Taxes
Results per page: 50 | 100
Results by year: 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006
-
Policy Basics: State Supermajority Rules to Raise Revenues
April 22, 2013
Legislatures in most states (34 states plus the District of Columbia) can approve tax bills with a simple majority vote in each house, the same margin required for practically every other bill. In the other 16 states, some or all tax bills require a supermajority vote of each house (plus the … -
Strategies to Address the State Tax Volatility Problem
April 18, 2013
State revenues plummet in recessions, just when states can least afford the loss. Some proposals to address this flaw in state tax systems would change the systems’ structure — for instance, by replacing state personal income taxes with sales taxes — but wouldn’t solve the problem and would exacerbate others in … -
Policy Basics: Where Do Our State Tax Dollars Go?
Updated April 12, 2013
With state revenues still deeply damaged by the recession, policymakers continue to confront major choices about how to pay for important services now and in the future. To inform this crucial decision making, it is useful to examine where state tax dollars go as well as changing trends over time.… -
Tax Foundation Figures Do Not Represent Typical Households’ Tax Burdens
April 2, 2013
The Tax Foundation released its annual “Tax Freedom Day” report today that, once again, can leave a strikingly misleading impression of tax burdens — showing an average federal tax rate across the United States that’s likely higher than the tax rate that 80 percent of U.S. households actually pay. To project the day … -
State Personal Income Tax Cuts: A Poor Strategy for Economic Growth
March 21, 2013
Policymakers in a number of states including Arkansas, Kansas, Missouri, North Carolina, Ohio, and Wisconsin are promoting deep cuts in personal income taxes as a prescription for economic growth — an approach that has not worked particularly well in the past and is not supported by the preponderance of the … -
State Taxes on Inherited Wealth Remain Common:
Updated March 12, 2013
Taxes on inherited wealth are a traditional and common revenue source for states. Prior to the passage of the federal estate tax cut in 2001, every state levied an estate tax that allowed them to “pick up” a share of federal estate tax revenues. The state “pick-up” estate taxes did not increase total estate … -
Strengthening State Fiscal Policies for a Stronger Economy
Updated March 11, 2013
Strengthening state economies and creating jobs — now and into the future — will require sensible, forward-looking state fiscal policies. States need to invest adequately in education, health care, transportation, and workforce development. To do that, they need to generate sufficient revenue, and they need to do so … -
Cutting State Personal Income Taxes Won’t Help Small Businesses Create Jobs and May Harm State Economies
February 19, 2013
Cutting state personal income taxes not only won’t promote small business growth and job creation, but it is also likely over time to threaten the success of entrepreneurs by taking resources away from critical services like education. Until recently, most proposals to cut state taxes in the name of boosting economic growth and job … -
Four Big Threats to State Finances Could Undermine Future U.S. Prosperity
February 14, 2013
Without adequate revenues, states and localities cannot continue providing public services like education, health care, and infrastructure that lay the groundwork for a prosperous future. But state revenue systems face four serious challenges. The most severe recession in seven decades blasted holes in state budgets from … -
ALEC Tax and Budget Proposals Would Slash Public Services and Jeopardize Economic Growth
February 12, 2013
Governors and legislatures in numerous states are considering, or have recently enacted, sweeping tax and budget proposals that follow recommendations of the American Legislative Exchange Council (ALEC), with potentially adverse consequences for middle- and lower-income families, individuals, and communities across the country. These policies … -
States Can Opt Out of the Costly and Ineffective “Domestic Production Deduction” Corporate Tax Break
Updated January 31, 2013
Over the past few years, states have faced large budgets gaps caused by a dramatic decline in revenue collections since the start of the recession. One contributor to this fiscal crisis in many states has been a relatively new corporate tax break — one that in most states never even received a vote in the state legislature but … -
States Should Embrace 21st Century Economy by Extending Sales Taxes to Digital Goods and Services
December 13, 2012
States are losing more and more revenue each year from a failure to require the payment of sales taxes when goods and services are sold and delivered online. The tax-exempt status in many states of “digital goods and services” — a fast-growing sector of the economy that ranges from movie downloads to online dating services to … -
Media Briefing: Examining Wide and Growing Income Gaps in the States
November 15, 2012
