Carl Davis for the Institute on Taxation and Economic Policy: [ M]any states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers in particular often do not experience these states as being even remotely “low tax.”
ITEP Work in Action October 23, 2018
Washington Examiner: Think tank: Texas Isn’t a Low-tax State if You’re Poor
ITEP Work in Action October 19, 2018
CPPP: The Staggering Unfairness of Our State Tax System
Here’s one way to think about it: Families at the top of the income ladder receive 20 percent of all personal income in Texas, but pay only 8.5 percent of all state and local taxes. Families at the bottom of the scale receive only three percent of all income, but pay 5.7 percent of all taxes.
October 17, 2018
Low Tax for Whom? Texas is a “Low Tax State” Overall, But Not for Families Living in Poverty
Texas’s tax system has vastly different impacts on taxpayers at different income levels. For instance, the lowest-income 20 percent of Texans contribute 13 percent of their income in state and local taxes — considerably more than any other income group in the state. For low-income families, Texas is far from being a low tax state; in fact, it is tied with Arizona as the sixth highest-tax state in the country for low-income families.
blog October 17, 2018
Low-Tax States Are Often High-Tax for the Poor
ITEP analysis reveals that many states traditionally considered to be “low-tax states” are actually high-tax for their poorest residents. The “low tax” label is typically assigned to states that either lack a personal income tax or that collect a comparatively low amount of tax revenue overall. But a focus on these measures can cause lawmakers to overlook the fact that state tax systems impact different taxpayers in very different ways, and that low-income taxpayers often do not experience these states as being even remotely “low tax.”
October 17, 2018
Texas: Who Pays? 6th EditionTEXAS Read as PDF TEXAS STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – TexasThe $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…
ITEP Work in Action December 18, 2017
Center for Public Policy Priorities: The National Dream Act: What’s at stake for Texas?Researchers estimate that approximately 177,000 young Texas immigrants are potentially eligible for DACA, and they currently contribute a total of $241 million to local and state taxes annually through sales…
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Texas 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 Texas 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 Texas residents.
blog November 14, 2017
House Tax Plan Offers an Exceptionally Bad Deal for California, New York, New Jersey, and Maryland
An ITEP analysis reveals that four states would see their residents pay more in aggregate federal personal income taxes under the House’s Tax Cuts and Jobs Act. While some individual taxpayers in every state would face a tax increase, only California, New York, Maryland, and New Jersey would see such large increases that their residents’ overall personal income tax payments rise when compared to current law.
November 14, 2017
How the Revised Senate Tax Bill Would Affect Texas 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 Texas, 54 percent of the federal tax cuts would go to the richest 5 percent of residents, and 8 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Texas 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 Texas with 64.4 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 Texas equally. The richest one percent of Texas residents would receive 64.4 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $696,400 next year. The framework would provide them an average tax cut of $119,040 in 2018, which would increase their income by an average of 5.9 percent.
ITEP Work in Action September 26, 2017
Dallas Fed: Texas Taxes: Who Bears the Burden?
…Overall, the state’s tax system is less equal across income quintiles than the national average. A key reason is the state’s reliance on the sales tax, which as a share of income is 8.6 percent for those in the bottom quintile but only 2.2 percent in the top quintile…
blog August 23, 2017
State Rundown 8/23: Few Lingering Budget Debates Cannot Linger Much Longer
This week, Oklahoma lawmakers learned they’ll need to enter a special session to balance their budget and that they’ll likely face a lawsuit over their low funding of public education. Pennsylvania’s budget stalemate is also coming to a head as the state literally runs out of funds to pay its bills. And Amazon’s tax practices are in the news again as the company has been sued in South Carolina.
August 17, 2017
In Texas 51.6 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Texas population (0.3 percent) earns more than $1 million annually. But this elite group would receive 51.6 percent of the tax cuts that go to Texas residents under the tax proposals from the Trump administration. A much larger group, 46.2 percent of the state, earns less than $45,000, but would receive just 3.7 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…
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Texas with 59.3 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 Texas would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $2,019,900 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 June 7, 2017
State Rundown 6/7: Kansas Success Story and Other State News
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback’s tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas heads into special session and Vermont faces another budget veto, while Louisiana and New Mexico are on the verge of wrapping up. Voters in Massachusetts may soon be able to weigh in on a millionaire’s tax, the California Senate passed single-payer health care, and more!
media mention November 28, 2016
Austin American-Statesman: Wood: The flaws in Trump’s mass deportation plan“Opponents of undocumented immigrants often assume that these workers don’t contribute to the economy and leech off public services; this simply isn’t true. Many of these people work and contribute…
media mention October 18, 2016
mySA: Immigrants bring immense value“And though there are competing analyses about whether unlawfully present immigrants contribute more to the economy than they cost in education and health expenses, what cannot be denied is that,…
media mention August 30, 2016
Des Moines Register: Undocumented immigrants pay billions in taxes“An analysis by the Institute on Taxation and Economic Policy, updated in February, found that the estimated 11 million undocumented immigrants living in the United States collectively pay $11.64 billion…
media mention August 30, 2016
Chron: This is where immigrants in Texas are moving to“‘The 11 million undocumented immigrants currently living in the United States collectively paid $11.64 billion in state and local taxes,’ explains the website for the Institute on Taxation and Economic…
media mention July 27, 2016
Forth Worth Star Telegram: Texas sales tax holiday for back- to- school shopping is Aug. 5-7“Sales tax holidays are political gimmicks that fail to deliver on their grand promises,” according to a recent memo by Dylan Grundman with the Institute on Taxation and Economic Policy.”…