CARSON CITY, Nev. – Nationwide, low-income people pay much higher rates of taxes than high earners, and Nevada's taxes are among the most unequal in the country, according to a new study.

The analysis, by the nonpartisan Institute on Taxation and Economic Policy, shows that on average, the poorest 20 percent of Americans spend about 50 percent more of their incomes on taxes than wealthy people do.

In Nevada, the difference is even greater.

Carl Davis, the institute’s research director and one of the study's authors, says Nevada's poorest taxpayers spend more than 10 percent of their income on taxes, but the highest earners pay barely 2 percent.

"There's a bigger gap between rich and poor after those taxes are collected than before,” he points out. “So it's driving apart incomes that are already very far apart at the low and high ends of income distribution."

Davis says major factors are sales tax and excise taxes, which get built into the prices of products such as beer or gasoline.

He says when states rely more on those flat taxes across the board, and rely less on taxes based on income, poorer people end up giving away bigger proportions of their paychecks and get pushed deeper into poverty.

Many politicians argue that reducing corporate and income taxes boosts the economy by attracting businesses.

But Davis says that's not what the research shows. In fact, the study finds California has the most equitable tax system nationwide, and also one of the strongest economies.

"So if high taxes on high-income people are supposed to suppress economic growth, it's certainly not playing out that way in California.," he points out.

The study calls the majority of state and local tax systems in the U.S. "fundamentally unfair," and says if issues of income inequality persist, states may have difficulty raising revenue over time.


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Ohio's teachers are applauding the governor's recently announced plan to overhaul the state's reading curriculum for elementary schoolers and boost resources for districts.

In his State of the State address this week, Ohio Gov. Mike DeWine also said he's directing resources to improve child well-being and mental health.

Ohio Education Association president Scott DiMauro said he supports a plan that helps kids succeed, but he also hopes the state Legislature will take a hard look at some of the education policies teachers believe are detrimental.

"And at the very top of that list," he said, "is repealing a provision currently in law that requires that students be retained if they don't pass a single test on a single day when it comes to the third-grade reading test."

The governor's plan provides funding to public, STEM and charter schools to pay for curriculum based on the Science of Reading, and for professional development for teachers who need it. Slightly more than one-third of all Ohio students are reading proficiently at their grade level, according to data from the Ohio Research Education Center.

DiMauro said schools are facing a crisis recruiting and retaining quality educators from diverse backgrounds. He said the Fair School Funding Plan - based on the actual cost of educating a child and developed in part by educators and school administrators - could help the state address the issue.

"Having a funding system that is based on the actual cost of providing a high-quality education to every student," he said, "and a formula that's updated to reflect the most recent information on what districts are spending in those areas."

Ninety percent of Ohio students attend public schools. The state spent more than $10 billion on primary and secondary education in 2021, and slightly more in 2022, according to state Department of Education data.

This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.

West Virginia lawmakers are clamping down on corporations trying boost environmentally and socially responsible investing. A new report by EcoConsult Solutions finds their actions will likely cost taxpayers at least $9-million, and perhaps as much as $29-million dollars annually. Senate Bill 262, passed last year, restricts the state from investing in companies deemed to be energy boycotters. Among those boycotted include BlackRock, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo.

Jim Kotcon, chair of the West Virginia Sierra Club, said restricting long-term financial investments in the form of bonds could end up costing residents and taxpayers by reducing the amount of money the state has for public services and programs.

"This appears to be an effort by the state government to help bail out the coal industry and to deny the real cost of climate change on West Virginia citizens," Kotcon said.

More than two dozen states are suing the federal government over a U.S. Department of Labor rule change on environmental, social and governance, or ESG, in workplace retirement accounts. The rule allows 401(k) providers to consider climate change and other issues when making investments.

Kotcon said environmental groups believe state investment funds should take into consideration environmental and social factors, especially since West Virginia communities are struggling to cope with increased flooding and extreme weather events driven by climate change.

"It has become sort of an extremist initiative," he said, "trying to penalize financial institutions that are attempting to do the right thing."

More than a dozen states so far have passed or have pending bills that would pull state funds from investments deemed to be adverse to the oil and gas industry, according to the report.

A Minnesota House committee heard testimony Thursday about the governor's proposed spending plan for education. As these talks unfold, public polling indicates voters want to see more dollars go toward improving public schools.

Gov. Tim Walz's plan calls for boosting the general education funding formula over the next two years and tying it to inflation, while adding more staff such as counselors and social workers.

State Education Commissioner Willie Jett touted the overall proposal during the committee meeting.

"We must never lose sight of the fact that a well-supported educator workforce is fundamental and critical to the survival of our schools, and the well-being and academic success of our students," he said.

Nationally, a new American Federation of Teachers poll found 66% of voters think the government spends too little on education, and nearly 70% want to see more funding. The governor's plan closely aligns with education priorities among legislative Democrats. Republicans, who are in the minority this session, have voiced concerns that too much surplus money would go to underperforming schools.

Minnesota is also looking at boosting unemployment insurance aid to include hourly school workers when they struggle to stay employed over the summer. Rep. Emma Greenman, DFL-Minneapolis, said it's encouraging to see more conversation about helping support staff.

"If your district is like my district," she said, "you're hearing a lot about the staffing shortages, about the need for 'paras' - I hear a lot about that from parents and teachers - about the bus driver shortage."

By "paras," she meant paraprofessionals who help in clasrrooms.

In the AFT poll, teacher shortages and unsafe campus environments were listed as among the most serious problems at schools. The survey was conducted in late December and included input from 1,500 registered voters nationwide.