • By Meg Wiehe

New data from the Census Bureau appear to lend support to Arizona's reputation as a "low tax state," ranking it 35th nationally in taxes collected as a share of personal income.1 But focusing on the state's overall tax revenues has led many observers to overlook the fact that different taxpayers experience Arizona's tax system very differently. In particular, the poorest 20 percent of Arizona residents pay significantly more of their income (12.9 percent) in state and local taxes than any other group in the state.2 For low-income families, Arizona is far from being a low tax state. In fact, only…

A Closer Look at TABOR (Taxpayer Bill of Rights)

August 19, 2013 • By ITEP Staff

Colorado has become infamous for its Taxpayer Bill of Rights, or TABOR, a constitutional amendment restricting growth in revenue collections to an arbitrary "population-plus-inflation" formula. Although TABOR has had significant negative effects on Colorado's finances, similar proposals have surfaced in at least 30 states over the past decade. None of these proposals were approved, and in five states they were placed directly on a state-wide ballot where they were rejected by voters. Even in Colorado itself, citizens voted to suspend TABOR for five years in an effort to allow the s

Tax Expenditure Reports: A Vital Tool with Room for Improvement

August 14, 2013 • By Carl Davis

State and local tax codes include a huge array of special tax breaks designed to accomplish almost every goal imaginable: from encouraging homeownership and scientific research, to building radioactive fallout shelters and caring for "exceptional" trees. Despite being embedded in the tax code, these programs are typically enacted with tax policy issues like fairness, efficiency, and sustainability only as secondary considerations. Accordingly, these programs have long been called "tax expenditures." They are essentially government spending programs that happen to be housed in the tax code for ease of administration, political expedience, or both.

Tax Incentives: Costly for States, Drag on the Nation

August 14, 2013 • By Carl Davis

Tax incentives are intended to spur economic growth that would not have otherwise occurred. More specifically, these narrowly targeted tax breaks are usually offered in an attempt to convince businesses to relocate, hire, and/or invest within a state's borders.