July 21, 2017
The Earned Income Tax Credit (EITC) is a policy designed to bolster the earnings of low-wage workers and offset some of the taxes they pay, providing the opportunity for struggling families to step up and out of poverty toward meaningful economic security. The federal EITC has kept millions of Americans out of poverty since its enactment in the mid-1970s. Over the past several decades, the effectiveness of the EITC has been magnified as many states have enacted and later expanded their own credits.
July 21, 2017
The Nike Corporation’s annual financial disclosure of income tax payments is always notable for two recurring trends: the Oregon-based company’s steady shifting of profits into offshore tax havens, and Nike’s apparent effort to conceal how it’s achieving this tax avoidance. This year’s report, released earlier this week, is no exception.
July 21, 2017
State lawmakers face a dilemma when it comes to sales tax holidays, an attractive and popular policy that nonetheless proves to be a poor choice compared to developing thoughtful, targeted tax policies or investing in well-executed public services. Luckily, word seems to be getting out that the costs associated with these holidays far outweigh their purported benefits.
- press release July 20, 2017
July 20, 2017
The broadly outlined tax proposals released by the Trump administration would not benefit all taxpayers equally and they would not benefit all states equally either. Several states would receive a share of the total resulting tax cuts that is less than their share of the U.S. population. Of the dozen states receiving the least by this measure, seven are in the South. The others are New Mexico, Oregon, Maine, Idaho and Hawaii.
One of the biggest tax cuts in the GOP health care bill is a provision that would repeal a 3.8 percent tax on investment income for those who earn more than $200,000 ($250,000 for married couples). Lawmakers are vacillating on whether to keep this tax cut for the rich in the health bill. Even if they don't, they likely will try to slip it into broader tax reform later this year.
Congressional Republicans have proposed legislation that would repeal the Affordable Care Act (ACA), including rolling back a number of tax changes that were enacted to pay for the ACA’s health care expansions. This 50-state analysis outlines how repealing ACA tax provisions would affect each of the 50 states.
Undocumented immigrants living in the United States pay billions of dollars each year in state and local taxes. These tax contributions would increase significantly if all current undocumented immigrants were granted a pathway to citizenship as part of a comprehensive immigration reform.
Profitable corporations are subject to a 35 percent federal income tax rate on their U.S. profits. But many corporations pay far less, or nothing at all, because of the many tax loopholes and special breaks they enjoy.
ITEP's Who Pays? report assesses the fairness of state and local tax systems by examining the share of income paid in state and local taxes by people across the economic spectrum.
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 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.
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.
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.
"For the better part of the 20th century, the nation’s economic pie grew as did incomes for all Americans. But for the past 40 years, wages for ordinary Americans have stagnated while income growth and wealth have concentrated at the top. Our nation’s tax and other public policies play a big part in this damaging trend. Our policymakers owe working people more than tax cuts with unrealistic promises of economic growth."