State and Local Finance Initiative

Why States and Localities Need More Federal Aid

Opponents of additional federal aid to state and local governments have noted that overall state revenue declines have not been as bad as expected during...

February 22, 2021Lucy Dadayan Kim S. Rueben

State and Local Issues: TaxVox

State Tax Debates Could Use Some (Customized) State Economic Data

Politicians love to make claims about tax policy. This tax cut will create jobs! That one forced the school district to fire teachers! But too...

November 12, 2019Richard C. Auxier

State and Local Issues: TaxVox

Most State Budgets Are Improving But Their Long-Term Prospects Remain Uncertain

If you are not an energy dependent state, things ought to be pretty good, at least in the short-term. The economy is improving, though slowly, The Rockefeller Institute reported this morning that state tax revenues grew by 5.8 percent in the first quarter of this year and by 7.6 percent in the

September 17, 2015Howard Gleckman

: TaxVox

Happy Tax Day! Who Will Pay?

No Virginia. The One Percent don’t dodge federal taxes . In 2013, they paid 35.7 percent of their income in federal taxes. Low-income households don’t dodge, either. While many paid no income tax, nearly all paid payroll tax. You can start your Tax Day exploring these and other common myths as TPC’

April 15, 2015Renu Zaretsky

: TaxVox

“Money Is Like Manure… Not Worth a Thing Unless It’s Spread Around.”

TPC shows how President Obama would redistribute income from the rich to the poor. The President will release his budget next week, and with it, a tax plan analyzed by the Tax Policy Center . TPC’s Howard Gleckman explains that under the plan, after- tax income would increase by about $175 in 2016

January 29, 2015Renu Zaretsky

State and Local Issues: TaxVox

Voters Hate Gas Tax Hikes—That's a Problem for States

On Election Day, Massachusetts voters proved once again that increasing the gas tax is a political loser . And that's a problem. As I explain in a new Tax Policy Center brief , the federal government and most states have per-unit gas taxes. That is, they tax the number gallons purchased, not the

November 6, 2014Richard C. Auxier

State and Local Issues: TaxVox

Ahead of the Midterms, State Economic Trends Present Mixed Signals

Voters say the economy is the most important issue in the upcoming election. But as the most recent State Economic Monitor reports, the economy looks very different depending on what (and what state) you're analyzing. And polls suggest that voters faced with these mixed messages may focus on other

October 17, 2014Richard C. Auxier

State and Local Issues: TaxVox

Nearly All States Play the Lottery, But None Are Big Winners

Wyoming residents no longer have to cross the border to purchase Powerball tickets. On Aug. 24, Wyoming became the 44th state to legalize a lottery. Proponents laud these games as an easy source of funds for schools and other public services. However, lotteries are often a bad bet: Revenues are

September 9, 2014Richard C. Auxier

: TaxVox

Pensions and Tax Bases: Realities and Hopes

The thing about pension smoothing: The bumps always come back. Neither the Committee for a Responsible Federal Budget nor TPC’s Len Burman will suspend disbelief when it comes to the latest gimmick to patch the Highway Trust Fund. Maybe “stupid tax tricks” work politically but “pretending to raise

July 10, 2014Renu Zaretsky