Institute on Taxation and Economic Policy (ITEP)

ITEP's Research Priorities

Pluribus News: The Volatility of Taxing the Rich

June 20, 2024

State leaders in Massachusetts and Washington are learning it’s hard to predict how much money their taxes on millionaires and billionaires will rake in.

Roosevelt Institute: When Tax Policy Discriminates: The TCJA’s Impact on Black Taxpayers

June 18, 2024

We found that black taxpayers who looked like their white counterparts in terms of these and other demographic factors paid higher taxes because the IRC favors certain behaviors and benefits that are closed to black people. For example, black people were then (and are now) less likely to receive valuable employer-provided tax benefits such as the opportunity to save for retirement tax-free, up to $50,000 of tax-free life insurance, and reimbursement for employee business expenses. A long history of federal government actions created and sustained redlining, making black people less likely to own homes and thus barred from receiving the…

Marketplace: Closing a $50 Billion Tax Loophole for the Wealthy

June 18, 2024

The Treasury and IRS announced a new initiative Monday to close a tax loophole for wealthy people that could raise more than $50 billion in revenue over the next decade. Plus, the evolving economics of "gayborhoods" in U.S. cities.

NPR: Kansas Lawmakers Will Consider Tax Cuts During Their Special Session

June 18, 2024

Kansas' Republican-led Legislature is pushing for tax cuts. But critics worry about repeating the failed tax cuts from 2012 that blew holes in the state’s budgets for years.

The American Prospect: Taming the Price Beast

June 14, 2024

A February paper from the Institute on Taxation and Economic Policy that studied 342 profitable corporations found that these companies paid an effective tax rate of 14.1 percent, well below the historically low statutory rate of 21 percent signed into law by the Trump administration in 2017. At the same time, we have seen record corporate profits since 2021, culminating in an all-time high in the fourth quarter of 2023. Companies seek out excess profits in increasingly harmful ways, because they get to keep more of those excess profits.

Hawaiʻi Appleseed Center for Law and Economic Justice: Hawaiʻi’s Elected Leaders Again Buy-In to Costly “Trickle-Down” Myth

June 14, 2024

When it comes to tax policy, Hawaiʻi’s 2024 legislative session was largely defined by a single bill—House Bill 2404. Signed into law as Act 046 by Governor Green on June 3, the bill enacts sweeping tax cuts for people of all income levels, but most of the benefit goes to those at the top of the income scale.

The Guardian: ‘Perilous for Democracy, Good for Profits’: Is Big Business Ready to Love Trump Again?

June 13, 2024

Chief executives of some of America’s largest companies will meet privately with Donald Trump later on Thursday, and many CEOs who were once critical of his unprecedented conduct appear increasingly open to the former president’s return to office, a Guardian analysis has found.

Institute for Policy Studies: A Fair Tax Agenda for Wall Street

June 13, 2024

Thank you, Chairman Whitehouse, Ranking Member Grassley, and members of the committee, for the invitation to participate in this important hearing. I am Sarah Anderson, Global Economy Director at the Institute for Policy Studies, an independent center for research and action founded in 1963. I also co-edit the Institute’s Inequality.org web site.

The FACT Coalition: FACT Sheet: Congress Should Repeal a Wasteful Tax Break for Big Tech

June 11, 2024

The 2017 tax reform massively reshaped how U.S. multinationals are taxed on their foreign income, including through the application of a global minimum tax that grants corporations a substantial discount on their foreign profits. This discount gave big multinationals new incentives to stash their most valuable intangible assets – intellectual property like patents, trademarks, and other highly mobile properties – in foreign tax havens to avoid taxation at the full U.S. domestic rate. In an attempt to balance this perverse incentive, the 2017 law sought to bring investment back to the United States through a provision known as the Foreign-Derived Intangible…

Yahoo Finance: 7 Places Your Taxes Will Go if Trump Wins in 2024

June 11, 2024

If you are subject to estate taxes under a second Trump term, you can expect to keep paying the historically low rate he set in motion during his first term. According to the Institute on Taxation and Economic Policy, only eight of every 10,000 people who died left an estate large enough to trigger the tax as of 2019, the most recent year data are available. Most of the estate tax is paid by estates worth more than $20 million, and in recent years the majority has been paid by estates worth more than $50 million.

Policy Matters Ohio: Income Tax Extremism Is a Gift to the Wealthy. Repairing the Damage Would Cost Us All

June 7, 2024

Ohioans deserve an equitable tax system that supports the public goods and services that enable all of us to thrive. Unfortunately, that is not the system we have today. After two decades of tax handouts to corporations and the rich, our upside-down tax system increasingly perpetuates inequality while failing to adequately fund services like education and health care. This all pales in comparison to the extreme proposal from lawmakers that would eliminate the state’s personal income tax.

Capital & Main: The Return of Trickle-Down Economics

June 6, 2024

The return of trickle-down economics — the much-criticized theory that tax cuts for corporations and the wealthy eventually result in job growth and higher wages for the middle class and working class — has inspired a fierce debate in the Kansas Legislature that has gone on for months. A bill that included a flat 5.25% personal income tax, an 8% reduction from the current rate for top earners, was approved by Republicans in both chambers, though critics say it would disproportionately benefit the wealthy in the state. The top 20% of earners in Kansas — those with average annual incomes above…

Center on Budget and Policy Priorities: States Should Reverse Course on Defunding Public Education Through Private School Vouchers and Property Tax Cuts

June 5, 2024

During this year’s legislative sessions, at least one in three states are considering or have enacted school voucher expansions alongside broad, untargeted property tax cuts. Over half of states have already enacted deep personal and corporate income tax cuts in the last three years. These policies will result in under-resourced public schools, worse student outcomes, and, over time, weaker communities.

