On this Tax Day, many Americans are thinking about their annual tax filings. But it’s also an appropriate time to consider the state-based tax solutions and challenges that impact the well-being of American workers and families, as well the sustainability of state budgets and services. The Tax Foundation has put together a helpful graphic for Tax Freedom Day, showing how long residents of each state must work to cover the state’s tax burden.

Now that many state legislative sessions have concluded, there are several state updates on tax reform also worth noting:

• Colorado: Colorado has the sixth lowest tax burden in the US which maybe be attributable to the Taxpayer Bill of Rights (TABOR) approved in 1992. The Independent Institute has a comprehensive study of TABOR and a project to help keep the bill in place.
• Connecticut: The Yankee Institute finds tax hikes in recent years have not helped Connecticut recover from the recession as quickly as neighboring states, and the Commission on Fiscal Stability and Economic Growth has recommended a mixture of tax cuts and hikes this year.
• Florida: The James Madison Institute reflects on the 2018 Legislative session, including a constitutional provision that would require a 2/3 majority for any future tax increases.
• Georgia: Georgia hasn’t reduced tax rates since implementing them in 1934, but the Georgia Public Policy Foundation reports the Governor signed legislation to reduce taxes during this last session.
• Idaho: The Idaho Freedom Foundation notes the 2018 Legislature made progress on several fronts this year including meaningful tax relief.
• Maine: A recent op-ed from the Maine Heritage Policy Center explores how Maine families are already seeing the benefits of the federal tax cut.
• Minnesota: What should state lawmakers consider when rewriting state tax policy? The Center of the American Experiment was one of five experts asked to weigh in.
• New Jersey: The governor is looking to nearby states as inspiration for economic growth, but the Garden State Initiative notes the state’s history would be a better model — when New Jersey had no income tax or sales tax and was one of the fastest growing states in the nation.
• New York: How will the new federal tax law affect NY’s middle-class families? The Empire Center has put together an interactive map to make it easy to see.
• North Carolina: The John Locke Foundation as put the 2017-18 North Carolina budget in pictures, making it easy to see where the state gets its money and how its spent.
• Ohio: The Buckeye Institute has identified 20 tax loopholes worth $1.8 billion that could be used to reduce Ohio’s tax rate.
• Pennsylvania: The state ranks 34th in the nation for how long residents must work to fund their state’s tax burden. The good news is tax reform at the state level is on the table this year for Pennsylvania according to the Commonwealth Foundation, and the federal tax reform is already having a positive impact on residents. 
• Wisconsin: Wisconsin may be losing residents to states with lower overall tax burdens, but lawmakers’ tax conformity measure should save taxpayers millions. The MacIver Institute looks at some of the wins and losses for taxpayers in the 2017-2018 legislative session.

Additional Resources

If you’re interested in learning more about the impact of taxes at the state level, check out these resources from the Tax Foundation:

• 2018 State Business Tax Climate Index
  This index is a great resource for gauging how efficiently states raise revenue and identifying how they can improve their tax codes. This year, Tax Foundation shares the data in a more user-friendly, interactive website where you can click on each state to see how it ranks and compares with its neighbors.
• Facts & Figures 2018: How Does Your State Compare?
  This resource is a quick guide to state-specific tax information, such as tax rates, collection, and more.
• Tax Reform Moves to the States: State Revenue Implications and Reform Opportunities Following Federal Tax Reform
  Each state has its own approach to taxation—its own combination of tax types, rates and structures, and rules and exemptions. These variations reflect a multiplicity of purposes and an array of fiscal aims, some with contemporary urgency and others lost to the ages. Yet even the most iconoclastic state tax structures draw upon the federal tax code, which becomes more pertinent with the federal Tax Cuts and Jobs Act now in effect.
• The Impacts of Jobs and Incomes by State
  The Tax Foundation’s model estimates the Tax Cuts and Jobs Act “would result in the creation of roughly 339,000 new full-time equivalent (FTE) jobs, while increasing the after-tax incomes by 1.1 percent in the long run, meaning families would see an after-tax income boost of 1.1 percent by the end of the decade, even after temporary individual income tax cuts expire.”
• Tax Foundation Blog
  Bookmark and follow Tax Foundation’s blog to keep up with the latest resources, analysis, and commentary on tax issues across the country.