The Center on Budget and Policy Priorities and the Economic Policy Institute held a joint conference call briefing on Wednesday, November 14, 2012 to discuss a major new state-by-state report on income inequality. -
Pulling Apart: A State-by-State Analysis of Income Trends
November 15, 2012
A state-by-state examination finds that income inequality has grown in most parts of the country since the late 1970s. Over the past three business cycles prior to 2007, the incomes of the country’s highest-income households climbed substantially, while middle- and lower-income households saw only modest increases. During the … -
Wide and Growing Income Gaps in Most States, New Report Finds
November 15, 2012
The gaps between the incomes of the richest households and low- and middle-income households are wide and growing in most states, according to a major new report from the Center on Budget and Policy Priorities and the Economic Policy Institute that examines inequality at the state level. Across all states, the average income of the richest fifth of households was … -
Florida’s “Amendment 4” Would Cause Tax Rate Increases and Deep Local Service Cuts, Likely Harming the State’s Economy
September 25, 2012
Amendment 4, which appears on the ballot in Florida in November, would lock a deeply flawed set of property tax changes into the state’s constitution, leading to tax increases for large numbers of Florida residents, a competitive disadvantage for new and emerging businesses, and significant cuts in local services — while producing … -
Amendment 4 Would Cost Florida Jobs, Raise Taxes on Year-Round Residents, and Force Cuts in Public Services
September 25, 2012
Amendment 4 would cost the state jobs and lead to both tax increases for large numbers of Florida residents and cuts in local services such as police and fire protection, according to a new report from the Center on Budget and Policy Priorities. The measure, on the Florida ballot in November, also would put new and emerging businesses at a competitive … -
Amendment 3 Would Undermine Florida’s Schools and Universities, Health Care, and Roads
September 13, 2012
Amendment 3 will hinder Florida’s efforts to strengthen its economy if voters adopt it, according to a new report from the Center on Budget and Policy Priorities. The measure, which the Florida Legislature placed on the ballot for this November, would impose rigid limits on state spending, forcing cuts to education, roads and highways, health care and … -
Florida’s Amendment 3 Would Cut Funds for Schools, Health Care, Roads, and Other Services
September 13, 2012
Funding for Florida schools, universities, roads and bridges, health programs for children and the elderly, public transit, and a wide range of other public services will fall significantly if voters enact Amendment 3 on Florida’s November statewide ballot. This constitutional amendment would severely limit the amount of state … -
“Digital Goods and Services Tax Fairness Act” Would Impair Funding for Education, Health Care and Other State and Local Services
May 29, 2012
The proposed Digital Goods and Services Tax Fairness Act of 2011 would immediately and significantly reduce state and local tax collections, and these revenue losses would accelerate in the future. The Act (DGSTFA, S. 971/H.R. 1860) would restrict sharply the ability of state and local governments to levy sales and gross receipts taxes … -
North Dakota's Measure 2 is Reckless and Misguided
May 15, 2012
A proposal to amend North Dakota's constitution to ban property taxes would lock North Dakota into a risky, uncharted course of action and leave the state's schools at the mercy of the highly volatile oil industry, according to a new report from the Center on Budget and Policy Priorities, a Washington, DC-based policy research institution. "North Dakota has … -
North Dakota's Measure 2: High Risk For Little Reward
May 15, 2012
A proposal on the June 12 primary ballot would amend North Dakota's constitution to ban property taxes, a highly imprudent experiment that would fail to maximize the benefits of today's oil-driven economic boom to improve the state for future generations. The list of dangers posed by Measure 2 is long. It would: Lock North Dakota into … -
Out of Balance
April 18, 2012
The state budget gaps of the last five years led to $290 billion in cuts to public services and $100 billion in tax and fee increases. Those actions lengthened the recession and delayed the recovery. Because spending reductions were dominant, hundreds of thousands of jobs were lost; undermining education, health care and other state … -
The Impact of State Income Taxes on Low-Income Families in 2011
Revised April 17, 2012
The successful bipartisan effort over the last two decades to reduce state income taxes on working-poor families has stalled and is in danger of reversing. No new states exempted working-poor families of four from income taxes in 2011, and in almost all of the 15 states where such families still pay income taxes, they saw their income taxes increase. … -
Press Release: Hawaii Among Worst States in Nation on Taxing the Working Poor
April 4, 2012
