Institute on Taxation and Economic Policy

ITEP's Research Priorities

Newsweek: Donald Trump’s Immigration Plans Could Push Up Retirement Costs

February 13, 2025

While there is widespread support for Trump's policies, it could have a negative impact on retirees across the U.S. by reducing the pool of funding available to pay benefits, increasing costs and contributing to an increase in inflation.

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State Rundown 2/12: State Tax Policy Heats Up as Winter Storms Sweep Much of the Country

February 12, 2025 • By ITEP Staff

Tax policy proposals are a hot topic of conversation across the country. Both North and South Dakota are considering property taxes cuts, while proposed cuts in Florida, Mississippi, and Texas are percolating. Meanwhile, fiscal conditions are tight in states like Alaska, Tennessee, Oklahoma, and West Virginia. None are on the cusp of passing new revenue, but years of recent tax cuts and inflation have caught up to states and many lawmakers have revenue gaps to close. 

New York Times: Opinion | Democrats Need to Learn How to Throw a Punch

February 12, 2025

For most of the past decade, progressives presented the battle over immigration as simply a fight against Republican cruelty, racism and xenophobia. Such messaging does not amount to a political strategy. By 2024, Joe Biden and Kamala Harris seemed to stop trying to win the debate. As border-state governments grappled with newcomers, Republican leaders saw a crisis they could seize and weaponize — while Democratic leaders offered no compelling case of their own.

Maryland Center on Economic Policy: First Look: Governor Combines Revenues, Cuts to Narrow Budget Gap

February 11, 2025

Gov. Moore’s budget proposal for fiscal year 2026 (July 2025–June 2026) makes a significant dent in the state’s looming shortfalls, with similar-sized contributions from tax reforms and budget cuts. The plan takes several positive steps to crack down on corporate tax avoidance and ask wealthy individuals to pay their fair share. These reforms are an important measure to protect Marylanders from much more drastic cuts to public services. At the same time, a more ambitious revenue package would do more to support the foundations of thriving communities across our state.

Demos: Taxes Explained: A Fair and Just Tax Code Is Critical for Improving Economic Power for the People

February 11, 2025

This year will be a pivotal year for tax policy and will have far-reaching consequences for our economy and democracy. It is important that the people understand what is at stake. This Tax Justice and Racial Equity Explainer Series will cover key elements of the tax code that Congress will be debating this year and their real-world significance for communities of color. The following four pieces will cover corporate taxation, the difference between wealth and income taxes, and an overview of tax credits and deductions.

Slate: This Is Not About Cost Cutting

February 11, 2025

As terrifying and probably illegal as Elon Musk’s tech-bro holy war against the federal government has been, it’s only Phase 1. Really, the spectacle of the past few weeks sets Donald Trump and Musk up for what they almost certainly want much more: massive tax cuts for the wealthy.

Kentucky Center for Economic Policy: Another Income Tax Cut Will Dig the Hole Deeper

February 10, 2025

Kentucky lawmakers are expected to vote early in the legislative session on another half-point cut to the individual income tax rate, a drop from 4% to 3.5%. This cut is expected to pass despite a projected decline in tax revenues due to the income tax reductions of the last couple of years. With this next drop, the state will get closer to the level of tax cuts Kansas put in place in 2013 and was forced to reverse just five years later because the state wasn’t bringing in enough money to meet its obligations.

The Texas Tribune: Gov. Greg Abbott Wants to Set a High Bar for Local Tax Increases

February 10, 2025

Gov. Greg Abbott, in his bid to curb Texas’ high property taxes, wants Texas voters to have the final say on any property tax hike. Local governments that collect property taxes — including cities, counties and school districts — should have to win approval from a two-thirds majority of voters if they want to raise their tax rates, Abbott said.

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State Rundown 2/6: Tax Proposals in the Spotlight

February 6, 2025 • By ITEP Staff

Tax changes have been proposed or are nearing the finish line in many states. Kentucky is poised to enact an income tax cut as a bill heads to the governor’s desk. In Pennsylvania, Gov. Josh Shapiro’s budget proposal called to accelerate existing corporate tax cuts while closing corporate tax loopholes by enacting combined reporting. Ohio Gov. Mike DeWine proposed a new credit for children of working parents. And Virginia Democrats countered Gov. Glenn Youngkin’s proposed tax cuts with a plan of their own that includes an increase to the state’s Earned Income Tax Credit (EITC) and a one-time, nonrefundable tax…

New Jersey Policy Perspective: Extending Trump Tax Cuts Would Benefit the Wealthiest New Jerseyans

February 3, 2025

Fair tax policy depends on prioritizing the well-being of all households, not just the wealthiest. New Jersey, and the nation as a whole, cannot afford to hand special tax breaks to the most affluent residents by slashing essential services such as health insurance for working families. New analysis of the Trump administration’s plan to make tax breaks from the 2017 tax law permanent shows that the proposal would do just that. It would make the wealthiest New Jerseyans even richer while cutting programs and support for families who need help affording basic necessities like food and health care.

Miami Herald: Commentary: Undocumented Immigrants Are Well Documented. Just Ask the IRS.

February 3, 2025

The phrase "undocumented immigrant" is deeply misleading, if not outright inaccurate. It implies that there is a mass of people in the U.S. that essentially live off the grid, apart from society, existing only in informal economies and off-the-book transactions. In fact, immigrants who lack permission to be in the U.S. are enmeshed in society with plenty of formal and official documents to their name, from tax returns to mortgages.

