ITEP State Rundown

The release of the ‘Pandora Papers’ showed once again that states and their tax systems play an important role in wealth inequality, and in this case, worsening it…

One of the few industries to excel during the economic downturn brought on by the pandemic has been the marijuana business, and lawmakers around the country are taking notice as they try to ensure that sales in their state are both legal and subject to tax…

Though we can’t fault anyone for being distracted by the major stories of the day, we at ITEP remain committed to keeping you up to date on what’s happening in the tax world around you…

Labor Day is around the corner and in the spirit of celebrating the achievements of workers around the country, we here at ITEP want to call attention to the states (and territories) that are using tax policy to support workers and residents alike…

Summer is quickly (and sadly) coming to an end and if you’ve been away enjoying the great outdoors or off the grid, we’re here to help keep you up to date on what’s been happening on the tax front around the country…

It’s beginning to look a lot like that time of year again. That’s right, it’s sales tax holiday season and states across the country are doing their best to induce spending that would probably occur regardless…

It’s Olympics season! As countries around the globe battle for first place in a plethora of sports and contests it’s as good a time as any to look around America to see which states deserve a gold medal in the ‘Equitable Tax Policy’ event…

States were busy over the past week despite the Fourth of July holiday. Many are gearing up for upcoming tax and budget clashes that could shape their futures for some time…

Today is the last day of the fiscal year in many states, and some lawmakers might want to take the opportunity to make some new fiscal year resolutions. Legislators in Arizona, New Hampshire, Ohio, North Carolina, and Wisconsin, for example, should really cut back on the trickle-down tax-cut Kool-Aid, which may make parties with rich donors more fun but tends to be both harmful and habit-forming…

Delayed legislative sessions and protracted federal aid debates have made for a busier June than normal for state fiscal debates. Arizona, New Hampshire, and North Carolina legislators, for example, are still pushing for expensive and regressive tax cuts in their states while they remain in session…

Taxing rich households and large corporations to fund vital investments in education and other shared priorities has long been a winner in the eyes of the American public, and more recently has also enjoyed a string of victories in state legislatures and at the ballot box. That win streak continued this week as Arizona’s voter-approved tax surcharge on the rich and Seattle, Washington’s payroll tax on high-profit, high-salary businesses both survived court challenges, and Massachusetts leaders approved a millionaires tax to go before voters next year.

Just as an early summer heatwave brought soaring temperatures this past weekend through much of the lower 48 states, several state legislative sessions are heating up as legislators scramble to make tough budget decisions. Massachusetts lawmakers are voting on a fiery new “millionaires’ tax” that would support transportation and education revenue needs, and Connecticut will likely restore its state Earned Income Tax Credit (EITC) back to 30 percent. Illinois’s decision to cut back corporate tax breaks also provided a breath of fresh air. Unfortunately, we’d give other state tax proposals a more lukewarm reception: New Hampshire, North Carolina, and Ohio are all considering tax cuts that would either primarily benefit the wealthy or create unsustainable revenue shortfalls. But it’s not too late to cool it and adopt more responsible and equitable tax policies.

As more and more state legislatures wrap up their sessions and we reflect on the whirlwind that is this past year, it’s easy to focus on the steps back that states like Oklahoma have taken and Nebraska, North Carolina, and Arizona are trying to take. We have had some significant wins in states over the course of the year, but not every development will be a good one. However, we know advocates are on the ground, working tirelessly to help states maintain equity and progressivity in their tax codes. And for that, we have many of you—our intrepid readers of the Rundown—to thank. So, thank you, we can’t wait to continue to press on together.

“Tax Day” was earlier this week but the debates, research, and advocacy that determine our taxes and how they are used take place every day of the year…

We had our noses buried in new American Rescue Plan guidance…when we heard the refreshing news that Missouri leaders are on the verge of modernizing their tax code, not only by becoming the final state to apply sales taxes to online purchases, but also by enacting an Earned Income Tax Credit (EITC)…Meanwhile, tax debates are also highly active in California, Colorado, Louisiana, Maine, and Nebraska. We also share some of our own reporting on recent efforts in Arizona and several other states to undermine voter-approved reforms and democratic institutions themselves.

This week’s state fiscal news brings a reminder that even though advocates for great economic and racial justice have won some major progressive victories recently, anti-tax zealots have been hard…

North Carolina lawmakers may have approved a massive tax subsidy giveaway to Apple, but we won’t let that news spoil our barrel this week. Nor will we be discouraged by Connecticut Gov. Ned Lamont’s threats to upset the apple cart full of positive progressive tax reforms state lawmakers recently came together to approve…Why all the optimism? Because the apple of our eye this week is Washington State, where advocates and lawmakers succeeded in a decade-long fight…

Just as a recent cold snap reminded us that spring has not fully sprung yet, this week’s news has been full of reminders that state fiscal debates aren’t quite finished either…

Two significant victories headlined state tax debates in the past week, as New Mexico leaders improved existing targeted tax credits to give bigger boosts and reach more families in need, and West Virginia lawmakers unanimously shut down a destructive effort to eliminate the state’s progressive income tax. These developments follow last week’s major wins for progressive taxation and targeted assistance in New York, and more good news is likely soon as Washington legislators continue to advance their own targeted credit for working families. Not all the news is positive though, as costly and/or regressive tax cuts remain on the table in states including Florida, Iowa, Ohio, and others.

New York lawmakers stole the spotlight this week as they were able to agree on—and convince reluctant Gov. Andrew Cuomo to support—strong progressive tax increases on the highest-income households and corporations in the state to fund shared priorities like K-12 education and pandemic recovery efforts. Minnesota leaders are attempting a similar performance off Broadway with progressive reforms of their own, while Kansas legislators are getting poor reviews for cutting a number of taxes and worsening their budget situation. Thankfully major tax changes stayed backstage as sessions concluded in Georgia and Mississippi.

Supporters of tax fairness and adequate funding for public needs are hoping West Virginia’s income tax elimination effort turns out to be a prank, but most states are not fooling around with such harmful policies this year. For example…

It was a relatively quiet week in state fiscal policy, likely partly due to states waiting for federal guidance on some of the details in the American Rescue Plan. As they await those details, lawmakers in Mississippi and West Virginia continue to wrangle over whether to recklessly eliminate their income taxes, while leaders in states including Connecticut and New York considered more productive and progressive reforms. And in the meantime, groundbreaking work on the intersection of race and tax policy is now available.

We wrote last week that the inclusion of fiscal relief for states and localities in Congress’s American Rescue Plan should free up state lawmakers’ time and attention to focus on the comprehensive reforms needed to address upside-down and inadequate tax codes, and some states are already doing just that.

State and local policymakers will be preoccupied for a short time with celebrating and deciphering the federal pandemic relief package approved today, but ultimately the federal aid should free them to focus on even bigger concerns such as tax codes that often fail to adequately fund core priorities even in good years and exacerbate the economic and racial inequities that this pandemic has laid bare.