Institute on Taxation and Economic Policy (ITEP)

CNN: “People Are Feeling Betrayed”: They Paid Taxes in Good Faith and Now Fear It Could Lead to Their Deportation

April 15, 2025

A recent data-sharing deal between the Internal Revenue Service and the Department of Homeland Security is sparking widespread concern in immigrant communities – though some details about how the deal could work haven’t been disclosed.

America’s Voice: On Tax Day, A Reminder That Immigration is Good for America

April 15, 2025

Tax Day 2025 is almost here, meaning millions of workers across the country have either already filed their state and federal returns or are sitting down to finish them up. This includes millions of immigrants, whose immense annual contributions help sustain vital federal programs like Medicare and Social Security, fund our public schools, libraries, and fire departments, and boost our overall economy.

Marketplace: IRS’ Direct File is Free for Millions of Taxpayers, but Not Everyone Wants to Keep It Around.

April 15, 2025

April 15 is Tax Day. If you haven’t filed yet, one option could be the IRS’ Direct File program, which lets some taxpayers electronically file their returns directly with the agency for free, as opposed to through third-party providers.

Los Angeles Times: IRS Plan to Give Data to ICE Could Wallop California, Where Many Immigrants Pay Taxes

April 14, 2025

Also like many of her clients, she has routinely paid U.S. taxes in the past using what’s known as an individual taxpayer identification number, or ITIN, in lieu of a Social Security number. The process seemed pretty straightforward, she said, until recently, when Trump administration officials announced that IRS data would be shared with ICE agents and used to target undocumented taxpayers for the first time.

MSNBC: Trumps Social Security Team has Reportedly Marked More than 6,000 Immigrants as Dead

April 14, 2025

The New York Times was first to report on the administration’s cancellation of immigrants’ lawfully obtained Social Security numbers — essentially listing individuals as dead — as a means to impede their ability to make money or access government services and to pressure them to leave the country. 

Times Union: Editorial: Honesty Ought to Pay

April 14, 2025

The administration of President Donald J. Trump has decided to have the Internal Revenue Service share information with Immigration and Customs Enforcement on undocumented immigrants who have been diligently paying taxes on the promise that their files would be confidential.

NPR: 4 Takeaways from the Week: In a World That Craves Stability, Trump Brings the Chaos

April 11, 2025

The IRS agrees to share tax information of immigrants in the country without permanent legal status. The IRS previously didn't in an effort to get immigrants to pay taxes. They paid about $97 billion in taxes in 2022, including about $60 billion to the federal government, according to an analysis by the Institute on Taxation and Economic Policy. 

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State Rundown 4/9: A Progressive Pushback

April 9, 2025 • By ITEP Staff

State Rundown 4/9: A Progressive Pushback

Residents and state lawmakers across the country are pushing back against anti-tax measures and are looking for ways to protect revenue and advance proposals that would raise revenue in progressive ways. This comes at a time when federal policy brings significant risks for state tax revenue.

Groundwork Collaborative: Tax Giveaways for Gouging: How the Trump Tax Law Fueled Corporate Profiteering

April 9, 2025

We find that since Trump’s first tax giveaway, these companies have raked in nearly $500 billion in profits and enriched their shareholders by $463 billion while paying just $140 billion in federal income taxes. Compared to the two years before the TCJA was passed, these companies’ profits have more than doubled while their effective tax rates fell by 39 percent.

Peterson Foundation: Here’s How No Tax on Overtime Would Affect Federal Revenues and Tax Fairness

April 9, 2025

As part of a group of tax proposals, Republican leaders recently called for eliminating taxes on overtime pay. Excluding overtime compensation from federal taxes would create a new tax expenditure — also known as a tax break — that would reduce federal revenues and make the U.S. tax system more complex. Here, we review how much no tax on overtime could impact federal tax receipts and deficits, as well as its effect on fairness within the federal tax system.

Economic Policy Institute: Missouri Republican State Lawmakers Are Pushing a Radical Anti-Worker Tax Plan

April 9, 2025

Conservative lawmakers’ preference to cut taxes is nothing new, but Missouri state lawmakers are currently considering a tax measure that would privilege the state’s wealthiest individuals in ways no other state with an income tax has done—by fully exempting all capital gains income from taxation. This change would exacerbate an already regressive state tax system, forcing low- and middle-income Missourians to shoulder a larger share of financing for state public services.

Delaware Business Times: Dover Democrat Amends Income Tax Bill to Reflect Meyer’s Proposal

April 8, 2025

The Institute on Taxation and Economic Policy reports that Delaware has the 40th most regressive state and local tax system in the country. That means those who earn the most will pay the least taxes, between property taxes, income and excise tax and more.

