Navigation

Home > Policy Resources > Increasing Democracy > Tax and Budget Reform > Make Tax Systems More Progressive > Increasing Democracy > Tax and Budget Reform > Make Tax Systems More Progressive

Promote Fair Income and Estate Taxes

Most sales and property taxes are regressive and burden working families more than the wealthy; however, states can create a fair tax system by balancing those regressive taxes with an income tax that includes higher tax brackets for the very wealthy.

  • As the Tax Policy Center highlights, there is a wide disparity in state income tax systems, but recently a number of states have been seeking ways to make their tax systems more progressive.
  • Creating or increasing State Earned Income Tax Credits to ease the tax burden on lower-income working families is another tool to help increase fairness in the tax code.
  • Preserving taxes on wealthy estates is another area where states are working to maintain tax fairness (and raise some needed revenue).
more

Resource Organizations

From the Dispatch

  • Dispatch image

    Maine Voters Reject Tax Reform Initiative, but Approve Infrastructure Investment

    Jun 10, 2010

    This past Tuesday, Maine votersconsidered legislation which would have reformed the state's tax structure and bond measures that will bolster infrastructure investment.By a large margin, Mainers rejected a law passed last June, LD1495, to lower the top income tax rate from 8.5 percent to 6.5 percent for state residents earning less than $250,000 annually by broadening the sales tax to include different services and shifting tax burden to nonresidents by increasing the meals and lodging tax from 7 to 8.5 percent.
    Read More
  • Dispatch image

    State Revenue Increases Across the Nation Continue to Ease Pain of Downturn

    May 24, 2010

    As this Dispatch will detail, these votes mirror actions taking place in both conservative and progressive states and localities around the country.  In 2009 and 2010, states have enacted a wide-ranging set of revenue increases to cope with cumulative 2010 and 2011 deficits of approximately $375 billion.  Although revenue forecasts are improving, states are still reeling from historic declines in the past year.

    What is remarkable is that the anti-tax movement has wracked up such regular failures in the crisis, as even many state leaders previously signing "no taxes" pledges have reneged on them.   Instead, popular demand for new revenue to avert budget cuts has driven legislative movement on progressive tax and budget policy.

    Adding to the general public support has been research consistently showing that progressive revenue increases during a downturn is a better alternative to cuts in order to promote growth and protect vulnerable populations suffering during the recession.

    Finally, this Dispatch will outline some of the effective messaging and research to demonstrate to voters that progressive measures and tax increases are economically sound and go to the programs they want preserved -- the critical step in the success of revenue campaigns.

    Read More
  • Dispatch image

    Recovery Act Boosting Economic Performance and Providing Middle Class Tax Relief

    Apr 29, 2010

    The Council of Economic Advisers (CEA) recently released its third quarterly report on the impact of the American Recovery and Reinvestment Act (ARRA).  The report generally confirms what economists across the board have concluded: the Recovery Act has prevented a full economic collapse; generated millions of jobs; boosted national economic performance; and provided sorely needed state fiscal relief.
    Read More
  • Dispatch image

    Tax Day: With Middle Income Families Paying Less Federal Taxes, States Have More Leeway for Revenue Increases

    Apr 15, 2010

    As states struggle to close budget gaps, it's worth highlighting that due to tax changes at the federal level, most middle income families are paying a far smaller percentage of their income in federal taxes than they did a few years ago.  So while states should concentrate revenue increases on those who can most afford it, there is greater capacity among middle income families to absorb some tax increases due to the lower federal tax burden.
    Read More

You are viewing a resource page for

Promote Fair Income and Estate Taxes

In The News

Eye On The Right

Sign up for the Stateside Dispatch, PSN’s twice-weekly roundup of the most important issues moving through the states, including what is happening in your state.