Institute on Taxation and Economic Policy

ITEP State Rundown

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State Rundown 4/29: How You Like Them Washington Apples?

April 29, 2021 • By ITEP Staff

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...

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State Rundown 4/21: Spring Has Sprung, or Has It?

April 21, 2021 • By ITEP Staff

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...

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State Rundown 4/14: More Progressive Wins in the Headlines this Week, but Mind the Fine Print

April 14, 2021 • By ITEP Staff

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…

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State Rundown 4/7: Tax Justice Advocates Applaud New York Budget Deal

April 7, 2021 • By ITEP Staff

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.

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State Rundown 4/1: Most States Resisting Foolish Tax Cut Games That Tear Revenues Apart

April 1, 2021 • By ITEP Staff

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...

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State Rundown 3/24: The Calm Before the Reform?

March 24, 2021 • By ITEP Staff

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.

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State Rundown 3/17: Momentum for Sound Progressive Tax Reforms Continues to Build

March 17, 2021 • By ITEP Staff

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.

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State Rundown 3/10: Federal Pandemic Aid Means States Can Focus on the Big Picture

March 10, 2021 • By ITEP Staff

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.

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State Rundown 3/4: Progressive Tax Proposals Steal the Show

March 4, 2021 • By ITEP Staff

Although lawmakers in some states continue to push for expensive and regressive tax cuts that would primarily benefit wealthy households, worsen economic and racial injustices, and undermine funding for key public services, this week’s state fiscal news is dominated by efforts to do the opposite. Leaders in the District of Columbia, Maine, Nebraska, New York, Washington, and Wyoming made recent headlines by advocating for policies that improve on upside-down tax codes and generate needed funding for shared priorities like schools and health care.

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State Rundown 2/24: State Tax Debates Quickly Thaw Out with Warmer Weather

February 24, 2021 • By ITEP Staff

Warming temperatures in many parts of the country this week seem to be thawing out state fiscal debates as well. Multiple states including California, Colorado, Maryland, and New Jersey saw movement on efforts to improve tax credits for low- and middle-income families. Mississippi House lawmakers suddenly rushed through a dangerous bill to eliminate the state’s income tax and shift those taxes onto lower-income households. Montana senators also approved regressive income tax cuts and South Dakota legislators advanced an anti-tax constitutional amendment, while lawmakers in Hawaii, Rhode Island, and Washington made progress on improving the progressivity of their tax codes. Gas…

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State Rundown 2/17: Friction Over Tax Policy Still Generating Heat in Some Statehouses

February 17, 2021 • By ITEP Staff

Cold-hearted regressive tax proposals were pushed this week to cut income taxes on high-income households in states including Idaho, Montana, and West Virginia, while advocates for fair taxes and well-funded services continue to turn up the heat on taxing the richest residents in states like Connecticut and Pennsylvania.

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State Rundown 2/11: Legalizing and Taxing Cannabis Becoming Increasingly Mainstream

February 11, 2021 • By ITEP Staff

This week, the governors of New Hampshire and West Virginia proposed to eliminate their states’ most progressive revenue sources and shift taxes even more heavily onto the middle- and low-income families who already pay the highest rates in both states. It was also a big week for proponents of legalizing recreational cannabis, as that movement made progress in Hawaii, Virginia, and Wisconsin.

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State Rundown 2/4: Some Lawmakers, Governors Rising to Occasion with Progressive Tax Proposals

February 4, 2021 • By ITEP Staff

States face shifting landscapes as they attempt to deal with both emergent and longstanding issues in their tax codes and budget structures. This is particularly evident in Oklahoma, where lawmakers must adjust to a U.S. Supreme Court decision that literally redraws state boundaries by recognizing the rights of indigenous communities, but is true in every state, and lawmakers in many of them are rising to the challenge. Read below and see our blog posted today for more on bold proposals that increase tax fairness and solidify bottom lines with needed revenue in states including Connecticut, Minnesota, New York, Pennsylvania, Vermont,…

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State Rundown 1/28: EITC Efforts a Welcome Contrast to State Tax Tug-of-War

January 28, 2021 • By ITEP Staff

Efforts to deliver and improve targeted tax credits to support low- and middle-income families proved to be unifying in Washington and Oregon, welcome developments in an otherwise divisive week in state tax debates. For example, Mississippi advocates hoping to end the state’s regressive grocery tax are up against a governor and many lawmakers pulling in the opposite direction by trying to eliminate its income tax. After Arizona residents approved an income tax increase to improve education funding, policymakers there are seeking to reverse course by slashing taxes instead. And North Dakota lawmakers are considering converting their graduated income tax into…

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State Rundown 1/22: Somewhere Between a Flurry and a Blizzard of State Tax Activity So Far

January 22, 2021 • By ITEP Staff

You won’t find any images of Bernie Sanders and his mittens photoshopped into this week’s Rundown, but you will find the latest news on state fiscal debates, including proposals to generate needed funding by raising taxes on high-income households and profiting businesses in California, Delaware, Hawaii, Maryland, and Washington, as well as misguided efforts to slash taxes in Arizona, Iowa, South Carolina, Utah, and West Virginia. Also in the news are thoughtful improvements to targeted tax credits for families in need in Connecticut and Maryland, harmful obstacles to revenue generation proposed in Nebraska and Wyoming, and renewed hope on the…

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State Rundown 1/14: Bad Tax Cut Ideas Prove to Be Endemic

January 14, 2021 • By ITEP Staff

As states kick off their 2021 legislative sessions, it’s clear that many governors and lawmakers are attempting to “take a mulligan” on the last year and recycle tax-slashing ideas that were already bad in 2020 and are even worse now as states try to recover from the Covid-19 pandemic and accompanying downturn...On a brighter note, Illinois leaders showed they did learn from the events of 2020, passing a major criminal justice reform bill and payday loan protections intended to reduce racial inequities.

