Recent Work by ITEP

How Does Your State Tax Income?

May 22, 2019 • By ITEP Staff

One of the most important decisions that must be made when designing a state personal income tax is whether to charge taxpayers a single flat rate on all their taxable income, or whether to levy a series of graduated rates that ask more of high-income taxpayers

State Rundown 5/22: (Some) State Lawmakers Can (Partly) Relax This Weekend

May 22, 2019 • By ITEP Staff

Lawmakers and advocates can enjoy their barbeques with only one eye on their work email this weekend in states that have essentially finished their budget debates such as Alaska, Minnesota, Nebraska, and Oklahoma, though both Alaska and Minnesota require special sessions to wrap things up. Getting to those barbeques may be a bumpy ride in Louisiana, Michigan, and other states still working to modernize outdated and inadequate gas taxes.

Proposals for Refundable Tax Credits Are Light Years from Tax Policies Enacted in Recent Years

May 22, 2019 • By Steve Wamhoff

A new ITEP report examines five big proposals that have been announced this year to create or expand tax credits to address inequality and help low- and middle-income households.

Understanding Five Major Federal Tax Credit Proposals

May 22, 2019 • By ITEP Staff

Federal lawmakers have recently announced at least five proposals to significantly expand existing tax credits or create new ones to benefit low- and moderate-income people. While these proposals vary a great deal and take different approaches, all would primarily benefit taxpayers who received only a small share of benefits from the Tax Cuts and Jobs Act.

Cost-of-Living Refund Act

May 22, 2019 • By ITEP Staff

The Cost-of-Living Refund Act would expand the Earned Income Tax Credit (EITC) for low- and moderate-income working people. The maximum EITC would nearly double for working families with children. Working people without children would receive an EITC that is nearly six times the size of the small EITC that they are allowed under current law.

American Family Act

May 22, 2019 • By Jessica Schieder, Meg Wiehe, Steve Wamhoff

The American Family Act would expand the Child Tax Credit (CTC) for low- and middle-income families. The CTC would increase from $2,000 under current law to $3,000 for each child age six and older and to $3,600 for each child younger than age six. The proposal removes limits on the refundable part of the credit so that low- and moderate-income families with children could receive the entire credit.

Working Families Tax Relief Act

May 22, 2019 • By Jessica Schieder, Meg Wiehe, Steve Wamhoff

The Working Families Tax Relief Act would expand the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) for low- and middle-income families.

LIFT the Middle Class Act

May 22, 2019 • By Jessica Schieder, Meg Wiehe, Steve Wamhoff

The LIFT (Livable Incomes for Families Today) the Middle Class Act would create a new tax credit of up to $3,000 for single people and up to $6,000 for married couples, which would be an addition to existing tax credits. Eligible taxpayers would be allowed a credit equal to the maximum amount or their earnings, whichever is less. Income limits would prevent well-off households from receiving the credit.

Rise Credit

May 22, 2019 • By Jessica Schieder, Meg Wiehe, Steve Wamhoff

The Rise Credit would replace the existing EITC. In most cases, the Rise Credit would be $4,000 for single people and $8,000 for married couples. Eligible taxpayers would be allowed a credit equal to the maximum amount or their earnings, whichever is less.

Gas Taxes Have Gone Up in Most States, but Decades-Long Procrastinators Remain

May 21, 2019 • By Carl Davis

The upcoming Memorial Day weekend marks the start of the traditional summer driving season. In most states, summer road-trippers are paying more gas tax than they did a few years ago and are benefiting from smoother and safer roads as a result. In total, 30 states have raised or reformed their gas taxes in the last six years.