Unlike most states, Hawaii taxes working-poor families deeper into poverty, and it charges them higher tax bills than all but four other states, according to a new report from the Center on Budget and Policy Priorities. "Hawaii should help working families work toward the middle class rather than undermine their … -
The Texas Economic Model: Hard for Other States to Follow and Not All It Seems
April 3, 2012
Whatever its boosters may say, Texas is not a helpful model for economic growth for the rest of the country. True, the number of people and jobs in Texas has been expanding, causing other states to wonder whether Texas holds important lessons for state policies that can generate similar growth elsewhere. The answer is no. Texas has … -
Tax Foundation Figures Do Not Represent Typical Households’ Tax Burdens
April 2, 2012
This report has been updated. Click here for the updated analysis. The Tax Foundation released its annual “Tax Freedom Day” report today that, once again, leaves a strikingly misleading impression of tax burdens — announcing an “average” tax rate across the United States that’s likely higher than the tax … -
Proposed Kansas Tax Break for “Pass-Through” Profits Is Poorly Targeted and Will Not Create Jobs
Revised March 26, 2012
Kansas is seriously considering a new, unprecedented state income tax break — at a huge cost to the state budget — that would benefit large corporations and passive investors, and reward tax avoidance, while failing to meet its stated objective of job creation. The tax break was first proposed by Governor Brownback earlier this year, … -
Higher Property and Sales Taxes Likely if Kansas Eliminates Income Tax
March 22, 2012
Kansans likely would face higher sales and property taxes if the state legislature moves forward with efforts to eliminate the state income tax, according to a report released today by the Center on Budget and Policy Priorities, a non-partisan policy research organization based in Washington, DC. Elimination of the state income tax also would undermine the … -
Without A State Income Tax, Other Taxes Are Higher
March 22, 2012
States without an income tax have higher sales or property taxes, on average, than states with an income tax. No-income-tax states have property taxes that are 8 percent to 12 percent above the national average and sales taxes 18 percent to 21 percent above the national average. These data are of particular relevance in … -
Testimony: Michael Mazerov, Senior Fellow, State Fiscal Project Before The Maryland Senate Budget And Taxation Committee Regarding Senate Bill 269 — Combined Reporting
February 22, 2012
Chairman Kasemeyer and members of the Committee, I am Michael Mazerov, Senior Fellow with the State Fiscal Project of the Center on Budget and Policy Priorities in Washington. The Center is a non-profit, non-partisan research institute that focuses on federal and state budgets, programs, and tax policies, with a particular emphasis on how they … -
Using Economic Census Data to Estimate the Revenue Impact of Taxing Services
February 15, 2012
Public finance experts have long identified the failure of states to collect sales taxes on most services purchased by households as a major shortcoming of state tax systems. A 2009 Center report lays out the case for expanded sales taxation of services, including its potential to mitigate erosion of the sales tax base and improve the fairness of … -
Testimony: Phil Oliff, Policy Analyst, Before the Maryland House Ways and Means Committee
February 14, 2012
Madam Chair, Vice Chair, and Members of the Committee, thank you for the opportunity to testify here today. My name is Phil Oliff. I am a Policy Analyst with the Center on Budget and Policy Priorities. The Center is a nonpartisan, nonprofit organization that conducts research and … -
Six Reasons Why Supermajority Requirements to Raise Taxes Are a Bad Idea
February 13, 2012
A few states are considering amending their constitutions to make it even harder to close tax loopholes and otherwise change the tax code to raise more revenue. The proposed amendments would require that revenue-positive tax changes win support from supermajorities of each house of the legislature plus the governor’s signature, rather than the normal … -
Slideshow: The State Budget Crisis and the Economy
Updated December 19, 2011
-
The Impact of State Income Taxes on Low-Income Families in 2010
November 15, 2011
The successful bipartisan effort over the last two decades to reduce state income taxes on working-poor families has stalled and is in danger of reversing. No new states exempted working-poor families from income taxes in 2010, and in most of the 15 states where such families still pay income taxes, they saw their … -
New School Year Brings Steep Cuts in State Funding for Schools
Updated October 7, 2011
To view the updated paper see: New School Year Brings More Cuts in State Funding for Schools Elementary and high schools are receiving less state funding than last year in at least 37 states, and in at least 30 states school funding now stands below 2008 levels – often far below. These cuts are attributable, in part, to the failure of the federal … -
PAYGO: Improving State Budget Discipline While Retaining Flexibility
September 22, 2011
