What's New
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report
December 17, 2018
Tax Cuts and Jobs Act: One Year Later
One year ago, federal lawmakers hastily enacted the Tax Cuts and Jobs Act. So rushed was its passage that provisions of the legislative text were scrawled in the margins. Congress passed the law on a party-line vote but there was no such partisan division among the broader public. Polling showed a solid majority of Americans disapproved of the tax bill and believed it was another giveaway to the nation’s wealthiest citizens.
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report
October 11, 2018
Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide
A newly released report by Prosperity Now and the Institution on Taxation and Economic Policy, Race, Wealth and Taxes: How the Tax Cuts and Jobs Act Supercharges the Racial Wealth Divide, finds that the TCJA not only adds unnecessary fuel to the growing problem of overall economic inequality, but also supercharges an already massive racial wealth divide to an alarming extent.
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blog
January 18, 2019
State Rundown 1/18: Governors’ Speeches Kick Off State Fiscal Debates
Gubernatorial speeches and budget proposals dominated state fiscal news this week, as governors proposed a wide array of policies including positive reforms such as Earned Income Tax Credit (EITC) enhancements in CALIFORNIA, a capital gains tax on wealthy households in WASHINGTON, and investments in education in several states. Proposals to exempt more retirement income from tax, particularly for veterans, are a common theme so far this year, having been raised in multiple states including MARYLAND, MICHIGAN, and SOUTH CAROLINA. And NEW JERSEY became the fourth state with a $15 minimum hourly wage. Those wishing to better understand and influence important debates about equitable tax policy should mark their calendars for ITEP’s Data For The Win Webinar on January 30th!
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report
January 17, 2019
A Simple Fix for a $17 Billion Loophole: How States Can Reclaim Revenue Lost to Tax Havens
Enacting Worldwide Combined Reporting or Complete Reporting in all states, this report calculates, would increase state tax revenue by $17.04 billion dollars. Of that total, $2.85 billion would be raised through domestic Combined Reporting improvements, and $14.19 billion would be raised by addressing offshore tax dodging (see Table 1). Enacting Combined Reporting and including known tax havens would result in $7.75 billion in annual tax revenue, $4.9 billion from income booked offshore.
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blog
January 17, 2019
How States Can Help Shut Down Tax Havens by Cracking Down on Profit Shifting
A core problem with our corporate income tax laws at the federal and state levels is that they allow companies to use accounting gimmicks to shift significant amounts of their profits into low or zero-tax jurisdictions. Federal lawmakers had an opportunity to address this with the 2017 tax law, but they failed to do so, and, in fact, the law may incentivize more offshore tax avoidance. State lawmakers, however, can buck the federal trend and crack down on profit shifting themselves.
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blog
January 16, 2019
Who Pays and Why It Matters | MECEP Policy Insights Conference Keynote Address
States have broad discretion in how they secure the resources to fund education, health care, infrastructure, and other priorities important to communities and families. Aidan Davis with the Institute on Taxation and Economic Policy will offer a national perspective on state-level approaches to funding public investments and the implications of those approaches on tax fairness and revenue adequacy, and their economic outcomes. She’ll also provide insight on what’s in store for 2019 among the states.
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blog
January 16, 2019
Data for the Win: Advocating for Equitable State and Local Tax Policy (Webinar)
Join the Institute on Taxation and Economic Policy (ITEP) on Wednesday, Jan. 30, at 3 p.m. ET, for a discussion on how ITEP’s distributional data can be part of an advocacy and communications strategy for securing state tax policies that raise enough revenue to fund various priorities. Webinar participants will receive a brief overview of findings from the sixth edition of Who Pays? A Distributional Analysis of the Tax Systems in All 50 States as well as insight from state advocates who use Who Pays? and other tax policy analyses research to pursue their legislative agendas.
Who Pays? Sixth Edition
Poorest 20 percent pay a 50 percent higher effective state and local tax rate than the top 1 percent ITEP’s sixth edition of Who Pays? A Distributional Analysis of the Tax System in All 50 States finds that most state and local tax systems continue to tax low- and middle-income households at higher rates than the wealthy.
Federal Tax Cuts in the Bush, Obama, and Trump Years
Since 2000, tax cuts have reduced federal revenue by trillions of dollars and disproportionately benefited well-off households. From 2001 through 2018, significant federal tax changes have reduced revenue by $5.1 trillion, with nearly two-thirds of that flowing to the richest fifth of Americans.
A Fair Way to Limit Tax Deductions
Repealing the 2017 tax law’s cap on SALT deductions without replacing it with a different type of limit would pile one bad policy on top of the other, annually add $88B to the $2T deficit-financed tax law, and mostly benefit the wealthy, new report finds.
Tax Cuts 2.0 Resources
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. GOP leaders have introduced a bill informally called “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. The Institute on Taxation and Economic Policy (ITEP) has state-by-state analyses as well as other resources that explain this legislation and its consequences.
ITEP Resources on the Proposed SALT Workaround Regulations
As taxpayers across the country find ways to circumvent the cap on SALT deductions, the IRS has proposed regulations to end "charitable donations" in the name of tax avoidance. ITEP expert Carl Davis shares resources for what you need to know about the SALT cap workarounds.
Impact
Whether it’s at the state or federal level, ITEP produces careful research and in-depth analyses of tax policies, and provides a voice for working people in tax policy debates. State advocates, policymakers and media often use our work to inform public discourse on current and proposed tax policies.
ITEP's Work in Action
Expertise
Federal Policy
ITEP’s federal policy resources provide quantitative and qualitative research and analysis on current tax policies, proposals, and reform options. Its distributional analyses highlight how tax proposals will affect low-income, middle-class and wealthy Americans nationally and in all 50 states.
Learn more about our Federal Policy work
State Policy
State taxes pay for essential public services, from education to health care. But the ideal design of a tax system is complicated. ITEP’s state policy resources offer insights into central issues, including the impact of state tax systems on individuals, families, and businesses. Its work also analyzes the sustainability of revenue sources over time.
Learn more about our State Policy work
Corporate Tax Research
ITEP’s corporate tax research examines the tax practices of Fortune 500 companies. Besides its corporate study on average effective tax rates paid by the nation’s largest, most profitable corporations, ITEP produces research on subjects such as offshore cash holdings, tax haven abuse, executive stock options and other tax loopholes.
Expert's View
The truth is, if lawmakers truly wanted to craft a tax overhaul that would benefit working people most, they would have started from fundamentally different principles and developed policies that would provide true tax relief for all working families while shutting down favorable tax treatment for rich people.
