Institute on Taxation and Economic Policy

Recent Work

2049 items
Kansas Avoids Flat Tax Proposal: Narrow Victory a Cautionary Tale for Other States

Kansas lawmakers failed to override Gov. Laura Kelly’s veto of a damaging flat tax package. In doing so, the state narrowly avoided traveling again down the same disastrous yet well-worn path of deep income tax cuts. States across the country can learn from Kansas’s experience by rethinking tax policy decisions and broader statewide priorities.

State Rundown 4/27: Health, Wealth, and State Tax Policy

This week the importance of state tax policy is center stage once again...

Racial Justice Requires Tax Justice: Our Analysis Helps Deliver Both

ITEP’s analytical approach, our comprehensive microsimulation model, and our unique state-level capacities enable us to do pioneering analyses that enrich the debate on racial justice in tax policy that no other entity can do.

State Rundown 4/19: Revenue Discussions Heat Up Like the Temperature

Tax season has ended for most filers, but the topic remains a hot one in states around the country...

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How is Adult-Use Cannabis Taxed by Your Local Government?

April 19, 2023 • By Carl Davis, Eli Byerly-Duke

How is Adult-Use Cannabis Taxed by Your Local Government?

Twenty states have legalized the sale of cannabis for general adult use. Cannabis taxes vary considerably depending on local authority. Some states allow local governments to levy standalone excise taxes applying narrowly to cannabis purchases. Most local excise taxes on cannabis are levied in states that do not permit local governments to levy general sales taxes.

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How is Adult-Use Cannabis Taxed in Your State?

April 19, 2023 • By Carl Davis, Eli Byerly-Duke

How is Adult-Use Cannabis Taxed in Your State?

Twenty states have legalized cannabis sales for general adult use. Every state allowing legal sales applies a cannabis tax based on the product’s quantity, its price, or both. ITEP research indicates that taxes based on quantity will be more sustainable over time because prices are widely expected to fall as the cannabis industry matures.

Why is My Refund So Much Smaller This Year? Only the Good (Tax Credits) Die Young.

This year millions of American families are finding that their refunds are much smaller than last year—or that they even owe taxes back to the government—because of the expiration of the expanded Child Tax Credit and Earned Income Tax Credit that were in effect in 2021. The lapse of the expanded credits affects a majority of the middle class, but lower-income households are particularly likely to feel the sting.

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We Can Create a Fair, Feminist Tax Code

April 14, 2023 • By Amy Hanauer

We Can Create a Fair, Feminist Tax Code

Everything! Taxing wealthy people and corporations and using the revenue for paid leave, child care, education, health care and college would transform America for girls and women of every race and family type, in every corner of this country.

State Rundown 4/12: Tax Day 2023 – A Good Reminder of the Impact of Our Collective Investments

With Tax Day quickly approaching it’s worth taking some time to reflect not just on tax forms (though those are important!), but also on the current state of state tax policy...

Deep Public Investment Changes Lives, Yet Too Many States Continue to Seek Tax Cuts

When state budgets are strong, lawmakers should put those revenues toward building a stronger and more inclusive society for the long haul. Yet, many state lawmakers have made clear that their top priority is repeatedly cutting taxes for the wealthy.

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8 Things to Know About State Taxes

April 12, 2023 • By Jon Whiten

8 Things to Know About State Taxes

As Tax Day approaches, it’s worth thinking about not only the taxes that we individually pay but the overall condition of our tax code as well. State tax codes, while perhaps less discussed than the federal system, are critically important. Depending on how they are designed, state taxes can improve or worsen economic and racial […]

What Income Tax Subsidies Do States Offer to Seniors?

Every state with a personal income tax offers tax subsidies for seniors that are unavailable to younger taxpayers. The best academic research suggests that the median state asks senior citizens to pay about one-third less in personal income tax than younger families with similar incomes. The majority of these subsidies are costly and poorly targeted. […]

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State Rundown 4/6: More SALT, Please

April 6, 2023 • By ITEP Staff

State Rundown 4/6: More SALT, Please

This week, a bill out of Arkansas that would cut the top personal income tax rate and the corporate income tax rate found its way to the governor’s desk...

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It’s the Revenue Shortfall, Stupid

April 3, 2023 • By Joe Hughes

It’s the Revenue Shortfall, Stupid

Lawmakers have repeatedly stepped on the same rake of slashing tax rates and expecting revenues to magically go up. Now they want middle-class Americans to be the ones who get hit in the face. The con is getting tired. If Congress wants to reel in the debt then it’s time to raise taxes on the wealthy.

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Minnesota’s Tax Code Should Be Based on Ability to Pay, Not Year of Birth

March 31, 2023 • By Carl Davis, Eli Byerly-Duke

Minnesota’s Tax Code Should Be Based on Ability to Pay, Not Year of Birth

Minnesota lawmakers are considering a carveout that would treat seniors much more favorably than young families. The proposal would fully exempt all Social Security income from state income tax, even for seniors with exceptionally high incomes.

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