Institute on Taxation and Economic Policy (ITEP)

Ohio

Tax cuts have been proposed in many states already this year, but amid so much uncertainty, it remains to be seen how successful those efforts will be. This week saw one dangerous, largely regressive tax cut proposal move in Georgia, new budget proposals in Louisiana and New Jersey, a new plan to close West Virginia‘s […]

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Undocumented Immigrants’ State & Local Tax Contributions

March 1, 2017 • By Lisa Christensen Gee, Meg Wiehe, Misha Hill

Public debates over federal immigration reform, specifically around undocumented immigrants, often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants, particularly at the state level. The truth is that undocumented immigrants living in the United States paybillions of dollars each year in state and local taxes. Further, these tax contributions would increase significantly if all undocumented immigrants currently living in the United States were granted a pathway to citizenship as part of comprehensive immigration reform. Or put in the reverse, if undocumented immigrants are deported in high numbers, state and local revenues could take a substantial…

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State Rundown 2/23: Regressive Tax Proposals Multiplying

February 23, 2017 • By ITEP Staff

This week saw a nearly successful attempt to right the fiscal ship in Kansas; regressive tax proposals introduced in WestVirginia, Georgia, and Missouri; ongoing gas tax fights in Indiana, South Carolina, and Tennessee; and further tax and budget wrangling in Illinois, New Mexico, Oklahoma, and beyond. — Meg Wiehe, ITEP State Policy Director, @megwiehe Both […]

This is the fourth installment of our six-part series on 2017 state tax trends. The introduction to this series is available here.   State lawmakers often find themselves looking for ways to raise revenue to fund vital public services, fill budget gaps, or pay for the elimination or weakening of progressive taxes. Lately, that search has […]

Policy Matters Ohio: Kasich plan continues tax shift

February 14, 2017

Governor John Kasich’s new tax proposal would further reinforce the shift in Ohio’s state and local tax system in favor of affluent residents and against those with lower or middle incomes. Under the plan, Ohioans who made under $56,000 last year – those in the bottom three-fifths of the income spectrum – on average would […]

Policy Matters Ohio: Ohio Nees a Strong Income Tax

February 10, 2017

Ohio’s income tax is the only major tax that is based on ability to pay. This principle was embraced by the founders of our democracy, such as Thomas Jefferson, as well as by the intellectual father of capitalism, Adam Smith. As your taxable income goes up, you pay a higher rate; for instance, income between […]

This week we bring news of Kansas lawmakers attempting to fix ill-advised tax cuts that have wreaked havoc on the state’s budget and schools, while their counterparts in Nebraska and Idaho debate bills that would create similar problems for their own states, as well as tax cuts in Arkansas that were proven unaffordable within one […]

Policy Matters Ohio: Kasich Budget Shifts Taxes Again

February 7, 2017

New analysis for Policy Matters Ohio by the Institute on Taxation & Economic Policy, a national nonprofit research institute with a sophisticated model of the state and local tax system, shows the governor’s tax plan raises taxes for many Ohioans. It reduces state income tax rates and cuts the number of brackets from nine to five.

This is the third installment of our six-part series on 2017 state tax trends. The introduction to this series is available here. As we described last week, many states are gearing up for challenging budget debates this year. But the need to address revenue shortfalls has not stopped lawmakers in many states from pursuing harmful […]

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State Rundown 2/1: 2017 State Tax Debates Getting Real

February 1, 2017 • By ITEP Staff

This week’s Rundown brings news of tax cuts passed in Arkansas and advanced in Idaho, proposals to exempt feminine hygiene products from sales taxes in Nevada and Michigan, revenue shortfalls forcing tough choices in Louisiana and Maine, and more governors’ state of the state addresses and budget proposals setting the stage for yet more tax […]

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State Tax & Revenue Information

January 31, 2017 • By ITEP Staff

Below is a list of notable resources for information on state taxes and revenues: Alabama Alabama Department of Revenue Alabama Department of Finance – Executive Budget Office Alabama Department of Revenue – Tax Incentives for Industry Alabama Legislative Fiscal Office Alaska Alaska Department of Revenue – Tax Division Alaska Office of Management & Budget Alaska […]

Policy Matters Ohio: Common Sense Reform for Working Ohio

January 27, 2017

Tax modeling from the Institute on Taxation and Economic Policy (ITEP), a national organization with a sophisticated model of the state tax system, shows that Ohio’s current EITC reaches only about 8 percent of the state’s neediest working families and 11 percent of middle income workers. A 20 percent, refundable, non-capped, EITC would extend the […]

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An Overview of State Tax Trends in 2017

