Microsimulation Tax Model
Matthew Gardner
Amy Hanauer
Steve Wamhoff
Meg Wiehe
Federal Policy Homepage
Inequality and the Economy
Refundable Tax Credits
Tax Analyses
Tax Reform Options and Challenges
Taxing Wealth and Income from Wealth
Trump Tax Policies
State Policy Homepage
Education Tax Breaks
Sales, Gas and Excise Taxes
State Corporate Taxes
Tax Credits for Workers and Families
Who Pays?
blog	July 10, 2019
Missouri's Creative Approach to Ending the "Race to the Bottom" in State Business Taxes
Each year, state and local governments spend billions of dollars on targeted tax incentives—special tax breaks ostensibly designed to encourage businesses to relocate, expand or simply stay where they are. A law enacted by the Missouri legislature creates a template for states to work bilaterally to put the brakes on the "race to the bottom" in state business taxes.
ITEP Work in Action	November 2, 2018
Kansas Center for Economic Growth: Kansans of Color Often Pay More Than Their Fair Share of Taxes
Kansans believe in fairness. However, a recent study by the Institute on Taxation and Economic Policy (ITEP) and the Kansas Center for Economic Growth finds that the lowest-income Kansans are…
media mention	October 17, 2018
Topeka-Capital Journal: New Study: Kansas' Tax Policy Ranks as 23rd Most Regressive in the Nation
A 50-state study of tax systems found Kansas' lowest-income residents pay 1.5 times more in taxes as a percent of income compared with the wealthiest residents, ranking the state 23rd in the nation on an equity index.
"State lawmakers have control over how their tax systems are structured," said Meg Wiehe, the institute's deputy director and a study author. "They can and should enact more equitable tax policies that raise adequate revenue in a fair, sustainable way."
ITEP Work in Action	October 17, 2018
Kansas Center for Economic Growth: New Analysis: Tax Reform Reduces Inequality for Kansans, but Low-Income Taxpayers Still Pay 1.5 Times the Rate Paid by the Richest
A new study released today by the Institute on Taxation and Economic Policy and the Kansas Center for Economic Growth finds that the lowest-income Kansans pay 1.5 times more in taxes as a percent of their income compared with the state's wealthiest residents.
Kansas: Who Pays? 6th Edition
KANSAS Read as PDF KANSAS STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
blog	October 2, 2018
Twelve States Offer Profitable Tax Shelter to Private School Voucher Donors; IRS Proposal Could Fix This
A proposed IRS regulation would eliminate a tax shelter for private school donors in twelve states by making a commonsense improvement to the federal tax deduction for charitable gifts. For years, some affluent taxpayers who donate to private K-12 school voucher programs have managed to turn a profit by claiming state tax credits and federal tax deductions that, taken together, are worth more than the amount donated. This practice could soon come to an end under the IRS's broader goal of ending misuse of the charitable deduction by people seeking to dodge the federal SALT deduction cap.
Tax Cuts 2.0 – Kansas
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
ITEP Work in Action	February 15, 2018
Kansas Center for Economic Growth: New KCEG Blog Series Documents Equity Issues Facing Kansas
systemic barriers facing Kansans can strengthen our state's economy. Using data broken out by race and ethnicity, gender, and immigration status, the entries highlight areas for policymakers to address to ensure continued economic prosperity for every Kansan.
Policy and research analyst Emily Fetsch examined data in recent reports from the Kansas Health Institute and the Institute on Taxation and Economic Policy.
ITEP Work in Action	February 7, 2018
Kansas Center for Economic Growth: New American immigrants in Kansas strengthen the economy
A recent report from the Institute of Tax and Economic Policy (ITEP) shows how undocumented immigrants in Kansas demonstrate their commitment to our state and increase state revenue through the…
Currently, undocumented immigrants residing in Kansas pay nearly $68 million a year in state and local taxes. By granting undocumented immigrants full and legal status, Kansas could receive an additional…
How the Final GOP-Trump Tax Bill Would Affect Kansas Residents' Federal Taxes
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-…
blog	December 14, 2017
Private Schools Donors Likely to Win Big from Expanded Loophole in Tax Bill
For years, private schools around the country have been making an unusual pitch to prospective donors: give us your money, and you'll get so many state and federal tax breaks in return that you may end up turning a profit. Under tax legislation being considered in Congress right now, that pitch is about to become even more persuasive.