States can help policymakers and the public understand the consequences of budget decisions and properly weigh the long-term impact of alternative proposals by adopting important budget management tools that also promote fiscal responsibility. The cornerstone of these tools is "pay-as-you-go" (PAYGO), a requirement that the … -
Proposed “Digital Goods and Services Tax Fairness Act” Likely to do More Harm Than Good In Current Form
August 11, 2011
The Digital Goods and Services Tax Fairness Act of 2011 (S. 971/H.R. 1860) would regulate state and local taxation of downloaded music and movies and online services like photo storage and payroll processing. One section of the legislation — a set of so-called "sourcing rules" specifying which … -
Case for Regulating State and Local Taxation of Digital Goods and Services has Little Merit
August 11, 2011
A bill before Congress, the Digital Goods and Services Tax Fairness Act of 2011 or DGSTFA (S. 971/H.R. 1860), would regulate states' and localities' taxation of downloaded music, movies and online services like photo storage and payroll processing. Though proponents of the legislation claim that it is needed to … -
Tax Flight Is a Myth
August 4, 2011
Executive Summary Attacks on sorely-needed increases in state tax revenues often include the unproven claim that tax hikes will drive large numbers of households — particularly the most affluent — to other states. The same claim also is used to justify new tax cuts. Compelling evidence shows that this claim is … -
Podcast: Tax Flight Is a Myth
August 4, 2011
"Attacks on sorely-needed increases in state tax revenues often include the unproven claim that tax hikes will drive large numbers of households - particularly the most affluent - to other states. The same claim also is used to justify new tax cuts. Compelling evidence shows that this claim is false. The effects of tax increases on migration are, at most, small - so small that states that raise income taxes on the most affluent households can be assured of a substantial net gain in revenue."
Duration: 1:54
-
Video Podcast: Tax Flight Is a Myth
August 4, 2011
"Attacks on sorely-needed increases in state tax revenues often include the unproven claim that tax hikes will drive large numbers of households - particularly the most affluent - to other states. The same claim also is used to justify new tax cuts. Compelling evidence shows that this claim is false. The effects of tax increases on migration are, at most, small - so small that states that raise income taxes on the most affluent households can be assured of a substantial net gain in revenue."
Duration:1:49
-
State Budget Cuts in the New Fiscal Year Are Unnecessarily Harmful
Updated July 28, 2011
The cumulative effect of four consecutive years of lagging revenues has led to budget-cutting of historic proportions. An analysis of newly enacted state budgets shows that budget cuts will hit education, health care, and other state-funded services harder in the 2012 fiscal year – which started July 1, 2011 – than … -
Better-Than-Expected State Tax Collections Highlight Importance of Income Taxes
July 11, 2011
State revenues—especially income tax collections—are beginning to recover from the worst recession since the 1930s, but they still have a long way to go. At least 28 states have reported that tax collections for the just-ended fiscal year will exceed the amount expected when their budgets were adopted last spring. … -
New Fiscal Year Brings Further Budget Cuts to Most States, Slowing Economic Recovery
June 28, 2011
States have enacted deep cuts in education, health care, and other important public services in their budgets for fiscal year 2012 (which begins July 1 in most states). It is the fourth year in a row of budget-cutting for states, and the 2012 cuts are deeper than in past years. Of the 32 states that have enacted budgets, as … -
Camp-Hatch Proposal Would Harm Long-Term Unemployed and Weaken Recovery
June 13, 2011
Legislation from House Ways and Means Chairman Dave Camp and Senate Finance Committee Ranking Member Orrin Hatch would rescind the federal government’s commitment to provide unemployment insurance (UI) benefits through 2011 to Americans who have been out of work for more than half a year and are still looking for a job. Their bill … -
Promoting State Budget Accountability Through Tax Expenditure Reporting
Updated May 24, 2011
Each year states spend tens, maybe hundreds, of billions of dollars through “tax expenditures.” Tax expenditures are tax credits, deductions, and exemptions that reduce state revenue. They can include everything from poverty-reducing tax credits, to middle-class benefits, to corporate subsidies. Tax expenditures … -
Federal “Business Activity Tax Nexus” Legislation: Half of a Two-Pronged Strategy to Gut State Corporate Income Taxes
Updated May 13, 2011
Major multistate corporations are engaged in a two-pronged lobbying strategy aimed at substantially increasing the share of their nationwide profit that is not taxed by any state. The strategy involves the enactment of complementary state and federal legislation. The state legislation — which corporations have already … -
A Common-Sense Strategy for Fixing State Pension Problems in Tough Economic Times
May 12, 2011
