State Budget and Tax
Many States Still Tax Working-Poor Families Deeper Into Poverty
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.
Taxing the incomes of working-poor families runs counter to decades of efforts by policymakers across the political spectrum to help families work their way toward the middle class. Read more
Related:
The Texas Model: Hard for Other States to Follow and Not All It Seems
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. Read more
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.
Policy Basics:
- Policy Basics: The ABCs of State Budgets
- Where Do Our State Tax Dollars Go?
- Property Tax Caps
- Tax Payer Bill of Rights (TABOR)
- State Earned Income Tax Credits
Featured Experts
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Nicholas Johnson
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Michael Leachman
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Michael Mazerov
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Elizabeth McNichol
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Phil Oliff
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Jon Shure
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Erica Williams
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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Off the Charts Blog Post: State Budgets: Improving, But a Long Recovery Ahead
Revised May 24, 2012
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States Continue to Feel Recession’s Impact
Updated May 24, 2012
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Testimony of LaDonna Pavetti, Ph.D. Vice President, Family Income Support Policy, Before the House Ways and Means Committee, Subcommittee on Human Resources, Hearing on "State TANF Spending and its Impact on Work Requirements"
May 17, 2012
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North Dakota's Measure 2 is Reckless and Misguided
May 15, 2012
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North Dakota's Measure 2: High Risk For Little Reward
May 15, 2012
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Of Interest
Tax Flight Is a Myth:
Higher State Taxes Bring More Revenue, Not More Migration
A Common-Sense Strategy for Fixing State Pension Problems in Tough Economic Times
Promoting State Budget Accountability Through Tax Expenditure Reporting
Expanding Sales Taxation of Services: Options and Issues
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?
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.
