Momentum for sound progressive tax reforms continues to build – ITEP
We wrote last week that including state and local tax breaks in the US Congressional bailout should free up the time and attention of state lawmakers to focus on the comprehensive reforms needed to address to upside down and inadequate tax codes, and some states are already doing just that. Connecticut lawmakers, for example, held a full-day hearing on possibilities for progressive tax reform, and New York lawmakers united behind a similar set of policies in their finance bills. New Mexico leaders were also given the right to work on advancing progressive tax improvements. However, not all states are so connected yet, as Mississippi lawmakers crushed and revived a proposal to eliminate income tax within hours, and counterproductive tax cuts remain on the table in several states, including Arkansas, Idaho, and Nebraska.
Main tax proposals and developments of the State
- It has already been an eventful week in MISSISSIPPI. The house tax plan – which would eliminate state income and shift state taxes (PDF) far from the rich and on low and middle income households – was tabled for the session, was transferred to a summer study committee without a Senate vote. However, a few hours later the bill, with minor adjustments, was revived in a Separate internal invoice. – AIDAN DAVIS
- A NEW MEXICO invoice recently released from the Senate Tax, Business and Transportation Committee this would raise the top marginal tax rate and corporate rate for those earning over $ 500,000 and increase state credit to working families to 25 percent while extending it to childless workers and to ITIN reporters. – MARCO GUZMAN
- The budgets proposed by the two chambers of NEW YORK legislature are mostly in agreement and land somewhere in between Governor Andrew Cuomo’s reluctance to tax affluent households and the ambitious plans of some advocates to raise tens of billions through bold progressive tax changes. To consolidate underfunded services and add some progressivity to the tax code, the budget proposals would raise $ 7 billion through tax increases on the state’s richest households and most profitable corporations. . Items include raising income taxes and instituting a capital gains surtax for millionaires and multi-millionaires, imposing a billion dollar corporate surtax and a tax minimum on corporate capital, increasing property taxes for high value second homes and increasing inheritance tax rates. – DYLAN GRUNDMAN O’NEILL
- CONNECTICUT lawmakers held a one day hearing on a solid set of progressive tax policies proposed this year, hearing strong support of around the state. The reforms would raise taxes for the state’s wealthiest households – through income tax increases and a surtax on unearned income for households with incomes over $ 500,000, d ” a 2% tax on residences, a stronger inheritance tax, a tax on technology companies selling more than a billion dollars in digital. announcements, and increases on companies grossing over $ 100 million in profits. The income would solve long-standing underfunding problems in schools and elsewhere, while funding short-term help to the unemployed and long-term reforms to lower taxes for middle- and low-income families. – DYLAN GRUNDMAN O’NEILL
- Legislators in ALASKA have law Project double the lowest gasoline tax in the country.
- a ARKANSAS The senator has presented a bill abolish state income tax.
- A group of CALIFORNIA legislators propose a state wealth tax, similar to the ultra-millionaire tax proposed by Elizabeth Warren, which would tax household net worth exceeding $ 50 million at 1% and amounts exceeding $ 1 billion at 1.5%.
- DELAWARE defenders keep pushing for a minimum wage of $ 15 and lawmakers will discuss a bill to do so in legislative committee on Wednesday.
- The IDAHO lodge will soon take an invoice which reduces the personal and corporate tax rate to 6.5% and includes a one-time tax refund of $ 220 million.
- The two houses of KENTUCKY legislature passed a law that would create a controversial tax credit scholarship program. The measure, which is expected to be vetoed by Governor Andy Beshear, would allow individuals and businesses to forgo paying taxes to donate to a scholarship fund. Allowing donations of up to $ 1 million each, the fund would be capped at $ 25 million. Contributors would benefit from a tax credit of up to 97%. Visit this page for more information on this topic.
- republicans in the MINNEOSTA the Senate has presented its own two-year budget plan this does not include tax increases, but rather exemptions for Paycheck Protection Program loans and unemployment benefits, state government administrative cuts and broadband funds.
- After apparently stagnating last week, a proposal to increase MISSOURIthe second lowest gasoline tax in the country was adopted by the State Senate. The proposal curiously allows people to claim a refund equivalent to the tax increase at the end of the year, dramatically reducing its ability to help finance infrastructure while also favoring people with professional accountants or a penchant for bureaucracy.
- NEBRASKA lawmakers appear to have backed down from a dangerous effort to shift state taxes onto middle and low-income families through income tax cuts and a sales tax increase, but they are go ahead with smaller proposals reduce taxes for retirees and businesses.
- In a recent release PENNSYLVANIA Governor Tom Wolf reiterated his commitment to phase out the state’s gasoline tax. He created a commission to recommend options to replace the tax with other sources of revenue.
- In his proposed budget, RHODE ISLANDGovernor Dan McKee has called for the legalization of recreational cannabis and the continued phase-out of the state car tax. He also supported a version of the old-Gov. Gina Raimondo’s proposal to increase property transfer rights on high-end housing.
- MASSACHUSETTS lawmakers are joining a number of other states seeking to digital advertising tax.
- A TENNESSEE Democrat sponsored a bill that temporarily eliminate the four percent tax on groceries from May to October 2021.
- The WASHINGTON House heard testimony – most of it supporting it – on the bill recently passed by the Senate to implement an excise tax on exceptional capital gains transactions exceeding $ 250,000.
What we read
- The off the charts Blog Explain what is so far known about the US bailout (ARP) provision prohibiting states from using federal aid to undermine their own revenue systems through tax cuts – and why it this is an important and sound policy.
- Route fifty writing that local jurisdictions are often overshadowed in tax discussions and federal relief efforts, making the recently approved ARP particularly welcome news, for example because it help counties invest in infrastructure.
- Governing extends how ARP support will be received and used by these local entities, and Route fifty explore how it will help local economies more broadly.
- The buzz continues to grow for Dorothy Brown’s next book “The Whiteness of Wealth: How the Tax System Impoverishes Black Americans and How to Fix it. “ Bloomberg Business Week reviews this important research.
- In a recent blog post, the ITEP pushes back the myths of the offer in WEST OF VIRGINIA and MISSISSIPPI and explains the impact of the tax transfers offered in each state.
- Podcast Politics for the people recently presented OREGON experts explaining the state tax code inequitable effects on Oregonians of color.
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