ITEP State Rundown
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blog March 26, 2025 State Rundown 3/26: Lawmakers Navigate Shortfalls, Potholes, and Pitfalls
State lawmakers around the country are navigating a range of potential hazards this week. Leaders in Maryland and Washington are facing budget holes but are smartly working to get out… -
blog March 20, 2025 State Rundown 3/20: It’s March, Welcome to Tax Policy Madness
March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of… -
blog March 12, 2025 State Rundown 3/12: Last-Minute Tax Cut Mayhem and New Progressive Revenue Raisers
A bevy of tax cut proposals sprung to life this week while others were signed into law. In Kentucky, lawmakers are working to make it easier for the legislature to enact income and business tax cuts. The governor in Idaho signed into law a personal and corporate income tax cut.
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blog March 6, 2025 State Rundown 3/6: In the Shadow of Chaotic Federal Policymaking States Seek to Tax the Top, Cut Taxes
Proposals from governors in both New Jersey and Wisconsin include provisions to tax high-income earners. Meanwhile, several major tax proposals are advancing in the great plains, with Iowa considering a major cut to unemployment taxes, North Dakota advancing new benefits for private schools, and Wyoming cutting property taxes. The District of Columbia is facing a more than a $1 billion revenue shortfall over the next three years, compared to previous estimates, and a mild recession due in large part to the layoffs of federal workers.
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blog February 26, 2025 State Rundown 2/26: House Budget Plan Could Further Strain State Budgets
States would be wise to keep a close eye on happenings in Washington, D.C. Republicans in the House of Representatives recently passed their budget resolution, which could spell trouble for state budgets. The plan tees up major cuts to Medicaid, SNAP, and college tuition assistance—all likely to allow for tax cuts that will overwhelmingly benefit the wealthy. If approved, trillions of dollars would be cut from programs supported by federal dollars and states and localities could bear the brunt of those shifting costs. Many states are already facing delicate fiscal outlooks and those considering cutting taxes further should seriously reconsider. The governor of Idaho, Brad Little, has already acknowledged the effect federal cuts could have on the Gem State when discussing the gap between his and state Republicans’ tax plans.
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blog February 20, 2025 State Rundown 2/20: Tools to Address Corporate Tax Avoidance and Property Tax Affordability
A new ITEP report finds that states could raise $19 billion a year with one policy change targeting corporate tax avoidance. That policy, worldwide combined reporting, strengthens state corporate taxation by giving states a full view of multinational corporate profits, essentially eliminating the tax savings that companies currently see by pretending their profits were earned in Switzerland, the Cayman Islands, and other international tax havens.
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blog February 12, 2025 State Rundown 2/12: State Tax Policy Heats Up as Winter Storms Sweep Much of the Country
Tax policy proposals are a hot topic of conversation across the country. Both North and South Dakota are considering property taxes cuts, while proposed cuts in Florida, Mississippi, and Texas are percolating. Meanwhile, fiscal conditions are tight in states like Alaska, Tennessee, Oklahoma, and West Virginia. None are on the cusp of passing new revenue, but years of recent tax cuts and inflation have caught up to states and many lawmakers have revenue gaps to close.
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blog February 6, 2025 State Rundown 2/6: Tax Proposals in the Spotlight
Tax changes have been proposed or are nearing the finish line in many states. Kentucky is poised to enact an income tax cut as a bill heads to the governor’s desk. In Pennsylvania, Gov. Josh Shapiro’s budget proposal called to accelerate existing corporate tax cuts while closing corporate tax loopholes by enacting combined reporting. Ohio Gov. Mike DeWine proposed a new credit for children of working parents. And Virginia Democrats countered Gov. Glenn Youngkin’s proposed tax cuts with a plan of their own that includes an increase to the state’s Earned Income Tax Credit (EITC) and a one-time, nonrefundable tax rebate.
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blog January 30, 2025 State Rundown 1/30: The Revenue Decrease is in the Details
More details on this year’s batch of major tax proposals are emerging from statehouses – and some revenue cuts look like they could be steep. A governor-backed and House-passed plan in Mississippi would phase out the personal income tax, while a recent tax cut proposal out of Idaho is anchored by a $253 million dollar income tax cut.
