State Budget and Tax

Budget and Tax Reform Tax Credits for Individuals and Families Fiscal Recovery Funds in the American Rescue Plan

Report

States’ Recent Tax-Cut Spree Creates Big Risks for Families and Communities

November 30, 2023 | Wesley Tharpe

The tax cuts — most of which are both permanent and tilted toward wealthy households and corporations — will weaken state revenues by large and growing amounts over time.

State Revenue Options for Advancing Equity and Prosperity

January 25, 2023

Blog

Alabama and Utah Join Growing Number of States Moving to Reduce or Eliminate Sales Taxes on Groceries

September 28, 2023

Report

How States Can Best Use Federal Fiscal Recovery Funds: Lessons From State Choices So Far

January 18, 2023

Report

State Taxes Have a Minimal Impact on People’s Interstate Moves

August 9, 2023 | Michael Mazerov

Blog

Pennsylvania Can Show It’s Serious About Ending Corporate Tax Avoidance by Eliminating Domestic Profit-Shifting

November 6, 2023 | Don Griswold

Blog

Momentum for New and Expanded State Child Tax Credits, Earned Income Tax Credits Continued in 2023

August 1, 2023 | Samantha Waxman and Amelia Minkin

Blog

State Limits on Revenues and Budgets Stifle Democracy

June 27, 2023 | Bernie Gallagher

Report

State Policymakers Should Reject K-12 School Voucher Plans

March 21, 2023 | Iris Hinh

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State Priorities Partnership

New on this Topic

Blog

States Made Steady Progress in 2023 Stemming Tide of Criminal Legal Fees

June 26, 2023

Blog

1 in 5 States Slashed Income Tax Rates in 2023, Deepening Already Worrisome Trend

June 20, 2023

Blog

State Lawmakers Are Draining Public Revenues With School Vouchers

June 12, 2023

Blog

New Jersey’s Proposed “StayNJ” Tax Credit Is Not Well Designed

June 7, 2023

Blog

Republican Debt-Ceiling-and-Cuts Bill Would Cost States and Local Communities $1.3 Trillion

May 9, 2023

Blog

Minnesota Bill Marks Major Step Forward in Preventing Multinational Corporations from Shifting Profits Abroad

May 8, 2023

Policy Basics

State and local governments provide most funding for K-12 education, public colleges and universities, health care, transportation, public safety, and other services.

They finance these services mainly through income and sales taxes and fees. We analyze budget and tax policies and work with state officials and state-based nonprofits to develop policies that address the needs of families with low incomes.

Federal Aid to State and Local Governments

Property Tax Caps

State and Local Borrowing

State Budgets Basics

State Earned Income Tax Credits

State Supermajority Rules to Raise Revenues

Taxpayer Bill of Rights (TABOR)

Where Do Our State Tax Dollars Go?

View All Policy Basics

Experts

Republican Debt-Ceiling-and-Cuts Bill Would Cost States and Local Communities $1.3 Trillion

House Republicans’ debt-ceiling-and-cuts bill would decimate funding that states, localities, tribal nations, and U.S. Territories rely on to provide vital services like schools, transit, and...

Minnesota Bill Marks Major Step Forward in Preventing Multinational Corporations from Shifting Profits Abroad

The Minnesota House and Senate passed two tax bills containing a critical provision aimed at stopping multinational corporations (MNCs) from shifting profits earned in the state onto the books...

Estimated Cuts in Discretionary Federal Aid Under McCarthy Bill

Estimated Cuts in Discretionary Federal Aid Under McCarthy Bill ($ millions) Estimated cuts in FY24Estimated cuts over 10 years if applied to total discretionary spendingif defense and veteran's...

Tax Day Highlights States’ Promise and Peril

Strong tax systems are a foundation for states to expand opportunity, promote fairness and equity, and foster broadly shared success. When policymakers prioritize efforts to protect and...

Movement for State Child Tax Credits Continues to Grow

The federal Child Tax Credit helps families make ends meet and has a proven record of reducing child poverty and improving outcomes for children in the near and long term. A growing movement of...

American Rescue Plan Act: 2 Years Later

Since Congress enacted the American Rescue Plan in March 2021, the Rescue Plan and other major federal aid have made the COVID-19 recession the shortest on record and bolstered a strong economic...

Easing State Restraints on Local Taxing Power Can Strengthen Democracy, Promote Prosperity and Equity

State policymakers in recent years have increasingly sought to countermand local decision-making across a range of issues. Although states have long regulated the parameters of local authority within...

As New Jersey’s Governor Proposes Eliminating Fees for State Public Defenders, Other States Should Follow Suit

Our country’s criminal legal system should work for everyone regardless of income, race, or other identities. In his fiscal year 2024 budget proposal, New Jersey Governor Phil Murphy included new...

Arizona Proposal for Automated Income Tax Cuts Sounds Benign but Would Cause Great Harm

The Arizona legislature is considering a proposal that would wreak enormous harm on rural areas, local governments, schools, and other vital services Arizona’s people and economy depend on, while...

State Policymakers Should Reject K-12 School Voucher Plans

Every child deserves a quality K-12 education that equips them for long-term opportunities and success. But this year, at least half of the states are considering school voucher bills that...

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