There’s a lot at stake in this election cycle: the nation and our economy are reeling from the effects brought on by the coronavirus pandemic and states remain in limbo as they weigh deep budget cuts and rush to address projected revenue shortfalls.
blog October 22, 2020
Voters Have the Chance in 2020 to Increase Tax Equity in Arizona, Illinois, and California, And They Should
October 17, 2018
South Dakota: Who Pays? 6th EditionSOUTH DAKOTA Read as PDF SOUTH DAKOTA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next…
September 26, 2018
Tax Cuts 2.0 – South DakotaThe $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 Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect South Dakota 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 South Dakota 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 South Dakota residents.
November 14, 2017
How the Revised Senate Tax Bill Would Affect South Dakota 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 South Dakota, 54 percent of the federal tax cuts would go to the richest 5 percent of residents, and 5 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect South Dakota 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 South Dakota with 62.4 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 South Dakota equally. The richest one percent of South Dakota residents would receive 62.4 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $589,600 next year. The framework would provide them an average tax cut of $129,120 in 2018, which would increase their income by an average of 7.3 percent.
August 17, 2017
In South Dakota 48.3 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the South Dakota population (0.4 percent) earns more than $1 million annually. But this elite group would receive 48.3 percent of the tax cuts that go to South Dakota residents under the tax proposals from the Trump administration. A much larger group, 47.7 percent of the state, earns less than $45,000, but would receive just 4.5 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in South Dakota with 58.6 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 South Dakota would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,770,700 in 2018.
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.
ITEP Work in Action February 2, 2017
South Dakota Budget and Policy Institute: HB 1182 Raising teacher salaries – how much would taxes change for your household?The combination of property tax savings and sales tax increases will affect each household differently. Raising sales tax by 1/2 cent will raise about $107 million dollars. And decreasing property tax…
media mention October 5, 2016
Rapid City Journal: SD tax policies model of unfairness“The non-partisan, non-profit Institute On Taxation And Economic Policy says that in 2015, South Dakota had the fourth most regressive tax system in the United States. Poor and middle-income residents…
media mention February 17, 2016
The Capital Journal: SD policy institute figures how sales tax increase will affect different householdsSmolnisky was trying to provide some more context for lawmakers debating the plan, based on an inkling she got months ago about funding an increase in teacher pay using…
media mention February 10, 2016
Capital Journal: SD policy institute figures how sales tax increase will affect different households“Smolnisky was trying to provide some more context for lawmakers debating the plan, based on an inkling she got months ago about funding an increase in teacher pay using higher…
ITEP Work in Action February 8, 2016
South Dakota Budget and Policy Institute: WHO PAYS increased SD sales taxes to raise teacher salaries?“There is broad consensus in South Dakota that teacher salaries need to be competitive to attract and retain good teachers – but who is going to pay for it? Two…
report September 17, 2015
Low Tax for Whom?: South Dakota is a “Low Tax State” Overall, But Not for Families Living in Poverty
Annual data from the U.S. Census Bureau appear to lend support to South Dakota’s reputation as a “low tax state,” ranking it 51st nationally in taxes collected as a share of personal income, the lowest overall tax state.1 But focusing on the state’s overall tax revenues has led many observers to overlook the fact that different taxpayers experience South Dakota’s tax system very differently. In particular, the poorest 20 percent of South Dakota residents pay significantly more of their income (11.3 percent) in state and local taxes than any other group in the state. For low-income families, South Dakota is far from being a low tax state.2 In fact, only eleven states tax their poorest residents more heavily than South Dakota.
media mention July 13, 2015
Cheat Sheet: 10 Worst States in America for Fair Tax SystemsAmericans generally believe that higher income households should pay a greater percentage of their incomes in taxes than lower income households. Yet the exact opposite occurs. The Institute on Taxation…
report September 19, 2013
South Dakota is a “Low Tax State” Overall, But Not for Families Living in PovertyRead the Report in PDF Form See all “Low Tax for Who?” states New data from the Census Bureau lend support to South Dakota’s reputation as a “low tax state,”…
ITEP Work in Action August 26, 2013
South Dakota: Should SD repeal the grocery sales tax with a revenue neutral sales tax increase?SD HB1154 proposes lowering state sales tax on certain food items and increasing sales tax on other goods and services in a revenue-neutral exchange. Read the Full Report
media mention July 15, 2013
Capital Journal: What South Dakota is doing seems to be working(Original Post) Posted: Sunday, July 14, 2013 10:46 pm David Rookhuyzen Dakota voices As a born-and-raised Arizonan I will always have a special place in my heart for the Grand…
ITEP Work in Action January 14, 2013
South Dakota Budget and Policy Project: South Dakota Budget PrimerThe state budget is the ultimate policy document. It determines how much is spent on programs and services that affect the lives of all South Dakotans. Our schools, health, safety…
ITEP Work in Action January 14, 2013
South Dakota Budget and Policy Project: Quick Facts – HB 1131 Food Tax SwapOn Thursday, 1-27-11, the House Taxation Committee heard testimony on HB 1131 – a proposal to take the sales tax off groceries and replace the revenue with an increase on…