Restoring underfunded state and local workers’ pension programs to full fiscal health is a long-term goal for state policymakers that should be accomplished with moderate, common-sense steps, rather than drastic measures that could imperil states’ economic recoveries. Today’s pension shortfalls were caused in substantial … -
Testimony: Iris Lav on the Transparency and Funding of State and Local Pensions
May 5, 2011
Mr. Chairman, Mr. Lewis, and members of the committee, I appreciate the invitation to appear before you today. I would like to make six related points in my testimony: Most state and local employees receive modest pension benefits, for which both they and their employers contribute annually during their working years. … -
Proponents' Case for a Federally-Imposed Business Activity Tax Nexus Threshold Has Little Merit
Updated April 27, 2011
A bill under consideration in the U.S. House of Representatives would strip states of their current authority to tax a fair share of the profits of many corporations that are based out-of-state but do business within their borders. The Subcommittee on Courts, Commercial and Administrative Law of the House Judiciary Committee held a … -
A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2011
April 18, 2011
Summary The federal Earned Income Tax Credit, which began in 1975 and has been expanded several times since then, is often heralded as the most effective anti-poverty program in the United States, particularly for children in working families. In 2009 alone, it lifted 6.5 million working families, including 3.3 million children, out … -
States Can Avert New Revenue Loss And Protect Their Economies by Decoupling From Federal Expensing Provision
Updated April 14, 2011
A recent change in federal tax law regarding business investment in machinery and equipment could be very costly for many states and hurt their economies. Eighteen states are on track to lose $4.6 billion in state corporate and individual income tax revenues during the current and next two state fiscal years: some … -
Proposed “Business Activity Tax Nexus” Legislation Would Seriously Undermine State Taxes on Corporate Profits And Harm the Economy
Updated April 13, 2011
A bill recently reintroduced in the U.S. House of Representatives would strip states of their current authority to tax a fair share of the profits of many corporations that are based out-of-state but do business within their borders. Representative Bob Goodlatte reintroduced the “Business Activity Tax Simplification Act” … -
Tax Foundation Figures Do Not Represent Typical Households’ Tax Burdens
April 12, 2011
This report has been updated. Click here for the updated analysis. Executive Summary Each year, the Tax Foundation releases a report projecting “Tax Freedom Day,” which it describes as the day when Americans will have “earned enough money to pay this year’s tax obligations at the federal, state, and local levels.” [1] The Tax … -
State and Local Governments Should Close Online Hotel Tax Loophole and Collect Taxes Owed
April 12, 2011
State and local governments throughout the United States are losing roughly $275 million to $400 million in revenue each year because of their failure to ensure that online travel companies like Expedia, Orbitz, and Priceline collect and remit the appropriate amount of tax on hotel room bookings. Online travel companies (OTCs) typically pay applicable … -
Podcast: Governors' Budgets Proposals: The Good, the Bad, and the Ugly
April 5, 2011
Erica Williams, Policy Analyst with the Center’s State Fiscal Project discusses how proposed budgets put forth by many governors would greatly harm their states residents.
Duration: 3:17
-
Off the Charts Blog Post: Chairman Ryan’s Baseless Attack on SNAP/Food Stamps
April 5, 2011
Falsely claiming that the nation’s most important anti-hunger program — SNAP, formerly called food stamps — is experiencing “relentless and unsustainable growth,” House Budget Committee Chairman Paul Ryan calls for converting it into a block grant. The truth is that SNAP’s recent growth is temporary and reflects the … -
Off the Charts Blog Post: Ryan’s Rx for Medicaid Means Millions More Uninsured or Underinsured Seniors, People with Disabilities, and Children
April 4, 2011
House Budget Committee Chairman Paul Ryan (R-WI) will unveil a budget tomorrow that would cut Medicaid by as much as $1 trillion over the next 10 years and convert it into a block grant. He and others will likely claim that these changes would merely rein in “out-of-control” Medicaid costs while letting states stretch their reduced federal … -
Governors are Proposing Further Deep Cuts in Services, Likely Harming Their Economies
Updated March 21, 2011
All of the 48 states releasing initial budget proposals for fiscal year 2012 (which begins July 1 in most states) have done so, and for the fourth year in a row, these budgets propose deep cuts in education, health care, and other important public services — in many cases, deeper than previous cuts. [1] These cuts will delay the … -
Podcast: Tax Cuts Worsening Wisconsin’s Budget Problems
March 1, 2011
Nick Johnson, Vice President for State Fiscal Policy discusses the budget situation in Wisconsin.
