Institute on Taxation and Economic Policy
Federal Tax Debate 2025

Federal Tax Debate 2025

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State Rundown 6/25: The Numbers Don't Lie, State Budget Edition

June 25, 2025 • By ITEP Staff

Many states are reaching their end-of-June budget deadlines, and major tax policy changes look to have big implications as states are forced, per federal policy, to do more with less.

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Analysis of Tax Provisions in the Senate Reconciliation Bill: National and State Level Estimates

June 25, 2025 • By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff

Compared to its House counterpart, the Senate bill makes certain tax provisions more generous, including corporate tax breaks that it makes permanent rather than temporary. But the bottom line for both is the same. Both bills give more tax cuts to the richest 1 percent than to the entire bottom…

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Senate Republicans Rig the Rules to Make Their Tax Bill Look Responsible. It’s Not.

June 24, 2025 • By Jon Whiten, Steve Wamhoff

No matter how much Senate leadership bends the rules to make their tax cuts look better on paper, the cost and impact on the deficit remains the same under a current policy baseline. It’s a move meant to mask the true cost and push a reckless bill through.

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State Rundown 6/20: Federal tax policy heats up, states wrap sessions and weigh impacts

June 18, 2025 • By ITEP Staff

As state legislative sessions come to a close, decisions on tax policy are being made. Several southern states have cut taxes, while the northeast is making some more measured reforms.

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Alabama Sunsets its Expensive ‘No Tax on Overtime’ Policy

June 18, 2025 • By Neva Butkus

The idea of exempting overtime pay from income tax has gained traction, but there's little evidence it's an effective policy. Alabama tried it in 2023 but ended the policy after just two years. Their reversal highlights how exempting overtime is an expensive gimmick and a distraction from real worker issues.

More Recent Work

Across the States

Tax Watch

State Tax Watch 2025

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

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Learn more about state taxes across the country, read Who Pays?

State Rundown & On the Map

State Rundown 6/25: The Numbers Don't Lie, State Budget Edition

Many states are reaching their end-of-June budget deadlines, and major tax policy changes look to have big implications as states are forced, per federal policy,…

Taxes on Adult-Use Cannabis in Each State

Twenty-three states have legalized the sale of cannabis for general adult use, and sales are already underway in 21 of those states. Every state allowing…

State & Local Tax Policy

Alabama Sunsets its Expensive ‘No Tax on Overtime’ Policy

June 18, 2025 • By Neva Butkus

North Carolina Tax Proposal Prioritizes Millionaires Over Everyone Else

June 11, 2025 • By Dylan Grundman O'Neill, Miles Trinidad

D.C.'s Budget Crisis Demands Fairer Business Tax System

June 9, 2025 • By Nick Johnson

Expert's View

Carl Davis

Carl Davis
Research Director

The Geographic Distribution of Extreme Wealth in the U.S.

Excessive concentration of wealth runs counter to our national aspiration for genuine equality of opportunity, and it saps the vitality of our democracy through the consolidation of power and influence. Tax policy offers a powerful means of beginning to address our nation’s stark level of inequality, but current law is clearly falling short of its potential.

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