Institute on Taxation and Economic Policy (ITEP)

Iowa

Des Moines Register: Aim for fairness in state tax policy

January 4, 2013

(PDF of Original Post) The Register’s editorial The political debate over taxes these days ranges from “We will not raise taxes” to “We will cut taxes.” There is little interest, it seems, in raising taxes, but there should at least be interest in the idea that taxes ought to be fair. By fair, that means […]

Mount Vernon-Libson Sun: Sun Editorial: Look at the complicated when tackling Iowa’s budget

January 4, 2013

(PDF of Original Post) We sure hope our state leaders take the “road less traveled” when the legislative session convenes this coming month and they face a $1 billion revenue shortfall. Certainly, cuts are needed. We laud those coming up with places to trim. In fact, we like a mix of ideas from Democrats to […]

The Des Moines Register: Iowa governor’s race: Candidate views differ on effect of corporate tax cuts

January 4, 2013

(PDF of Original Post) Iowa governor’s race: Candidate views differ on effect of corporate tax cuts By JASON CLAYWORTH • [email protected]• May 9, 2010 Republican governor candidates’ proposals to cut taxes for corporations would result in a smaller state government providing fewer services – and also could introduce greater inequities in Iowa’s tax system, some […]

The Des Moines Register: Ideology differences carry over to Culver, Branstad tax plans

January 4, 2013

(PDF of Original Post) 1:45 AM, Oct. 30, 2010 | Written byJASON CLAYWORTH Here’s what other groups are saying about state tax cuts. IOWA CHILD & FAMILY POLICY CENTER: It questions the premise of proposing state tax cuts, saying state government cannot further reduce revenues without harming vital services, such as K-12 education and children’s […]

The Hawk Eye: Lawmakers struggling with preschool issue

January 4, 2013

(PDF of Original Post) By CHRISTINIA CRIPPES [email protected] Area schools may be moving full steam ahead with their preschool programs, but state lawmakers have yet to weigh in on their future. Sen. Tom Courtney, D-Burlington, said the outcome will depend on how badly Republican Gov. Terry Branstad pushes his proposal. Lawmakers have been divided along […]

The Birmingham News: Our View: The time is right for the Legislature to grant sales tax relief to Alabama families struggling to make ends meet

December 21, 2012

(PDF of Original Post) By Birmingham News editorial boardFebruary 10, 2010, 5:30AM When the nation’s economy catches a cold, Alabama gets pneumonia, the saying goes. And when the nation’s economy catches pneumonia, as it has during the Great Recession? Let’s just say Alabama’s economy is gravely ill and struggling. In recent months, the state’s unemployment […]

The Birmingham News: Our View: Lawmakers should make Alabama’s tax system more fair and do away with the 4 percent state sales tax on food

December 21, 2012

(PDF of Original Post) By Birmingham News editorial board March 31, 2010, 5:45AM How does two weeks’ worth of free groceries sound? That’s what the great majority of Alabamians stand to gain if the Legislature removes the state’s 4 percent sales tax from food and over-the-counter drugs. Alabama Arise, a group that lobbies for the […]

The Birmingham News: Our View: The nation’s lowest-tax state reaps the nation’s highest amount from its poorest taxpayers

December 21, 2012

(PDF of Original Post) Alabama stands atop two national rankings. Auburn fans should be upset. But so should fans of the Crimson Tide. Obviously, we’re not talking BCS and AP pre-season college football rankings. Instead, we’re talking about two seemingly contradictory rankings of the state’s tax system that expose just how screwy it is. Alabamians […]

Think Progress: Perry Brags About Texas’ Tax System That Charges The Poor Four Times As Much As The Rich

December 21, 2012

Original Post September 16, 2011 by Pat Garofalo Texas Gov. Rick Perry (R) was on the campaign trail in Newton, Iowa today, reviving his stump speech promise to make government “as inconsequential in your life as I can.” At one point, Perry bragged about the Texas tax system and its light burden on “job creators”: […]

The American Independent: Wells Fargo received most tax breaks since 2008, report says

December 21, 2012

By Andrew Duffelmeyer Thursday, November 03, 2011 at 3:00 pm Wells Fargo & Co. tops the list of companies receiving the largest tax breaks since 2008, according to a joint study from Citizens for Tax Justice and the Institute on Taxation and Economic Policy. Wells Fargo is one of 30 companies that paid less than […]

The Courier-Journal: Study names Yum! Brands among companies “dodging” state taxes

December 19, 2012

(Original Post) Posted on December 9, 2011 by Chris Otts A new report names Louisville-based Yum! Brands as one of 68 Fortune 500 companies that paid no state corporate income taxes in at least one year between 2008-2010, despite earning profits for shareholders. The report doesn’t say that Yum! has been shorting the state of […]

Clarion Ledger: Corporations already evading Miss. state income tax

December 19, 2012

5:51 PM, Dec. 15, 2011 Written by Bill Minor Among the outlandish bills sponsored by Republican lawmakers I had mentioned a couple of weeks ago was one that would have repealed (yes, repealed) the state income tax on corporations. It didn’t pass. Now don’t be surprised if the bill resurfaces when the GOP takes over […]

