Meaningful investments in Indiana’s future require a smart, and fair, tax code that recognizes current economic realities and can raise a sustainable stream of funding from those most able to pay.
Income Taxes
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blog October 19, 2023 Eliminating Indiana’s Income Tax Would Jeopardize Public Services & Create a Windfall for the Well-Off
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blog July 7, 2023 The Highs and Lows of 2023 State Legislative Sessions
Nearly one-third of states took steps to improve their tax systems this year by investing in people through refundable tax credits, and in a few notable cases by raising revenue from those most able to pay. But another third of states lost ground, continuing a trend of permanent tax cuts that overwhelmingly benefit high-income households and make tax codes less adequate and equitable.
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blog June 5, 2023 The Real Impact of State Tax Cuts
This op-ed was originally published by Route Fifty and co-written by ITEP State Director Aidan Davis and Center on Budget and Policy Priorities Senior Advisor for State Tax Policy Wesley… -
blog May 9, 2023 Congress Should Raise Taxes on the Rich, But That’s a Totally Separate Issue from the Debt Ceiling
Congress absolutely should raise taxes on the rich and on corporations to generate revenue and improve the fairness of our tax code. President Biden has several proposals to do exactly that. But this is an entirely separate question from whether we should raise the debt ceiling to honor the debts the nation has already incurred and avoid an economic apocalypse.
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report May 4, 2023 Extending Temporary Provisions of the 2017 Trump Tax Law: National and State-by-State Estimates
The push by Congressional Republicans to make the provisions of the 2017 Tax Cuts and Jobs Act permanent would cost nearly $300 billion in the first year and deliver the bulk of the tax benefits to the wealthiest Americans.
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blog April 27, 2023 Kansas Avoids Flat Tax Proposal: Narrow Victory a Cautionary Tale for Other States
Kansas lawmakers failed to override Gov. Laura Kelly’s veto of a damaging flat tax package. In doing so, the state narrowly avoided traveling again down the same disastrous yet well-worn path of deep income tax cuts. States across the country can learn from Kansas’s experience by rethinking tax policy decisions and broader statewide priorities.
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blog April 14, 2023 We Can Create a Fair, Feminist Tax Code
Everything! Taxing wealthy people and corporations and using the revenue for paid leave, child care, education, health care and college would transform America for girls and women of every race and family type, in every corner of this country.
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blog April 12, 2023 Deep Public Investment Changes Lives, Yet Too Many States Continue to Seek Tax Cuts
When state budgets are strong, lawmakers should put those revenues toward building a stronger and more inclusive society for the long haul. Yet, many state lawmakers have made clear that their top priority is repeatedly cutting taxes for the wealthy.
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map April 6, 2023 What Income Tax Subsidies Do States Offer to Seniors?
Every state with a personal income tax offers tax subsidies for seniors that are unavailable to younger taxpayers. The best academic research suggests that the median state asks senior citizens… -
blog March 23, 2023 States Prioritize Old Over Young in Push for Larger Senior Tax Subsidies
Under a well-designed income tax based on ability to pay, it is simply not necessary to offer special tax subsidies to older adults but not younger families. At the end of the day, your income tax bill should depend on what you can afford to pay, not the year you were born. It’s really as simple as that.
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report March 23, 2023 State Income Tax Subsidies for Seniors
State governments provide a wide array of tax subsidies to their older residents. But too many of these carveouts focus on predominately wealthy and white seniors, all while the cost climbs.
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report March 10, 2023 Revenue-Raising Proposals in President Biden’s Fiscal Year 2024 Budget Plan
President Biden’s latest budget proposal includes trillions of dollars of new revenue that would be paid by the richest Americans, both directly through increases in personal income, Medicare and estate taxes, and indirectly through increases in corporate income taxes.
