ITEP Work in Action May 11, 2023
OpenSky Policy Institute: Proposed Property Tax Breaks Benefit Wealthy While Restricting School RevenueThe Legislature on Wednesday and Thursday will consider property tax breaks and corresponding income tax cuts that together would restrict the revenue that’s available to fund important programs that all Nebraskans…
ITEP Work in Action March 27, 2023
OpenSky Policy Institute Webinar: Data Shows Child Tax Credits Benefit Hardworking FamiliesNew evidence on child tax credits at the federal level has shown “stunning” results in lifting children out of poverty throughout the country and a state-level policy could continue that…
ITEP Work in Action March 3, 2023
OpenSky Policy Institute: Policy Brief: Consumption TaxThe consumption tax proposal in LB 79 would require a rate of 22.1 percent to be revenue neutral, OpenSky analysis conducted with the Institute on Taxation and Economic Policy finds.…
ITEP Work in Action January 23, 2023
Open Sky Policy Institute: Major Tax and Education Plans Would Quickly Drain Flush State CoffersThe cost of high-profile K-12 finance and tax packages introduced this week would entirely consume the projected $1.9 billion that lawmakers have to enact new legislation in the current two-year budget…
ITEP Work in Action February 4, 2022
Open Sky Policy Institute: Most Nebraskans Left Behind by Income Tax Cut BillsNon-Nebraskans, corporations and wealthy residents would be big winners under the latest income tax cuts proposed in in LB 938 and LB 939. Meanwhile, the bills – which would ratchet the state’s top…
ITEP Work in Action May 11, 2021
Open Sky Policy Institute: LB 64: A costly measure that is unlikely to impact retiree migrationLB 64, a bill slated for second-round debate on today’s legislative agenda, is a costly measure that would give wealthy retirees a sizable tax break under the premise of keeping…
ITEP Work in Action May 6, 2021
Open Sky Policy Institute: Policy brief — LB 432: A big tax cut for corporationsLB 432, which will soon be up for debate on select file, would give a sizable tax cut to corporations and their shareholders. The vast majority of the tax cut…
ITEP Work in Action May 5, 2021
Open Sky Policy Institute: Policy Brief — LR 11CA presents a dangerous, untested proposalUnder the proposed 10.64% tax rate, and with the allowance, the Institute on Taxation and Economic Policy (ITEP) finds that all income groups would receive a tax cut on average,…
October 17, 2018
Nebraska: Who Pays? 6th EditionNEBRASKA Read as PDF NEBRASKA 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 – NebraskaThe $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 June 26, 2018
Gas Taxes Rise in Seven States, Including an Historic Increase in Oklahoma
A rare sight is coming to Oklahoma. The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing, and Congress was debating whether to ban smoking on flights shorter than two hours. Fast forward 31 years, and Oklahoma is finally at it again. On Sunday, the state’s gas tax rate will rise by 3 cents and its diesel tax rate by 6 cents. Both taxes will now stand at 19 cents per gallon—still among the lowest in the country. But Oklahoma isn’t the only state where gas taxes will soon rise.
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.
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 Nebraska 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 Nebraska 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 Nebraska residents.
November 14, 2017
How the Senate Tax Bill Would Affect Nebraska 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 Nebraska, 40 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 Nebraska 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.
blog October 18, 2017
State Rundown 10/18: Ballot Initiative Efforts Being Finalized
Ballot initiatives relating to taxes made news around the country this week, with Oregon voters to consider reversing new health care taxes, Washingtonians to vote on improving education funding, and Nebraskans to potentially vote on a state tax credit for school property taxes. Meanwhile, multiple states are finalizing their proposals to lure Amazon to build a new headquarters in their state, often through the use of massive tax subsidies. And in our “What We’re Reading” section we have sobering news from Moody’s Investors Service on states’ struggles to fund their infrastructure and save for the next recession.
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Nebraska with 59.3 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 Nebraska equally. The richest one percent of Nebraska residents would receive 59.3 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $521,300 next year. The framework would provide them an average tax cut of $80,910 in 2018, which would increase their income by an average of 5.1 percent.
August 17, 2017
In Nebraska 38.4 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Nebraska population (0.5 percent) earns more than $1 million annually. But this elite group would receive 38.4 percent of the tax cuts that go to Nebraska residents under the tax proposals from the Trump administration. A much larger group, 41.8 percent of the state, earns less than $45,000, but would receive just 5.0 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Nebraska with 52.6 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 Nebraska would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,572,200 in 2018. They would receive 52.6 percent of the tax cuts that go to Nebraska’s residents and would enjoy an average cut of $128,300 in 2018 alone.
blog May 17, 2017
Investors and Corporations Would Profit from a Federal Private School Voucher Tax CreditA new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
report May 17, 2017
Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect public dollars for K-12 education toward private schools.
blog May 4, 2017
Nebraska Vote Is Latest Defeat for Tax-Cut “Trigger” GimmickNebraska lawmakers had a long and contentious tax-cut debate this session but ultimately chose the wise path and rejected attempts to give a massive tax cut to the wealthy at…
ITEP Work in Action April 17, 2017
Open Sky Policy Institute: Amid budget woes, plan calls for tax cuts for the wealthyLB 461, the tax-cut package put forth by the Revenue Committee, is first and foremost an income tax cut for wealthy Nebraskans and the proposal does little to truly address…