The Institute on Taxation and Economic Policy
What's New
An Analysis of a Potential Reduction in Massachusetts’ Long-Term Capital Gains Tax Rate
January 26, 2026 • By Eli Byerly-Duke, Matthew Gardner
A ballot initiative in Massachusetts has proposed cutting the base rate for nearly all income sources from 5 to 4 percent. In 2026, this would cost the state about $5 billion per year of which $347 million would come from the reduced rate on long-term capital gains.
How the Wealthy Exploit the Tax Code: Q&A with Professor Ray Madoff, Author of ‘The Second Estate’
January 26, 2026 • By Brakeyshia Samms
Her timely book, The Second Estate: How the Tax Code Made an American Aristocracy, walks readers through federal tax policy history and the modern-day legal maneuvers the wealthy use to pay little to no taxes
State Rundown 1/22: Cautious Tone Noticeable in Most Statehouses
January 22, 2026 • By ITEP Staff
Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.
States Can Push Back Against Reckless Federal Tax Policy. Here’s How.
January 22, 2026 • By Aidan Davis, Wesley Tharpe
They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.
Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities
January 21, 2026 • By Kamolika Das
2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.
ITEP in the News
Time: Americans Are Paying for Trump's Tariffs, Study Finds
Education Week: Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
MarketWatch: Tax the Rich in '26? These 3 Crucial Questions about Wealth Taxes Could Be Answered This Year
Associated Press: Georgia Republicans Move to Scrap State Income Tax by 2032 Despite Concerns
Newsweek: US Property Tax Changes Coming in 2026
ITEP Work in Action
Center on Budget and Policy Priorities: States Should Adopt the Wealth Proceeds Tax to Raise New Revenue
Georgia Budget & Policy Institute: Overview of Georgia’s Budget for Amended Fiscal Year 2026 and the Full 2027 Fiscal Year
North Carolina Department of Commerce: The Hidden Cost of Child Care Gaps in North Carolina's Economy
Joint Center for Political and Economic Studies: State of the Dream 2026: From Regression to Signs of a Black Recession
New Jersey Policy Perspective: Five Budget Time Bombs Facing the Next Governor
Across the States
On the Map
State Rundown 1/22: Cautious Tone Noticeable in Most Statehouses
Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to…
Taxes on Adult-Use Cannabis in Each State
Twenty-three states have legalized the sale of cannabis for general adult use. Every state allowing legal sales applies an excise tax to cannabis based on…
When Did Your State Enact a Child Tax Credit?
The Child Tax Credit (CTC) is an important tool to fight child poverty and help families make ends meet. When designed well, it can also…
State & Local Tax Policy
An Analysis of a Potential Reduction in Massachusetts’ Long-Term Capital Gains Tax Rate
January 26, 2026 • By Eli Byerly-Duke, Matthew Gardner
States Can Push Back Against Reckless Federal Tax Policy. Here’s How.
January 22, 2026 • By Aidan Davis, Wesley Tharpe
Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities
January 21, 2026 • By Kamolika Das
Curbing Tax Deductions for Executive Pay is a Federal Tax Change States Should Get Behind
January 9, 2026 • By Matthew Gardner
Show Me Where We're Going: Missouri’s Fiscally Irresponsible Path Will Be Paid for by Everyday People
January 8, 2026 • By Logan Liguore
Pennsylvania Just Gave Low-Income Workers a Tax Credit Boost. Now It’s Philadelphia’s Turn.
December 30, 2025 • By Kamolika Das
2025: The Year in Tax Policy
December 23, 2025 • By ITEP Staff
States Can Create or Expand Refundable Credits by Taxing Wealth, Addressing Federal Conformity
December 19, 2025 • By Zachary Sarver
The ITEP Guide to State & Local Taxes
The ITEP Guide to State & Local Taxes offers citizens, advocates, journalists, and policymakers a detailed primer on state and local tax policy. Learn more about the three main sources of revenue (income, property, and sales) and the major principles that shape tax codes and discussions.
Tax Principles
Income & Profits
Property & Wealth
Sales & Use
Other Revenues
Expert's View
Carl Davis
Research Director
The Geographic Distribution of Extreme Wealth in the U.S.
Excessive concentration of wealth runs counter to our national aspiration for genuine equality of opportunity, and it saps the vitality of our democracy through the consolidation of power and influence. Tax policy offers a powerful means of beginning to address our nation’s stark level of inequality, but current law is clearly falling short of its potential.
– Carl Davis
Research Director
Steve Wamhoff
Federal Policy Director
Washington Post: Trump’s tax law includes a $40,000 SALT cap. Here’s who qualifies.
SALT cap or no SALT cap, the mega bill overall is a bonanza for the rich in every state.
– Steve Wamhoff
Federal Policy Director
Kamolika Das
Local Policy Director
USA Today: Would Mamdani’s ‘Millionaire Tax’ Chase the Rich Out of New York City?
Tax policies just really don’t drive relocation decisions, they’ve been claiming this for a long time, and there’s just very scant evidence to support it.
– Kamolika Das
Local Policy Director
Miles Trinidad
State Analyst
CT Mirror: Sales tax holidays under fire as CT launches its promotion
A two- to three-day sales-tax-free shopping spree for selected items does nothing to reduce taxes for low- and moderate-income taxpayers during the other 362 days of the year.
– Miles Trinidad
State Analyst
Institute on Taxation
and Economic Policy
ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations to shape equitable and sustainable tax systems.
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