report	December 14, 2017
Tax Bill Would Increase Abuse of Charitable Giving Deduction, with Private K-12 Schools as the Biggest Winners
In its rush to pass a major rewrite of the tax code before year's end, Congress appears likely to enact a "tax reform" that creates, or expands, a significant number of tax loopholes.[1] One such loophole would reward some of the nation's wealthiest individuals with a strategy for padding their own bank accounts by "donating" to support private K-12 schools. While a similar loophole exists under current law, its size and scope would be dramatically expanded by the legislation working its way through Congress.[2]
How the House and Senate Tax Bills Would Affect Kansas Residents' Federal Taxes
The House passed its "Tax Cuts and Jobs Act" November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Kansas residents.
How the Revised Senate Tax Bill Would Affect Kansas Residents' Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Kansas, 46 percent of the federal tax cuts would go to the richest 5 percent of residents, and 8 percent of households would face a tax increase, once the bill is fully implemented.
How the House Tax Proposal Would Affect Kansas Residents' Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family's federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
State Rundown 10/4: Wildfires in Montana and Tax Cuts in Kansas Wreak Budget Havoc
This week, Kansas's school funding was again ruled unconstitutionally low and unfair, while Montana lawmakers indicated they'd rather let historic wildfires burn a hole through their budget than raise revenues to meet their funding needs. Meanwhile, a struggling agricultural sector continues to cause problems for Iowa and Nebraska, but legalized recreational marijuana is bringing good economic news to both California and Nevada.
GOP-Trump Tax Framework Would Provide Richest One Percent in Kansas with 58.3 Percent of the State's Tax Cuts
The "tax reform framework" released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Kansas equally. The richest one percent of Kansas residents would receive 58.3 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $535,600 next year. The framework would provide them an average tax cut of $84,190 in 2018, which would increase their income by an average of 4.6 percent.
In Kansas 47.1 Percent of Trump's Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Kansas population (0.5 percent) earns more than $1 million annually. But this elite group would receive 47.1 percent of the tax cuts that go to Kansas residents under the tax proposals from the Trump administration. A much larger group, 41.9 percent of the state, earns less than $45,000, but would receive just 4.0 percent of the tax cuts.
Trump Tax Proposals Would Provide Richest One Percent in Kansas with 52.3 Percent of the State's Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Kansas would not benefit equally from these proposals. The richest one percent of the state's taxpayers are projected to make an average income of $1,825,100 in 2018. They would receive 52.3 percent of the tax cuts that go to Kansas's residents and would enjoy an average cut of $132,080 in 2018 alone.
blog	June 28, 2017
State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
How to Recover from A Failed Tax Experiment: Part 1
Gov. Sam Brownback's tax experiment in Kansas was a failure.
His radical tax cuts for the rich eventually had to be partly paid for through tax hikes on low- and middle-income families and also failed to deliver on promises of economic growth. Meanwhile, the tax cuts decimated the state's budget, diminished its credit rating, and compromised its ability to meet the state's constitutional standard of adequacy for public education.
blog	June 8, 2017
Kansas May Have Saved Us All
Sitting in the National Museum of American History in Washington, DC, hidden in the jumble of Americana like Thomas Jefferson's desk, Michelle Obama's inaugural gown and the ruby slippers worn in the Wizard of Oz, is a napkin with a drawing on it. Probably one of the least known exhibits in the museum, this napkin, quietly hiding behind glass lest some child wandering from a school group wipe his nose on it, has on several occasions destroyed the finances of the federal government and several state governments, most recently in Kansas.
media mention	June 7, 2017
Kansas City Star: Kansas Tax 'Experiment' Offers Lessons to the Nation, Analysts Say
"An analysis by the Institute on Taxation and Economic Policy found in 2015 that taxpayers in the bottom 40 percent saw an overall increase in their taxes under Brownback when…
State Rundown 6/7: Kansas Success Story and Other State News
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback's tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas heads into special session and Vermont faces another budget veto, while Louisiana and New Mexico are on the verge of wrapping up. Voters in Massachusetts may soon be able to weigh in on a millionaire's tax, the California Senate passed single-payer health care, and more!
ITEP
1200 18th Street, NW, Suite 675