Recent Work

Lawmakers Want Working People to Foot the Bill for Top-Heavy Tax Cuts

October 18, 2018 • By ITEP Staff

Earlier this week, the Treasury Department reported that the federal deficit this fiscal year climbed by 17 percent to $779 billion, and next year is expected to be at least $1 trillion. The increased deficit comes after Congress last December passed an unpopular tax cut (The Tax Cuts and Jobs Act) that will cost nearly $2 trillion over a decade. GOP leaders repeatedly claimed the measure would pay for itself and not increase annual deficits, in spite of multiple economic predictions to the contrary.

State Rundown 10/18: States Learn “Who Pays”!

October 18, 2018 • By ITEP Staff

Policymakers and residents in all 50 states and the District of Columbia got new ITEP data this week on how their tax structures and decisions affect their high-, middle-, and low-income residents. As our “Who Pays?” report outlines, most state and local tax codes exacerbate economic inequalities and all states have room to improve. The data can serve as an important informative backdrop to all state and local tax policy debates, such as whether to change the valuation of commercial property in California, how to improve funding for early childhood education in Indiana, and how to evaluate tax-related ballot measures…

New Report Finds that Upside-down State and Local Tax Systems Persist, Contributing to Inequality in Most States

October 17, 2018 • By Aidan Davis

State and local tax systems in 45 states worsen income inequality by making incomes more unequal after taxes. The worst among these are identified in ITEP’s Terrible 10. Washington, Texas, Florida, South Dakota, Nevada, Tennessee, Pennsylvania, Illinois, Oklahoma, and Wyoming hold the dubious honor of having the most regressive state and local tax systems in the nation. These states ask far more of their lower- and middle-income residents than of their wealthiest taxpayers.

Low Tax for Whom? Texas is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Texas’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Texans contribute 13 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Texas is far from being a low tax state; in fact, it is tied with Arizona as the sixth highest-tax state in the country for low-income families.

Low Tax for Whom? Washington is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Washington’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Washingtonians contribute 17.8 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Washington is far from being a low tax state; in fact, it is the highest-tax state in the country for low-income families.

Low Tax for Whom? Arizona is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Arizona’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Arizonans contribute 13 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Arizona is far from being a low tax state; in fact, it is tied with Texas as the sixth highest-tax state in the country for low-income families.

Low-Tax States Are Often High-Tax for the Poor

October 17, 2018 • By Carl Davis

ITEP analysis reveals that many states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers often do not experience these states as being even remotely “low tax.”

Low Tax for Whom? Indiana is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Indiana’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Hoosiers contribute 12.8 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Indiana is far from being a low tax state; in fact, it is the eighth highest-tax state in the country for low-income families.

Low Tax for Whom? Oklahoma is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Oklahoma’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Oklahomans contribute 13.2 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Oklahoma is far from being a low tax state; in fact, it is the fifth highest-tax state in the country for low-income families.

Low Tax for Whom? Florida is a “Low Tax State” Overall, But Not for Families Living in Poverty

October 17, 2018 • By ITEP Staff

Florida’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Floridians contribute 12.7 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Florida is far from being a low tax state; in fact, it is the ninth highest-tax state in the country for low-income families.

West Virginia: Who Pays? 6th Edition

October 17, 2018 • By ITEP Staff

According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, West Virginia has the 37th most unfair state and local tax system in the country. Incomes are more unequal in West Virginia after state and local taxes are collected than before.

District of Columbia: Who Pays? 6th Edition

October 17, 2018 • By ITEP Staff

According to ITEP’s Tax Inequality Index, the District of Columbia’s local tax system does not worsen income inequality and ranks 50th on the index. The large income gap between lower- and middle-income taxpayers, as compared to the wealthy, is somewhat narrower after state and local taxes than before.

Rhode Island: Who Pays? 6th Edition

October 17, 2018 • By ITEP Staff

According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Rhode Island has the 32nd most unfair state and local tax system in the country. Incomes are more unequal in Rhode Island after state and local taxes are collected than before.

Colorado: Who Pays? 6th Edition

October 17, 2018 • By ITEP Staff

COLORADO Read as PDF COLORADO STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $22,000 $22,000 to $40,800 $40,800 to $65,800 $65,800 to $113,600 $113,600 to $246,000 $246,000 to $605,500 over $605,500 […]

North Dakota: Who Pays? 6th Edition

October 17, 2018 • By ITEP Staff

NORTH DAKOTA Read as PDF NORTH DAKOTA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $27,800 $27,800 to $43,600 $43,600 to $66,900 $66,900 to $117,600 $117,600 to $245,300 $245,300 to $639,900 […]