Washington

In the face of immense uncertainty around looming federal tax and budget decisions, many of which could threaten state budgets, state lawmakers have an opportunity to show up for their constituents by raising and protecting the revenue needed to fund shared priorities. Lawmakers have a choice: advance tax policies that improve equity and help communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for most families to get ahead. 

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. 

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.  

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, but states’ fiscal situations vary dramatically. New York is considering expanding the state’s Child Tax Credit following Gov. Hochul’s proposed expansion. On the other side […]

Today, Gov. Jay Inslee released a balanced budget proposal that protects progress on the programs and services that working families and businesses depend on — public safety, education, early learning, housing and behavioral health. Read more.

As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the IRS costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While this may look like a spending cut, it will increase deficits by $46 billion due to a drop in the agency’s capacity to enforce taxes on wealthy individuals owed under existing federal law.

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 a special session focused on replacing corporate and personal income tax revenue with additional sales taxes, but some efforts to find offsets for the cuts […]

On election day, voters across the country — in states red and blue and communities rural and urban — approved a wide range of state and local ballot measures on taxation and public investment. The success of these measures clearly shows that voters are willing to invest in public priorities that feel tangible and close to home.

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 on capital gains; Georgia voters capped growth in property tax assessments; Illinois voters approved a call for a millionaires’ tax; North Dakota voters rejected property […]

Next month, voters across the country will weigh in on many local ballot measures that will have a profound effect on the adequacy of our local tax systems and whether cities and communities can fund public needs. These are in addition to statewide ballot questions, many of which have local implications this year.  

As we approach November’s election, voters in several states will be weighing in on tax policy changes. The outcomes will impact the equity of state and local tax systems and the adequacy of the revenue those systems are able to raise to fund public services.

The impending expiration of large portions of the 2017 Tax Cuts and Jobs Act at the end of 2025 presents federal policymakers with a significant opportunity to reform the federal tax code in the United States. Too often, political openings for pro-growth tax reform have instead been transformed into opportunities to introduce new tax cuts for those at the top of the income and wealth distribution. Proponents of these tax cuts usually defend their actions by invoking a now-widely discredited “trickle-down” theory of economic growth.

As the dust settles...

The IRS has opened its free tax filing service called Direct File to every state for the 2025 tax filing season. Direct File was made possible by President Biden’s Inflation Reduction Act, which provided new resources for the IRS to improve customer service and ensure taxpayers claim the benefits and deductions for which they are […]

As Development Manager, Steven manages ITEP’s fundraising strategy and activities, helping to grow and sustain the organization. Prior to joining ITEP, Steven served as Development Coordinator at the National Low Income Housing Coalition, where he managed relations with donor partners and collaborated closely with senior staff on development activities. He previously worked as a Development […]

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...

Many families are heading out on summer vacations, but legislators across the country are heading back to statehouses for special sessions...