The Institute on Taxation and Economic Policy has released Guide to Fair State and Local Taxes:

The guide explains the differences between progressive, flat, and regressive taxes — and why you should care. It covers the full range of taxes that states and localities can impose, including personal and corporate income taxes, property taxes, sales taxes, excise taxes, and estate taxes.

• Complete Report
• Chapter 1: Tax Fairness Fundamentals: An overview of tax fairness, and why it matters. Includes definitions for basic fairness terms like progressive, regressive, and proportional taxation.
• Chapter 2: Basic Principles and Terms: A discussion of five important tax policy principles: equity, adequacy, simplicity, exportability, and neutrality. Also explains basic tax policy terms like the tax base, tax rate, and federal offset.
• Chapter 3: Sales and Excise Taxes: Explains how sales and excise taxes work, and the fairness implications of those taxes. Among the major tax policy issues and options discussed are taxes on internet sales, taxes on personal services, and the potential to offset sales tax regressivity through targeted tax credits.
• Chapter 4: Property Taxes: Explains the mechanics of property taxes on owner-occupied residential property, rental property, business property, and personal property. The merits of various property tax relief mechanisms are examined including property tax caps, circuit breakers, homestead exemptions, deferral programs, split roll systems, and income tax breaks for property taxes paid.
• Chapter 5: Personal Income Taxes: Describes the calculation of personal income tax liability by explaining such concepts as total income, adjusted gross income, exemptions and deductions, taxable income, tax rates, and tax credits. The importance of the federal offset is also discussed. Major opportunities for income tax reform are examined, including enhancing graduated rate structures, repealing capital gains tax breaks, indexing state income tax provisions, and offering targeted tax breaks to low- and middle-income families.
• Chapter 6: Corporate Income Taxes: Discusses the importance, and the mechanics, of the state corporate income tax. Particular attention is paid to revenue stability concerns. Examines major corporate tax issues like combined reporting, apportionment rules, “nowhere income,” corporate minimum taxes, and disclosure and reporting.
• Chapter 7: Other Revenue Sources: Discusses other state and local revenue sources, specifically user fees, estate and inheritance taxes, gambling revenues, and borrowing.
• Chapter 8: Taxes and Economic Development: Examines the linkage between tax policy and state economic development. Explains the folly of low-tax strategies, offers guidance on how to assess claims regarding the economic impact of state tax policies, and discusses how to ensure accountability in economic development policies.
• Chapter 9: Other Steps Toward (Or Away From) Fair Taxes: Discusses the vital role for tax expenditure reporting and tax incidence analysis in informing state tax debates. Explains the importance of rainy day funds, and identifies the problems associated with tax and expenditure limitations (TELs).
• Chapter 10: Achieving Tax Reform: Next Steps: Explains why tax reform is necessary and how to go about securing its enactment. Lists resources for learning more about state and local tax issues.

For more, see Citizens for Tax Justice, New ITEP Report Released This Week Offers Tax Reform Guidance to Cash-Strapped States