Recent Work

Should Illinois Tax Retirement Income?

March 24, 2011 • By Matthew Gardner

Earlier this month, Illinois Senate President John Cullerton suggested that limiting the state’s generous income tax break for retirement income “would just be a matter of fairness.” Senator Cullerton’s suggestion gives Illinois policymakers a welcome opportunity to reflect on the appropriate design of senior-citizen income tax relief in Illinois. This paper summarizes the mechanisms used […]

ITEP’s Testimony on EITC Legislation

March 16, 2011 • By ITEP Staff

My testimony focuses on House Bill 581, which would create a Missouri Earned Income Tax Credit (EITC). In particular, my testimony will discuss the impact of this bill on the overall fairness of Missouri’s tax system. Read the Full Report (PDF)

Topsy-Turvy: State Income Tax Deductions for Federal Income Taxes Turn Tax Fairness on its Head

March 10, 2011 • By Carl Davis, Meg Wiehe

The budget outlook for state governments is bleak. Despite evidence that revenues are rebounding, there is a general acknowledgement that ?broad fiscal conditions remain fragile. The need for public investments—particularly health care for low-wage or unemployed workers and their families—is greater than ever. An increasing number of states are struggling to keep their fiscal year […]

Five Reasons to Reinstate Maryland’s “Millionaires’ Tax”

March 9, 2011 • By Carl Davis

In 2008, Maryland enacted a temporary change to its income tax in order to compensate for revenue lost from repealing a law subjecting computer services to the state’s sales tax. The income tax change in question, which expired at the end of 2010, created a new top income tax bracket with a rate of 6.25 […]

The ITEP Guide to Fair State and Local Taxes

March 3, 2011 • By Carl Davis, Matthew Gardner, Meg Wiehe

The ITEP Guide to Fair State and Local Taxes, released in March of 2011, offers citizens, activists, journalists, and policymakers a detailed primer on state and local tax policy. The guide explains the differences between progressive, flat, and regressive taxes — and why you should care. It covers the full range of taxes that states […]

A Capital Idea

January 15, 2011 • By Carl Davis, Meg Wiehe

The budget outlook for the states is improving, but uncertain. In this context, states must find ways to generate additional revenue that create neither additional responsibilities for individuals and families struggling to make ends meet nor additional distortions in the economy as a whole. For eight states – Arkansas, Hawaii, Montana, New Mexico, North Dakota, […]

Dear Wall Street Journal: No Need to File a Missing Persons Report, Oregon’s High-Income Taxpayers Have Not “Vanished”

December 22, 2010 • By Carl Davis

The Wall Street Journal recently published an editorial suggesting that a 2 percentage point increase in Oregon’s top income tax rate caused up to 10,000 wealthy Oregonians to flee the  state. In support of its claim, the Journal points to new data showing that 10,000 fewer Oregonians were affected by this tax increase than the […]

How the Bush Tax Cuts Affect State Revenues

December 15, 2010 • By Matthew Gardner

Less than one month from now, federal tax cuts pushed through by President George W. Bush are scheduled to expire—and Congressional tax writers have spent much of this year debating how these tax cuts should be extended. This debate has huge implications for the nation’s fiscal health, but also has often-overlooked implications for state revenues. […]

The Good, the Bad and the Ugly: 2010 State Tax Policy Changes

December 15, 2010 • By Carl Davis, Meg Wiehe

Compared to previous years, the budget outlook for the states improved only slightly in 2010 and virtually every state continued to face a budget shortfall. As a result, the overwhelming majority of state policymakers were put in the unenviable position of having to address some very difficult budgetary issues. Lawmakers were forced to make the […]

Testimony before the Maryland Business Tax Commission: Combined Reporting

November 9, 2010 • By Carl Davis

I’m here to talk about combined reporting, which ITEP views as a vital step towards ensuring the vitality of the Maryland corporate income tax going forward.  I’d like to use my allotted time to discuss one important policy choice that Maryland policymakers must make in implementing combined reporting. Read the Full Report (PDF)  

Census Data Reveal Washington’s Fundamental Tax Mismatch: Washington is a Low Tax State, But Not for Families Living in Poverty

September 15, 2010 • By Meg Wiehe

Recently released data from the Census Bureau confirms that overall Washington could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Washington as a low tax state — instead, they pay more than their fair share of state and local taxes.. Read the Full Report […]

Census Data Reveal Texas’ Fundamental Tax Mismatch: Texas is a Low Tax State, But Not for Families Living in Poverty

September 15, 2010 • By Meg Wiehe

Recently released data from the Census Bureau confirms that overall Texas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Texas as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

Census Data Reveal Tennessee’s Fundamental Tax Mismatch: Tennessee is a Low Tax State, But Not for Families Living in Poverty

September 15, 2010 • By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Tennessee could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Tennessee as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

Census Data Reveal Florida’s Fundamental Tax Mismatch: Florida is a Low Tax State, But Not for Families Living in Poverty

September 15, 2010 • By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Florida could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Florida as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]

Census Data Reveal Arkansas Fundamental Tax Mismatch: Arkansas is a Low Tax State, But Not for Families Living in Poverty

September 15, 2010 • By Meg Wiehe

Recently released data from the Census Bureau confirms that overall, Arkansas could be considered a “low tax state.” However, families living near or below the poverty line generally do not experience Arkansas as a low tax state — instead, they pay more than their fair share of state and local taxes. Read the Full Report […]