Duration: 4:18
-
Press Release: State Unemployment Insurance Systems Need Major Reforms to Avoid Employer Tax Increases, Deep Benefit Cuts for Jobless Workers
February 9, 2011
Issued Jointly With Many states’ systems for financing unemployment insurance (UI) are broken and, without major reforms, will remain broken, requiring years of high federal taxes on employers and threatening UI’s role as a key economic stabilizer during recessions, according to a major new report … -
Testimony: Iris Lav, Senior Advisor, Before the House Oversight Committee Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs
February 9, 2011
Mr. Chairman, Mr. Quigley, and members of the committee, I appreciate the invitation to appear before you today. A spate of recent articles regarding the fiscal situation of states and localities have lumped together their current fiscal problems, stemming largely from the recession, with longer-term issues relating to debt, … -
Podcast: Troubling Trends in Governors’ Budget Proposals
February 8, 2011
Erica Williams, policy analyst with the Center’s State Fiscal Project, discusses troubling trends in governors’ new budget proposals.
Duration: 4:16
-
Rebuilding the Unemployment Insurance System: A Deficit-Neutral Plan That Limits Tax Increases and Maintains Benefits
February 8, 2011
Issued Jointly With The systems for financing unemployment insurance (UI) in many states are broken and, without major reforms, they will remain broken through this decade and beyond, requiring years of high federal taxes on employers and threatening the system’s role as a key economic stabilizer during … -
Podcast: Misunderstandings About State Debt and Pensions Create Unnecessary Alarm
January 25, 2011
Senior advisor Iris Lav discusses misconceptions concerning bond debt, pensions and other challenges facing states.
Duration: 4:42
-
Media Briefing: Misunderstandings Regarding State Debt, Pensions, and Retiree Health Costs Create Unnecessary Alarm
January 20, 2011
Iris Lav discusses misconceptions about state and local bond debt, pension obligations, and retiree health costs that have lead to misguided calls for drastic, immediate measures that are not necessary and could prove harmful.
Duration: 14:49
-
Misunderstandings Regarding State Debt, Pensions, and Retiree Health Costs Create Unnecessary Alarm
January 20, 2011
A spate of recent articles regarding the fiscal situation of states and localities have lumped together their current fiscal problems, stemming largely from the recession, with longer-term issues relating to debt, pension obligations, and retiree health costs, to create the mistaken impression that drastic and immediate measures are needed to avoid an imminent fiscal … -
Business Expensing Proposal Would Add to State Fiscal Problems
Updated December 16, 2010
Notwithstanding the overall positive impacts that the tax deal between President Obama and Republican leaders would have for the economy in the near term, its provision to encourage business investment in machinery and equipment would cost states over $11 billion in state corporate and individual income tax revenues during the … -
State Earned Income Tax Credits: 2010 Legislative Update
Updated December 9, 2010
An Earned Income Tax Credit (EITC) modeled on the federal program of the same name is now offered in 23 states and the District of Columbia as a way to reduce taxes and supplement wages for low- and moderate-income working families. A large body of evidence has shown that the state and federal EITCs serve a number of important … -
State Film Subsidies: Not Much Bang For Too Many Bucks
Updated December 9, 2010
Like a Hollywood fantasy, claims that tax subsidies for film and TV productions — which nearly every state has adopted in recent years — are cost-effective tools of job and income creation are more fiction than fact. In the harsh light of reality, film subsidies offer little bang for the buck. State film subsidies are costly … -
Amazon’s Arguments Against Collecting Sales Taxes Do Not Withstand Scrutiny
Revised November 29, 2010
The Internet retailer Amazon.com has offered two primary justifications for opposing efforts of a growing number of states to require the company and other online retailers to charge sales tax. Amazon officials have argued that collecting sales taxes would be administratively burdensome. They have also claimed that the … -
How Much Would a State Earned Income Tax Credit Cost in Fiscal Year 2012?
Updated November 24, 2010
The federal Earned Income Tax Credit (EITC) is the nation’s most effective anti-poverty program for working families. It lifted 6.5 million people — including 3.3 million children — above the poverty line in 2009.[1] The 24 state-level EITCs modeled after the federal program complement it in combating … -
Media Briefing: Are State Film Tax Credits Worth the Cost?