January 26, 2017 • By Meg Wiehe

Since the 2007-2009 economic crisis, rising income inequality and the role our public policies play in aiding or easing this trend have been an ongoing part of the public discourse. In spite of what we know about the growing gap between the rich and the rest of us, federal and state policymakers continue to sell […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Policy Matters Ohio: Tax Cuts Help Create Ohio’s Revenue Crunch

January 25, 2017

In 2015, the General Assembly approved a two-year budget lasting through this June that cuts taxes by nearly $1.9 billion. When legislators approved those cuts, Policy Matters Ohio asked a respected national policy group with a model of Ohio’s tax system to review them. The Institute on Taxation and Economic Policy found that the top […]

Policy Matters Ohio: Flat tax would mean more taxes for most

January 19, 2017

  Nearly three-quarters of Ohioans would pay more in state income taxes under flat-rate tax plans for which a joint legislative commission is developing an implementation plan. At the same time, the most affluent 1 percent of Ohioans would see tax cuts averaging $4,000 or more a year.  Nearly three-quarters of Ohioans would pay more […]

Register Herald: Flat tax would make most Ohioans pay more

January 14, 2017

“Using a sophisticated model of Ohio’s tax system, the national research group, Institute on Taxation and Economic Policy (ITEP), found that with a 3.5 percent flat tax, 72 percent of Ohioans would pay more state income tax, while just 4 percent would pay less. The remaining 24 percent would pay the same amount as they […]

This week brings still more states looking for solutions to revenue shortfalls, multiple governors’ State of The State addresses, important reading on counter-transparency and local-preemption efforts, and more.  — Meg Wiehe, ITEP State Policy Director, @megwiehe A Nebraska legislator this week diagnosed the state’s $900 million revenue shortfall in plain terms, describing it as “self-inflicted […]

Cincinnati Enquirer: Immigration coalition braces for policy changes

January 9, 2017

“Grayson, the Interfaith Workers Center director, said the coalition needs to try to work to educate the public that attempts at widespread deportations would be costly and harm families and the U.S. economy. A report released in February by the Institute on Taxation and Economic Policy, a nonprofit, non-partisan research organization, calculated that the 11 […]

Policy Matters Ohio: Flat Tax Would Make Most Ohioans Pay More

January 5, 2017

Using a sophisticated model of Ohio’s tax system, the national research group, Institute on Taxation and Economic Policy (ITEP), found that with a 3.5 percent flat tax, 72 percent of Ohioans would pay more state income tax, while just 4 percent would pay less. The remaining 24 percent would pay the same amount as they […]

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State Estate and Inheritance Taxes

December 21, 2016 • By Dylan Grundman O'Neill, Meg Wiehe

For much of the last century, estate and inheritance taxes have played an important role in fostering strong communities by promoting equality of opportunity and helping states adequately fund public services. While many of the taxes levied by state and local governments fall most heavily on low-income families, only the very wealthy pay estate and inheritance taxes. Changes in the federal estate tax in recent years, however, caused states to reevaluate the structure of their estate and inheritance taxes. Unfortunately, the trend of late among states has tended toward weakening or completely eliminating them. But this need not be so;…

Times Reporter: Al Landis is best candidate for Statehouse

October 28, 2016

“In fact, a study of state tax systems from the Institute on Taxation and Economic Policy reported the bottom 20 percent put 11.7 percent of their income toward taxes while the top 1 percent, who make over $356,000 a year, pay 5.5 percent toward the same taxes.” Read more

Times Reporter: Challenger Jeremiah Johnson seeks 98th District House seat

October 18, 2016

“The study, ‘Who Pays? A Distributional Analysis of the Tax Systems in All 50 States,’ produced by the Institute on Taxation and Economic Policy (ITEP) and released in Ohio by Policy Matters Ohio, reported the bottom 20 percent put 11.7 percent of their income toward taxes while the top 1 percent, who make over $356,000 […]

Bloomberg: Ohio Income Tax Cuts

September 27, 2016

“The shifting composition of Ohio’s taxes has meant a shift, too, in who pays for state and local government. According to an analysis by the Institute on Taxation and Economic Policy of the major tax changes between 2005 and 2014, the most affluent 1 percent of Ohioans saw an average annual cut in their tax […]

Policy Matters Ohio: Testimony: Tax Cuts, Flat Tax Aren’t the Answer

September 26, 2016

Overall, the top 1 percent, who made more than $360,000 a year in 2014, received an average annual tax cut of $20,000 from the major tax changes between 2005 and 2014 (that doesn’t include last year’s cuts). On average, Ohioans in the bottom 60 percent of the income spectrum (making $54,000 or less) are paying slightly more.