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In an era of enhanced mobility, where tax competition matters more than ever, an out-of-date tax code just won’t do.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.
In line with the nationwide trend of taxing vapor products, the Michigan Senate has passed a new 18 percent tax on vapor products. These taxes are often intended to achieve a two-fold goal: deterring youth use and raising revenue. The Michigan bill is no exception.
Nebraska lawmakers may ultimately opt for a package that includes both property tax relief and the renewal of business incentives, but they should avoid doing so at the expense of decoupling from the CARES Act’s liquidity-enhancing provisions.
As policymakers continue evaluating their evolving revenue and spending options, the importance of enacting policies that enhance business liquidity must remain at the forefront.
Seattle’s city council are again gearing up for an effort to increase taxes on the city’s largest employers, intended to generate revenue for cash assistance to low-income households impacted by the COVID-19 crisis, among other reasons.
Despite a balanced budget and and revenue shortfalls arising from the coronavirus crisis, the D.C. Council will consider proposals to raise income taxes to fund newly proposed spending projects.
While it is understandable that lawmakers and organizers are worried about Colorado’s financial situation, they should remember that narrow taxes are volatile and disrupt markets. Excise taxes can play a role in state revenues even as policymakers appreciate that excise taxes are not viable long-term revenue tools for general spending priorities.
As New Jersey lawmakers grapple with reduced revenues due to the coronavirus pandemic, they have turned to an unusual solution: the issuance of bonds that would be repaid, if necessary, through temporarily higher sales and property taxes.
The pandemic has left states in dire straits financially and lawmakers are getting creative in their pursuit of new revenue sources. However, it’s unlikely that revenue from sports betting will have any meaningful impact on budget shortfalls