Institute on Taxation and Economic Policy (ITEP)

Michigan

State Rundown 12/10: ‘Tis the Season to Reclaim Lost Revenue

property tax debates are taking place throughout the nation.

Linking to Tipped and Overtime Income Deductions Would Worsen State Shortfalls, Do Little to Help Workers

State deductions for tips and overtime are not only ineffective at supporting working-class people, it will come at a substantial cost to state budgets.

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Local Vacancy Taxes: A Tool but Not a Panacea

November 17, 2025 • By Rita Jefferson

Local Vacancy Taxes: A Tool but Not a Panacea

Vacancy taxes will not single-handedly solve problems in cities, but they are worth considering to address housing shortages, land use, and building thriving communities.

State Rundown 11/13: States Tackle Impending Deficits, Pennsylvania Secures an EITC

Revenue forecasts look increasingly grim as states anticipate shortfalls due to the slowing economy and impacts of the new federal tax law.

State Rundown 11/5: Voters Say “Yes!” to Public Investments

Despite being an off-year election, voters made a call for shared public investments at the polls.

State Rundown 10/27: As Temperatures Cool Tax Policy Heats Up

States across the nation are debating how best to respond to costly new federal tax cuts.

Why States Shouldn’t Go Along With OBBBA’s Corporate Tax Breaks: A Practical Guide

States should immediately decouple from four costly corporate tax provisions in the new federal tax law.

State Rundown 9/4: Colorado Tackles Offshore Corporate Tax Avoidance, Paves Way for State Conformity Best Practices

Despite an increasingly bleak state revenue outlook, state lawmakers across the country continue to prioritize regressive tax cuts.

Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform

Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.

Anti-Tax Revolts Backfire: What We’ve Learned from 50 Years of Property Tax Limits

Across-the-board property tax cuts create less fair local tax systems in the long run. State legislators and local governments should prioritize the residents who can least afford their property taxes, not the residents and businesses who can.

How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

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Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

July 7, 2025 • By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela

Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

Trump Megabill Will Give $117 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

How Much Do the Top 1% in Each State Get from the Trump Megabill?

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

Trump Megabill’s Deduction for Car Loan Interest Would Not Offset Tariff-Related Auto Price Increases for Most Buyers

The auto loan interest deduction that recently passed the House is designed, at least in part, to mitigate the impact of tariff-induced price increases on vehicles assembled in America. But the deduction is incapable of offsetting even small-scale price increases, especially for working-class families and others with moderate incomes.

State Rundown 6/11: States in The Eye of a Fiscal Hurricane?

State legislatures are enjoying a relatively quiet period right now, though it is merely a temporary calm before the storm of the federal tax and budget debate begins raging again.

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Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

May 22, 2025 • By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff

Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

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Trump 2025 Tax Law: Research and Resources

May 2, 2025 • By ITEP Staff

Trump 2025 Tax Law: Research and Resources

Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.

IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

Sharp Turn in Federal Policy Brings Significant Risks for State Tax Revenues

Summary The new presidential administration and Congress have indicated that they intend to bring about a dramatic federal retreat in funding for health care, food assistance, education, and other services that will push more of the responsibility for providing these essential services to the states. Meeting these new obligations would be a challenging task for […]

State Rundown 3/20: It’s March, Welcome to Tax Policy Madness

March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of most regressive state tax policies while others are looking to lift up best practices for more equitable outcomes.   The Mississippi legislature landed on a […]

Shelter Skelter: How the Educational Choice for Children Act Would Use Tax Avoidance to Fuel School Privatization

The Educational Choice for Children Act of 2025 would ostensibly provide a tax break on charitable donations to organizations that give out private K-12 school vouchers. Most of the so-called “contributions,” however, would be made by wealthy people solely for the tax savings, as those savings would typically be larger than their contributions.

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High-Rent, Low-Wealth: Addressing the Racial Wealth Gap through a Federal Renter Credit

March 3, 2025 • By Brakeyshia Samms, Emma Sifre, Joe Hughes

High-Rent, Low-Wealth: Addressing the Racial Wealth Gap through a Federal Renter Credit

While the federal tax code has some policies focused on raising income of low earners, it contains fewer provisions designed specifically to address wealth inequality. A renter tax credit offers a simple, administratively practical means of reaching low-wealth populations through the federal tax code without requiring a comprehensive measurement of every household’s wealth.

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State-by-State Tax Expenditure Reports

March 1, 2025 • By ITEP Staff

Below is a list of tax expenditure reports published in the states.

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Learn from Prop 13 History to Avoid Repeating Past Mistakes

February 26, 2025 • By Rita Jefferson

Learn from Prop 13 History to Avoid Repeating Past Mistakes

Worries about housing costs and property tax bills are leading people to check the history books for solutions, but there’s a danger that they’ll repeat past mistakes. If anti-tax lawmakers carelessly weaken property taxes as they did in the 1970s, as they did with California’s Proposition 13, they will undercut public finances, making municipalities, school districts, and other special districts worse off.