April 11, 2006

Individual Income Tax Proposals Across the Nation

For those of you following state income tax changes (or potential changes) across the county, here's a quick update of last week's activities:

Iowa Democratic lawmakers unveiled a proposal to repeal the state's deduction for federal income taxes. Lawmakers would use some of the revenue for low-income tax cuts, but would also exempt all pension benefits for Iowans earning less than $100,000 a year.

Nebraska lawmakers passed a bill which will create the nation's twentieth state Earned Income Tax Credit. But in this election year, the bill includes a variety of other less well-targeted giveaways.

A Missouri legislative committee considered a truly progressive income tax reform. The bill would increase state revenues by $1 billion while reducing taxes on the poorest sixty percent of the state's income distribution. Read ITEP's testimony here.

Meanwhile, in the Ocean State, Rhode Island lawmakers asked tough questions about a proposal to flatten the state's income tax rates.

Parts of this post were originally published in CTJ's Tax Digest, a weekly email that highlights state and federal tax trends across the country. If you'd like to subscribe to the digest send an email to: ctj@ctj.org For a look at our complete weekly digest click here


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