The Huffington Post: State Tax Reform Legislation Likely In 15 States In 2013

December 19, 2012

(Original Post) John Celock Posted: 12/19/2012 12:59 pm EST WASHINGTON — Fifteen states are likely to see some sort of tax reform legislation in 2013, according to a study released Wednesday by the Institute on Taxation and Economic Policy. ITEP said that a series of tax reform packages, ranging from an extension of the sales […]

The American Independent: Arthur Laffer’s dynamic roadshow

December 18, 2012

(Original Post) Siddhartha Mahanta | 12.18.12 | 1:24 pm | Republishposted in Economy/Finance | Government Accountability/Reform | Politics On January 19 of this year, Kansas state Sen. Julia Lynn offered an exuberant greeting to renowned tax-cutting enthusiast Arthur Laffer. “What an honor and privilege to have you here in Kansas,” Lynn said, welcoming the fabled […]

Chicago Tribune: The case for a graduated income tax in Illinois

December 17, 2012

(Original Post) Tuesday, February 28, 2012 If Illinois were to adopt the same graduated income tax rate structure as Iowa, Illinois would raise $6.3 billion more in revenue than it does from its current five percent flat rate, while 54 percent—over half—of all taxpayers would pay less in state income taxes…from The Case for Creating […]

Birmingham News: Alabama’s tax system is unfair and immoral, but lawmakers have yet to ease the burden on most families

December 17, 2012

(Original Post) Once upon a time six years ago, the Legislature, prodded by a governor and shamed by a tax study, actually took a baby step toward tax fairness. Lawmakers raised the nation’s lowest income tax threshold — the point at which people begin paying state income tax — from an embarrassingly low $4,600 a […]

Salon: States shush corporate critics

December 17, 2012

(Original Post) Wednesday, Apr 4, 2012 7:45 AM Eastern Daylight Time From factory farms to home foreclosures, state governments are helping hide corporate wrongdoingBy David Sirota You can’t be outraged by — or fight back against — what you don’t know. At least that seems to be the theory behind a spate of new government-backed […]

St. Louis Post Dispatch: Missouri can’t afford to leave $400 million on the table

December 17, 2012

Monday, April 23, 2012 | 10:21 a.m. CDT BY St. Louis Post-Dispatch Forty-four of the 50 states in the nation don’t allow it. Missouri does, and in 2011, the practice denied state agencies nearly $400 million that Missourians desperately needed for health care, education, infrastructure and other essential services in every part of the state. […]

The Nation: ‘We Can’t Afford It’: The Big Lie About Medicaid Expansion

December 17, 2012

(Original Post) Richard Kim on July 20, 2012 – 10:47 AM ET In his letter to Health and Human Services Secretary Kathleen Sebelius rejecting the expansion of Medicaid under the Affordable Care Act, Texas Governor Rick Perry tells a whopper. Expanding Medicaid, he writes, would “threaten even Texas with financial ruin.” Texas has the highest […]

Yankton Daily Press & Dakotan: A Widening Divide

December 17, 2012

(Original Post) By Nathan [email protected]: Saturday, December 1, 2012 12:58 AM CSTDoes it matter that income inequality is increasing in South Dakota? A report by the Center on Budget and Policy Priorities and Economic Policy Institute found that, between the late 1990s to the mid-2000s, the drop in income among the bottom 20 percent of […]

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Split Roll Property Taxes

September 1, 2011 • By Carl Davis

In the past half century, state lawmakers have explored a wide variety of approaches to scaling back property taxes. One such approach is the split roll property tax, also known as a classified property tax. Unlike a regular property tax system which taxes all types of real property at the same rate, a split roll property tax applies different tax rates to different types of property. This policy brief looks at the advantages and disadvantages of the split roll approach.

As states continue to grapple with the impact of the most recent economic downturn, the budget revenue outlook for many states remains bleak. In this context, states must find ways to generate additional revenue without increasing the tax load on individuals and families struggling to make ends meet. For six states--Alabama, Iowa, Louisiana, Missouri, Montana, and Oregon--one straightforward approach would be to repeal the deduction for federal income taxes paid. Repealing the deduction would help these states reduce their budgetary gaps and make their tax systems less unfair. This policy brief explains how the deduction for federal income taxes works…

The budget outlook for state governments is bleak. Despite evidence that revenues are rebounding, there is a general acknowledgement that ?broad fiscal conditions remain fragile. The need for public investments—particularly health care for low-wage or unemployed workers and their families—is greater than ever. An increasing number of states are struggling to keep their fiscal year […]

My testimony today examines a problem facing not just Maryland, but a number of different states – the erosion of the corporate income tax and the related emergence of profitable “zero-tax corporations.” I also will discuss the single best strategy available to lawmakers seeking to respond to the problem of corporate tax avoidance – mandatory […]

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Options for Income Tax Simplification in Iowa

March 15, 2003 • By ITEP Staff

Simplicity is generally seen as a virtue in tax systems. The National Council of State Legislatures argues that a properly functioning tax system should “facilitate taxpayer compliance by avoiding a maze of taxes, forms and filing requirements.”1 Iowa Governor Tom Vilsack has echoed this sentiment, calling for a move to a “postcard” income tax in […]