Institute on Taxation and Economic Policy (ITEP)

California

While States Debate New Trump Tax Changes, Equity Must Be at the Core

States continue to debate whether and how to link their state tax codes to the 2025 federal tax law. This is not just a technical debate.

Tax Break for Ultra-wealthy Investors Takes a Hit in Maine and Oregon

Policymakers in Maine and Oregon wisely said “no” last week to an income tax break for deep-pocketed tech investors and venture capitalists that was expanded in last year’s federal tax bill.

blog  

Low Tax for Whom? California vs Texas

April 1, 2026 • By Cassidy Sheppard

Low Tax for Whom? California vs Texas

California Gov. Gavin Newsom went to Texas recently and claimed: “Texas taxes poor folks more than we tax our richest." He’s right.

California Budget & Policy Center: 5 Facts To Know About Corporate Taxes in California

March 5, 2026

Several large corporations pay next to nothing in corporate taxes in California, largely due to overly generous state tax breaks. Reforming the state’s corporate tax system is a necessary step to support the health and well-being of Californians and strengthen economic security for all. Read more.

Governor Newsom Launches New State Investment and Philanthropic Collaboration To Continue Supporting Families Under Federal Assault

February 23, 2026

Undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 — a number that would rise to $10.3 billion if these taxpayers could apply to work lawfully. People are afraid to leave their homes, children are left without their parents, and families unable to afford groceries. Families are even foregoing critical medical care. […]

Trust Reform is Needed to Protect States, Especially in the Wake of IRS Enforcement Cuts

Trust use is widespread among the wealthiest households, with reports showing that roughly half of the nation’s wealthiest people rely on trusts for tax avoidance reasons

State Rundown 1/22: Cautious Tone Noticeable in Most Statehouses

Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.

blog  

States Can Push Back Against Reckless Federal Tax Policy. Here’s How.

January 22, 2026 • By Aidan Davis, Wesley Tharpe

States Can Push Back Against Reckless Federal Tax Policy. Here’s How.

They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.

Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.