Institute on Taxation and Economic Policy (ITEP)

Wisconsin

Urban Milwaukee: Democrats’ Tax Proposal Helps Middle Class

March 22, 2017

Over the last three decades, the average incomes for Wisconsin’s top 1 percent have increased by 120 percent, yet the incomes of the remaining 99 percent grew by just 4 percent (Pulling Apart 2016, by the Wisconsin Budget Project and COWS). Not only are middle income people paying the largest percentage of their income of […]

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Undocumented Immigrants’ State & Local Tax Contributions

March 1, 2017 • By Lisa Christensen Gee, Meg Wiehe, Misha Hill

Public debates over federal immigration reform, specifically around undocumented immigrants, often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants, particularly at the state level. The truth is that undocumented immigrants living in the United States paybillions of dollars each year in state and local taxes. Further, these tax contributions would increase significantly if all undocumented immigrants currently living in the United States were granted a pathway to citizenship as part of comprehensive immigration reform. Or put in the reverse, if undocumented immigrants are deported in high numbers, state and local revenues could take a substantial…

This week we are following a number of significant proposals being debated or introduced including reinstating the income tax in Alaska and eliminating the tax in West Virginia, establishing a regressive tax-cut trigger in Nebraska, restructuring the Illinois sales tax, moving New Mexico to a flat income tax and broader gross receipts tax, and updating […]

This week we bring news of Kansas lawmakers attempting to fix ill-advised tax cuts that have wreaked havoc on the state’s budget and schools, while their counterparts in Nebraska and Idaho debate bills that would create similar problems for their own states, as well as tax cuts in Arkansas that were proven unaffordable within one […]

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What to Watch in the States: Gas Tax Hikes and Swaps

February 2, 2017 • By Carl Davis

This is the second installment of our six part series on 2017 state tax trends. The introduction to this series is available here. State tax policy can be a divisive issue, but no area has generated more agreement among lawmakers across the country than the need to raise new revenues to fund infrastructure improvements. The […]

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State Tax & Revenue Information

January 31, 2017 • By ITEP Staff

Below is a list of notable resources for information on state taxes and revenues: Alabama Alabama Department of Revenue Alabama Department of Finance – Executive Budget Office Alabama Department of Revenue – Tax Incentives for Industry Alabama Legislative Fiscal Office Alaska Alaska Department of Revenue – Tax Division Alaska Office of Management & Budget Alaska […]

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An Overview of State Tax Trends in 2017

January 26, 2017 • By Meg Wiehe

Since the 2007-2009 economic crisis, rising income inequality and the role our public policies play in aiding or easing this trend have been an ongoing part of the public discourse. In spite of what we know about the growing gap between the rich and the rest of us, federal and state policymakers continue to sell […]

This week brings still more states looking for solutions to revenue shortfalls, multiple governors’ State of The State addresses, important reading on counter-transparency and local-preemption efforts, and more.  — Meg Wiehe, ITEP State Policy Director, @megwiehe A Nebraska legislator this week diagnosed the state’s $900 million revenue shortfall in plain terms, describing it as “self-inflicted […]

Wisconsin Gazette: 73 percent of Fortune 500 companies playing offshore shell game

October 17, 2016

“More than 73 percent of Fortune 500 companies maintained subsidiaries in offshore tax havens in 2015, according to ‘Offshore Shell Games.’ The new study was released this week by the U.S. PIRG Education Fund, Citizens for Tax Justice and the Institute on Taxation and Economic Policy.” Read more

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State Tax Subsidies for Private K-12 Education

October 12, 2016 • By Carl Davis

This report explains the workings, and problems, with state-level tax subsidies for private K-12 education. It also discusses how the Internal Revenue Service (IRS) has exacerbated some of these problems by allowing taxpayers to claim federal charitable deductions even on private school contributions that were not truly charitable in nature. Finally, an appendix to this report provides additional detail on the specific K-12 private school tax subsidies made available by each state.

The Daily Cardinal: Scott Walker to push for new sales tax holiday

September 13, 2016

“These temporary reprieves from sales taxes don’t do much to help relieve financial burdens, according to a New York Times article. In the article, Meg Wiehe, state tax policy director at the Institute on Taxation and Economic Policy, claims these holidays are ‘really mostly just a political gimmick.’ Wiehe also said in the article that […]

Governing: Back-to-School Tax Holidays Losing Popularity Among Lawmakers

August 30, 2016

“[Tax holidays] don’t help lower-income people much either, according to the left-leaning Institute on Taxation and Economic Policy (ITEP).” Read more

