ITEP Work in Action August 28, 2022
Missouri Budget Project: Special Session Tax Proposal Leaves Out 1/3 of Missouri Taxpayers, Weighted to Benefit WealthiestGovernor Parson’s recently released tax proposal would leave out about one-third of Missourians, including many of those who pay the highest proportion of their income in state & local taxes,…
blog July 10, 2019
Missouri’s Creative Approach to Ending the “Race to the Bottom” in State Business Taxes
Each year, state and local governments spend billions of dollars on targeted tax incentives—special tax breaks ostensibly designed to encourage businesses to relocate, expand or simply stay where they are. A law enacted by the Missouri legislature creates a template for states to work bilaterally to put the brakes on the “race to the bottom” in state business taxes.
ITEP Work in Action January 16, 2019
Missouri Budget Project: Senate Tax Bills Provide Unfair Giveaways, Leave Communities Reeling
An analysis by the Institute on Taxation & Economic Policy found that 91% of the tax cut would flow to the wealthiest 20% of Missourians.
October 17, 2018
Missouri: Who Pays? 6th EditionMISSOURI Read as PDF MISSOURI 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 – MissouriThe $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 July 10, 2018
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
ITEP Work in Action February 28, 2018
Missouri Budget Project: Sales Taxes on Groceries & the Importance of a Refundable EITCA state Earned Income Tax Credit (EITC), like the recently proposed Missouri Working Families Credit, could benefit as many as 515,000 working families with modest wages, providing hardworking families the…
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.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Missouri 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 Missouri 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 Missouri residents.
November 13, 2017
How the Revised Senate Tax Bill Would Affect Missouri 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 Missouri, 45 percent of the federal tax cuts would go to the richest 5 percent of residents, and 9 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Missouri 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.
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Missouri with 57.0 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 Missouri equally. The richest one percent of Missouri residents would receive 57.0 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $480,200 next year. The framework would provide them an average tax cut of $62,970 in 2018, which would increase their income by an average of 4.0 percent.
August 17, 2017
In Missouri 45.0 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Missouri population (0.5 percent) earns more than $1 million annually. But this elite group would receive 45.0 percent of the tax cuts that go to Missouri residents under the tax proposals from the Trump administration. A much larger group, 48.6 percent of the state, earns less than $45,000, but would receive just 5.7 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Missouri with 50.3 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 Missouri would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,587,000 in 2018. They would receive 50.3 percent of the tax cuts that go to Missouri’s residents and would enjoy an average cut of $101,580 in 2018 alone.
blog July 11, 2017
State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
media mention November 14, 2016
St Louis Post: Missouri’s new governor will need new ideas to fix a broken tax structure“Governor-elect Eric Greitens has bold tax-reduction plans for Missouri but vague budget-balancing ideas. He should pay attention to the advice of Dylan Grundman, a senior analyst with the Institute on…
media mention October 25, 2016
Columbia Daily Tribune: Open borders make America great“And though there are competing analyses about whether unlawfully present immigrants contribute more to the economy than they cost in education and health expenses, what cannot be denied is that,…
media mention July 22, 2016
St. Louis Post Dispatch: Editorial: Tennessee as tax-cut role model? Never mind“Tennessee’s gains are being subsidized by the poor and working class. The poorest 20 percent of Tennesseans pay 8.9 percent of their income on sales and excise taxes, according to…
ITEP Work in Action February 10, 2016
Missouri Budget Project: Earned Income Tax Credit: The Basics“A Missouri EITC would boost local communities and economies while encouraging work, enhancing take-home pay, and improving long-term health and economic outcomes for more than 500,000 Missouri families. A Missouri…
media mention August 10, 2015
Press Examiner: Day Back To School Sales Tax Holiday Underway“So states that are not doing sales tax holidays, they’re certainly not missing out”. According to the Institute on Taxation and Economic Policy, sales-tax holidays cost states about $300 million…
ITEP Work in Action May 7, 2015
Missouri Budget Project: State Earned Income Tax Credit Would Benefit MissouriEarned Income Tax Credits (EITCs) encourage work, enhance take-home pay, improve health & economic outcomes, and have lasting benefits. Proposals to create a state-level EITC would build on these benefits…
media mention January 20, 2015
St. Louis Post-Dispatch: In Rex Sinquefield’s Vision, Mom’s Generation is Written offThe current sales and excise tax burden on somebody who earns about $32,000 in Missouri is a little more than 5 percent of their income, according to the nonpartisan Institute…
media mention September 17, 2014
Kansas City Star: Study Ranks Kansas, Missouri Fairly High in Tax FairnessMissouri and Kansas appear to have relatively fair state and local tax systems when compared with other states, according to a study released Monday. The study by WalletHub, a personal…
media mention August 1, 2014
Streetsblog: Will Missouri Voters Go Along with the Highway Lobby’s Money Grab?By Angie Schmitt That means, if Amendment 7 passes, the state’s poorest residents — whether they drive or not — will pay a larger share of their income than the…