State Budget and Tax
State Income Taxes Push Many Working-Poor Families Deeper Into Poverty
“Sixteen states taxed working-poor families deeper into poverty last year….
“Dire economic conditions are already reducing states’ tax revenue. This makes it harder for states to enact new tax cuts targeted to poor families. But doing so should still be a priority. Taxing people deeper into poverty runs counter to the goal of helping families achieve self-sufficiency.”
Related:
Basics
State and local governments are the main source of funding for K-12 education, public colleges and universities, health care, transportation, public safety, and many other services — including services for low-income and other vulnerable residents. They finance these services mostly through taxes and fees, primarily income and sales taxes. (Not every state has an income and sales tax.) Unlike the federal government, states must balance their budgets on an annual basis.
- Where Do Our State Tax Dollars Go?
- Property Tax Caps
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Featured Experts
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Nicholas Johnson
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Iris Lav
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Michael Mazerov
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Elizabeth McNichol
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Jon Shure
The Center’s State Fiscal Project works with state officials and state-based nonprofits to develop responsible budget and tax policies that take the needs of low-income families into account. We provide information and technical assistance on a variety of issues, including strengthening state tax systems, state budget priorities, and making low-income programs more effective. We also help state nonprofits understand how federal budget and tax decisions affect states and their residents.
New
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Podcast: Maine and Washington Reject TABOR
November 5, 2009
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Video Clip: NBC affiliate WVTM in Birmingham, Alabama Cites CBPP on State Income Tax Threshold
November 4, 2009
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Statement: Iris Lav, Senior Advisor, on Defeat of “TABOR” Initiatives In Maine and Washington
November 4, 2009
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The Impact of State Income Taxes on Low-Income Families in 2008
November 4, 2009
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Press Release: State Income Taxes Push Many Working-Poor Families Deeper Into Poverty
November 4, 2009
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Of Interest
Pulling Apart: A State-by-State Analysis of Income Inequality
Budget Cuts or Tax Increases at the State Level: Which Is Preferable During an Economic Downturn?
Many States Tax Working-Poor Families Deeper into Poverty
Faulty Foundations: State Structural Budget Problems and How to Fix Them
The State Fiscal Analysis Initiative
The State Fiscal Analysis Initiative brings together nonpartisan, independent, nonprofit organizations in more than 30 states. These organizations have diverse backgrounds and missions, but they share a commitment to rigorous policy analysis, responsible budget and tax policies, a particular focus on the needs of low- and moderate-income families.
