State Budget and Tax
State EITCs provide extensive benefits to children, families, and communities, and are straightforward to administer and to claim. Lawmakers in states without their own EITC should consider enacting one.
With this important investment, states can make a big difference in the lives of low- and moderate-income working families.
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.
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.
February 27, 2015
Updated February 18, 2015
Updated February 11, 2015
Comments of the Center on Budget and Policy Priorities Regarding the Proposed Statement of the Governmental Accounting Standards Board on Tax Abatement Disclosures, Project No. 19-20E
January 29, 2015
Updated January 28, 2015
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The State Priorities Partnership
The State Priorities Partnership brings together nonpartisan, independent, nonprofit organizations in more than 40 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.