November 17, 2010
Dr. Robert Tannenwald, Senior Fellow with the Center’s State Fiscal Project, discusses why state tax subsidies that are designed to attract film and TV productions are ineffective tools for job creation and economic development.
Duration: 9:51
-
Press Release: Tax Subsidies to Attract Film and TV Productions Don’t Pay Off for States
November 17, 2010
In recent years, nearly every state has adopted generous tax subsidies for film and TV productions in an attempt to create local jobs and boost the state economy, but the cost of these subsidies is outweighing their benefits, according to a new report from the Center on Budget and Policy Priorities.… -
Business Expensing Proposal Would Add to State Fiscal Problems
November 11, 2010
View more recent report with more up-to-date data: Business Expensing Proposal Would Add to State Fiscal Problems Updated December 16, 2010 President Obama’s proposed temporary tax incentive to encourage business investment in machinery and equipment would cost states up to $20 billion instate corporate and individual income tax revenues during … -
Testimony of Robert Tannenwald, Senior Fellow, before the New Hampshire Business Tax Commission
November 4, 2010
Executive Summary Business tax cuts and/or new business tax incentives will not put New Hampshire back on a path of stable, widely shared prosperity because: Business tax reductions will not pay for themselves. In order to finance them, the state will have to raise … -
Podcast: States Continue to Feel Recession’s Effects
October 25, 2010
Policy Analyst Phil Oliff discusses how states are still struggling to deal with the steep decline in revenues brought on by the recession.
Duration: 2:51
-
Flawed Study Should Be Given No Credence in Evaluating Jobs and Revenue Impact of California Corporate Tax Break
September 29, 2010
A coalition of California corporations has released an economic analysis of the job and revenue gains the state supposedly can expect to see if a corporate tax break is allowed to go into effect next year. The study is so flawed, however, that it should not be given any credence in evaluating the potential impact of the tax break on California … -
Cutting State Corporate Income Taxes Is Unlikely to Create Many Jobs
September 14, 2010
Corporate income taxes are important sources of revenue that states use to fund public services, including services essential to long-term economic growth like education, infrastructure, health care, and public safety. Nonetheless, a number of 2010 gubernatorial candidates have made corporate tax cuts key planks of their campaign platforms. … -
“FairTax” Proposals to Replace State Income and Business Taxes With Expanded Sales Tax Would Create Serious Problems
September 7, 2010
Proposals in several states to eliminate income and business taxes and substitute higher, broader sales taxes would threaten a state’s ability to maintain necessary services over time and sharply increase the taxes that many low- and middle-income households pay. Such proposals, which supporters often call “FairTax” … -
Podcast: New Fiscal Year Brings More Tough Times for States
July 13, 2010
Policy Analyst Phil Oliff discusses what the new fiscal year brings for states.
Duration: 2:56
-
New Fiscal Year Brings More Grief for State Budgets, Putting Economic Recovery at Risk
June 29, 2010
Dismal state revenue collections caused by the severe recession are setting the stage for a new round of state budget cuts as fiscal year 2011 begins in most states on July 1. The states’ cumulative budget shortfall will likely reach $140 billion in the coming year, the largest shortfall yet in a string of huge annual gaps that date back … -
Property Tax Cap Wouldn’t Improve New Jersey Policies
June 8, 2010
A report released by the Manhattan Institute on May 24 compares taxes, education spending, and standardized tests in Massachusetts and New Jersey, arguing that a property tax cap has reduced property taxes and school spending in Massachusetts without compromising student performance — and implies that a cap would do the same in New … -
Media Briefing: Property Tax Cap Wouldn’t Improve New Jersey Policies
June 8, 2010
Suggestions that Massachusetts’ experience under a property tax cap shows New Jersey could impose a similar cap without harming education and other public services are misleading. Senior advisor Iris Lav discusses why a property tax cap in New Jersey is likely to end up reducing essential … -
Press Release: Claimed Benefits of Massachusetts-Style Property Tax Cap Overblown, New Study Shows
June 8, 2010
Suggestions that Massachusetts’ experience under a property tax cap shows New Jersey could impose a similar cap without harming education and other public services are misleading, according to a new analysis by the Center on Budget and Policy Priorities. A recent Manhattan Institute report … -
Stalled Estate Tax Proposal Could Threaten State Revenues that Support Education, Public Safety, and Other Key Services