Madison Magazine: Out of the shadows

August 18, 2016

“But every time the tides of anti-immigration rise, so too does support for immigrants. On a frigid February day this year, an estimated 14,000 Latinos and their supporters descended on the Capitol Square to protest SB 533 and a second proposed bill (to fine so-called sanctuary cities that restrict police from asking one’s immigration status, […]

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The Folly of State Capital Gains Tax Cuts

August 17, 2016 • By Dylan Grundman O'Neill, Meg Wiehe

Read the brief in a PDF here. The federal tax system treats income from capital gains more favorably than income from work. A number of state tax systems do as well, offering tax breaks for profits realized from local investments and, in some instances, from investments around the world. As states struggle to cope with […]

Chattanooga Times Free Press: Tennessee Now Holds Sales Tax Holiday on Same Weekend as Georgia

August 8, 2016

Seventeen states, primarily in the Southeast, stand to lose more than $300 million in tax revenue because they waive sales taxes on back-to-school items and other goods, including hunting gear, energy-efficient appliances and severe weather preparedness, according to the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan research organization with offices in Washington, D.C., […]

Minnesota Politics: Strapped states cancel sales-tax holidays

August 5, 2016

The Bay State isn’t the only state to forgo its sales-tax holiday in order to raise additional funds. Kansas, North Carolina, Nebraska, Rhode Island and Wisconsin, state legislators are among those that have also decided against holding new tax holidays or reinstating them during the last few years, and they’ll be saving money as a […]

Chattanooga Times Free Press: Tennessee now holds sales tax holiday on same weekend as Georgia

July 28, 2016

“Seventeen states, primarily in the Southeast, stand to lose more than $300 million in tax revenue because they waive sales taxes on back-to-school items and other goods, including hunting gear, energy-efficient appliances and severe weather preparedness, according to the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan research organization with offices in Washington, D.C., […]

Coalition fights to repeal personal property tax

July 28, 2016

“Matt Gardner, executive director of the Institute on Taxation and Economic Policy, argued in a recent blog that repealing the law would be adverse for homeowners who might have to make up the difference in higher real estate taxes.” Read more

This brief was updated July 2018 Read this Policy Brief in PDF here. Sales taxes are an important revenue source, composing close to half of all state tax revenues.[1] But sales taxes are also inherently regressive because the lower a family’s income, the more the family must spend on goods and services subject to the […]

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State Treatment of Itemized Deductions

June 2, 2016 • By Dylan Grundman O'Neill, Meg Wiehe

Read this Policy Brief in PDF Form Map of State Treatment of Itemized Deductions Thirty-one states and the District of Columbia allow a group of income tax breaks known as “itemized deductions.” [1] Itemized deductions are designed to help defray a wide variety of personal expenditures that affect a taxpayer’s ability to pay taxes, including charitable […]

Read full report in PDF Download detailed appendix with state-by-state information on deductions and credits (Excel) Every state levying a personal income tax offers at least one deduction or credit designed to defray the cost of higher education. In theory, these policies help families cope with rising tuition prices by incentivizing college savings or partially […]

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Undocumented Immigrants’ State & Local Tax Contributions (2016)

February 24, 2016 • By Lisa Christensen Gee, Meg Wiehe

This report was updated in March 2017 Read as a PDF. (Includes Full Appendix of State-by-State Data) Report Landing Page Public debates over federal immigration reform often suffer from insufficient and inaccurate information about the tax contributions of undocumented immigrants particularly at the state level. The truth is that undocumented immigrants living in the United […]

Milwaukee Journal Sentinel: Why Wisconsin remains a tax hell

January 12, 2016

“Relying on a report by the Institute on Taxation and Economic Policy, a nonpartisan research organization that works on tax policy issues, the website WalletHub shows the effective state and local tax rates in each state, based on three income levels. Those income levels are low ($25,000), middle ($50,000) and high ($150,000). According to that […]

The Sheboygan Press: Wisconsin is still a tax hell

December 18, 2015

“Relying on a report by the Institute on Taxation and Economic Policy, a nonpartisan research organization that works on tax policy issues, WalletHub shows the effective state and local tax rates in each state, based on three income levels: low ($25,000), middle ($50,000) and high ($150,000). According to that report, although Wisconsin’s tax rate ranks […]

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Rewarding Work Through State Earned Income Tax Credits

September 17, 2015 • By Aidan Davis, Lisa Christensen Gee, Meg Wiehe

Despite some economic gains in recent years, the number of Americans living in poverty has held steady over the past four years. At the same time, wages for working families have remained stagnant and more than half of the jobs created by the economic recovery since 2010 were low-paying, mostly in the food services, retail, and employment services industries. Our country's growing class of low-wage workers often faces a dual challenge as they struggle to make ends meet. First, wages are too low and growing too slowly - despite recent productivity gains - to keep up with the rising cost…