ERIC Number: ED447226
Record Type: Non-Journal
Publication Date: 2000-Sep
Reference Count: N/A
The New Federalism and State Tax Policies toward the Working Poor. Assessing the New Federalism: An Urban Institute Program To Assess Changing Social Policies. Occasional Paper.
Maag, Elaine; Rogers, Diane Lim
This paper discusses some of the ways in which state tax systems affect low-income families. The focus is on the working poor. Why state tax policy matters for these families is explained, describing some general trends in state tax structure among the 50 states. Attention is then paid to details on personal income and sales taxes in a subset of 13 states that have been the focus of the Assessing the New Federalism program. These states represent a wide variety of income distributions and tax structures. The implications of these tax policies for different types of families are discussed in terms of their after-tax income levels and work incentives. The various policy options states have to increase tax relief for low-income families are outlined, as are the issues states must consider in evaluating these alternatives. There is great diversity in how states tax low-income families. Some states impose substantial tax burdens through income taxes and sales taxes, while others provide generous subsidies through earned income tax credits similar to the federal version. A few states provide refundable child care credits as well. (Contains 10 tables, 4 figures, 11 references, and 23 endnotes.) (SLD)
Publication Type: Reports - Descriptive
Education Level: N/A
Sponsor: Annie E. Casey Foundation, Baltimore, MD.; Kellogg Foundation, Battle Creek, MI.; Robert Wood Johnson Foundation, Princeton, NJ.; Ford Foundation, New York, NY.; John D. and Catherine T. MacArthur Foundation, Chicago, IL.; Mott (C.S.) Foundation, Flint, MI.; David and Lucile Packard Foundation, Los Altos, CA.; McKnight Foundation, Minneapolis, MN.; Commonwealth Fund, New York, NY.; Lynde and Harry Bradley Foundation, Milwaukee, WI.; Joyce Foundation, Chicago, IL.; Rockefeller Foundation, New York, NY.; Fund for New Jersey, East Orange.; Weingart Foundation, Los Angeles, CA.; Henry J. Kaiser Family Foundation, Menlo Park, CA.
Authoring Institution: Urban Inst., Washington, DC.