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State Rundown 1/7: State Work Continues in Shadow of National Events

January 7, 2021 • By ITEP Staff

Though most people’s attention is rightly focused on events unfolding in the nation’s capital this week, state legislative debates are also underway or soon to begin in many states, including proposals to tax the rich in New York and Rhode Island, provide a boost to low-income families in California, and legalize and tax cannabis in Missouri and Rhode Island.

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State Rundown 12/17: New and Old State Tax Debates Await in 2021

December 17, 2020 • By ITEP Staff

Our last Rundown of 2020 includes news of yet another misguided proposal to eliminate a state income tax, this time in Arkansas. Florida and Missouri, on the other hand, are looking to modernize their tax codes by becoming the last two states to enforce their own sales taxes on online retailers. Leaders in Maryland and Oregon, meanwhile, are working to decouple the state from unnecessary and regressive tax cuts included in the federal CARES Act. And Missouri and Nevada lawmakers both got updated estimates of the revenue shortfalls they will need to resolve when they convene in 2021. The Rundown…

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After the Dust Has Settled: How Progressive Tax Policy Fared in the General Election

November 30, 2020 • By Marco Guzman

While the results of the 2020 presidential election are all but set in stone—and a sign of life for progressive policy—the results of state tax ballot initiatives are more of a mixed bag. However, the overall fight for tax equity and raising more revenue to invest in people and communities is trending in the right direction.

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State Rundown 11/24: Lawmakers and Families Thankful to Be Nearing End to 2020

November 24, 2020 • By ITEP Staff

Just as people will search their hearts to give thanks this week for the small and large things that got them through a difficult year, state lawmakers are also doing their best to count their blessings while keeping fingers crossed for badly needed federal relief to give them something to be truly grateful for.

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State Rundown 11/13: States Can Find Inspiration in Arizona Ballot Success; Must Look to Congress for More Immediate Help

November 13, 2020 • By ITEP Staff

Although progressive tax policy doesn’t always succeed in in statehouses or voting booths, Arizona voters showed once again that when offered a clear choice, most people resoundingly support requiring fairer tax contributions from rich individuals and highly profitable corporations over allowing their schools and other shared priorities to wither and decay. Still, a similar effort in Illinois and a more complicated measure in California were defeated, and anti-tax zealots in West Virginia and many other states will continue to push for tax cuts for the rich and defunding public investments, leaving much work to be done to advance tax justice.

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State Rundown 10/28: Anti-Tax Horror Stories Proving Less Spooky in 2020

October 28, 2020 • By ITEP Staff

Even with Halloween coming up this weekend, months of dealing with the horrors of the Covid-19 pandemic have made it hard to scare anyone in the closing months of 2020, which state lawmakers and residents are showing by voting in droves and supporting policies they had been more trepidatious about in recent years.

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State Rundown 10/21: States Preparing Ingredients for 2021 Fiscal Debates

October 21, 2020 • By ITEP Staff

State lawmakers around the nation are already looking well past the upcoming election to the legislative debates they’ll be cooking up in 2021. In Iowa and Nebraska, anti-tax groups are thawing out regressive tax shift ideas they had put on ice earlier in the pandemic. In Delaware, a lawsuit and recent settlement have put educational and property tax inequities on the menu for the upcoming session. Meanwhile New Jersey and New York are both looking to add stock to their revenue mixes with progressive taxes on stock trades.

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State Rundown 10/7: States Looking Inward for Needed Revenue

October 7, 2020 • By ITEP Staff

The biggest news for state and local fiscal debates this week was that federal fiscal relief to help with their pandemic-induced revenue crises is effectively off the table for at least another month. But if there is a silver lining to this federal inaction, it may be that it coincides with New Jersey’s success filling part of its own revenue shortfall through a millionaires tax, as well as with prominent wealth managers admitting that their rich clients don’t flee to other states in response to such taxes (see “What We’re Reading”). Combined, these three developments could encourage state leaders elsewhere…

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State Rundown 9/23: Tax Justice Advanced in New Jersey, On the Ballot in Illinois

September 23, 2020 • By ITEP Staff

New Jersey leaders grabbed the biggest headlines of the week by finally agreeing to implement a much-needed and long-discussed millionaires tax to shore up the budget and improve tax fairness. And Illinois residents can begin voting tomorrow to enact a graduated income tax there. Relatedly, ITEP Research Director Carl Davis updated our research debunking the myth that progressive taxes interfere with economic growth. Cannabis legalization and taxation was a hot topic as well, as lawmakers in Vermont reached an agreement to move forward on the matter and others in Connecticut, Kansas, and New Hampshire worked toward the same.