February 24, 2022

State Tax Watch

Fueled by sizable revenue surpluses, concerns about inflation, and strong economic growth, lawmakers in a critical mass of states are pushing for shortsighted, costly, permanent tax cuts. Surplus revenue in the states is a positive development on heels of the recent pandemic-driven recession. The added revenue presents an opportunity for states to make transformative investments in childcare, healthcare, education and infrastructure and other programs and services that improve our communities. However, too many states are prioritizing shortsighted, permanent tax cuts over investments in people and communities. Many recently enacted state tax cuts or pending proposals favor high-income households and will inevitably worsen economic and racial disparities, not to mention further erode public services in states that never fully restored spending after the Great Recession.

As governors and legislatures advance tax bills, several trends have emerged, including personal income tax cuts, corporate income tax cuts, grocery tax changes and one-time payments to individuals or households. ITEP is tracking these trends in states across the country and providing analyses of the impact of many of these tax proposals. This page is updated on weekly basis.

To learn more about state tax proposals, hover over each state below.

Below are summaries of pending tax legislation in each state.

You can also get weekly updates by signing up for our State Rundown.