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blog March 9, 2023 Politifalse: A Fact-Checker Does Biden an Injustice on Taxes Paid by Billionaires
Most Americans pay more in Social Security and Medicare payroll taxes than they pay in federal personal income tax. So just looking at the personal income tax for comparison misses most of the taxes middle-income Americans pay. That is not true for billionaires because a much, much smaller proportion of their income is subject to the federal payroll taxes.
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map March 7, 2023 Which States Have Tax Cut Triggers or Phase-ins?
In recent years, lawmakers have been quick to push for phased-in tax cuts or cuts attached to trigger mechanisms. These policy tools push the implementation of tax cuts outside of the current budget window with a predetermined phase-in schedule or a mathematical formula tied to state revenue trends.
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map January 18, 2023 How Many States Have a Flat Income Tax?
Two-thirds of states with broad-based personal income tax structures have a graduated rate, while one-third have flat taxes.
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blog January 18, 2023 State Lawmakers Should Break the 2023 Tax Cut Fever Before It’s Too Late
Despite mixed economic signals for 2023, including a possible recession, many state lawmakers plan to use temporary budget surpluses to forge ahead with permanent, regressive tax cuts that would disproportionately benefit the wealthy at the expense of low- and middle-income households. These cuts would put state finances in a precarious position and further erode public investments in education, transportation and health, all of which are crucial for creating inclusive, vibrant communities where everyone, not just the rich, can achieve economic security and thrive. In the event of an economic downturn, these results would be accelerated and amplified.
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brief January 17, 2023 The Pitfalls of Flat Income Taxes
Flat taxes have some surface appeal but come with significant disadvantages. Critically, a flat tax guarantees that wealthy families’ total state and local tax bill will be a lower share of their income than that paid by families of more modest means.
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blog December 19, 2022 ITEP’s Top 5 Charts of 2022
Covering federal, state, and corporate tax work, here are our top 5 charts of 2022. It’s worth noting that the biggest tax news of 2022 – the adoption of a federal 15 percent corporate minimum tax in the Inflation Reduction Act – should make some of these charts look much better after the new law is implemented.
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blog November 10, 2022 Election Day in the States: Voters Deliver Important Victories for Tax Justice
Voters in Massachusetts and Colorado raised taxes on their wealthiest residents to fund schools, public transportation and school lunches for kids while making their tax codes more equitable. And voters in West Virginia defeated a proposal to deeply cut taxes, mostly for businesses, and drain the coffers of county and local governments.
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blog November 9, 2022 Massachusetts Voters Score Win for Tax Fairness with ‘Fair Share Amendment’
In a significant victory for tax fairness, Massachusetts voters approved Question 1—commonly known as the Fair Share Amendment—Tuesday night with 52 percent of the vote. The new constitutional amendment creates a 4 percent surcharge on income over $1 million, and the revenue will specifically fund education and transportation projects in the Bay State.
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blog October 31, 2022 Tax Foundation’s ‘State Business Tax Climate Index’ Bears Little Connection to Business Reality
The big problem with the Index is that it peddles a solution that not only falls short of the goal of generating business investment, but one that actively harms state lawmakers’ ability to provide the kinds of public goods – like good schools and modern, efficient transportation networks – that businesses need and want.
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blog October 26, 2022 Measures on the November Ballot Could Improve or Worsen State Tax Codes
In a couple of weeks, voters in a handful of states will weigh in on several tax-related ballot measures that could make state tax codes more equitable and raise money… -
blog July 22, 2022 Most States Used Surpluses to Reduce Taxes But Not in Sustainable or Progressive Ways
The average person on the street would have no idea that many states experienced unprecedented budget surpluses this year. Iowa, for instance, has the most structurally deficient bridges of any… -
blog April 19, 2022 Some Lawmakers Continue to Mythologize Income Tax Elimination Despite Widespread Opposition
One of the most surprising trends this legislative session is that conservative leaders and the business community joined with progressive advocates to oppose income tax repeal plans. There is a general consensus that income tax repeal is a step too far.
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blog March 17, 2022 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.