Institute on Taxation and Economic Policy (ITEP)

Massachusetts

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State Rundown 4/6: Late-Session Surprises Pt. 2

• By ITEP Staff

Last week we highlighted how several states were pushing through regressive tax cuts as their legislative sessions are coming to a close. Well, this week many of those same states took further actions on those bills and it’s safe to say we’re even less impressed than before...

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State Rundown 2/23: Temporary Surplus, Permanent Cuts

• By ITEP Staff

Several state legislatures are continuing to push ahead this year with significant tax cut packages that are regressive and would dramatically reduce revenues and leave states in a bad position should they experience another unexpected economic shock...

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State Rundown 2/2: The First Tax Cut Domino Falls…

• By ITEP Staff

One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion...

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State Rundown 1/26: States Offering Preview of Tax Themes and Trends for 2022

• By ITEP Staff

Governors and legislators are beginning to settle on and advance tax bills that could drastically shape the future of their states and several trends and themes are beginning to emerge...

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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 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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The Impact of Work From Home on Commercial Property Values and the Property Tax in U.S. Cities

• By ITEP Staff

The fiscal implications of a decline in commercial property values are important because the property tax is the dominant local source of taxes, and commercial property makes up a significant portion of the property base in cities.

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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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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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State Rundown 8/4: Tis the Season…for Unnecessary Sales Tax Holidays

• By ITEP Staff

It’s beginning to look a lot like that time of year again. That’s right, it’s sales tax holiday season and states across the country are doing their best to induce spending that would probably occur regardless...

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State Rundown 7/21: States Go for Tax Policy Gold This Olympics Season

• By ITEP Staff

It’s Olympics season! As countries around the globe battle for first place in a plethora of sports and contests it’s as good a time as any to look around America to see which states deserve a gold medal in the ‘Equitable Tax Policy’ event...

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State Rundown 6/30: Resolutions Are in Order for the New Fiscal Year

• By ITEP Staff

Today is the last day of the fiscal year in many states, and some lawmakers might want to take the opportunity to make some new fiscal year resolutions. Legislators in Arizona, New Hampshire, Ohio, North Carolina, and Wisconsin, for example, should really cut back on the trickle-down tax-cut Kool-Aid, which may make parties with rich donors more fun but tends to be both harmful and habit-forming...

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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 6/7: Remaining State Legislative Sessions Are Heating up as Budget Deadlines Loom

• By ITEP Staff

Just as an early summer heatwave brought soaring temperatures this past weekend through much of the lower 48 states, several state legislative sessions are heating up as legislators scramble to make tough budget decisions. Massachusetts lawmakers are voting on a fiery new "millionaires' tax" that would support transportation and education revenue needs, and Connecticut will likely restore its state Earned Income Tax Credit (EITC) back to 30 percent. Illinois’s decision to cut back corporate tax…

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Income Tax Increases in the President’s American Families Plan

• By ITEP Staff, Matthew Gardner, Steve Wamhoff

President Biden’s American Families Plan includes revenue-raising proposals that would affect only very high-income taxpayers.[1] The two most prominent of these proposals would restore the top personal income tax rate to 39.6 percent and eliminate tax breaks related to capital gains for millionaires. As this report explains, these proposals would affect less than 1 percent of taxpayers and would be confined almost exclusively to the richest 1 percent of Americans. The plan includes other tax…

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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...

Massachusetts Budget & Policy Center: Ending the Tax Penalty Against Working Immigrants: MA Should Follow Other States Extending EITC to Immigrant Tax Filers

• By ITEP Staff

The Earned Income Tax Credit (EITC) is a key program for reducing poverty in the United States. Together with the federal Child Tax Credit, these low-income federal credits lifted 7.5 million households above the poverty line in 2019, more than any other program except Social Security. In Massachusetts, the EITC provides support to more than […]

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State Rundown 5/13: States Get Federal Aid and Guidance as Many Sessions Wind Down

• By ITEP Staff

We had our noses buried in new American Rescue Plan guidance...when we heard the refreshing news that Missouri leaders are on the verge of modernizing their tax code, not only by becoming the final state to apply sales taxes to online purchases, but also by enacting an Earned Income Tax Credit (EITC)...Meanwhile, tax debates are also highly active in California, Colorado, Louisiana, Maine, and Nebraska. We also share some of our own reporting on recent…

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Effects of the President’s Capital Gains and Dividends Tax Proposals by State

• By ITEP Staff, Matthew Gardner, Steve Wamhoff

President Biden’s proposal to eliminate the lower income tax rate on capital gains (profits from selling assets) and stock dividends for millionaires would affect less than half of one percent (0.4 percent) of U.S. taxpayers if it goes into effect in 2022. The share of taxpayers affected would be less than 1 percent in every state.

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State Rundown 5/6: April Showers Bring Weeds As Well As Flowers

• By ITEP Staff

This week’s state fiscal news brings a reminder that even though advocates for great economic and racial justice have won some major progressive victories recently, anti-tax zealots have been hard at work too. Lawmakers advanced or enacted troubling regressive tax cuts or shifts in Idaho, Kansas, and Montana, and are actively debating them in Iowa, […]

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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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National and State-by-State Estimates of President Biden’s Campaign Proposals for Revenue

• By ITEP Staff, Matthew Gardner, Steve Wamhoff

During his presidential campaign, Joe Biden proposed to change the tax code to raise revenue directly from households with income exceeding $400,000. More precisely, Biden proposed to raise personal income taxes on unmarried individuals and married couples with taxable income exceeding $400,000, and he also proposed to raise payroll taxes on individual workers with earnings exceeding $400,000. Just 2 percent of taxpayers would see a direct tax hike (an increase in either personal income taxes,…

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State Rundown 3/17: Momentum for Sound Progressive Tax Reforms Continues to Build

• By ITEP Staff

We wrote last week that the inclusion of fiscal relief for states and localities in Congress’s American Rescue Plan should free up state lawmakers’ time and attention to focus on the comprehensive reforms needed to address upside-down and inadequate tax codes, and some states are already doing just that.

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How Long Has It Been Since Your State Raised Its Gas Tax?

• By Carl Davis

Many state governments are struggling to repair and expand their transportation infrastructure because they are attempting to cover the rising cost of asphalt, machinery, and other construction materials with fixed-rate gasoline taxes that are rarely increased.

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State Rundown 2/24: State Tax Debates Quickly Thaw Out with Warmer Weather

• By ITEP Staff

Warming temperatures in many parts of the country this week seem to be thawing out state fiscal debates as well. Multiple states including California, Colorado, Maryland, and New Jersey saw movement on efforts to improve tax credits for low- and middle-income families. Mississippi House lawmakers suddenly rushed through a dangerous bill to eliminate the state’s income tax and shift those taxes onto lower-income households. Montana senators also approved regressive income tax cuts and South Dakota…