
• By ITEP Staff
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...
• By ITEP Staff
Just as a recent cold snap reminded us that spring has not fully sprung yet, this week’s news has been full of reminders that state fiscal debates aren’t quite finished either...
• By ITEP Staff
Two significant victories headlined state tax debates in the past week, as New Mexico leaders improved existing targeted tax credits to give bigger boosts and reach more families in need, and West Virginia lawmakers unanimously shut down a destructive effort to eliminate the state’s progressive income tax. These developments follow last week’s major wins for progressive taxation and targeted assistance in New York, and more good news is likely soon as Washington legislators continue to…
• By ITEP Staff
Supporters of tax fairness and adequate funding for public needs are hoping West Virginia’s income tax elimination effort turns out to be a prank, but most states are not fooling around with such harmful policies this year. For example...
• By ITEP Staff
We wrote last week that the inclusion of fiscal relief for states and localities in Congress’s American Rescue Plan should free up state lawmakers’ time and attention to focus on the comprehensive reforms needed to address upside-down and inadequate tax codes, and some states are already doing just that.
March 15, 2021
The Institute on Taxation and Economic Policy’s regular assessment of state taxes concludes that just five states and the District of Columbia have positive scores on progressivity: California, Delaware, New Jersey, Vermont and Minnesota. The progressive systems rely less on consumption taxes and more on income taxes, with rates that increase with wealth. They also […]
• By ITEP Staff
States face shifting landscapes as they attempt to deal with both emergent and longstanding issues in their tax codes and budget structures. This is particularly evident in Oklahoma, where lawmakers must adjust to a U.S. Supreme Court decision that literally redraws state boundaries by recognizing the rights of indigenous communities, but is true in every state, and lawmakers in many of them are rising to the challenge. Read below and see our blog posted today…
• By ITEP Staff
Efforts to deliver and improve targeted tax credits to support low- and middle-income families proved to be unifying in Washington and Oregon, welcome developments in an otherwise divisive week in state tax debates. For example, Mississippi advocates hoping to end the state’s regressive grocery tax are up against a governor and many lawmakers pulling in the opposite direction by trying to eliminate its income tax. After Arizona residents approved an income tax increase to improve…
• By ITEP Staff
You won’t find any images of Bernie Sanders and his mittens photoshopped into this week’s Rundown, but you will find the latest news on state fiscal debates, including proposals to generate needed funding by raising taxes on high-income households and profiting businesses in California, Delaware, Hawaii, Maryland, and Washington, as well as misguided efforts to slash taxes in Arizona, Iowa, South Carolina, Utah, and West Virginia. Also in the news are thoughtful improvements to targeted…
December 22, 2020
The stimulus, approved as part of a large end-of-year catchall package including traditional spending measures, also allocates $82 billion in support to school systems and higher education institutions, $10 billion for childcare assistance, $13 billion to assist people facing hunger, and $13 billion to support farmers who have suffered losses during the pandemic. According to […]
• By ITEP Staff
Although progressive tax policy doesn’t always succeed in in statehouses or voting booths, Arizona voters showed once again that when offered a clear choice, most people resoundingly support requiring fairer tax contributions from rich individuals and highly profitable corporations over allowing their schools and other shared priorities to wither and decay. Still, a similar effort in Illinois and a more complicated measure in California were defeated, and anti-tax zealots in West Virginia and many other…
• By ITEP Staff
State lawmakers around the nation are already looking well past the upcoming election to the legislative debates they’ll be cooking up in 2021. In Iowa and Nebraska, anti-tax groups are thawing out regressive tax shift ideas they had put on ice earlier in the pandemic. In Delaware, a lawsuit and recent settlement have put educational and property tax inequities on the menu for the upcoming session. Meanwhile New Jersey and New York are both looking…
• By Aidan Davis
The Earned Income Tax Credit (EITC) is a policy designed to bolster the incomes of low-wage workers and offset some of the taxes they pay, providing the opportunity for families struggling to afford the high cost of living to step up and out of poverty toward meaningful economic security. The federal EITC has kept millions of Americans out of poverty since its enactment in the mid-1970s. Over the past several decades, the effectiveness of the…
• By ITEP Staff
