Michigan
State Rundown 1/31: Governors and Teachers Dominate Headlines, Much More in Fine Print
• By ITEP Staff
Gubernatorial addresses and the prospect of teacher strikes continued to take center stage in state fiscal news this week, as governors of Connecticut, Maryland, and Utah gave speeches that all included significant tax proposals. Meanwhile, teachers walked out in Virginia, and many other states debated school funding increases to avoid similar results. State policymakers have many other debates on their hands as well, including what to do with online sales tax revenue, how to cut…
Taxing Cannabis
• By Carl Davis, Misha Hill, Richard Phillips
State policy toward cannabis is evolving rapidly. While much of the debate around legalization has rightly focused on potential health and criminal justice impacts, legalization also has revenue implications for state and local governments that choose to regulate and tax cannabis sales. This report describes the various options for structuring state and local taxes on cannabis and identifies approaches currently in use. It also undertakes an in-depth exploration of state cannabis tax revenue performance and…
State Rundown 1/18: Governors’ Speeches Kick Off State Fiscal Debates
• By ITEP Staff
Gubernatorial speeches and budget proposals dominated state fiscal news this week, as governors proposed a wide array of policies including positive reforms such as Earned Income Tax Credit (EITC) enhancements in CALIFORNIA, a capital gains tax on wealthy households in WASHINGTON, and investments in education in several states. Proposals to exempt more retirement income from tax, particularly for veterans, are a common theme so far this year, having been raised in multiple states including MARYLAND, MICHIGAN, and SOUTH CAROLINA. And NEW JERSEY became…
Record Eagle (Mich.): Help Michigan’s Poor by Scrapping Gas Tax
January 3, 2019
ndeed, the Institute on Taxation and Economic Policy finds the Michigan tax code to be a matter of “soak the poor and middle class, spare the wealthy.” According to ITEP, the total Michigan tax rate on the top 1 percent, with average income of $1,164,700, is 5.1 percent. This includes all Michigan taxes. The lowest […]
State Rundown 12/5: Familiar Questions Returning to Fore as 2019 Approaches
• By ITEP Staff
State lawmakers are preparing their agendas for 2019 and looking at all sorts of tax and budget policies in the process, raising many familiar questions. Oregon legislators, for example, will try to fill in the blanks in a proposal to boost investments in education that left out detail on how to fund them, while their counterparts in Texas face the inverse problem of a proposed property tax cut that fails to clarify how schools could…
State Rundown 11/8: Top Tax Takeaways from Tuesday
• By ITEP Staff
Tuesday’s elections shook up statehouses, governors’ offices, and tax laws in many states, and in this week’s Rundown we bring you the top 3 election state tax policy stories to emerge. First, voters in Kansas and other states sent a message that regressive tax cuts and supply-side economics have not succeeded and are not welcome among their state fiscal policies. Meanwhile, residents of many other states, including most notably Illinois, voted for representatives who reflect their preference for equitable, sustainable…
State Rundown 10/18: States Learn “Who Pays”!
• By ITEP Staff
Policymakers and residents in all 50 states and the District of Columbia got new ITEP data this week on how their tax structures and decisions affect their high-, middle-, and low-income residents. As our “Who Pays?” report outlines, most state and local tax codes exacerbate economic inequalities and all states have room to improve. The data can serve as an important informative backdrop to all state and local tax policy debates, such as whether to…
Michigan League for Public Policy: News Flash: Michigan Taxes Are Still Upside-Down
• By ITEP Staff
While no news is often regarded as good news, in this case, it’s not. Michigan’s tax structure is still highly regressive, and taxes Michiganders with low incomes at a higher rate than Michigan’s wealthiest residents, according to a report by the Institute on Taxation and Economic Policy.
