Politico: Morning Tax: Treasury ramps up
media mention“VIEW FROM THE LEFT: The liberal Institute on Taxation and Economic Policy is out with a couple new studies this week, including a paper arguing that state officials need to keep in mind that lowering state income taxes will lead to a lower federal tax deduction for their residents. “Even if it is sometimes politically unpopular, increasing income taxes has the opposite effect. Policymakers should keep in mind that if they raise state taxes, the federal government will shoulder some of that increase because state residents will receive larger deductions from their federal income taxes,” said ITEP’s Carl Davis. http://bit.ly/2bONtLw
The other paper calls for indexing tax brackets for inflation, to prevent “bracket creep” that occurs as salaries rise over time because of inflation and brackets remain frozen. “Indexing tax systems for inflation allows lawmakers to create the income tax structure they want — and to ensure that the impact of the income tax on taxpayers at different income levels will only change when they want it to,” the group wrote. http://bit.ly/2bQqRe9″