ITEP Work in Action May 7, 2019
Maryland Center on Economic Policy: Improving the Child Tax Credit Would Benefit More than 700,000 MarylandersRefundable tax credits like the Earned Income Tax Credit and the Child Tax Credit make an important difference for working families, together bringing more than 100,000 Marylanders’ family incomes above the federal…
blog December 4, 2018
Housing for All? Developers Bulldoze Taxpayers in Affordable Housing Debate
Affordable housing advocates across the nation are attempting to address the problem at the local level, but they often face political and community opposition. These challenges are currently playing out in Baltimore, which is turning into a case study in how the best-planned civic interventions run into tough road blocks when it comes to tax increases versus moneyed special interest who seek to block those tax increases.
October 17, 2018
Maryland: Who Pays? 6th EditionMARYLAND Read as PDF MARYLAND STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – MarylandThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
blog July 10, 2018
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
blog June 26, 2018
Gas Taxes Rise in Seven States, Including an Historic Increase in Oklahoma
A rare sight is coming to Oklahoma. The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing, and Congress was debating whether to ban smoking on flights shorter than two hours. Fast forward 31 years, and Oklahoma is finally at it again. On Sunday, the state’s gas tax rate will rise by 3 cents and its diesel tax rate by 6 cents. Both taxes will now stand at 19 cents per gallon—still among the lowest in the country. But Oklahoma isn’t the only state where gas taxes will soon rise.
blog May 22, 2018
Most States Have Raised Gas Taxes in Recent Years
An updated version of this blog was published in April 2019.
State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Maryland Residents’ Federal TaxesThe final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Maryland Residents’ Federal Taxes
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Maryland residents.
blog November 14, 2017
House Tax Plan Offers an Exceptionally Bad Deal for California, New York, New Jersey, and Maryland
An ITEP analysis reveals that four states would see their residents pay more in aggregate federal personal income taxes under the House’s Tax Cuts and Jobs Act. While some individual taxpayers in every state would face a tax increase, only California, New York, Maryland, and New Jersey would see such large increases that their residents’ overall personal income tax payments rise when compared to current law.
November 13, 2017
How the Revised Senate Tax Bill Would Affect Maryland Residents’ Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Maryland, 77 percent of the federal tax cuts would go to the richest 5 percent of residents, and 27 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Maryland Residents’ Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
October 4, 2017
30% of Marylanders Would Pay More Under GOP-Trump Tax Framework, But the State’s Richest 1% Would Pay Less
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Maryland equally. More than 30 percent of Maryland households would have higher tax bills, but nearly everyone among the richest one percent of the state’s residents would receive a tax cut.
media mention August 28, 2017
Washington Post: Ahead of regional summit, left-leaning policy groups say ‘No’ to a sales tax for Metro
A regionwide one-cent sales tax to fund Metro would have a disproportionate impact on poor families, taking five times the share of income from the bottom 20 percent of earners when compared with those in the top 1 percent, according to a new analysis from a trio of left-leaning think tanks representing the District, Maryland and Virginia.
ITEP Work in Action August 28, 2017
DC Fiscal Policy Institute, Maryland Center on Economic Policy, and The Commonwealth Institute: Triple Whammy: A Regional Sales Tax for Metro, Like Fare Hikes and Service Cuts, Would Fall Hardest on Struggling Families
A strong Metro system is important to all of us in the Washington region. And everyone agrees that the Metro system needs new resources to rebuild its health. But a regional sales tax—a widely discussed option—would be an unfair way to pay for it.
ITEP Work in Action August 24, 2017
Maryland Center on Economic Policy: Trump Tax Framework Would Give Away Trillions in Tax Breaks to Millionaires
The Trump administration and congressional leaders are gearing up to overhaul the federal tax code this fall. While many of the details remain fuzzy, one thing is clear: the administration’s top priority is to hand out big tax breaks to millionaires.
August 17, 2017
In Maryland 61.9 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Maryland population (0.7 percent) earns more than $1 million annually. But this elite group would receive 61.9 percent of the tax cuts that go to Maryland residents under the tax proposals from the Trump administration. A much larger group, 37.7 percent of the state, earns less than $45,000, but would receive just 4.1 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Maryland with 69.7 Percent of the State’s Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Maryland would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,802,700 in 2018. They would receive 69.7 percent of the tax cuts that go to Maryland’s residents and would enjoy an average cut of $123,720 in 2018 alone.
ITEP Work in Action May 5, 2017
Maryland’s Money Matters: ‘Dreamers’ Make Important Contributions to Maryland
It is unclear, as of now, whether the Trump administration will choose to end protections for young adults who came to the U.S. as children and have legal status through the Deferred Action for Childhood Arrivals (DACA) program. If the administration elects to end the program, thousands of Marylanders could lose their jobs and ability to attend college, many business could lose valued workers, and Maryland could lose nearly $14 million annually in state and local tax revenue.
ITEP Work in Action January 10, 2017
Maryland Center for Economic Policy:To Support a Strong Economy, All Marylanders Must Pay Their Fair Share in TaxesMaryland’s success today is due to our past public investment in good schools, a strong transportation system and other building blocks of a prosperous economy. As another “tax day”…
media mention August 17, 2015
TV Newsroom: Tax-Free Weekend Offers Great Savings“The bottom line is that whatever policy goal you want to achieve through a sales tax holiday, there are probably better ways to achieve those goals”, said Matthew Gardner, executive…
media mention August 14, 2015
Slate: Don’t Fall for Back-to-School Tax HolidaysIf shoppers are simply shifting their spending to save on taxes, that means the states are losing revenue. That’s certainly the position of the Institute on Taxation and Economic Policy,…
media mention July 6, 2015
Huffington Post: How Some States Are Trying To Fix Their Crumbling InfrastructureCarl Davis, research director at the Institute on Taxation and Economic Policy, said efforts to raise state taxes to pay for roads and bridges exploded this year. In 2013 and…
media mention July 6, 2015
Rapid News Network: Michigan Senate could see road fix funding package todayThe Michigan Chamber of Commerce today applauded the Michigan Senate for their leadership in passing a comprehensive plan to fix Michigan’s roads. Gas taxes in six other states are to rise Wednesday,…
media mention July 6, 2015
Planetizen: State Gas Tax Changes Effective July 1: Six Up; One DownCarl Davis, Research Director of the Institute on Tax and Economic Policy (ITEP) writes where gas taxes used to fund transportation infrastructure increased, if only by decimal points, and about…