The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Washington equally. The richest one percent of Washington residents would receive 63.4 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $624,100 next year. The framework would provide them an average tax cut of $103,120 in 2018, which would increase their income by an average of 5.2 percent.
Washington
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October 4, 2017 GOP-Trump Tax Framework Would Provide Richest One Percent in Washington with 63.4 Percent of the State’s Tax Cuts
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August 17, 2017 In Washington 43.7 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Washington population (0.5 percent) earns more than $1 million annually. But this elite group would receive 43.7 percent of the tax cuts that go to Washington residents under the tax proposals from the Trump administration. A much larger group, 38.5 percent of the state, earns less than $45,000, but would receive just 4.0 percent of the tax cuts.
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blog August 10, 2017 The Many Reasons for the Seattle Income Tax
A month ago, the Seattle City Council passed an income tax measure, which has garnered a lot of attention as well as volumes of supportive and opposition commentary. Haven’t had… -
July 20, 2017 Trump Tax Proposals Would Provide Richest One Percent in Washington with 53.6 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 Washington would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,983,800 in 2018.
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blog July 11, 2017 State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
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blog June 28, 2017 State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
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blog June 22, 2017 Explaining our Analysis of Washington State’s Highly Regressive Tax Code
Supporters of creating a local personal income tax in Seattle are rightly concerned about the lopsided nature of their state’s tax code. In a 50-state study titled Who Pays?, produced using our microsimulation tax model, we found that Washington State’s tax system is the most regressive in the nation.
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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!
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ITEP Work in Action January 30, 2017 Washington State Budget & Policy Center: Creating a Safeguard Rebate Is Key to Equitable Property Tax Reform
This is the fourth in a series of schmudget blog posts about property taxes in Washington state and the role they play in funding basic K-12 education. Any reform… -
ITEP Work in Action January 20, 2017 Washington State Budget & Policy Center: Closing the Tax Break on Capital Gains
A capital gain is the profit an individual receives from the sale of a financial asset. Currently, Washingtonians receive a tax break on the profits they make from the sale… -
media mention January 9, 2017 The Seattle Times: Education funding-An income tax would solve this
“Congratulations citizens of Washington state [“School-funding task force unlikely to have proposed fixes when Legislature convenes,” NWThursday, Jan. 5]. It is official: According to the Institute on Taxation and Economic… -
media mention November 16, 2016 McClatchy DC: Undocumented students asked council to make Washington’s Bellingham a sanctuary city
“Prado said undocumented immigrants contribute about $292 million in taxes to Washington state each year, according to the Institute on Taxation and Economic Policy. The amount would be higher with… -
media mention November 7, 2016 The Atlantic: Are Washingtonians About to Vote Down a Chance to Fight Climate Change?
“Progressives in Washington have argued for years that the state’s tax system is unfair and exacerbates inequality. Indeed, according to a 2015 report by the nonpartisan Institute on Taxation and… -
media mention October 14, 2016 American Federation of Teachers: Backdoor ‘Neovouchers’ Allow Wealthy to Profit off Public Funds for Schools
“Ten U.S. states are blatantly circumventing public opposition or constitutional obstacles to publicly funded private school vouchers by allowing wealthy taxpayers to turn a profit on ‘charitable’ contributions to private… -
media mention October 11, 2016 Think Progress: Opposition to Washington’s historic carbon tax initiative is coming from the unlikeliest of sources
“To Bauman and his colleagues at CarbonWA, the initiative seemed like a win-win, something that would drive down carbon emissions while moving Washington’s notoriously regressive tax code — the worst in the… -
media mention September 8, 2016 Seattle PI: Labor Day union support for Sound Transit 3
“A study by the Institute on Taxation and Economic Policy found that the lowest 20 percent, those with family incomes under $21,000, pay 16.8 percent of their incomes in state… -
media mention July 27, 2016 The Olympian: Support Olympia by supporting Opportunity for Olympia
“The Institute on Taxation and Economic Policy notes that Washington state has the most regressive tax structure in the country. The poorest 20 percent pay 16.8 percent of their income… -
media mention June 10, 2016 The Olympian: Washington state needs tax reform
“I read with interest another commentary about an income tax being proposed in Olympia and why that shouldn’t happen. I imagine it means nothing to the writer that the Institute… -
media mention April 28, 2016 Seattle Times: Taxes like Texas: Washington’s system among nation’s most unfair
“A problem with relying on sales taxes is that, compared with income or property taxes, they hit the poor the hardest. “Low-income people spend most, if not all, of their… -
media mention April 28, 2016 Politico: Wyden takes aim
“WHERE OREGON AND WASHINGTON (STATE) DIVERGE: The Seattle Times has a nice primer on how differently the states of Portlandia and grunge rely on taxes. Washington, for instance, collects about… -
media mention April 8, 2016 The Herald: State relies on an unfair, insufficient tax system
“Last year, the Institute on Taxation and Economic Policy, a nonpartisan and nonprofit research group, said Washington state had the nation’s most unfair state and local tax system, leading its… -
media mention January 26, 2016 The Columbian: Jayne: Possible constitutional amendment a taxing prospect
“Lawmakers could seize the opportunity to elevate the discussion and tweak Washington’s tax system, which has been ranked by some as the most regressive in the nation. Because the state… -
media mention December 7, 2015 The Columbian: Jayne: What is ‘fair’ when it comes to Washington taxation?
“According to the nonpartisan, nonprofit Institute on Taxation and Economic Policy, Washington households in the lowest one-fifth of income pay 16.8 percent of their income in taxes, while the top… -
report September 17, 2015 Low Tax for Whom?: Washington 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 Washington’s reputation as a “low tax state,” ranking it 36th nationally in taxes collected as a share of personal income.1 But focusing on the state’s overall tax revenues has led many observers to overlook the fact that different taxpayers experience Washington’s tax system very differently. In particular, the poorest 20 percent of Washington residents pay significantly more of their income (16.8 percent) in state and local taxes than any other group in the state. For low-income families, Washington is far from being a low tax state.2 In fact, Washington is the highest tax state in the country for poor people.
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media mention July 13, 2015 Cheat Sheet: 10 Worst States in America for Fair Tax Systems
Americans 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…