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.
ITEP Work in Action October 17, 2018
Michigan League for Public Policy: News Flash: Michigan Taxes Are Still Upside-Down
October 17, 2018
Michigan: Who Pays? 6th EditionMICHIGAN 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…
September 26, 2018
Tax Cuts 2.0 – MichiganThe $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 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 Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
ITEP Work in Action May 15, 2018
Michigan League for Public Policy: The Looming Danger of Tax Cut Triggers in Michigan
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.
ITEP Work in Action January 26, 2018
Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate
According to modeling by the Institute on Taxation and Economic Policy, in 2019 about 1,400 fewer filers (about 0.4%) will qualify for the credit, resulting in $7 million in fewer federal credits being distributed to the state. By 2027 about 14,500 fewer filers (about 2%) will qualify for the credit, resulting in a loss of $96 million of federal credit value. The same filers who lose their federal EITC will also lose their ability to claim their state EITC, resulting in a loss of additional local economic support.
blog January 12, 2018
State Rundown 1/12: Tax Cut Tunnel Vision Threatens to Bore State Budget Holes Even Deeper
As states continue to sift through wreckage of the federal tax cut bill to try to determine how they will be affected, two things should be clear to everyone: the richest people in every state just got a massive federal tax cut, and federal funding for shared priorities like education and health care is certain to continue to decline. State leaders who care about those priorities should consider asking those wealthy beneficiaries of the federal cuts to pay more to the state in order to minimize the damage of the looming federal funding cuts, but so far policymakers in Idaho, Iowa, Michigan, Missouri, Nebraska, South Carolina, and elsewhere are choosing instead to sing their same old tax-cutting tune. As the facts come into better focus, hopefully these leaders will change that tune.
ITEP Work in Action December 20, 2017
Michigan League for Public Policy: The benefits of Deferred Action for Childhood Arrivals (DACA) on immigrants in MichiganResearchers at the Institute on Taxation and Economic Policy (ITEP) estimate that nationwide, DACA enrollees contribute $2 billion in state and local taxes each year. In Michigan, these young adults…
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Michigan 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 Michigan 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 Michigan residents.
November 13, 2017
How the Revised Senate Tax Bill Would Affect Michigan 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 Michigan, 49 percent of the federal tax cuts would go to the richest 5 percent of residents, and 10 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Michigan 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.
ITEP Work in Action October 18, 2017
Michigan League for Public Policy: Immigrant families in Michigan: A state profileMichigan immigrants also contribute millions in tax revenue each year, and in doing so help pay for important public programs and infrastructure in the state. In 2015 for example, undocumented…
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Michigan with 62.5 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Michigan equally. The richest one percent of Michigan residents would receive 62.5 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $502,500 next year. The framework would provide them an average tax cut of $76,560 in 2018, which would increase their income by an average of 4.7 percent.
August 17, 2017
In Michigan 38.6 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Michigan population (0.2 percent) earns more than $1 million annually. But this elite group would receive 38.6 percent of the tax cuts that go to Michigan residents under the tax proposals from the Trump administration. A much larger group, 43.3 percent of the state, earns less than $45,000, but would receive just 4.2 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Michigan with 53.2 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 Michigan would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,621,600 in 2018. They would receive 53.2 percent of the tax cuts that go to Michigan’s residents and would enjoy an average cut of $120,010 in 2018 alone.
media mention October 25, 2016
Detroit Free Press: Undocumented immigrants in Michigan face uncertain future“The Institute on Taxation and Economic Policy estimated undocumented immigrants paid about $10.6 billion in state and local taxes in 2010 — about $8 billion of which was accumulated through…
ITEP Work in Action May 18, 2016
Michigan League for Public Policy: Review tax expenditures to help fix Michigan’s broken revenue stream“Michigan has a budget problem, and simply put, there just isn’t enough money to go around. Michigan has experienced crisis after crisis—the Great Recession, nearly record-high unemployment, municipal financial emergencies,…
ITEP Work in Action December 18, 2015
Michigan League for Public Policy: The 2015 roads plan: Helps wealthy and hampers budget“Finally, the income tax rollback that was thrown in as a sweetener has implications on the budget as well as tax fairness. Under the plan, if General Fund revenues grow…
ITEP Work in Action November 2, 2015
Michigan League for Public Policy: Enough is Enough: Business Tax Cuts Fail to Grow Michigan’s Economy, Hurt BudgetCutting business taxes has not been an effective way to grow jobs and the Michigan economy as promised. This is particularly true when combined with increased taxes on individuals, disproportionately…
ITEP Work in Action October 21, 2015
Michigan League for Public Policy: Undocumented immigrants: Reform increases their tax contributionsUndocumented immigrants already contribute a significant amount to our state’s tax system. Under President Obama’s 2012 and 2014 executive actions, the amount will increase and could be even more with…
ITEP Work in Action October 21, 2015
Michigan League for Public Policy: Paving the roads on the backs of the working poorThe House Republican plan to fix Michigan’s roads by eliminating the state Earned Income Tax Credit raises taxes for the second time in five years on workers already struggling to…
ITEP Work in Action October 21, 2015
Michigan League for Public Policy: Testimony Presented to the House Roads and Economic Development Committee HB 4609 – EITC EliminationHouse Bill 4609, which would eliminate the Michigan Earned Income Tax Credit, is a tax hike on 820,000 working families who are raising 1 million children. It punishes working families…
media mention July 22, 2015
CNBC: Is Your State a Gas Tax Winner–Or Loser?As states from Connecticut to California scramble to find money to fix crumbling highways, Congress once again is expected this week to put a short-term patch on the nearly insolvent…
media mention July 13, 2015
Michigan Live: Road Repair Needs Trump ‘No Tax’ Mantra in Several GOP StatesEight states, all but one of them headed by Republican governors, have either hiked gas taxes or scaled back planned cuts in order to fund road repairs this year, according…