Institute on Taxation and Economic Policy (ITEP)

Kansas

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State Rundown 4/1: Most States Resisting Foolish Tax Cut Games That Tear Revenues Apart

• By ITEP Staff

Supporters of tax fairness and adequate funding for public needs are hoping West Virginia’s income tax elimination effort turns out to be a prank, but most states are not fooling around with such harmful policies this year. For example...

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Taxes and Racial Equity: An Overview of State and Local Policy Impacts

• By ITEP Staff

Historic and current injustices, both in public policy and in broader society, have resulted in vast disparities in income and wealth across race and ethnicity. Employment discrimination has denied good job opportunities to people of color. An uneven system of public education funding advantages wealthier white people and produces unequal educational outcomes. Racist policies such as redlining and discrimination in lending practices have denied countless Black families the opportunity to become homeowners or business owners,…

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Trickle-Down Myths Swamp Tax Policy Debates in Mississippi and West Virginia

• By Aidan Davis

Recent proposals in both Mississippi and West Virginia seek to pare back, and ultimately eliminate, each state’s income tax while shifting the responsibility of funding services even more onto low- and middle-income taxpayers through increased consumption taxes. The states are moving forward with this tax experiment even though a similar experiment notoriously and immediately sent Kansas into a financial tailspin.

Kansas Action for Children: Working Kansas Families Bear Brunt of Skewed Policies

• By ITEP Staff

In the midst of a global pandemic and recession, the Kansas Legislature shockingly continues to consider bills that will further lower the already low tax responsibilities of corporations and high-income Kansans. Lawmakers should reject legislation like Senate Bill 22 and instead work to enhance economic and racial equity through Kansas’s tax code. Our state’s leaders […]

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Comparing Flat-Rate Income Tax Options for Alaska

• By Carl Davis

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.…

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State Rundown 2/11: Legalizing and Taxing Cannabis Becoming Increasingly Mainstream

• By ITEP Staff

This week, the governors of New Hampshire and West Virginia proposed to eliminate their states’ most progressive revenue sources and shift taxes even more heavily onto the middle- and low-income families who already pay the highest rates in both states. It was also a big week for proponents of legalizing recreational cannabis, as that movement made progress in Hawaii, Virginia, and Wisconsin.

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

• By ITEP Staff

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…

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State Rundown 1/28: EITC Efforts a Welcome Contrast to State Tax Tug-of-War

• By ITEP Staff

Efforts to deliver and improve targeted tax credits to support low- and middle-income families proved to be unifying in Washington and Oregon, welcome developments in an otherwise divisive week in state tax debates. For example, Mississippi advocates hoping to end the state’s regressive grocery tax are up against a governor and many lawmakers pulling in the opposite direction by trying to eliminate its income tax. After Arizona residents approved an income tax increase to improve…

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State Rundown 1/22: Somewhere Between a Flurry and a Blizzard of State Tax Activity So Far

• By ITEP Staff

You won’t find any images of Bernie Sanders and his mittens photoshopped into this week’s Rundown, but you will find the latest news on state fiscal debates, including proposals to generate needed funding by raising taxes on high-income households and profiting businesses in California, Delaware, Hawaii, Maryland, and Washington, as well as misguided efforts to slash taxes in Arizona, Iowa, South Carolina, Utah, and West Virginia. Also in the news are thoughtful improvements to targeted…

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State Rundown 1/14: Bad Tax Cut Ideas Prove to Be Endemic

• By ITEP Staff

As states kick off their 2021 legislative sessions, it’s clear that many governors and lawmakers are attempting to “take a mulligan” on the last year and recycle tax-slashing ideas that were already bad in 2020 and are even worse now as states try to recover from the Covid-19 pandemic and accompanying downturn...On a brighter note, Illinois leaders showed they did learn from the events of 2020, passing a major criminal justice reform bill and payday…

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A Visual History of Sales Tax Collection at Amazon.com

• By ITEP Staff

Today, Amazon is collecting state-level sales taxes on all its direct sales but it still usually fails to collect sales tax on the large volume of sales it makes through the Amazon Marketplace. This points to a broader problem in state tax enforcement that lawmakers in many states are moving quickly to address with laws and administrative action requiring tax collection by Amazon and other large online marketplaces such as Etsy and eBay.

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State Rundown 11/24: Lawmakers and Families Thankful to Be Nearing End to 2020

• By ITEP Staff

Just as people will search their hearts to give thanks this week for the small and large things that got them through a difficult year, state lawmakers are also doing their best to count their blessings while keeping fingers crossed for badly needed federal relief to give them something to be truly grateful for.