National Catholic Reporter: Editorial: Tax Battle a Referendum on Moral Clarity

April 7, 2025

Let us be plain: What is being proposed is not tax reform. It is not aimed at fairness, economic stability or the public good. It is a redistribution of wealth — upward, deliberate and vast, from the poorest of the poor to the richest of the rich. And more than just poor policy, it is a profound moral failure. These proposals violate the very heart of Catholic social teaching.

Missouri Independent: Missouri Lawmakers Set to Pass Capital Gains Tax Cut with Questions about Its Total Cost

April 7, 2025

The bill nearing passage could reduce state revenues by $600 million or more, IRS data suggests, instead of the $111 million loss in official estimates Read more.

State Rundown 4/3: Amidst Tariff Uncertainty, State Lawmakers Talk Taxes

While all eyes are on the Trump administration’s tariffs on foreign imports, state lawmakers are moving forward with a mix of deep, regressive tax cuts and progressive revenue raisers.

Immigration Impact: Ahead of Tax Day, Fear of Filing Taxes Rises Among Undocumented Immigrants

April 2, 2025

Tax Day is approaching, but the Trump administration’s mass deportation efforts may make many undocumented immigrants hesitant to file taxes. Some worry that providing personal information to the Internal Revenue Service (IRS) could be used against them.

Maine Center for Economic Policy: Expanding the Dependent Exemption Tax Credit is an Investment in Maine’s Future

April 2, 2025

Maine’s Dependent Exemption Tax Credit (DETC) is a vital investment in the state’s future. As Maine’s version of the child tax credit, it helps families with children or dependent adults afford essentials like food, rent, and childcare, especially in rural areas.

Clarion Ledger: Mississippi Governor Signs Income Tax Elimination Bill. How Are You Affected?

March 28, 2025

With a stroke of a pen, and a few light-hearted jokes, the Build Up Mississippi Act, the largest total tax cut in state history was signed into law on March 27.

Policy Matters Ohio: Flat Income Tax Would Gut Ohio’s Budget

March 27, 2025

Ohio’s House Ways and Means Committee today holds its first hearing on HB 30, a bill that would tax the income of everyday Ohioans at the same rate as the state’s wealthiest households. The bill would eliminate the state’s top income-tax bracket of 3.5% on income above $100,000. By tax year 2026, Ohio would be left with a single rate of 2.75% on income above $27,350.

America’s Voice: In Seeking To Turn the IRS Into ICE, Trump Finally Admits that Undocumented Workers Actually Do Pay Taxes

March 27, 2025

The Trump administration is seeking to turn the IRS into another immigrant-hunting apparatus of the federal government, by seeking the confidential information of taxpayers who are even just suspected of being undocumented.

State Rundown 3/26: Lawmakers Navigate Shortfalls, Potholes, and Pitfalls

State lawmakers around the country are navigating a range of potential hazards this week. Leaders in Maryland and Washington are facing budget holes but are smartly working to get out of them through progressive taxes on those with the most ability to pay. Both North Dakota and Washington state are looking to fill literal potholes […]

Two Ways a 2025 Federal Tax Bill Could Worsen Income and Racial Inequality

Two parts of Trump’s 2017 tax law that are particularly expensive and beneficial to the richest individuals are the changes in income tax rates and brackets and the special deduction for “pass-through” business owners. Lawmakers should not extend these provisions for high-income households past the end of this year, when they are scheduled to expire.  

Oklahoma Policy Institute: Lawmakers Should Choose Targeted Relief Amidst Budget Uncertainty

March 25, 2025

State-level budget and tax policy matters deeply for Oklahomans because it directly affects how the state can meet its obligations to our fellow residents. This includes shared services like public safety, education, transportation construction, workforce development, and other programs that help all Oklahomans thrive.

Newsweek: ICE Could Use IRS Data to Track Undocumented Immigrants

March 25, 2025

Federal immigration authorities may soon gain access to Internal Revenue Service data under a pending agreement that would allow them to verify the names and addresses of individuals suspected of being in the U.S. illegally, according to multiple reports.

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Tip Exemptions Have No Place in State Income Tax

March 25, 2025 • By Eli Byerly-Duke, Nick Johnson

Tip Exemptions Have No Place in State Income Tax

Creating a special tax break for tipped income – as at least 20 states are considering this spring – would harm state budgets, encourage tax avoidance, and fail to reach the vast majority of low- and middle-income workers.