Arkansas

Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.

Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

If you find yourself in a hole, stop digging. This is exactly what Louisiana Senators did when they rejected two tax-cut bills that would have created a billion-dollar shortfall in the coming fiscal years.

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.

While some states are preparing for uncertainty – slowing revenue growth, chaos from unpredictable tariffs, cuts to federal programs, etc. – others continue to move forward with plans for deep tax cuts.   For instance, Georgia Gov. Brian Kemp signed legislation accelerating the cut to the personal income tax rate, which is currently phasing down. […]

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

The Educational Choice for Children Act of 2025 would ostensibly provide a tax break on charitable donations to organizations that give out private K-12 school vouchers. Most of the so-called “contributions,” however, would be made by wealthy people solely for the tax savings, as those savings would typically be larger than their contributions.

Proposals from governors in both New Jersey and Wisconsin include provisions to tax high-income earners. Meanwhile, several major tax proposals are advancing in the great plains, with Iowa considering a major cut to unemployment taxes, North Dakota advancing new benefits for private schools, and Wyoming cutting property taxes. The District of Columbia is facing a more than a $1 billion revenue shortfall over the next three years, compared to previous estimates, and a mild recession due in large part to the layoffs of federal workers. 

Below is a list of tax expenditure reports published in the states.

The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

As state legislative sessions ramp up many lawmakers discuss their prioritization of affordability of necessities like food and housing as they craft their legislative agendas. Arkansas, Mississippi and Utah are looking to reduce or fully exempt groceries from their state sales taxes. Meanwhile, multiple proposals to reduce property taxes are making their way around state […]

While frigid temperatures expected across a large swath of the country, major tax proposals are heating up in the states. Governors are giving their State of the State addresses and state lawmakers have begun to convene for 2025. New York Gov. Kathy Hochul announced plans to expand the state’s Child Tax Credit earlier this year and has since announced nearly $1 billion in income tax cuts. Maryland Gov. Wes Moore unveiled a new tax proposal aimed at helping close the state’s looming revenue shortfall. The plan would increase taxes on the wealthy and cut taxes for many low- and middle-income…

It’s a new year, and state legislatures across the country are resolved to write new tax policy. Tax debates are heating up nearly everywhere in the early days of 2025, but states’ fiscal situations vary dramatically. New York is considering expanding the state’s Child Tax Credit following Gov. Hochul’s proposed expansion. On the other side […]

Trump’s plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans. This includes all major provisions except the $10,000 cap on deductions for state and local taxes (SALT) paid.

The TCJA Permanency Act would make permanent the provisions of the Tax Cuts and Jobs Act of 2017 that are set to expire at the end of 2025. The legislation would disproportionately benefit the richest Americans. Below are graphics for each state that show the effects of making TCJA permanent across income groups. See ITEP’s […]

Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. Providing access to work authorization for undocumented immigrants would increase their tax contributions both because their wages would rise and because their rates of tax compliance would increase.

Major tax cuts were largely rejected this year, but states continue to chip away at income taxes. And while property tax cuts were a hot topic across the country, many states failed to deliver effective solutions to affordability issues.

Undocumented immigrants who work and pay taxes but don't have a valid Social Security number for either themselves or their children are excluded from federal EITC and CTC benefits. Fortunately, several states have stepped in to ensure undocumented immigrants are not left behind by the gaps in the federal EITC and CTC. State lawmakers should continue to ensure that immigrants who are otherwise eligible for these tax credits receive them.

Many families are heading out on summer vacations, but legislators across the country are heading back to statehouses for special sessions...