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State Rundown 11/13: States Can Find Inspiration in Arizona Ballot Success; Must Look to Congress for More Immediate Help

• By ITEP Staff

Although progressive tax policy doesn’t always succeed in in statehouses or voting booths, Arizona voters showed once again that when offered a clear choice, most people resoundingly support requiring fairer tax contributions from rich individuals and highly profitable corporations over allowing their schools and other shared priorities to wither and decay. Still, a similar effort in Illinois and a more complicated measure in California were defeated, and anti-tax zealots in West Virginia and many other…

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State Taxation of Capital Gains: The Folly of Tax Cuts & Case for Proactive Reforms

• By Marco Guzman

The federal tax system and every state treat income from capital gains more favorably than income from work. Preferential capital gains tax treatment includes exclusions and seldom-discussed provisions like deferral and stepped-up basis, as well as more direct tax subsidies for profits realized from local investments and, in some instances, from investments around the world. This policy brief explains state capital gains taxation, examines the flaws in state capital gains tax breaks, and proposes reform…

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State Rundown 9/23: Tax Justice Advanced in New Jersey, On the Ballot in Illinois

• By ITEP Staff

New Jersey leaders grabbed the biggest headlines of the week by finally agreeing to implement a much-needed and long-discussed millionaires tax to shore up the budget and improve tax fairness. And Illinois residents can begin voting tomorrow to enact a graduated income tax there. Relatedly, ITEP Research Director Carl Davis updated our research debunking the myth that progressive taxes interfere with economic growth. Cannabis legalization and taxation was a hot topic as well, as lawmakers…

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State Rundown 6/26: States Take Varying Fiscal Approaches While Awaiting Federal Action

• By ITEP Staff

State policymakers this week took a variety of approaches to their fiscal situations amid the COVID-19 pandemic. Tennessee lawmakers chose to balance their budget through $1.5 billion in cuts to public services, but not before adding to those cuts by going forward with planned tax cuts. California legislators also passed a budget but relied on a number of temporary measures and delays to do so. Their counterparts in Massachusetts, New Jersey, and Rhode Island opted…

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State Rundown 6/11: Fiscal Debates Continue Amid Turmoil

• By ITEP Staff

As calls to defund the police demonstrate, state and local decisions about funding priorities and how those funds are raised are deeply embedded in racial justice issues. Tax justice is also a key component in advancing racial justice. Racial wealth disparities are the result of countless historic inequities and tax policy choices are certainly among […]

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State Rundown 5/27: Some States Finally Talking Revenue Solutions to Revenue Crisis

• By ITEP Staff

This week the immense scale and uneven distribution of economic and health damage from the COVID-19 pandemic continued to come into focus, hand in hand with greater clarity around pandemic-related revenue losses threatening state and local revenues and the priorities—such as health care, education, and public safety—they fund. Officials in many states, including Ohio and Tennessee, nonetheless rushed to declare their unwillingness to be part of any solution that includes raising the tax contributions of…

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State Rundown 5/20: State Revenue Crisis Getting Clearer…and Scarier

• By ITEP Staff

State policymakers are navigating incredibly uncertain waters these days as they attempt to get a firmer grasp on the scale of their revenue crises, identify painful budget cuts they may have to make in response, and look for ways to raise tax revenues coming from the households and corporations still bringing in large incomes and profits amid the pandemic—all while hoping that additional federal aid and greater flexibility in how they can use federal CARES…

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Sales Tax Policy in a Pandemic: Exemptions for Digital Goods and Services Are More Outdated Than Ever

• By Estefan Hernandez Escoto

Many states are making the decline in sales tax collection worse by failing to apply their sales taxes to digital goods (such as downloads of music, movies, or software) and services (such as digital streaming). A state that taxes movie theater tickets but not digital streaming, for instance, is needlessly hastening the decline of its own sales tax.

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State Rundown 4/22: Earth Day Lessons from Pangea to Pandemic

• By ITEP Staff

In different ways, Earth Day and the COVID-19 pandemic convey a similar lesson: people around the world face shared struggles and disparate impacts, which they must work together to overcome through both emergency action and systemic change. In keeping with that lesson, state fiscal policy news this week was strikingly similar around the country, as states take account of the major threat posed by the pandemic to their budgets and attempt to grapple with its…

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State Options to Shore up Revenues and Improve Tax Codes amid Pandemic

• By Dylan Grundman O'Neill, Meg Wiehe

The COVID-19 pandemic is an extraordinarily challenging time, as we see harm and struggle affecting the vast majority of our families, businesses, public services, and economic sectors. No one will be unaffected by the crisis, and everyone has a stake in the recovery and faces tough decisions. In the world of state fiscal policy, where revenue shortfalls are likely to be far bigger than can be filled by the initial $150 billion in federal aid…

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State Rundown 4/9: Pandemic’s Fiscal Effects Slowly Coming into Focus

• By ITEP Staff

The COVID-19 pandemic continued this week to wreak havoc on lives and communities around the world. The fiscal fallout of the virus in the states is growing as well, and beginning this week to come into sharper focus. This week’s Rundown brings together what we know of that slowly clarifying picture and how states are responding so far.

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State Rundown 4/3: States Welcome Federal Aid, Seek Further Solutions

• By ITEP Staff

States and families got good news this week as Congress came together to pass major aid to help during the COVID-19 coronavirus pandemic. But that bright spot came amid an onslaught of very difficult news about the public health crisis and the economic and fiscal fallout accompanying it. This week’s Rundown brings you the latest on these developments and state and local responses to them.

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State Rundown 3/11: Georgia Bucks Trend of Cautious Policymaking Amid Crises

• By ITEP Staff

With all eyes on the potential effects of the oil price war and COVID-19 coronavirus on lives, communities, and economies, Georgia House lawmakers this week crammed through a regressive and costly tax cut for the rich with essentially no debate, information, or transparency. Most states are proceeding much more responsibly, assessing the ramifications for their service provision needs and revenues to fund those needs.