ITEP Work in Action November 18, 2022
The Economic Progress Institute: Rhode Island Standard of NeedWith scenic beaches, culinary and arts communities, higher education institutions, and a vibrant celebration of culture, Rhode Island can be a wonderful place to live and to raise a family.…
ITEP Work in Action August 18, 2020
Revenue for Rhode Island: An Equitable Path ForwardWe propose raising revenue for Rhode Island by adding one new tax bracket for the top 1% of earners – from 5.99% to 8.99% on adjusted gross income above $475,000.…
ITEP Work in Action December 20, 2018
Economic Progress Institute: Rhode Island Standard of Need
The RISN calculates a household budget for families with two young children, and for single adults. The no-frills budget includes the costs of housing, food, transportation, health care, child care and other necessities including clothing, toiletries and telephone service. The RISN also demonstrates how work supports like food assistance, tax credits, and child care and health care subsidies help close the gap between income and basic need expenses. By taking all of these factors into account, the RISN provides a more realistic measure of the economic security of Rhode Islanders than the federal poverty level.
ITEP Work in Action October 17, 2018
Uprise RI: Low-income Taxpayers in Rhode Island Pay Over 50 Percent More in Taxes Than the Wealthiest
There’s a practical reason for Rhode Island and all states to be concerned about regressive tax structures, according to ITEP. If the nation fails to address growing income inequality, states will have difficulty raising the revenue they need over time. The more income that goes to the wealthy (and the lower a state’s overall tax rate on the wealthy), the slower a state’s revenue grows over time.
October 17, 2018
Rhode Island: Who Pays? 6th Edition
According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Rhode Island has the 32nd most unfair state and local tax system in the country. Incomes are more unequal in Rhode Island after state and local taxes are collected than before.
blog October 2, 2018
Twelve States Offer Profitable Tax Shelter to Private School Voucher Donors; IRS Proposal Could Fix This
A proposed IRS regulation would eliminate a tax shelter for private school donors in twelve states by making a commonsense improvement to the federal tax deduction for charitable gifts. For years, some affluent taxpayers who donate to private K-12 school voucher programs have managed to turn a profit by claiming state tax credits and federal tax deductions that, taken together, are worth more than the amount donated. This practice could soon come to an end under the IRS’s broader goal of ending misuse of the charitable deduction by people seeking to dodge the federal SALT deduction cap.
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 March 7, 2018
Economic Progress Institute: Changes in Federal Tax Law Will Cut Taxes for Many Rhode Islanders; Wealthiest Families and Corporations Benefit the Most
To help explain what the Act will mean for Rhode Island, the Economic Progress Institute released a paper entitled “Changes in federal tax law will cut taxes for many Rhode Islanders; wealthiest families and corporations benefit the most.”
ITEP Work in Action January 30, 2018
Economic Progress Institute: Budget Matters: Making Rhode Island’s Tax Structure More Equitable and Adequate
For Rhode Island to achieve its potential as a first-class place to live and do business we need to ensure that we have the public services and amenities that enhance the quality of life and work in our state. Rhode Islanders make a collective investment through taxes, fees, and other forms of revenue to fund the services that businesses and residents count on.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Rhode Island 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-…
blog December 14, 2017
Private Schools Donors Likely to Win Big from Expanded Loophole in Tax Bill
For years, private schools around the country have been making an unusual pitch to prospective donors: give us your money, and you’ll get so many state and federal tax breaks in return that you may end up turning a profit. Under tax legislation being considered in Congress right now, that pitch is about to become even more persuasive.
report December 14, 2017
Tax Bill Would Increase Abuse of Charitable Giving Deduction, with Private K-12 Schools as the Biggest Winners
In its rush to pass a major rewrite of the tax code before year’s end, Congress appears likely to enact a “tax reform” that creates, or expands, a significant number of tax loopholes. One such loophole would reward some of the nation’s wealthiest individuals with a strategy for padding their own bank accounts by “donating” to support private K-12 schools. While a similar loophole exists under current law, its size and scope would be dramatically expanded by the legislation working its way through Congress.
December 6, 2017
How the House and Senate Tax Bills Would Affect Rhode Island 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 Rhode Island residents.
November 14, 2017
How the Revised Senate Tax Bill Would Affect Rhode Island 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 Rhode Island, 47 percent of the federal tax cuts would go to the richest 5 percent of residents, and 15 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Rhode Island 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 Rhode Island with 65.2 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 Rhode Island equally. The richest one percent of Rhode Island residents would receive 65.2 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $528,800 next year. The framework would provide them an average tax cut of $55,510 in 2018, which would increase their income by an average of 3.1 percent.
August 17, 2017
In Rhode Island 43.9 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Rhode Island population (0.5 percent) earns more than $1 million annually. But this elite group would receive 43.9 percent of the tax cuts that go to Rhode Island residents under the tax proposals from the Trump administration. A much larger group, 46.3 percent of the state, earns less than $45,000, but would receive just 7.0 percent of the tax cuts.
blog August 9, 2017
State Rundown 8/9: And Then There Were ThreeThis week, Rhode Island lawmakers agreed on a budget, leaving only three states – Connecticut, Pennsylvania, and Wisconsin – without complete budgets. Texas, however, remains in special session and West…
blog August 2, 2017
State Rundown 8/2: Legislative Tax Debates Wind Down as Ballot Initiative Efforts Ramp Up
Budget deliberations continue in earnest this week in Alaska, Connecticut, Pennsylvania, and Rhode Island. In South Dakota and Utah, the focus is on gearing up for ballot initiative efforts to raise needed revenue, though be sure to read about legislators nullifying voter-approved initiatives in Maine and elsewhere in our “what we’re reading” section.
ITEP Work in Action July 20, 2017
Economic Progress Institute: Trump Tax Plan Would Mostly Benefit Wealthiest Rhode Island Taxpayers
A new analysis from the Institute on Taxation and Economic Policy reveals a federal tax reform plan based on President Trump’s April outline would fail to deliver on its promise of largely helping middle-class taxpayers, showering 61.4 percent of the total tax cut on the richest 1 percent nationwide. In Rhode Island, the top 1 percent of the state’s residents would receive an average tax cut of $86,610 compared with an average tax cut of just $430 for the bottom 60 percent of taxpayers in the state.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Rhode Island with 47.4 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 Rhode Island would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,795,500 in 2018.
blog July 19, 2017
State Rundown 7/19: Handful of States Still Have Their Hands Full with Tax and Budget Debates
Tax and budget debates drag on in several states this week, as lawmakers continue to work in Alaska, Connecticut, Rhode Island, Pennsylvania, Texas, and Wisconsin. And a showdown is brewing in Kentucky between a regressive tax shift effort and a progressive tax reform plan. Be sure to also check out our “What We’re Reading” section for a historical perspective on federal tax reform, a podcast on lessons learned from Kansas and California, and more!
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.
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.