Institute on Taxation and Economic Policy

Indiana

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Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education

May 17, 2017 • By Carl Davis, Sasha Pudelski

One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect public dollars for K-12 education toward private schools.

Indiana Institute for Working Families: Tax Rate Cuts to Offset Gas and Cigarette Tax Increases? There are Better Ways

January 9, 2017

  Ensuring Indiana has funding needed to adequately repair its roads and bridges over the next several years is a top priority among lawmakers this legislative session. Among the proposed infrastructure improvement plans is HB 1001, which would raise the state’s gasoline tax by 4 cents per gallon, the tax on diesel fuel by 7 […]

The Atlantic: Why It’s So Hard to Know What to Make of the Carrier Deal

November 30, 2016

“Additionally, some economists say that it’s bad policy for states to offer up tax breaks for companies who agree to locate plants or other operations in certain communities, a practice that is widespread, with states and municipalities already providing $50 billion in location-incentive tax breaks every year—that’s money that could be used for schools or […]

Indianapolis Business Journal: Senate report: Illegal immigration costs state $131M

May 27, 2016

“Indiana Immigrants who are here illegally paid $108.9 million in state and local taxes in 2010, according to the Institute on Taxation and Economic Policy. But were they to have legal status, they would have paid $141.7 million in state and local taxes, according to the group.” Read more

CNBC: Pothole season brings little new funding to fix them

April 5, 2016

  Other states, including Indiana, South Carolina and West Virginia, have considered similar moves. But so far, those measures haven’t gotten very far, according to the Institute on Taxation and Economic Policy, a tax research group. “Legislators in all three states embraced partial solutions or punted entirely, preferring short-term fixes at the expense of other […]

Indianapolis Star: Raise taxes on Indiana’s wealthy

January 19, 2016

“According to the Institute on Taxation and Economic Policy the bottom 20% of Indiana taxpayers pay an average effective overall tax rate of around 12%. The top 1% of Indiana taxpayers pays an effective overall tax rate of around 5.2%. The taxes included in these percentages include income tax, excise tax, sales tax on individuals […]

CNBC: Is Your State a Gas Tax Winner–Or Loser?

July 22, 2015

As states from Connecticut to California scramble to find money to fix crumbling highways, Congress once again is expected this week to put a short-term patch on the nearly insolvent federal highway trust fund. To make up the shortfall, Congress has transferred more than $53 billion from other tax revenue over the past five years, […]

Cheat Sheet: 10 Worst States in America for Fair Tax Systems

July 13, 2015

Americans generally believe that higher income households should pay a greater percentage of their incomes in taxes than lower income households. Yet the exact opposite occurs. The Institute on Taxation and Economic Policy (ITEP) finds the nationwide average effective state and local tax rates by income group are 10.9% for the poorest 20% of individuals […]

Daily Journal: Indexes unveil winners, losers under tax policy

May 1, 2015

We’re less familiar with a different ranking of state taxes by the Institute on Taxation and Economic Policy. It ranks state tax systems based on their effects on the distribution of income. It doesn’t like Indiana very much. We’re 42nd on the 2015 list. According to the institute, in every state lower-income people pay a […]

Indiana Institute for Working Families: The Status of Working Families in Indiana – 2015

January 20, 2015

The Status of Working Families is a biennial report that analyzes the general state of Indiana’s economy as it relates to working families by examining data on poverty, labor force and wages, followed by working-family friendly policy options. This year, our report offers access to the data, online and interactively, for users who wish to […]

WBAA: Think Tank Questions Effort to Eliminate Business Personal Property Tax

October 28, 2014

Matt Gardner with the Institute on Taxation and Economic Policy says property taxes nationwide are increasingly limited to real property. But he says for equipment that has significant value to a business‘s profit-making ability, it makes sense to tax that equipment. “It’s a rough proxy for the benefits you derive from government services,” says Gardner. […]

New York Times: The State-by-State Revival of the Right

October 10, 2014

In an analysis of how the Indiana cuts are distributed by income groups, the liberal Institute on Taxation and Economic Policy found that the bottom 20 percent are getting an average cut of $10, those in the middle are getting $56, while the top 1 percent get $1,181. Read more

Indiana Institute for Working Families: What Corporate Tax Burden

March 18, 2014

On the immediate heels of significantly cutting taxes for corporations and high income individuals, lawmakers are close to making a deal to deliver additional tax breaks to some businesses including very profitable multi-national corporations. Read the Full Report

The Times of Northwest Indiana: Study options before tinkering with taxes

January 6, 2014

(Original Post) January 02, 2014 12:00 am  •  By Doug Ross Indiana Gov. Mike Pence wants to eliminate the personal property tax for businesses, perhaps paying for it by increasing county income taxes. He’s also talking about a very modest state income tax break. At the same time, Indiana’s revenues haven’t kept pace with expectations. […]

Business First: Immigration reform would add $56M to Kentucky, Indiana coffers

July 12, 2013

(Original Post) Staff Business First A newly released study shows that national and state tax revenues in Kentucky and Indiana would increase by nearly $56 million annually if immigration reform passes. As The Courier-Journal reports, the study by the nonpartisan Institute on Taxation and Economic Policy estimates that millions of undocumented immigrants who would obtain […]

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5% Cut in Indiana’s Income Tax is Stacked in Favor of the Wealthy

April 26, 2013 • By Carl Davis

Indiana Governor Mike Pence and the state's legislative leaders recently announced a budget agreement that, among other things, phases the state's flat personal income tax rate down from 3.4 percent to 3.23 percent by 2017.

Indianapolis Star: Indiana suffers from bad tax system, bad tax cuts

April 22, 2013

Written by Dan Carpenter Do Hoosiers even want Gov. Mike Pence’s income tax cut? And should they, considering that Indiana has one of the most regressive, elitist, tax systems in the nation, and what’s on the table will only make matters worse? The first question was put to Pence in a recent meeting with The […]

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Indiana Senate’s Income Tax Cut: Just as Lopsided as the Governor’s

April 8, 2013 • By Carl Davis

The Indiana Senate Appropriations Committee recently approved a budget cutting the state's personal income tax rate from 3.4 percent to 3.3 percent beginning in 2015. Although this proposal costs less than one-third the amount of Governor Pence's preferred cut (which would take the rate down to 3.06 percent), it would still reduce state revenues by roughly $150 million each year.

Goshen News: Sen. Carlin Yoder discusses immigration bill

February 11, 2013

(Original Post) Tax cut proposal Among many other issues discussed at Saturday’s Third House was Gov. Mike Pence’s proposed 10 percent cut in the state income tax. Jeremy Bernstein, an organizer for Americans for Democratic Action, spoke out against the cut. He said a recent study by the Institute on Taxation and Economic Policy ranked […]

Indiana Public Media: Indiana Taxes Disadvantage Low-Income Groups

February 4, 2013

(Original Post) By Brandon Smith, IPBSPosted February 4, 2013 A new study from a national research group suggests Indiana’s overall tax structure is disadvantageous to middle- and low-income Hoosiers. The report from the Institute on Taxation and Fiscal Policy says, taking into consideration Indiana’s income, sales, property and excise taxes, the effective tax rate means […]

South Bend Tribune: Better to pass on this tax cut

January 30, 2013

(Original Post) January 16, 2013 Indiana Gov. Mike Pence is pressing on with his campaign pledge to lower the state’s flat income tax rate from 3.4 percent to 3.06 percent. Saving taxpayers money and carrying through on promises are laudable goals. Yet cutting this tax seems wrong. First of all, the state and local tax […]

Times of Northwest Indiana: Put tax cut promise on back burner

January 30, 2013

(Original Post) December 20, 2012 12:00 am  •  By Doug Ross From all indications, Gov.-elect Mike Pence’s 10 percent tax cut plan is dead in the water in the General Assembly. A governor’s policies aren’t necessary legislators’ views. Key legislative leaders have said they are skeptical of Pence’s plan to cut the individual income tax […]

The Journal Gazette: Pence leads charge with education, tax-cut call

January 23, 2013

(Original Post) Last updated: January 23, 2013 10:38 a.m.State of state Niki Kelly | The Journal Gazette INDIANAPOLIS – Gov. Mike Pence preached optimism in his first-ever State of the State speech Tuesday night, specifically calling on lawmakers to cut taxes and improve education. “Together, we will build a more prosperous future. Together we will […]

Indiana Association for Community Economic Development: Indiana Property Taxes: Is Property Tax Relief or Tax Restructuring the Solution?

January 15, 2013

Many Indiana communities are once again experiencing what is perceived to be a property tax “crisis.” However, by its most common definition, a crisis implies a situation that is characterized by unexpectedness and sudden change. Although the drastic increase in property tax bills is sudden for many homeowners, the implementation of Indiana’s property tax assessment […]

Northwest Indiana Times: NiSource among companies getting large tax breaks

December 19, 2012

(Original Post) By Bowdeya Tweh [email protected], (219) 933-3316 | Posted: Friday, November 4, 2011 12:00 am NiSource Inc. was one of 30 companies that benefited from a negative income tax rate in the past three years, according to two national tax policy research groups. In a report released Thursday, Citizens for Tax Justice and the […]