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 rebate.
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blog February 6, 2025 State Rundown 2/6: Tax Proposals in the Spotlight
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ITEP Work in Action February 3, 2025 New Jersey Policy Perspective: Extending Trump Tax Cuts Would Benefit the Wealthiest New Jerseyans
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.
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media mention February 3, 2025 Miami Herald: Commentary: Undocumented Immigrants Are Well Documented. Just Ask the IRS.
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.
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ITEP Work in Action January 31, 2025 Center on Budget and Policy Priorities: President Trump, Congressional Republican Proposals Would Shift Large Costs to States, Inflict Widespread Harm
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]
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ITEP Work in Action January 31, 2025 Florida Policy Institute: Deferring Dreams: The Costly Plan to Repeal Tuition Fairness for Florida Dreamers
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.
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ITEP Work in Action January 31, 2025 Idaho Center for Fiscal Policy: House Bill 40 Further Cuts the Income Tax, Disproportionately Benefiting Wealthy Idahoans
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.
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media mention January 31, 2025 New York Times: What Mass Deportations Would Do to New York City’s Economy
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.
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ITEP Work in Action January 30, 2025 Alabama Rise: 56 Alabama Groups Urge Congress to Reject Tax Cuts for the Wealthy
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.
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ITEP Work in Action January 30, 2025 Oregon Center for Public Policy: Groups Call on Oregon Congressional Delegation to Reject More Tax Breaks for the Wealthy
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.
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ITEP Work in Action January 30, 2025 Oklahoma Policy Institute: FACT CHECK: How Would the Governor’s Proposal to Cut, Eliminate Personal Income Tax Affect Oklahoma?
The Institute on Taxation and Economic Policy has estimated how much these proposed tax cuts would impact Oklahomans, by income level:
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media mention January 30, 2025 The New Statesman: Donald Trump’s Florida Project
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 Economic Policy, it has the most regressive tax system in the US: low-income families pay almost five times as much of their income as the wealthy. (Florida ranks 49th in the nation for income inequality.)
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blog January 30, 2025 State Rundown 1/30: The Revenue Decrease is in the Details
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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blog January 30, 2025 Maryland’s Tax Reform Likely Won’t Cause Millionaire Migration
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.
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media mention January 29, 2025 Yahoo News: Simu Liu Speaks Out on Trump’s New Tax Plan
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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blog January 29, 2025 Trump and Congress’ Tax Package Likely to Worsen Racial Inequities
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.
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media mention January 28, 2025 Mother Jones: Trump Tax Cuts Not Just Good For Billionaires, Say Billionaires
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.
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media mention January 28, 2025 Barron’s: Trump’s Immigration Crackdown Could Play Havoc with the Economy
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.
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media mention January 27, 2025 The Guardian: Charles Koch’s Network Launches $20m Campaing Backing Trump Tax Breaks
Americans for Prosperity (AFP), the flagship political arm of the rightwing network formed by the fossil fuels billionaire Charles Koch and his late brother David, is launching a multimillion-dollar campaign backing Donald Trump’s plans to extend tax cuts and roll back federal regulations.
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media mention January 27, 2025 Salon: The High Opportunity Cost of Trump’s Economy
President Donald Trump is returning to the White House with the strongest economy in the world; unemployment is low, inflation continues to trend downward and growth is accelerating. Yet, Trump is about to unravel our post-COVID recovery with an attempt to enact a toxic economic agenda of tariffs, mass deportations and tax cuts for the mega-rich. All paid for with cuts to programs that benefit working class Americans.
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ITEP Work in Action January 23, 2025 Public Citizen: DOGE Delusions: A Real-World Plan To Crack Down on Corporate Handouts, Tax the Rich and Invest for the Future
On November 12, 2024, President-elect Donald Trump announced that billionaires Elon Musk and Vivek Ramaswamy would co-chair a new entity, called the “Department of Government Efficiency” (DOGE). “Together,” Trump asserted, “these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures and restructure federal Agencies – Essential to the ’Save America’ Movement. … It will become, potentially, the ’Manhattan project’ of our time.”
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blog January 22, 2025 State Rundown 1/22: Tax Policy, Affordability, and Where It Misses the Mark
As state legislative sessions ramp up many lawmakers discuss their prioritization of affordability of necessities like food and housing as they craft their legislative agendas. Arkansas, Mississippi and Utah are… -
blog January 15, 2025 State Rundown 1/15: Tax Debates Heat Up Despite Winter Weather
While frigid temperatures expected across a large swath of the country, major tax proposals are heating up in the states. Governors are giving their State of the State addresses and state lawmakers have begun to convene for 2025. New York Gov. Kathy Hochul announced plans to expand the state’s Child Tax Credit earlier this year and has since announced nearly $1 billion in income tax cuts. Maryland Gov. Wes Moore unveiled a new tax proposal aimed at helping close the state’s looming revenue shortfall. The plan would increase taxes on the wealthy and cut taxes for many low- and middle-income households. Meanwhile, lawmakers in Mississippi introduced misguided legislation that would phase out their personal income tax over time and reduce the state sales tax rate on groceries.
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media mention January 15, 2025 MSNBC: Trump Inverts Reality with His Claims about Migrants Hurting Social Security
A key plank of President-elect Donald Trump’s campaign tirades against undocumented immigrants was that they drain vital social services that are facing insolvency threats. “Unlike the Democrats, who are KILLING SOCIAL SECURITY AND MEDICARE by allowing the INVASION OF THE MIGRANTS, I will NOT, under any circumstance, allow either of these two precious GEMS to be even touched under a Trump Administration,” he posted on Truth Social in one characteristic broadside last year.
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media mention January 13, 2025 New York Times: How Unauthorized Immigrants Help Finance Social Security Benefits
The Social Security Administration receives billions in free money each year from an unexpected source: undocumented immigrants.
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media mention December 17, 2024 Crain’s Chicago Business: Cook County’s Property System is Complex and Burdensome. Here’s How It Can Be Fixed.
Discontent about property tax increases persists not only among Chicagoans, but also among Cook County residents and property owners nationwide. Relief is what everyone wants, as seen by the rate at which municipalities put property tax-related referendums and legislation on the ballots in 2024, says Rita Jefferson, a policy analyst for the Institute of Taxation & Economic Policy, or ITEP.