Colorado General Assembly: HB24-1311 Family Affordability Tax Credit

May 31, 2024

Gov. Polis of Colorado signed the bill expanding its Child Tax Credit, which cites ITEP’s research on the second page of the bill text. Read the bill and its status.

Governing: Are Florida Taxes Low? It Depends on Your Income Level

May 28, 2024

It’s been almost a hundred years since Florida eliminated its personal income tax. Not taxing income contributes to its reputation as a low-tax state and is part of the draw for retirees. But of course Floridians do pay taxes and the state’s system leads to some inequities, according to a new report from a progressive organization.

International Journal of Economics, Business and Management Research: The U.S. Federal and State Tax Simplification and Reform for Senior Citizens

May 21, 2024

The U.S. Federal and many State Governments provide social security tax deductions, either partial or all, for senior citizens. However, tax systems still require those whose incomes exceed standard deductions to report and calculate their income taxes. Usually, senior citizen's income sources are from social security benefits, 401K retirement funds, IRA, annuities, pensions, and/or others. This paper provides a linear tax rate and tax formula to simplify federal and state social security and retirement taxes compared with the existing complicated tax calculation systems. This research also provides a reform proposal to combine all taxable incomes for qualified seniors who have…

Democrats: President Biden Delivers for Wisconsin While Trump Backs Billionaires Over Working Families

May 21, 2024

Today, President Biden’s visit to Racine, Wisconsin will underscore how his economic agenda is uplifting Wisconsin families by creating good-paying jobs, cutting costs, and building the middle class. Just last week, Trump spent his short time in Wisconsin lying about President Biden’s economic wins, because he knows that his only defense against President Biden’s successful record is to lie in a desperate attempt to hide how he failed Wisconsin families.

Senate Committee on the Budget: Extending Trump Tax Cuts Would Add $4.6 Trillion to the Deficit, CBO Finds

May 21, 2024

According to the latest report by the nonpartisan Congressional Budget Office (CBO), extending the Trump tax cuts for the next 10 years—as Republicans have proposed—would add $4.6 trillion to the deficit.

Yahoo Finance: Jeff Bezos Spent $237 Million On Florida Mansions — Billionaires Flock To ‘Upside Down’ Tax Haven Where Rich Pay Less Than Poor

May 20, 2024

The Sunshine State has become a magnet for billionaires seeking tax relief. Among the latest to join the trend is Amazon founder Jeff Bezos, who has recently expanded his real estate holdings in Miami’s exclusive Billionaire Bunker area. Bezos’ acquisitions include three properties, bringing his total investment in the neighborhood to $237 million.

Forbes: California Is Not Actually a High-Tax State According To New Study

May 17, 2024

Depending on where you fall on the income scale, California may not actually be that high tax of a state. For many in the middle class and below, California may let you keep more of your hard-earned income than many other states, according to a new study, “Who Pays” from the Institute on Taxation and Economic Policy (ITEP). While California has the highest marginal tax rate in the nation at 13.3%, only some households pay this rate on their income. That doesn’t stop so-called low-tax states like Texas and Florida from blasting the tax policy of the Golden State.

Bipartisan Policy Center: Credit Where Credit’s Due: Engaging State and Local Governments in Refundable Tax Credit Design and Administration

May 16, 2024

The Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) are two of the most effective anti-poverty tools in the United States, helping to boost household economic security while incentivizing work for millions of Americans each year. Over the past three years in particular, attention increased on the interactions between state and federal tax policy as states grappled with the EITC’s and the CTC’s rapid temporary expansion, as well as changes to complementary federal policies and programs during the COVID-19 pandemic. Changes at the federal level to these two credits highlighted critical challenges facing policymakers and the public…

Hawai’i Public Radio: Concerns Rise for Low-Income Families Over Legislature’s Recent Tax Cut Measure

May 16, 2024

Most Hawaiʻi residents will likely see lower income taxes next year due to a measure recently passed by the state Legislature. However, some advocates are concerned that those changes could also limit tax assistance for those who need it the most. Lawmakers are calling it the biggest tax cut in the state’s history: about $5 billion over the next five years.

WTAE: Commitment 2024: Fact-checking Former President Trump’s Claims in Interview

May 13, 2024

PITTSBURGH — During an interview with WTAE's sister station WGAL, former President Donald Trump made claims of getting record-breaking votes in Pennsylvania's 2024 primary, about the future of abortion in the courts, and concerning who benefited most from his tax cuts.

Center for American Progress: The Tax Cuts and Jobs Act Failed To Deliver Promised Benefits

May 1, 2024

The 2017 Tax Cuts and Jobs Act (TCJA) made sweeping changes to America’s tax laws. Signed into law by then-President Donald Trump and approved with only Republican support in both the House of Representatives and the Senate, the TCJA permanently slashed corporate tax rates and changed the way the nation taxes the profits of U.S. multinational corporations.1 It also temporarily cut personal income and estate taxes, changes that largely benefited the wealth.

ThinkTennessee: Tennessee’s Working Families Are Paying More Than Their Fair Share of Taxes

April 29, 2024

A new fact sheet released today by nonpartisan think tank ThinkTennessee finds that while Tennessee has one of the lowest overall tax burdens in the nation, its low-income families face a higher effective tax rate than both wealthier families and businesses. The analysis comes on the heels of Tax Day when millions of individual income tax returns are due to be submitted to the federal government.