Recent Work

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

February 10, 2022 • By ITEP Staff

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...

Common Good Iowa: New Income Tax Cuts – a Recipe for Disaster and Inequity

February 10, 2022 • By ITEP Staff

Iowa lawmakers have repeatedly cut taxes over the last three decades in ways that provide the greatest benefits to the highest-income taxpayers while ratcheting down investments that historically made the state attractive to raise a family or do business — including public schools and public health. Now, within months of passing tax cuts that when […]

More Than One in Three Young Workers Would Benefit from EITC Reforms in Build Back Better Plan

February 8, 2022 • By Aidan Davis

Although the EITC expansion did not receive as much attention as the expanded Child Tax Credit, a new ITEP report shows the positive impact of allowing young workers without children in the home to maintain access to one of the nation’s most significant and effective anti-poverty programs.

Federal EITC Enhancements Help More Than One in Three Young Workers

February 8, 2022 • By Aidan Davis

More than one in three young adults would benefit from workers without children being eligible to receive the federal EITC. This policy change would bolster young adults’ economic security.

Amazon Avoids More Than $5 Billion in Corporate Income Taxes, Reports 6 Percent Tax Rate on $35 Billion of US Income

February 7, 2022 • By Matthew Gardner

Amazon avoided about $5.2 billion of federal income tax on its record $36 billion in U.S. pretax income for fiscal year 2021.

Idaho Center for Fiscal Policy: HB 436 Tax Cuts Benefit Wealthy Idahoans

February 7, 2022 • By ITEP Staff

The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income tax rate on the wealthiest tax bracket from 6.5% to 6%. Read more

Idaho Center for Fiscal Policy: Idaho Families Would Benefit From Move to Include More Children in State’s Child Tax Credit

February 7, 2022 • By ITEP Staff

From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC). In the American Rescue Plan Act (ARPA), Congress approved a temporary change to expand the definition of “child” to include 17-year-olds in tax year 2021. […]

Hawai’i Budget & Policy Center: Expanding Economic Opportunity with the Hawai’i EITC

February 7, 2022 • By ITEP Staff

Hawai’i’s working families continue to struggle with the nation’s highest gap between median earnings and the cost of living, and this difficult reality has only been made harsher by the COVID-19 pandemic. In fact, more than a third of Hawai’i households had at least some difficulty paying for their monthly expenses in December of 2021. […]

Arkansas Advocates for Children and Families: Tax Cut Plan Even More Expensive, Skewed Toward The Wealthy

February 7, 2022 • By ITEP Staff

The likely proposal for the long-discussed special session seems to have settled, and its main feature would be to cut the top personal and corporate income tax rates. This disproportionately benefits the wealthy, and the corporate income tax cut will largely be captured by out-of-state shareholders, meaning the revenue will leave the state economy entirely. […]

Wisconsin Budget Project: Tax Shift Would Hike Taxes for People with Low Incomes and Give a Big Tax Cut to the Top 1%

February 7, 2022 • By ITEP Staff

Last month, an influential group of lobbyists released a proposal to raise Wisconsin’s sales tax to 8%, making it the highest state sales tax in the country, and eliminate the state individual income tax, Wisconsin’s biggest source of revenue. The plan would result in the largest tax cuts going to white households, with households of color […]

The Commonwealth Institute: Youngkin Administration’s Proposals Would Sharply Reduce State Resources, Largely Exclude Working Families with the Lowest Incomes

February 7, 2022 • By ITEP Staff

The Youngkin administration’s tax plan would leave out nearly 80 percent of the over 800,000 taxpayers in Virginia who have incomes below $24,000. Gov. Youngkin’s proposed changes would also sharply reduce state General Fund revenues — the portion of the state budget over which lawmakers have the most discretion and which primarily goes toward funding […]

One Voice: Eliminating Individual Income Tax is Bad for Mississippi

February 7, 2022 • By ITEP Staff

House Bill 531 would eliminate the state individual income tax. Eliminating the income tax is bad for Mississippi, especially the state’s working families, communities of color, and retirees. While some lawmakers are suggesting that Mississippi’s revenue system is sound enough to support this tax cut, due to the current surplus, this couldn’t be further from […]

Alabama Arise: Eliminating State Grocery Tax Would Make Life Better for Alabama Families

February 7, 2022 • By ITEP Staff

Two bills in the 2022 regular session would end the state grocery tax while protecting school funding. The graph below shows how millions of Alabamians would benefit. Untaxing groceries quickly and responsibly would boost economic and food security for all Alabamians. That means replacing revenue for public schools in a way that doesn’t harm struggling […]

Open Sky Policy Institute: Most Nebraskans Left Behind by Income Tax Cut Bills

February 4, 2022 • By ITEP Staff

Non-Nebraskans, corporations and wealthy residents would be big winners under the latest income tax cuts proposed in in LB 938 and LB 939. Meanwhile, the bills – which would ratchet the state’s top corporate and personal income tax rates to 5.84% over four and three years respectively – offer most Nebraskans little tax savings while depleting revenue needed […]

State Rundown 2/2: The First Tax Cut Domino Falls…

February 2, 2022 • By ITEP Staff

One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion...