Institute on Taxation and Economic Policy (ITEP)

Indiana

State Rundown 1/5: State Taxes Coming in Hot in New Year

The new year often brings with it new goals and a desire to take on complex problems with a fresh perspective. Unfortunately, that doesn’t always apply to state lawmakers when considering tax policy...

State Child Tax Credits and Child Poverty: A 50-State Analysis

Regardless of future Child Tax Credit developments at the federal level, state policies can supplement the federal credit to deliver additional benefits to children and families. State credits can be specifically tailored to meet the needs of local populations while also producing long-term benefits for society as a whole

State Rundown 8/10: States Still Talking Taxes as IRA Dominates Headlines

While federal tax policy has dominated the headlines with the Senate’s recent approval of the Inflation Reduction Act, lawmakers in statehouses across the country...

State Rundown 7/27: It’s (Sales Tax) Holiday Season, But Who’s Really Celebrating?

It’s the holiday season – well, the sales tax holiday season, that is. But after taking a closer look, you may notice that there is little to celebrate...

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 state with nearly 1 in 5 falling apart. The Iowa Board of Regents proposed a 4.25 percent tuition increase for all three state universities and […]

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State Rundown 6/22: Southern States Edition

June 22, 2022 • By ITEP Staff

State Rundown 6/22: Southern States Edition

With many state legislative sessions wrapped or wrapping up, we at ITEP want to take a moment to direct your attention south, and specifically, to the American South...

State Rundown 6/15: States on Alert as Inflation Concerns Rise

With inflation dominating headlines both nationally and locally, state lawmakers around the U.S. are searching for ways to put their revenues to good use, and not surprisingly, some options are better than others...

WVTF Radio: A gas tax holiday may not lead to savings for Virginia drivers

March 30, 2022

About a third of the savings will go to the oil industry, according to research into how this worked when Indiana and Illinois had a gas tax holiday. But that doesn’t mean Virginians will see the rest of the savings. Carl Davis at the Institute on Taxation and Economic Policy says a quarter of the […]

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State Gas Tax Holidays are Nothing to Celebrate

March 16, 2022 • By Carl Davis

State Gas Tax Holidays are Nothing to Celebrate

It’s unlikely that state gas tax holidays will meaningfully benefit consumers, and they come with risks for states’ infrastructure quality.

State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts

The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity...

State Rundown 2/16: Spending Priorities Emerge as the Votes Are Counted

State lawmakers have been busy working out deals and negotiating how best to use excess revenues, and as the votes are beginning to come in, spending priorities are becoming clearer...

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State Rundown 2/2: The First Tax Cut Domino Falls…

February 2, 2022 • By ITEP Staff

State Rundown 2/2: The First Tax Cut Domino Falls…

One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion...

State Rundown 1/26: States Offering Preview of Tax Themes and Trends for 2022

Governors and legislators are beginning to settle on and advance tax bills that could drastically shape the future of their states and several trends and themes are beginning to emerge...

The New Trend: Short-Sighted Tax Cuts for the Rich Will Not Grow State Economies

The same legislators who touted tax cuts for the rich as solution to our problems before the pandemic are also saying tax cuts for the rich are a solution during the pandemic. Tax cuts cannot be a solution to everything, especially at a time when the richest Americans are amassing more wealth than ever.

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State Rundown 1/5: New Year, Same Old Playbook

January 5, 2022 • By ITEP Staff

State Rundown 1/5: New Year, Same Old Playbook

The new year often brings with it a reinvigorated commitment to new goals and a fresh perspective on how to accomplish them, but it seems like lawmakers in states around the country are giving up already...

State Rundown 12/15: Making Our State Tax Naughty or Nice List & Checking it Twice

As the holiday season kicks into full gear, we’re putting the finishing touches on our State Tax Naughty or Nice list, and it looks like some late entrants are making a good case to be included...

Boosting Incomes and Improving Tax Equity with State Earned Income Tax Credits in 2021

The EITC benefits low-income people of all races and ethnicities. But it is particularly impactful in historically excluded Black and Hispanic communities where discrimination in the labor market, inequitable educational systems, and countless other inequities have relegated a disproportionate share of people to low-wage jobs.

State Income Taxes and Racial Equity: Narrowing Racial Income and Wealth Gaps with State Personal Income Taxes

10 state personal income tax reforms that offer the most promising routes toward narrowing racial income and wealth gaps through the tax code.

State Rundown 7/21: States Go for Tax Policy Gold This Olympics Season

It’s Olympics season! As countries around the globe battle for first place in a plethora of sports and contests it’s as good a time as any to look around America to see which states deserve a gold medal in the ‘Equitable Tax Policy’ event...

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State-Level EITC Victories in 2021

June 28, 2021 • By Aidan Davis

State-Level EITC Victories in 2021

A growing group of state lawmakers are recognizing the extent to which low- and middle-income Americans are struggling and the ways in which their state and local tax systems can do more to ensure the economic security of their residents over the long run. To that end, lawmakers across the country have made strides in enacting, increasing, or expanding tax credits that benefit low- and middle-income families. Here is a summary of those changes and a celebration of those successes.

State Rundown 5/6: April Showers Bring Weeds As Well As Flowers

This week’s state fiscal news brings a reminder that even though advocates for great economic and racial justice have won some major progressive victories recently, anti-tax zealots have been hard at work too. Lawmakers advanced or enacted troubling regressive tax cuts or shifts in Idaho, Kansas, and Montana, and are actively debating them in Iowa, […]

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State Rundown 4/21: Spring Has Sprung, or Has It?

April 21, 2021 • By ITEP Staff

State Rundown 4/21: Spring Has Sprung, or Has It?

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...

State Rundown 2/24: State Tax Debates Quickly Thaw Out with Warmer Weather

Warming temperatures in many parts of the country this week seem to be thawing out state fiscal debates as well. Multiple states including California, Colorado, Maryland, and New Jersey saw movement on efforts to improve tax credits for low- and middle-income families. Mississippi House lawmakers suddenly rushed through a dangerous bill to eliminate the state’s income tax and shift those taxes onto lower-income households. Montana senators also approved regressive income tax cuts and South Dakota legislators advanced an anti-tax constitutional amendment, while lawmakers in Hawaii, Rhode Island, and Washington made progress on improving the progressivity of their tax codes. Gas…

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Comparing Flat-Rate Income Tax Options for Alaska

February 24, 2021 • By Carl Davis

Comparing Flat-Rate Income Tax Options for Alaska

Alaska lawmakers are facing an unprecedented fiscal crisis. The state is more dependent than any other on oil tax and royalty revenues but declines in oil prices and production levels have sapped much of the vitality of these revenue sources. One way of diversifying the state’s revenue stream and narrowing the yawning gap between state revenues and expenses would be to reinstitute a statewide personal income tax. Alaska previously levied such a tax until 1980. This report contains ITEP’s analysis of the distributional impact and revenue potential of a variety of flat-rate income tax options for Alaska, based on draft…

State Rundown 2/4: Some Lawmakers, Governors Rising to Occasion with Progressive Tax Proposals

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 for more on bold proposals that increase tax fairness and solidify bottom lines with needed revenue in states including Connecticut, Minnesota, New York, Pennsylvania, Vermont,…