
January 9, 2017
The LLC Loophole is unfair, expensive, and failed to create jobs. According to the Institute on Taxation and Economic Policy, the LLC loophole costs Kansas nearly $290 million per year. It was originally touted as the plan’s signature feature, but now legislators and business leaders of all political stripes publicly acknowledge that it failed to […]
January 5, 2017
“The LLC exemption — which eliminated taxes on pass-through business income and relieved the tax burden for more than 330,000 Kansas business owners — was passed and signed almost half a decade ago. The exemption has cost our state hundreds of millions of dollars since then (the Institute on Taxation and Economic Policy says it […]
January 4, 2017 • By ITEP Staff
This week we bring you updates on major revenue shortfalls looming in Nebraska, Oklahoma, and Pennsylvania, as well as gas tax changes taking effect in some states and being debated in others. — Meg Wiehe, ITEP State Policy Director, @megwiehe Oklahoma lawmakers are weighing options to close the state’s $870 million shortfall. Up for discussion are […]
December 18, 2016
The morning after the election was tough. Half the country woke up feeling devastated, the other half awoke feeling excited. Regardless of who you voted for, it’s hard to come back together when we feel so deeply divided. In Kansas, however, we have a special opportunity to rise to the occasion. Read more here
November 14, 2016
“Governor-elect Eric Greitens has bold tax-reduction plans for Missouri but vague budget-balancing ideas. He should pay attention to the advice of Dylan Grundman, a senior analyst with the Institute on Taxation and Economic Policy in Washington. Grundman warned the commission of ‘three paths to avoid.’ One is to cut income taxes in hopes of spurring […]
This report explains the workings, and problems, with state-level tax subsidies for private K-12 education. It also discusses how the Internal Revenue Service (IRS) has exacerbated some of these problems by allowing taxpayers to claim federal charitable deductions even on private school contributions that were not truly charitable in nature. Finally, an appendix to this report provides additional detail on the specific K-12 private school tax subsidies made available by each state.
Despite this unlevel playing field states create for their poorest residents through existing policies, many state policymakers have proposed (and in some cases enacted) tax increases on the poor under the guise of "tax reform," often to finance tax cuts for their wealthiest residents and profitable corporations.
August 30, 2016
“[Tax holidays] don’t help lower-income people much either, according to the left-leaning Institute on Taxation and Economic Policy (ITEP).” Read more
August 17, 2016 • By Dylan Grundman O'Neill, Meg Wiehe
Read the brief in a PDF here. The federal tax system treats income from capital gains more favorably than income from work. A number of state tax systems do as well, offering tax breaks for profits realized from local investments and, in some instances, from investments around the world. As states struggle to cope with […]
August 5, 2016
The Bay State isn’t the only state to forgo its sales-tax holiday in order to raise additional funds. Kansas, North Carolina, Nebraska, Rhode Island and Wisconsin, state legislators are among those that have also decided against holding new tax holidays or reinstating them during the last few years, and they’ll be saving money as a […]
July 11, 2016 • By Meg Wiehe
This brief was updated July 2018 Read this Policy Brief in PDF here. Sales taxes are an important revenue source, composing close to half of all state tax revenues.[1] But sales taxes are also inherently regressive because the lower a family’s income, the more the family must spend on goods and services subject to the […]
June 20, 2016
“The poorest 20 percent of households — those making less than $23,000 a year — are paying about $200 more, on average, according to an analysis by the Institute on Taxation and Economic Policy in Washington. For the middle class, the changes have been a wash, with less-affluent households paying somewhat more and more-affluent households […]
Read this Policy Brief in PDF Form Map of State Treatment of Itemized Deductions Thirty-one states and the District of Columbia allow a group of income tax breaks known as “itemized deductions.” [1] Itemized deductions are designed to help defray a wide variety of personal expenditures that affect a taxpayer’s ability to pay taxes, including charitable […]
March 22, 2016 • By Carl Davis
Read full report in PDF Download detailed appendix with state-by-state information on deductions and credits (Excel) Every state levying a personal income tax offers at least one deduction or credit designed to defray the cost of higher education. In theory, these policies help families cope with rising tuition prices by incentivizing college savings or partially […]
March 16, 2016
“Ohio is among the states that come up in discussions about big tax cuts. But was Kasich’s truly the largest in the nation? “There are at least half a dozen reasons why there has to be an asterisk after that sentence,” said Carl Davis, research director at the Institute on Taxation and Economic Policy, a […]
February 24, 2016 • By Lisa Christensen Gee, Meg Wiehe
This report was updated in March 2017 Read as a PDF. (Includes Full Appendix of State-by-State Data) Report Landing Page Public debates over federal immigration reform often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants particularly at the state level. The truth is that undocumented immigrants living in the United […]
February 3, 2016
“The biggest benefits of Governor Brownback’s 2012 tax program went to the top 1 percent, while actually increasing taxes for the bottom 20 percent. Kansas now has the ninth most unfair tax system of any state in the country, according to the Institute on Taxation and Economic Policy. The poorest 20 percent of Kansans pay […]
January 28, 2016 • By Jenice Robinson
The Michigan legislature just approved a $28 million appropriation to provide immediate aid in response to the water crisis in Flint, Mich., where vulnerable children and families have been poisoned by toxic lead. This avoidable crisis partly has roots in the misguided movement to cut taxes so much that state and local governments have difficulty […]
November 30, 2015
“YOUR CYBER MONDAY TAX UPDATE: Carl Davis of the left-leaning Institute on Taxation and Economic Policy notes that this year will be the first holiday season that Amazon — in the midst of a massive national expansion of its distribution network — collects sales tax in a majority of states. In fact, ITEP notes that […]
October 21, 2015
“Every Kansas income group will pay more as a result of this tax increase, but it still doesn’t solve Kansas’ ongoing budget crisis,” said Duane Goossen, senior fellow at the Kansas Center for Economic Growth and former state budget director. “Kansas is draining over $800 million a year as a result of Gov. Brownback’s 2012 […]
October 21, 2015
The end-result of this years’ historically long session was quite predictable: taxes were raised on hard-working Kansans to cover the budget shortfall caused by the unaffordable tax cuts of 2012-13. The increases recently adopted will fall primarily on low- and moderate-income Kansans because such a big chunk of the new money will come from sales […]
Read the Report in PDF Form An individual savings account can serve as an emergency reserve – a financial cushion to sustain yourself in the event of an emergency. “Rainy day” funds are much like individual saving accounts, but on a statewide scale. Lawmakers use rainy day funds to set aside state tax revenue during […]
The U.S. Census Bureau released data in September showing that the share of Americans living in poverty remains high. In 2014, the national poverty rate was 14.8 percent - statistically unchanged from the previous year. However, the poverty rate remains 2.3 percentage points higher than it was in 2007, before the Great Recession, indicating that recent economic gains have not yet reached all households and that there is much room for improvement. The 2014 measure translates to more than 46.7 million - more than 1 in 7 - Americans living in poverty. Most state poverty rates also held steady between…
September 15, 2015
“All state tax systems are inherently unfair, at least that is the verdict issued by the Institute on Taxation and Economic Policy (ITEP). ITEP’s 2015 Who Pays: A Distributional Analysis of the Tax Systems in All Fifty States report analyzed state and local tax systems to assess the fairness with which each system is designed […]
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 […]