The Institute on Taxation and Economic Policy (ITEP). October 2018. ITEP released the 6th edition of its landmark “Who Pays?” report, which finds that most state and local tax systems are regressive and place the heaviest tax burden on low- and middle-income families. According to the report, the states with the most equitable tax systems tend to offer deductions, exemptions and refundable tax credits for low-income workers.