Institute on Taxation and Economic Policy (ITEP)

Maryland

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State Rundown 1/20: Governors Eyeing Tax Cuts in Yearly Addresses

• By ITEP Staff

A common theme is emerging out of states, as governors around the U.S. begin the year with their annual state speeches, and the news does not bode well for long-term growth and sustainable budgets...

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State Rundown 1/13: The Tax Cuts Cometh, But There Is a Better Way

• By ITEP Staff

As expected, with the start of many new legislative sessions around the country, lawmakers have introduced a slew of tax cut plans following better-than-expected budget outlooks that have, so far, weathered the impact of the pandemic...

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Investing in a Joint Future: Harnessing State Tax Codes

• By Aidan Davis

Rather than resorting to tax cuts, which can eventually create revenue shortfalls, lawmakers should determine whether they have adequately invested in people and communities. There are better ways to leverage tax systems to help those who need it most.

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

• By ITEP Staff

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...

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

• By ITEP Staff

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...

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State Rundown 11/23: Thankful for Tax Advocates Like You!

• By ITEP Staff

Here at ITEP we want to give thanks and say we’re grateful for all of the hard work that advocates in states across the country are doing to secure progressive tax policy victories...

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State Rundown 10/27: Pumpkin Spice & Everything Nice

• By ITEP Staff

The end of Spooky Season is near but that hasn’t stopped state lawmakers from adding their frightening plans into the bubbling cauldron of bad tax policy ideas...

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

• By Aidan Davis

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.

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State Rundown 10/13: Haven Sent Edition

• By ITEP Staff

The release of the ‘Pandora Papers’ showed once again that states and their tax systems play an important role in wealth inequality, and in this case, worsening it...

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

• By Carl Davis, Jessica Schieder, Marco Guzman

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

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State Rundown 9/29: Where There’s Smoke, There’s Revenue?

• By ITEP Staff

One of the few industries to excel during the economic downturn brought on by the pandemic has been the marijuana business, and lawmakers around the country are taking notice as they try to ensure that sales in their state are both legal and subject to tax...

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Repealing the SALT Cap Would Wipe Out Revenue Raised by the House Ways and Means Bill’s Income Tax Provisions

• By Steve Wamhoff

There are several ways that the House leadership could avoid this problem. One approach is for lawmakers to replace the SALT cap with a different kind of limit on tax breaks for the rich that actually raises revenue and avoids disfavoring some states compared to others as the SALT cap does. ITEP has suggested a way to do this.

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State Rundown 9/15: It’s a Little Too Quiet…

• By ITEP Staff

Though we can’t fault anyone for being distracted by the major stories of the day, we at ITEP remain committed to keeping you up to date on what’s happening in the tax world around you...

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Extending Federal EITC Enhancements Would Bolster the Effects of State-Level Credits

• By Aidan Davis

The EITC expansion targets workers without children in the home. In 2022 it would provide a $12.4 billion boost, benefiting 19.5 million workers who on average would receive an income boost of $730 dollars.

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Options to Reduce the Revenue Loss from Adjusting the SALT Cap

• By Carl Davis, ITEP Staff, Matthew Gardner, Steve Wamhoff

If lawmakers are unwilling to replace the SALT cap with a new limit on tax breaks that raises revenue, then any modification they make to the cap in the current environment will lose revenue and make the federal tax code less progressive. Given this, lawmakers should choose a policy option that loses as little revenue as possible and that does the smallest amount of damage possible to the progressivity of the federal tax code.

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Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform

• By Dylan Grundman O'Neill

Policymakers tout sales tax holidays as a way for families to save money while shopping for “essential” goods. On the surface, this sounds good. However, a two- to three-day sales tax holiday for selected items does nothing to reduce taxes for low- and moderate-income taxpayers during the other 362 days of the year. Sales taxes are inherently regressive. In the long run, sales tax holidays leave a regressive tax system unchanged, and the benefits of…

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Congress Should Follow States’ Lead on Inclusive Economic Recovery

• By Meg Wiehe

President Joe Biden's American Families and Jobs plans intend to “build back better” and create a more inclusive economy. To fully live up to this ideal, the final plan must include undocumented people and their families.

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State-Level EITC Victories in 2021

• By Aidan Davis

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…

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State Rundown 6/16: Progressive Tax Policy Keeps Racking Up Wins

• By ITEP Staff

Taxing rich households and large corporations to fund vital investments in education and other shared priorities has long been a winner in the eyes of the American public, and more recently has also enjoyed a string of victories in state legislatures and at the ballot box. That win streak continued this week as Arizona’s voter-approved tax surcharge on the rich and Seattle, Washington’s payroll tax on high-profit, high-salary businesses both survived court challenges, and Massachusetts…

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State Rundown 5/20: You Learn Something New Every Tax Day

• By ITEP Staff

“Tax Day” was earlier this week but the debates, research, and advocacy that determine our taxes and how they are used take place every day of the year...

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Nearly 20 Million Will Benefit if Congress Makes the EITC Enhancement Permanent

• By Aidan Davis

Overall, the EITC enhancement would provide a $12.4 billion boost in 2022 if made permanent, benefiting 19.5 million workers. It would have a particularly meaningful impact on the bottom 20 percent of eligible households who would receive more than three-fourths of the total benefit. Forty-one percent of households in the bottom 20 percent of earners would benefit, receiving an average income boost of 6.3 percent, or $740 dollars.

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Bold Progressive State Tax Victories Provide Bright Spots in Difficult Year

• By Dylan Grundman O'Neill

“Bold progressive victories” is probably not the first phrase that comes to mind when thinking about state laws enacted so far in 2021...But progressive advocates, lawmakers, and voters have won some tremendous victories in states recently...We should celebrate them for the achievements they are—and closely study them for lessons they can teach about how to bring about positive progressive change in these and other states.

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An EITC to Lift Up Young Workers

• By Devin Douglass

Young workers are confronting a harsh economic reality filled with student loan debt and far too few good-paying jobs. The pandemic reinforced this group’s long history of not receiving proper benefits, such as health insurance, from their employers. They also are often overlooked when it comes to policies that promote economic wellbeing. The federal Earned Income Tax Credit (EITC), for example, is a glowing success story. It lifted 5.8 million people out of poverty in…

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State Rundown 4/14: More Progressive Wins in the Headlines this Week, but Mind the Fine Print

• By ITEP Staff

Two significant victories headlined state tax debates in the past week, as New Mexico leaders improved existing targeted tax credits to give bigger boosts and reach more families in need, and West Virginia lawmakers unanimously shut down a destructive effort to eliminate the state’s progressive income tax. These developments follow last week’s major wins for progressive taxation and targeted assistance in New York, and more good news is likely soon as Washington legislators continue to…

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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,…