Center on Budget and Policy Priorities: President Trump, Congressional Republican Proposals Would Shift Large Costs to States, Inflict Widespread Harm

January 31, 2025

Emerging proposals from the Trump Administration and key congressional Republicans could wreak havoc on essential public services, leaving millions of people worse off through lost health coverage, less money for groceries, weakened access to a quality public education, and other harms.[1]

Florida Policy Institute: Deferring Dreams: The Costly Plan to Repeal Tuition Fairness for Florida Dreamers

January 31, 2025

Legislation[1] was introduced during the January 2025 special legislative session that would repeal Florida’s tuition fairness law.[2] This law, which passed with bipartisan support in 2014, requires that colleges, universities, and postsecondary institutions waive out-of-state tuition for certain undocumented students who graduated high school in the state.

Idaho Center for Fiscal Policy: House Bill 40 Further Cuts the Income Tax, Disproportionately Benefiting Wealthy Idahoans

January 31, 2025

Every year, Idaho spends millions of tax dollars to make sure families receive a good education, live in safe homes and communities, and enjoy good health. However, over the last several years, the state has passed deep and costly tax rate cuts that make our tax system more regressive- disproportionately burdening Idahoans with the lowest incomes. House Bill 40 continues to perpetuate this trend by providing relief disproportionately to wealthy households.

New York Times: What Mass Deportations Would Do to New York City’s Economy

January 31, 2025

That number comes not from a left-leaning human rights group intent on fostering sympathy for people who crossed the border illegally, but rather from the wonky Institute on Taxation and Economic Policy, a nonpartisan Washington think tank. The organization’s research also tells us that nationally, more than a third of the tax dollars paid by undocumented immigrants go toward payroll taxes, which are aimed at backing entitlement programs that these workers are not entitled to access.

Alabama Rise: 56 Alabama Groups Urge Congress to Reject Tax Cuts for the Wealthy

January 30, 2025

Congress should oppose efforts to increase tax breaks for wealthy Americans and highly profitable corporations this year, 56 organizations across Alabama wrote in a letter sent to Alabama’s congressional delegation Wednesday. Lawmakers instead should seek to boost tax credits that expand opportunities for working people and families, the letter said.

Oregon Center for Public Policy: Groups Call on Oregon Congressional Delegation to Reject More Tax Breaks for the Wealthy

January 30, 2025

A dozen Oregon organizations sent a letter to the state’s congressional delegation today calling on them to oppose tax cuts for the wealthiest individuals and corporations as part of the upcoming federal tax debate in 2025.

Oklahoma Policy Institute: FACT CHECK: How Would the Governor’s Proposal to Cut, Eliminate Personal Income Tax Affect Oklahoma?

January 30, 2025

The Institute on Taxation and Economic Policy has estimated how much these proposed tax cuts would impact Oklahomans, by income level: 

The New Statesman: Donald Trump’s Florida Project

January 30, 2025

But Mar-a-Lago is just the crown jewel in the Floridisation of US politics. A born and bred New Yorker, Trump switched his primary residence from Manhattan to Palm Beach during his first term, stating that he had “been treated very badly by the political leaders of both the city and state [of New York]. Few have been treated worse.” There was also a more practical rationale for becoming a Florida resident: lower taxes. Florida is one of just nine states that do not levy state income taxes on residents. According to a recent report by the Institute on Taxation and…

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State Rundown 1/30: The Revenue Decrease is in the Details

January 30, 2025 • By ITEP Staff

More details on this year’s batch of major tax proposals are emerging from statehouses - and some revenue cuts look like they could be steep. A governor-backed and House-passed plan in Mississippi would phase out the personal income tax, while a recent tax cut proposal out of Idaho is anchored by a $253 million dollar income tax cut.  

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Maryland’s Tax Reform Likely Won’t Cause Millionaire Migration

January 30, 2025 • By Nick Johnson

The moment Gov. Wes Moore announced his proposal to reform Maryland’s tax system, in part, by raising income tax rates on high-income households, opponents began predicting that wealthy people would respond by leaving. Experience from other states says that’s not the case. 

Yahoo News: Simu Liu Speaks Out on Trump’s New Tax Plan

January 29, 2025

Simu Liu has spoken out against President Donald Trump’s newly proposed U.S. tax plan, which seeks to extend the 2017 Tax Cuts and Jobs Act (TCJA) and introduce new measures that primarily benefit high-income earners and corporations.

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Trump and Congress’ Tax Package Likely to Worsen Racial Inequities

January 29, 2025 • By Brakeyshia Samms

While the country transitions to a new, yet familiar, presidential administration, lawmakers must keep in mind: fighting racial injustice should still be one of the focal points of this year’s tax debates. In theory, the debate over extending much of 2017’s Trump tax law represents an opportunity to advance racial equity. In practice, the tax package is likely to do the opposite, worsening racial inequities that already exist.  

Mother Jones: Trump Tax Cuts Not Just Good For Billionaires, Say Billionaires

January 28, 2025

A group founded by the billionaire Koch brothers is on a mission: to extend the massive tax cuts Trump instituted in his first term, and to convince working-class Americans that those cuts benefit them, too—despite ample evidence to the contrary.

Barron’s: Trump’s Immigration Crackdown Could Play Havoc with the Economy

January 28, 2025

The White House is making good on President Trump’s campaign promises to eject unauthorized immigrants from U.S. soil, with deportation flights rolling out over the weekend. But the economic consequences of deportation and massive rollbacks on immigration could be severe.