Michigan: Who Pays? 6th Edition
• By ITEP Staff
MICHIGAN Read as PDF MICHIGAN 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 4% Top 1% Income Range Less than $17,600 $17,600 to $33,000 $33,000 to $57,100 $57,100 to $95,900 $95,900 to $199,600 $199,600 to $422,100 over $422,100 […]
State Rundown 10/4: Ballot/Election Season in Full Swing
• By ITEP Staff
South Carolina lawmakers have finally passed a federal conformity bill in response to last year’s federal tax-cut legislation. Voters in many states are hearing a lot about tax-related questions they’ll see on the ballot in November, particularly residents of Florida, Montana, and Oregon, where corporate donors and other anti-tax interests are spending major sums to alter policy in their states. And states continue to work on ensuring they can collect online sales taxes and, in…
Tax Cuts 2.0 – Michigan
• By ITEP Staff
The $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 “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. And they falsely claim that making these provisions permanent will benefit […]
Options for a Less Regressive Sales Tax in 2018
• By Aidan Davis
Sales taxes are one of the most important revenue sources for state and local governments; however, they are also among the most unfair taxes, falling more heavily on low- and middle-income households. Therefore, it is important that policymakers nationwide find ways to make sales taxes more equitable while preserving this important source of funding for public services. This policy brief discusses two approaches to a less regressive sales tax: broad-based exemptions and targeted sales tax…
State Rundown 8/22: Wayfair Fallout Could Hit the Pavement Soon
• By ITEP Staff
Arizona voters learned this week that they will have an opportunity this fall to restore school funding through a progressive tax measure. The effects of the Supreme Court’s Wayfair decision could soon be seen on Michigan and Mississippi roads, as leaders in both states have proposed devoting new online sales tax revenues to infrastructure needs. And new research highlighted in our “What We’re Reading” section discredits one-size-fits-all prescriptions for state economic growth such as supply-side…
State Rundown 8/8: States Setting Rules for Upcoming Tax Decisions
• By ITEP Staff
August is often a season for states to define the parameters of tax debates to come, and that is true this week in several states: a tax task force in Arkansas is nearing its final recommendations; residents of Missouri, Montana, and North Carolina await results of court challenges that will decide whether tax measures will show up on their ballots this fall; and Michigan and South Dakota are taking different approaches to making sure they’re…
Updating Sales and Excise Taxes to Reflect Today’s Economy
• By ITEP Staff
Consumers’ growing interest in online shopping and “gig economy” services like Uber and Airbnb has forced states and localities to revisit their sales taxes, for instance. Meanwhile new evidence on the dangers and causes of obesity has led to rising interest in soda taxes, but the soda industry is fighting back. Carbon taxes are being discussed as a tool for combatting climate change. And changing attitudes toward cannabis use have spurred some states to move…
Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
• By Dylan Grundman O'Neill
An updated version of this brief for 2019 is available here. Read this report in PDF. Overview 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 […]
State Rundown 6/13: Budget Crunch Time Sets in as State Fiscal Years Come to Close
• By ITEP Staff
With many state fiscal years ending June 30th, budget negotiations were completed recently in California, Illinois, Michigan, and North Carolina. New Jersey remains a state to watch as a government shutdown looms but leaders continue to disagree about a proposed millionaires tax, corporate taxes, and school funding. In other states looking to wealthy individuals and large corporations for needed revenues, Arizona's teacher pay crisis could be solved with a tax on its highest-income residents and…
State Rundown 6/1: Time Is Ripe for Closer Look at Intergovernmental Relations
• By ITEP Staff
This week, Virginia lawmakers overcame their budget impasse and approved an expansion of Medicaid, North Carolina's behind closed doors budget debate appears to be wrapping up, and Vermont's special session continues in the wake of the governor's vetoes of the state budget and accompanying tax bills. New research highlighted in our What We're Reading section shows that both corporate income tax cuts and business tax subsidies contribute to wider economic inequality. And the possible reconstitution…
State Rundown 5/23: Special Sessions Abound Amid Budget Vetoes, Stalemates, Federal Tax Bill
• By ITEP Staff
This week the governors of Louisiana and Minnesota both vetoed budget bills, leading to another special session in Louisiana and unanswered questions in Minnesota, and Missouri legislators managed to push through a tax shift bill just before adjourning their regular session and heading right into a special session to impeach their governor. Wisconsin and Wyoming localities are both looking at ways to raise revenues as state funding drops. And our What We're Reading section contains…
Most States Have Raised Gas Taxes in Recent Years
• By Carl Davis
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.
Michigan League for Public Policy: The Looming Danger of Tax Cut Triggers in Michigan
• By ITEP Staff
New analysis by the Institute on Taxation and Economic Policy (ITEP) uses current year and two-year forecasts to calculate the impact that a 0.1 or 0.25 rate reduction in the Personal Income Tax (PIT) could have on taxpayers and state revenue. The data shows that any reduction in the PIT actually shifts the tax load further to low-income Michiganders.
Trends We’re Watching in 2018, Part 5: 21st Century Consumption Taxes
• By Misha Hill
We're highlighting the progress of a few newer trends in consumption taxation. This includes using the tax code to discourage consumption of everything from plastic bags to carbon and collecting revenue from emerging industries like ride sharing services and legalized cannabis sales.
Trends We’re Watching in 2018, Part 3: Improvements to Tax Credits for Workers and Families
• By Aidan Davis
This has been a big year for state action on tax credits that support low-and moderate-income workers and families. And this makes sense given the bad hand low- and middle-income families were dealt under the recent Trump-GOP tax law, which provides most of its benefits to high-income households and wealthy investors. Many proposed changes are part of states’ broader reaction to the impact of the new federal law on state tax systems. Unfortunately, some…
Trends We’re Watching in 2018, Part 1: State Responses to Federal Tax Cut Bill
• By Dylan Grundman O'Neill
Over the next few weeks we will be blogging about what we’re watching in state tax policy during 2018 legislative sessions. And there is no trend more pervasive in states this year than the need to sort through and react to the state-level impact of federal tax changes enacted late last year.
State Rundown 2/22: State Tax Debates Grind On
• By ITEP Staff
This week, major tax packages relating to the federal tax-cut bill made news in Georgia, Iowa, and Louisiana, as Minnesota and Oregon lawmakers also continue to work out how their states will be affected. New Mexico's legislative session has finished without significant tax changes, while Idaho and Illinois's sessions are beginning to heat up, and Vermont's school funding system is under the microscope.
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