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blog January 22, 2025 State Rundown 1/22: Tax Policy, Affordability, and Where It Misses the Mark
As state legislative sessions ramp up many lawmakers discuss their prioritization of affordability of necessities like food and housing as they craft their legislative agendas. Arkansas, Mississippi and Utah are… -
blog January 15, 2025 State Rundown 1/15: Tax Debates Heat Up Despite Winter Weather
While frigid temperatures expected across a large swath of the country, major tax proposals are heating up in the states. Governors are giving their State of the State addresses and state lawmakers have begun to convene for 2025. New York Gov. Kathy Hochul announced plans to expand the state’s Child Tax Credit earlier this year and has since announced nearly $1 billion in income tax cuts. Maryland Gov. Wes Moore unveiled a new tax proposal aimed at helping close the state’s looming revenue shortfall. The plan would increase taxes on the wealthy and cut taxes for many low- and middle-income households. Meanwhile, lawmakers in Mississippi introduced misguided legislation that would phase out their personal income tax over time and reduce the state sales tax rate on groceries.
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blog January 9, 2025 State Rundown 1/9: New Year, New Pushes for Tax Policy Changes
It’s a new year, and state legislatures across the country are resolved to write new tax policy. Tax debates are heating up nearly everywhere in the early days of 2025,… -
blog December 19, 2024 State Rundown 12/19: Anti-Tax Playbook in Action
The anti-tax playbook has been on full display in recent weeks as state policymakers run their offenses against public services and shared priorities. As the playbook dictates, if you have… -
blog December 3, 2024 State Rundown 12/3: Some States Cast Away Fiscal Responsibility as They Plan for 2025
The 2025 legislative season will be here before we know it, and state lawmakers have begun unveiling their priorities and proposals. Unfortunately, despite stagnating revenue growth, many lawmakers continue to push for deep, regressive tax cuts – often before the full impact of previous tax cuts is felt.
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blog November 20, 2024 State Rundown 11/20: Some Budgets and Tax Proposals Fail to Defy Gravity, Fall Short
This week, there are high-profile budget and tax debates at both the state and local levels. The Louisiana legislature continues to debate Gov. Jeff Landry’s deeply regressive tax package in… -
blog November 7, 2024 State Rundown 11/07: Election Week and New Special Sessions
Tax policy results are mixed across the country as many voters weigh in on state and local ballot measures. For example, Washington state voted to maintain its new progressive tax… -
blog October 24, 2024 State Rundown 10/24: Tricks, Treats, and Tax Policy
Louisiana Gov. Jeff Landry is proposing a regressive tax reform package that would enact a flat personal and corporate income tax while expanding the state’s sales tax base and eliminating certain exemptions to make up for a portion of the lost revenue. West Virginia continues to chip away at its personal income tax, one of the state’s few progressive revenue options. And advocates in New York are rallying around a package of progressive tax legislation that would tax capital gains at higher rates, enact higher income tax brackets on multi-millionaires, and tax unrealized capital gains of billionaires.
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blog October 10, 2024 State Rundown 10/10: More Special Sessions, More Proposed Tax Cuts
This week several states are getting an early start at writing new tax policy in special sessions. In West Virginia, the legislature has come to an agreement with Gov. Justice… -
blog September 18, 2024 State Rundown 9/18: Special Tax Session Results? “Reply Hazy, Try Again”
As the dust settles…
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blog September 5, 2024 State Rundown 9/5: Property Tax Policy Continues to Make Headlines
Property tax bills are undeniably a concern for many low- and moderate-income households across the nation…
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blog August 8, 2024 State Rundown 8/8: States Laying the Groundwork for Future Tax Battles
Whether they’re in a special session, gearing up for one, or prepping for 2025, states around the country are focusing on important tax fights…
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blog July 25, 2024 State Rundown 7/25: Summertime Hits Different in Different States
State lawmakers will have a lot to discuss when they compare notes on how they spent their summer vacations this year…
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blog July 11, 2024 State Rundown 7/11: Mansion Taxes in the Spotlight
While Massachusetts legislators recently dropped a real estate transfer tax from their major housing bill, the District of Columbia council sent a budget to the mayor that includes a mansion tax that would increase the tax rate on properties valued over $2.5 million. Meanwhile, lawmakers in New Jersey and South Carolina continue to, respectively, raise and reduce needed revenues.
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blog June 26, 2024 State Rundown 6/26: Summer Special Sessions Are In, Anti-tax Ballot Initiatives Out
Many families are heading out on summer vacations, but legislators across the country are heading back to statehouses for special sessions…
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blog June 13, 2024 State Rundown 6/13: Decisions are falling into place, but some states will come back for more
State budgets are falling into place as lawmakers near the end of their legislative sessions…