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In an era of enhanced mobility, where tax competition matters more than ever, an out-of-date tax code just won’t do.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.
Governments at all levels must work to remove the tax policy barriers that stand in the way of economic recovery and long-term prosperity following the COVID-19 crisis. Our new guide outlines several comprehensive options that policymakers can take at the federal and state levels.
On July 1, sales taxes levied on internet access in six states—Hawaii, New Mexico, Ohio, South Dakota, Texas, and Wisconsin—will become illegal under the provisions of the Permanent Internet Tax Freedom Act (PITFA)
We examine whether excise taxes are a solution to budget deficits, and while the short answer to that question is no, there are of course nuances. 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.
The current crisis highlights the cost of underfunding pensions in years of economic growth. Twenty states have pension plans that were less than two-thirds funded, and five states had pension plans that were less than 50 percent funded.
If states fail to update their income tax conformity, they will wind up taxing the federal lifeline to small businesses in the CARES Act: the Paycheck Protection Program (PPP) loans.
California extends tax filing and payment deadline to July 31 for a broad spectrum of business taxes as Virginia keeps May 1st tax filing deadline.
Six states, which collectively account for over one-third of the U.S. population, are currently in a position to pay out fewer than 10 weeks of the unemployment compensation claims that have already come in since the start of the COVID-19 pandemic.
Due to a quirk of some state tax codes, the recovery rebates in the CARES Act could increase your income tax liability in six states: Alabama, Iowa, Louisiana, Missouri, Montana, and Oregon.