As ITEP analyst Kamolika Das wrote today, July 1 is typically the beginning of state fiscal years and “a point when one can take a step back and reflect on the wins and disappointments of the past state legislative sessions.” Not so in 2020, she writes, as uncertainty surrounding the virus, state revenues, and potential federal action give state lawmakers no such time to relax and reflect. Although most recent state actions, such as those…
• By ITEP Staff
This week the immense scale and uneven distribution of economic and health damage from the COVID-19 pandemic continued to come into focus, hand in hand with greater clarity around pandemic-related revenue losses threatening state and local revenues and the priorities—such as health care, education, and public safety—they fund. Officials in many states, including Ohio and Tennessee, nonetheless rushed to declare their unwillingness to be part of any solution that includes raising the tax contributions of…
• By ITEP Staff
State policymakers are navigating incredibly uncertain waters these days as they attempt to get a firmer grasp on the scale of their revenue crises, identify painful budget cuts they may have to make in response, and look for ways to raise tax revenues coming from the households and corporations still bringing in large incomes and profits amid the pandemic—all while hoping that additional federal aid and greater flexibility in how they can use federal CARES…
• By ITEP Staff
April has brought relentless showers of troublesome tax and budget news as the COVID-19 pandemic wreaked havoc on communities and the public services and institutions that both support and depend on them. There is hope, however, that these troubles have opened the eyes of policymakers and that May will bring more clarity and strong action in the form of federal fiscal relief as well as home-grown state and local responses.
• By ITEP Staff
In different ways, Earth Day and the COVID-19 pandemic convey a similar lesson: people around the world face shared struggles and disparate impacts, which they must work together to overcome through both emergency action and systemic change. In keeping with that lesson, state fiscal policy news this week was strikingly similar around the country, as states take account of the major threat posed by the pandemic to their budgets and attempt to grapple with its…
• By ITEP Staff
State lawmakers have plenty to keep them busy on the tax policy front in 2020. Encouraging trends we’re watching this year include opportunities to enact and enhance refundable tax credits and increase the tax contributions of high-income households, each of which would improve tax equity and help to reduce income inequality.
• By Carl Davis
State itemized deductions are generally patterned after federal law, though nearly every state makes significant changes to the menu of deductions available or the extent to which those deductions are allowed. This report summarizes the key details of each state’s itemized deduction policies and discusses various options for reforming those deductions with a focus on lessening their regressive impact and reducing their cost to state budgets.
• By ITEP Staff
State tax and budget debates can turn on a dime sometimes, as in Utah this past week, where lawmakers unanimously repealed a tax package they had just approved in a special session last month. Delaware lawmakers are hoping to avoid the similarly abrupt end to their last effort to improve their Earned Income Tax Credit (EITC) by crafting a bill that Gov. John Carney will have no reason to unexpectedly veto as he did two years ago. But at other times, these debates just can’t change fast…
• By ITEP Staff
This week as Americans celebrate Martin Luther King Jr.’s messages of resisting oppression and fighting for progress, state policymakers can look to some bright spots where tax and budget debates are bending toward justice. Among those highlights, Hawaii leaders are considering improvements to minimum wage policy, early childhood education, and affordable housing; Kansas Gov. Laura Kelly is seeking to reduce sales taxes applied to food and restore the state’s grocery tax credit; and advocates in…
• By ITEP Staff
State tax and budget debates have arrived in a big way, with proposals from every part of the country and everywhere on the spectrum from good to bad tax policy. Just look to ARIZONA for a microcosm of nationwide debates, where education advocates have a plan to raise progressive taxes for school needs, Gov. Doug […]
• By Steve Wamhoff
On Tuesday night, 25 Republicans joined nearly all the chamber’s Democrats to approve the Corporate Transparency Act, a bill that would require those creating a company to report its owners to the federal government. The White House expressed support but called for the House and Senate to work on certain details, creating the possibility that the measure could be enacted.
• By Aidan Davis
This report presents a comprehensive overview of anti-poverty tax policies, surveys tax policy decisions made in the states in 2019 and offers recommendations that every state should consider to help families rise out of poverty. States can jump start their anti-poverty efforts by enacting one or more of four proven and effective tax strategies to reduce the share of taxes paid by low- and moderate-income families: state Earned Income Tax Credits, property tax circuit breakers,…