Institute on Taxation and Economic Policy (ITEP)

Arizona

State Rundown 4/27: States Remain Active on the Tax Front

While tax discussions among federal lawmakers continue in fits and starts, major tax news continues to make waves across the nation...

State Rundown 3/30: Late-Session Surprises Leave Us Unimpressed

Several states have dropped a few late-session surprises, and from the looks of it, they’re not the good kind...

Fortune: President Biden says his ‘Billionaire Minimum Income Tax’ would raise $360 billion. How does it work?

March 29, 2022

The highest likelihood is through “reconciliation” — a budget process for passing fiscal legislation with a simple majority of Senate votes. That will require buy-in from West Virginia Sen. Joe Machin and Arizona Sen. Kyrsten Sinema, who have each objected to proposals to tax the ultra-wealthy in the past. Steve Wamhoff, director of tax policy […]

Arizona Ruling Preserves High-Income Interests Over Education Investments, Popular Vote

An Arizona court decision delivered an unfortunate blow to voters and those in the state who favor a progressive, adequate tax system that can fund critical priorities including K-12 education.

State Rundown 3/16: The Scramble to Curb Rising Gas Prices is On

Rising gas prices have lawmakers around the country searching for ways to ease the pressure on consumers and almost half the states are considering reducing or temporarily repealing their gas tax, but another idea is taking hold...

State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts

The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity...

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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...

State Rundown 1/13: The Tax Cuts Cometh, But There Is a Better Way

As expected, with the start of many new legislative sessions around the country, lawmakers have introduced a slew of tax cut plans following better-than-expected budget outlooks that have, so far, weathered the impact of the pandemic...

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Investing in a Joint Future: Harnessing State Tax Codes

January 10, 2022 • By Aidan Davis

Investing in a Joint Future: Harnessing State Tax Codes

Rather than resorting to tax cuts, which can eventually create revenue shortfalls, lawmakers should determine whether they have adequately invested in people and communities. There are better ways to leverage tax systems to help those who need it most.

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State Rundown 1/5: New Year, Same Old Playbook

January 5, 2022 • By ITEP Staff

State Rundown 1/5: New Year, Same Old Playbook

The new year often brings with it a reinvigorated commitment to new goals and a fresh perspective on how to accomplish them, but it seems like lawmakers in states around the country are giving up already...

Bloomberg: SALT Debate Forces Rich Americans to Confront Widening Tax Gap

December 10, 2021

Lawmakers in Arizona, Arkansas, Idaho, Iowa, Louisiana, Missouri, Montana, North Carolina, Ohio and Oklahoma have also approved cuts to their top personal income tax going into effect either this year or in future years. “There are states moving in different directions,” said Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy. […]

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State Rundown 11/23: Thankful for Tax Advocates Like You!

November 23, 2021 • By ITEP Staff

State Rundown 11/23: Thankful for Tax Advocates Like You!

Here at ITEP we want to give thanks and say we’re grateful for all of the hard work that advocates in states across the country are doing to secure progressive tax policy victories...

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A Surprising Idea from the Era of Reaganomics

October 27, 2021 • By Amy Hanauer

A Surprising Idea from the Era of Reaganomics

President Reagan is lionized by many for cutting taxes and government. But the story is more complicated. Reagan knee-capped regulation and much domestic spending, and early in his administration he slashed taxes in ways that drastically reduced revenue. Yet he vastly expanded military spending, so his cuts were only to things he disliked.   Less known […]

State Income Taxes and Racial Equity: Narrowing Racial Income and Wealth Gaps with State Personal Income Taxes

10 state personal income tax reforms that offer the most promising routes toward narrowing racial income and wealth gaps through the tax code.

State Rundown 9/29: Where There’s Smoke, There’s Revenue?

One of the few industries to excel during the economic downturn brought on by the pandemic has been the marijuana business, and lawmakers around the country are taking notice as they try to ensure that sales in their state are both legal and subject to tax...

