Recent Work by ITEP

Gas Taxes Rise in a Dozen States, Including an Historic Increase in Illinois

June 27, 2019 • By Carl Davis

On July 1, 12 states will boost their gasoline taxes and 11 will boost their diesel taxes. The reasons for these increases vary, but they’re generally intended to fund maintenance and improvement of our nation’s transportation infrastructure–a job at which Congress has not excelled in recent years.

Has Your State Enacted Gas Tax Reform Recently?

June 27, 2019 • By ITEP Staff

Gas taxes are the most important revenue source that states have available to pay for transportation infrastructure. In recent years, state lawmakers across the country have increasingly agreed that gas taxes must be increased to fund the maintenance and improvement of their infrastructure networks.

Most States Have Raised Gas Taxes in Recent Years

June 27, 2019 • By Carl Davis

Ohio now enjoys the distinction of being the 30th state to raise or reform its gas tax this decade, and the third state to do so this year, under a bill signed into law by Gov. Mike DeWine. While state tax policy can be a contentious topic, there has been a remarkable level of agreement on the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies. These actions are helping reverse losses in gas tax purchasing power caused by rising construction costs…

Most Americans Live in States with Variable-Rate Gas Taxes

June 27, 2019 • By Carl Davis

The flawed design of federal and state gasoline taxes has made it exceedingly difficult to raise adequate funds to maintain the nation’s transportation infrastructure. Twenty-eight states and the federal government levy fixed-rate gas taxes where the tax rate does not change even when the cost of infrastructure materials rises or when drivers purchase more fuel-efficient vehicles and pay less in gas tax. The federal government’s 18.4-cent gas tax, for example, has not increased in over 25 years. Many states have waited a decade or more since last raising their own gas tax rates.

Rep. Tlaib’s Tax Credit Proposal Is Most Expansive to Date

June 26, 2019 • By Steve Wamhoff

A refundable tax credit proposed by Rep. Rashida Tlaib (D-MI) would be more expansive than other recent tax credit proposals, new estimates from ITEP show. Rep. Tlaib’s proposal, unlike others, does not require households to work to receive the benefit.

BOOST Act

June 25, 2019 • By ITEP Staff

The BOOST Act would provide a new tax credit of up to $3,000 for single people and up to $6,000 for married couples, which would be in addition to existing tax credits. Income limits would prevent well-off households from receiving the credit. Unlike other refundable tax credit proposals, the BOOST Act would not be limited to people with earnings or people with children.

What to Watch for on Tax Policy During the Presidential Primary

June 25, 2019 • By Steve Wamhoff

America needs a new tax code. The Democratic presidential debates beginning this week present an opportunity for candidates to make clear how they would address inequality or to raise enough revenue to make public investments that make the economy work for everyone. Here are some of the big tax issues that we hope they will touch on.

The SALT Cap Isn’t Harming State and Local Revenues. Myths About It May Be.

June 24, 2019 • By Carl Davis

A House Ways and Means subcommittee hearing on Tuesday will explore a highly controversial provision of the Tax Cuts and Jobs Act (TCJA) that prevents individuals and families from writing off more than $10,000 in state and local tax (SALT) payments on their federal tax forms each year. The focus of the hearing will be whether the cap negatively affects state and local revenue streams that fund schools, firefighters, and other services. There are at least three ways this could happen though only one of those is plausible, and it’s not the one that the organizers of this hearing likely…

UPDATED: New ITEP Data Shows the House Ways and Means Bill to Expand EITC and Child Tax Credit Would Benefit Low- and Moderate-Income People and Families

June 20, 2019 • By Steve Wamhoff

Today the House Ways and Means Committee is marking up the Economic Mobility Act of 2019, a bill introduced by Chairman Richard Neal to expand some key tax credits to help low- and moderate-income people and families. New data generated with the ITEP microsimulation tax model show how adults and children would benefit nationally and in each state.

State Rundown 6/19: Juneteenth Highlights Role of State Policy in Racial Equity Fight

June 19, 2019 • By ITEP Staff

As Americans observe Juneteenth today–the day two years after the Emancipation Proclamation on which news of the end of the Civil War and slavery reached some of the last slaves in Texas—most people’s attention should be on celebrating victories, remembering losses, gathering strength to continue the fight for racial justice, and the accompanying Congressional reparations hearings. In comparison, state tax debates over matters such as reluctance to invest in infrastructure in Michigan and Missouri, approval of income tax cuts in Wisconsin, and a budget standoff in New Jersey may seem unimportant and irrelevant. But we encourage our readers to think about how state policies often serve to enrich and empower white and wealthy households, and…