May 20, 2010
A provision that several senators were reportedly considering for a now-stalled estate tax proposal could squeeze state revenues that support education, public safety, and other vital services to help cut taxes on the estates of the wealthiest one-quarter of 1 percent of Americans. The proposal, which several Senators (including Jon Kyl, Max … -
Some States Scaling Back Tax Credits for Low-Income Families
Revised May 3, 2010
Facing large budget shortfalls, a small number of states are scaling back tax credits for low-income working families, which not only harms some of the families hardest hit by the recession but also weakens the economy by lowering overall demand. States have other budget-balancing strategies that are better for both vulnerable … -
The Impact of State Income Taxes on Low-Income Families in 2009
April 29, 2010
State income taxes affect working-poor families in different ways. Some states’ tax codes help working-poor families lift themselves out of poverty. Others push them deeper into poverty. An analysis of state income tax systems for the 2009 tax year shows that: In 13 of the 42 states that levy income taxes, two-parent families of … -
Press Release: State Income Taxes Push Many Working-Poor Families Deeper Into Poverty
April 29, 2010
Thirteen states taxed working-poor families deeper into poverty last year, according to a new report from the Center on Budget and Policy Priorities. In some of those states, poor families faced several hundred dollars in state income taxes — a significant amount for a family struggling to … -
Podcast: States Can’t Stimulate Their Economies By Cutting Taxes
March 23, 2010
The myth that cutting taxes can stimulate a state’s economy is discussed by Senior Advisor, Iris Lav. Duration: 4:02
-
Video: Fox Business Interviews Nicholas Johnson on the State Fiscal Crisis
March 11, 2010
Nicholas Johnson weighs in on tax hikes in response to the recession on Fox Business News.
-
Statement: Michael Mazerov, Senior Fellow, on Amazon's Cancellation of Its Colorado Affiliate Program
March 9, 2010
Last month, Colorado enacted a law that requires Amazon.com and other Internet retailers that do not collect and remit Colorado sales tax on what they sell in the state to tell their Colorado customers that they may owe sales tax on their purchases, and also to tell the state each year the total … -
State Tax Changes in Response to the Recession
March 8, 2010
The national recession has had such a devastating effect on state finances that states took in $87 billion less in tax revenue from October 2008 through September 2009 than they collected in the previous 12 months. This 11 percent decline, the steepest on record, resulted from the impact on tax collections of lost jobs, reduced wages, and … -
Testimony: Robert Tannenwald, Senior Fellow, on Massachusetts' Film Tax Credits
March 3, 2010
Chairman Kaufman, Chairman Downing, and other members of the Committee: Thank you for the opportunity to address you this morning. For the record, I am a Senior Fellow at the Center on Budget and Policy Priorities. The Center on Budget and Policy Priorities is a non-partisan research and policy institute which works at the federal and state … -
The Zero-Sum Game: States Cannot Stimulate Their Economies by Cutting Taxes
March 2, 2010
Policymakers in a number of states are considering proposals to cut taxes and institute job-creation tax credits. While state policymakers are understandably eager to do something to improve their economies, such measures generally will not increase economic growth. State balanced-budget requirements prevent states from stimulating their … -
Oregon Voters' Approval of Tax Increase Noteworthy as Federal Tax Debate Opens
February 16, 2010
Oregonians’ decisive vote last month to raise taxes on households making over $250,000 calls into question the conventional wisdom that tax-increase proposals are politically untenable regardless of their merit on economic, budgetary, and equity grounds. This has important implications for Congress, which must decide … -
Statement: Nicholas Johnson, State Fiscal Project Director, on the Passage of Revenue Measures in Oregon
January 27, 2010
In approving tax increases on the ballot yesterday, Oregon voters wisely chose a balanced approach to addressing the state’s budget crisis. They rejected the claim that revenue increases would harm the economy and, instead, they acknowledged that relying on program cuts alone would hurt … -
Press Release: Most Large New Mexico Corporations Already Comply With Proposed Corporate Tax Reform in Other States
January 26, 2010
While proposals to adopt a key corporate tax reform in New Mexico have drawn criticism from some multistate corporations, almost all of the major corporations doing business in New Mexico already comply with the reform in at least one of the 23 other states that have it, according to a report released today by the Washington, DC-based Center on Budget and Policy …
