Institute on Taxation and Economic Policy

Recent Work

2061 items
A Better Alternative: New Mexico Prioritizes Targeted, Temporary Tax Cuts

New Mexico stands in stark contrast to the many examples of poorly targeted tax-cut proposals currently being considered around the country.

State-by-State Estimates of Sen. Rick Scott’s “Skin in the Game” Proposal

A proposal from Sen. Rick Scott would increase taxes for more than 35% of Americans, with the poorest fifth of Americans paying 34% of the tax increase.

Reality Check: Drastic Income Tax Cuts Are Dangerous Despite What Anti-Tax Supporters Say

Income taxes are the backbone of most state budgets, but you wouldn't gather this fact based on the current trend to cut or eliminate them. A recent, cheerful Wall Street Journal op-ed from anti-government advocate Grover Norquist offers a clear sign that tax-cutting states are taking the wrong approach. The long-time proponent of anti-tax pledges wrote favorably about the legislative and gubernatorial plans to cut income tax cuts across the country. As usual, he failed to address that income taxes support state investments in education, infrastructure, health care and other important public services. 

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State Rundown 3/2: State Tax News When You Need It

March 2, 2022 • By ITEP Staff

State Rundown 3/2: State Tax News When You Need It

ITEP is happy to announce the launch of our new State Tax Watch page, where you can find out about the most up-to-date tax proposals and permanent legislative changes happening across the country...

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SOTU and GOP Response Highlight Dramatic Difference in Parties’ Tax Policy Approach

March 2, 2022 • By Aidan Davis, ITEP Staff, Jenice Robinson

SOTU and GOP Response Highlight Dramatic Difference in Parties’ Tax Policy Approach

Since last year, multiple states across the country have proposed or are pursuing costly income and other tax cuts that are heavily tilted toward the highest-income households. State advocates have worked to beat back these proposals and sounded the alarm about the long-term consequences of tax cuts, but legislatures (most GOP-led) continue to introduce and approve top-heavy and permanent tax cuts. This state tax-cut fervor took center stage last night when Gov. Kim Reynolds of Iowa gave the Republican response to President Biden's SOTU address.

Taxes Should be Part of the State of the Union Agenda

President Biden should elevate his tax and revenue proposals which remain essential if we are to pay for environmental restoration, health priorities and peacekeeping, the front-burner items that may dominate the speech.

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State Rundown 2/23: Temporary Surplus, Permanent Cuts

February 23, 2022 • By ITEP Staff

State Rundown 2/23: Temporary Surplus, Permanent Cuts

Several state legislatures are continuing to push ahead this year with significant tax cut packages that are regressive and would dramatically reduce revenues and leave states in a bad position should they experience another unexpected economic shock...

A state-level child tax credit would recognize the unique costs of raising children and the support that most families need to care for their kids and set them up for success. When families can pay for basic expenses and save for their children’s futures, it improves child well-being immediately by reducing key costs like food […]

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Senate Republicans Revive the Myth of the Takers

February 22, 2022 • By Steve Wamhoff

Senate Republicans Revive the Myth of the Takers

Sen. Scott and others who favor shifting taxes away from the rich and down the income distribution often focus solely on the federal personal income tax and ignore all the other taxes that Americans pay.

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The Federal Gas Tax Holiday is Not a New Idea, Just a Bad One

February 17, 2022 • By Steve Wamhoff

The Federal Gas Tax Holiday is Not a New Idea, Just a Bad One

The argument for suspending the gas tax, which would cost $20 billion, is weaker than ever.

State Rundown 2/16: Spending Priorities Emerge as the Votes Are Counted

State lawmakers have been busy working out deals and negotiating how best to use excess revenues, and as the votes are beginning to come in, spending priorities are becoming clearer...

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Imagine a Better Tax Code, Use Evidence to Make It Real

February 16, 2022 • By Amy Hanauer

Imagine a Better Tax Code, Use Evidence to Make It Real

It’s become popular to urge people to imagine a better world. But on tax policy, the last year gives us ample evidence that lets us move far beyond imagining.

The West Virginia Legislature has introduced a bill to cut and eventually eliminate the state’s personal income tax. The House Finance Committee voted to advance that bill to the House floor with no discussion or questions asked. Like previous attempts to eliminate the state’s income tax, HB 4007 would lead to major revenue losses for the […]

Oklahoma can effectively eliminate the state and local sales tax on groceries for most low-income families by strengthening the Sales Tax Relief Credit. At a time when many Oklahomans are struggling to put food on the table and are at risk of eviction, a more robust Sales Tax Relief Credit can help put money back into the pockets […]

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State Rundown 2/10: Dems Also Set Sights on Tax Cuts

February 10, 2022 • By ITEP Staff

State Rundown 2/10: Dems Also Set Sights on Tax Cuts

While record state revenue surpluses have led to big pushes in red states to make unnecessary permanent income and corporate tax cuts, Democrats are also getting in on the tax-cut mania...

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