Fifty states, 7,383 state legislators, and over 100,000 bills: legislative sessions are a whirlwind. But the Tax Foundation and its state experts are here to help make sense of the key tax policy issues in state capitols.
This page is intended as a resource for policymakers and others focused on state-level tax policy, providing one-click access to key resources and highlighting papers on some of the biggest issues of 2023. It is also an open invitation to connect directly with our experts with questions or requests for legislative testimony. Contact information for the Tax Foundation expert assigned to each state can be found below.
The past two years have seen the majority of states adopt rate cuts, particularly to individual income taxes. In 2023, we expect a greater focus on structural reforms, such as easing compliance costs for hybrid and remote workers, adopting permanent full expensing of capital investments, and other reforms to promote mobility and modernization as states respond to the new realities of a post-pandemic economy.
In addition to papers on major issues in contemporary tax policy, we also have resources like our six-part “boot camp” series for state lawmakers and others interested in state tax policy, along with publications like the State Business Tax Climate Index (a comparison of the competitiveness of states’ tax structures) and Facts & Figures (a handy guide to state tax rates, collections, and burdens data). We invite you to treat this page as a launching point as you think about state tax policy issues throughout 2023.
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The Tax Foundation has a talented team of experts, each assigned to his or her own set of states. If you have any questions, or if we can be of assistance to you in any way, please reach out to the tax policy expert assigned to your state.
In an era of enhanced mobility, where tax competition matters more than ever, an out-of-date tax code just won’t do. Lawmakers should modernize their tax codes to position their states for success in a rapidly changing economic landscape.
Our new booklet highlights five tax reforms that most states could undertake to grow their economies and position themselves for success. Download the guide below to learn how how states can:
Download State Tax Reform Handbook
While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.
States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
In times of high inflation, states should consider adopting permanent full expensing because it boosts long-run productivity, economic output, and wages.
In what is already a year of significant bipartisan focus on tax relief, 2022 is launching something of a flat tax revolution by reforming income taxes.
President Joe Biden’s tax plan would yield combined top marginal state and local rates in excess of 60 percent in three states: California, Hawaii, and New Jersey (also New York City).
Following the Wayfair decision, states’ move to tax online sales has increased the importance of simplicity in sales tax systems, as sellers now have to deal with differing regulations in multiple states. There are over 11,000 standard sales tax jurisdictions in the United States in 2020
Significantly raising the income tax through Proposition 208 will only serve to make Arizona less competitive, especially at a time when individuals and small businesses are already struggling. If Arizona is looking for a long-term way to increase education funding, it would do well to avoid overburdening struggling taxpayers and look toward more broad-based, stable sources of revenue.
A competitive tax code has never been more important, and these tax policy improvements can both strengthen the short-term economic recovery and promote long-term economic growth in Nebraska.
State throwback and throwout rules may not be widely understood, but they have a notable impact on business location and investment decisions and reduce economic efficiency for the states which impose such rules.
Oregon’s Measure 108 introduces a risk of increased tax avoidance and evasion activity as consumers of the products often procure cigarettes from lower tax jurisdictions. At $3.33 per pack, Oregon would have the highest excise tax on cigarettes in the region.
Heading into Election Day, the Illinois legislature and Governor J.B. Pritzker (D) are trying to convince voters to scrap a key constitutional feature of Illinois’ tax system: a provision in the state constitution that prohibits a graduated-rate income tax.
Here are the state tax ballot measures to watch on Election Day 2020. Explore the most notable 2020 state tax ballot measures in 15 states.
This Election Day, Colorado voters will weigh in on Proposition 116, which would permanently reduce the state’s flat income tax rate from 4.63 to 4.55 percent.
Five states currently collect corporate AMTs: California, Iowa, Kentucky, Minnesota, and New Hampshire. This is a significant drop from the eight states that levied AMTs in tax year 2017.