The One Thing Missing From the Qualified Business Income Deduction Conversation: Racial Equity

When crafting tax policy, lawmakers and bill authors often work backward, using a patchwork of changes to help achieve their stated goal. One important consideration that is routinely left out is what impact the change will have on racial equity. Such is the case with the qualified business income deduction, which is helping to further enrich wealthy business owners, the overwhelming majority of whom are white. At present, white Americans own 88 percent of private business wealth despite making up only 60 percent of the population. Meanwhile, Black and Hispanic families confronting much higher barriers to entrepreneurship each own less…

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State Rundown 8/18: End of Summer Tax Update

August 18, 2021 • By ITEP Staff

State Rundown 8/18: End of Summer Tax Update

Summer is quickly (and sadly) coming to an end and if you’ve been away enjoying the great outdoors or off the grid, we’re here to help keep you up to date on what’s been happening on the tax front around the country...

State Rundown 7/7: The New Fiscal Year Starts off With a Bang, And Not Just Fireworks

States were busy over the past week despite the Fourth of July holiday. Many are gearing up for upcoming tax and budget clashes that could shape their futures for some time...

In Drive to Cut Taxes, States Blow an Opportunity to Invest in Underfunded Services

Many states find themselves in a peculiar fiscal situation right now: federal pandemic relief money has been dispersed to states and revenue projections have exceeded expectations set during the pandemic. Meanwhile, more and more workers are returning to jobs as vaccines roll out and typical economic activity resumes. Some states, however, have decided to squander their unexpected fiscal strength on tax cuts.

State Rundown 6/30: Resolutions Are in Order for the New Fiscal Year

Today is the last day of the fiscal year in many states, and some lawmakers might want to take the opportunity to make some new fiscal year resolutions. Legislators in Arizona, New Hampshire, Ohio, North Carolina, and Wisconsin, for example, should really cut back on the trickle-down tax-cut Kool-Aid, which may make parties with rich donors more fun but tends to be both harmful and habit-forming...

State Rundown 6/24: Late June State Fiscal Debates Unusually Active

Delayed legislative sessions and protracted federal aid debates have made for a busier June than normal for state fiscal debates. Arizona, New Hampshire, and North Carolina legislators, for example, are still pushing for expensive and regressive tax cuts in their states while they remain in session...

State Rundown 6/16: Progressive Tax Policy Keeps Racking Up Wins

Taxing rich households and large corporations to fund vital investments in education and other shared priorities has long been a winner in the eyes of the American public, and more recently has also enjoyed a string of victories in state legislatures and at the ballot box. That win streak continued this week as Arizona’s voter-approved tax surcharge on the rich and Seattle, Washington’s payroll tax on high-profit, high-salary businesses both survived court challenges, and Massachusetts leaders approved a millionaires tax to go before voters next year.

State Rundown 6/7: Remaining State Legislative Sessions Are Heating up as Budget Deadlines Loom

Just as an early summer heatwave brought soaring temperatures this past weekend through much of the lower 48 states, several state legislative sessions are heating up as legislators scramble to make tough budget decisions. Massachusetts lawmakers are voting on a fiery new "millionaires' tax" that would support transportation and education revenue needs, and Connecticut will likely restore its state Earned Income Tax Credit (EITC) back to 30 percent. Illinois’s decision to cut back corporate tax breaks also provided a breath of fresh air. Unfortunately, we'd give other state tax proposals a more lukewarm reception: New Hampshire, North Carolina, and Ohio…

State Rundown 5/27: State Legislatures Step Back, Advocates Push Forward

As more and more state legislatures wrap up their sessions and we reflect on the whirlwind that is this past year, it’s easy to focus on the steps back that states like Oklahoma have taken and Nebraska, North Carolina, and Arizona are trying to take. We have had some significant wins in states over the course of the year, but not every development will be a good one. However, we know advocates are on the ground, working tirelessly to help states maintain equity and progressivity in their tax codes. And for that, we have many of you—our intrepid readers of…

The Arizona Center for Economic Progress: Flat Tax Exacerbates Inequalities for Households of Color

May 26, 2021

Arizona’s elected leaders have created a tax code that is upside down and regressive– meaning that those with low incomes pay a much higher share of their income in taxes compared to Arizona’s highest income earners. Our state’s tax code is both a product of and perpetrator of stark racial inequities. The cumulation of Arizona’s […]