The Institute on Taxation and Economic Policy
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An Anti-Affordability Agenda: Trump’s Advisors Call on States to Raise Taxes on the Working Class and Drastically Cut Taxes for the Rich
January 29, 2026 • By Carl Davis
The Trump administration’s Council of Economic Advisors suggests that states consider drastically raising sales taxes and using those new revenues to pay for repealing taxes on corporate and personal income. Working-class families would face dramatic tax increases while the nation’s wealthiest families would see their state tax bills plummet.
Tesla Reported Zero Federal Income Tax on $5.7 Billion of U.S. Income in 2025
January 29, 2026 • By Matthew Gardner
Tesla enjoyed almost $5.7 billion of U.S. income in 2025 but paid $0 in federal income tax. Over the past three years, the Elon Musk-led company reported $12.5 billion of U.S. income on which its current federal tax was just $48 million.
State Rundown 1/28: State Tax Cutting Plans Face Scrutiny
January 28, 2026 • By ITEP Staff
As state legislative sessions ramp up across the country, property taxes are one of many issues dominating tax policy conversations in statehouses.
Intuit Helped Limit Americans’ Tax Filing Options While Raking in Millions in Tax Breaks
January 28, 2026 • By Joe Hughes
As tax filing season begins, families have fewer options than last year, thanks to the heavy lobbying efforts of big tax-preparation corporations like Intuit (the parent company of TurboTax).
An Analysis of a Potential Reduction in Massachusetts’ Long-Term Capital Gains Tax Rate
January 26, 2026 • By Eli Byerly-Duke, Matthew Gardner
A ballot initiative in Massachusetts has proposed cutting the base rate for nearly all income sources from 5 to 4 percent. In 2026, this would cost the state about $5 billion per year of which $347 million would come from the reduced rate on long-term capital gains.
ITEP in the News
Wall Street Journal: Companies Reveal Big Mystery: Where They Pay Taxes and How Much
Washington Post: How to Claim Tax Breaks on Overtime, Tips, and More This Filing Season
CNBC: Social Security Benefits Are Still Taxed in Some States. Why There's a Push to Change That.
Time: Americans Are Paying for Trump's Tariffs, Study Finds
Education Week: Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
ITEP Work in Action
Testimony: ITEP's Sarah Austin Urges Washington House Finance Committee to Decouple from Venture Capital Tax Break
Massachusetts Budget and Policy Center: Proposed Income Tax Cuts in Massachusetts Would Benefit Households with Highest Incomes and Force Deep Public Cuts
Center on Budget and Policy Priorities: States Should Adopt the Wealth Proceeds Tax to Raise New Revenue
Georgia Budget & Policy Institute: Overview of Georgia’s Budget for Amended Fiscal Year 2026 and the Full 2027 Fiscal Year
North Carolina Department of Commerce: The Hidden Cost of Child Care Gaps in North Carolina's Economy
Across the States
On the Map
State Rundown 1/28: State Tax Cutting Plans Face Scrutiny
As state legislative sessions ramp up across the country, property taxes are one of many issues dominating tax policy conversations in statehouses.
Taxes on Adult-Use Cannabis in Each State
Twenty-three states have legalized the sale of cannabis for general adult use. Every state allowing legal sales applies an excise tax to cannabis based on…
When Did Your State Enact a Child Tax Credit?
The Child Tax Credit (CTC) is an important tool to fight child poverty and help families make ends meet. When designed well, it can also…
State & Local Tax Policy
An Anti-Affordability Agenda: Trump’s Advisors Call on States to Raise Taxes on the Working Class and Drastically Cut Taxes for the Rich
January 29, 2026 • By Carl Davis
An Analysis of a Potential Reduction in Massachusetts’ Long-Term Capital Gains Tax Rate
January 26, 2026 • By Eli Byerly-Duke, Matthew Gardner
States Can Push Back Against Reckless Federal Tax Policy. Here’s How.
January 22, 2026 • By Aidan Davis, Wesley Tharpe
Local Governments Are Increasingly Strapped: 2026 Will Bring New Challenges and New Opportunities
January 21, 2026 • By Kamolika Das
Curbing Tax Deductions for Executive Pay is a Federal Tax Change States Should Get Behind
January 9, 2026 • By Matthew Gardner
Show Me Where We're Going: Missouri’s Fiscally Irresponsible Path Will Be Paid for by Everyday People
January 8, 2026 • By Logan Liguore
Pennsylvania Just Gave Low-Income Workers a Tax Credit Boost. Now It’s Philadelphia’s Turn.
December 30, 2025 • By Kamolika Das
2025: The Year in Tax Policy
December 23, 2025 • By ITEP Staff
The ITEP Guide to State & Local Taxes
The ITEP Guide to State & Local Taxes offers citizens, advocates, journalists, and policymakers a detailed primer on state and local tax policy. Learn more about the three main sources of revenue (income, property, and sales) and the major principles that shape tax codes and discussions.
Tax Principles
Income & Profits
Property & Wealth
Sales & Use
Other Revenues
Expert's View
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.
– Carl Davis
Research Director
Steve Wamhoff
Federal Policy Director
Washington Post: Trump’s tax law includes a $40,000 SALT cap. Here’s who qualifies.
SALT cap or no SALT cap, the mega bill overall is a bonanza for the rich in every state.
– Steve Wamhoff
Federal Policy Director
Kamolika Das
Local Policy Director
USA Today: Would Mamdani’s ‘Millionaire Tax’ Chase the Rich Out of New York City?
Tax policies just really don’t drive relocation decisions, they’ve been claiming this for a long time, and there’s just very scant evidence to support it.
– Kamolika Das
Local Policy Director
Miles Trinidad
State Analyst
CT Mirror: Sales tax holidays under fire as CT launches its promotion
A two- to three-day sales-tax-free shopping spree for selected items does nothing to reduce taxes for low- and moderate-income taxpayers during the other 362 days of the year.
– Miles Trinidad
State Analyst
Institute on Taxation
and Economic Policy
ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations to shape equitable and sustainable tax systems.
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