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ITEP Work in Action June 24, 2021 Oregon State Legislature: House Committee On Revenue 06/24/2021
Oregon lawmakers discuss a SALT-cap workaround provision. ITEP analysis found that in Oregon more than 91 percent of the tax cut benefits of repealing the SALT cap would go to… -
ITEP Work in Action June 23, 2021 North Carolina Justice Center: Five Takeaways from the Senate’s Budget Proposal
The Senate’s budget plan would bring the state’s investments to a new low while committing the state to untold losses in the form of revenue reductions by eliminating income taxes… -
blog June 21, 2021 Child Tax Credit Expansion Q&A with Aidan Davis
On July 15, the U.S. Treasury will begin mailing monthly checks to families with children who are eligible for the Child Tax Credit. Previously, the maximum credit was $2,000 per child, but for 2021, President Biden’s American Rescue Plan broadened the credit to $3,600 for each child under six and $3,000 for children over six. The expansion also made eligible children whose parents’ incomes were too low to qualify for the previous credit, both addressing a fundamental policy flaw and taking a significant step to reduce child poverty. This is the first time that the federal government is sending advanced partial payments to eligible families. ITEP has produced a distributional analysis that reveals how families of various income levels will be affected by the temporary expansion. Aidan Davis answers some commonly asked questions about our analysis and the CTC expansion.
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brief June 17, 2021 ITIN Filer Data Gap: How Changing Laws, Lack of Data Disaggregation Limit Inclusive Tax Policy
Like U.S. citizens, noncitizens who live, work, or invest in the United States must file local, state and federal taxes. But in order to file personal income taxes, they must first be issued a processing number called an Individual Taxpayer Identification Number (ITIN) by the IRS. These numbers are issued to both legal permanent residents and nonresidents who are not eligible for Social Security numbers. ITINs do not imply immigration status, nor can they be used for immigration enforcement purposes, but they can be used to create burdensome barriers that make it difficult for ITIN holders to file taxes and to impose additional eligibility restrictions on benefits that exclude ITIN filers. The time is now to focus on integrating all ITIN filers, regardless of immigration status, into our tax policies. But a lack of information on the ITIN population creates large gaps in our understanding of these filers and the role they play in the U.S. tax system.
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ITEP Work in Action June 16, 2021 The Rockefeller Foundation: The Untold Benefits of State EITCs on Child Welfare
With the passing of the American Rescue Plan in March, more than 5 million children are projected to be lifted out of poverty this year, cutting child poverty by more… -
blog June 11, 2021 Child Tax Credit Is a Critical Component of Biden Administration’s Recovery Package
Nearly one in seven children in the United States live in poverty and about 6 percent of all children live in deep poverty. President Joe Biden’s American Families Plan would tackle child poverty in an immediate, meaningful way. It is expected to extend the one-year Child Tax Credit (CTC) enhancements included in the March 2021 American Rescue Plan (ARP) through 2025. Next year alone, this would provide around a $110 billion collective income boost to roughly 88 percent of children in the United States.
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media mention June 9, 2021 Fortune: Biden’s plan will stop Jeff Bezos and Elon Musk from avoiding billions in taxes
FORTUNE: COMMENTARY | TAXES BY STEVE WAMHOFF It is no surprise that billionaires pay little in federal taxes relative to their incomes, but the level of detail provided by ProPublica Tuesday about how… -
blog June 9, 2021 U.S. Should Pursue Biden’s Tax Legislation and International Tax Agreement on Separate Tracks
The agreement announced over the weekend from the finance leaders of the Group of 7 (G7) countries to allow governments to tax some corporate profits based on the location of sales and to implement a 15 percent global minimum tax is a major step forward—but in no way changes the need for Congress to enact President Joe Biden’s tax reforms right now.
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news release June 8, 2021 ITEP: ProPublica’s Expose on Billionaires’ Taxes Is Another Wake-up Call
The explosive ProPublica report released today confirmed what we have known for quite some time: the wealthy and powerful play by a different set of rules than the rest of us. Following is a statement by Amy Hanauer, executive director of the Institute on Taxation and Economic Policy, regarding the report: “ProPublica’s reporting today on the details of how 25 billionaires pay little to nothing in federal tax relative to their incomes is a wakeup call: the nation needs tax reform that will impart some balance to our tax system.”
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blog June 7, 2021 State Rundown 6/7: Remaining State Legislative Sessions Are Heating up as Budget Deadlines Loom
Just as an early summer heatwave brought soaring temperatures this past weekend through much of the lower 48 states, several state legislative sessions are heating up as legislators scramble to make tough budget decisions. Massachusetts lawmakers are voting on a fiery new “millionaires’ tax” that would support transportation and education revenue needs, and Connecticut will likely restore its state Earned Income Tax Credit (EITC) back to 30 percent. Illinois’s decision to cut back corporate tax breaks also provided a breath of fresh air. Unfortunately, we’d give other state tax proposals a more lukewarm reception: New Hampshire, North Carolina, and Ohio are all considering tax cuts that would either primarily benefit the wealthy or create unsustainable revenue shortfalls. But it’s not too late to cool it and adopt more responsible and equitable tax policies.
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media mention June 4, 2021 The Week: Biden’s new $1 trillion infrastructure offer reportedly swaps in 15 percent minimum corporate tax for tax hike
“Corporations have paid a declining share in federal taxes since the 2017 GOP tax law dramatically slashed the corporate tax rate,” the Post reports, and 55 Fortune 500 corporations paid… -
media mention June 4, 2021 CBS News: Biden emphasizes taxes on richest companies to fund infrastructure proposal
“Unless you think corporations shouldn’t pay any tax at all — and we’ll leave that to others to speak to — then there should be a way to find a… -
media mention June 3, 2021 Washington Post: Biden offers tax concession in infrastructure talks with key Republican
Members of both parties have expressed concern with the number of large corporations paying little to nothing in federal income taxes. Fifty-five corporations in the Fortune 500 paid no federal… -
news release May 28, 2021 Biden’s Budget Signals the End of Trickle-Down Economics Era
President Joe Biden’s 2022 budget proposal released today signals a commitment to transformational policy solutions that not only invest in people and communities but also ensure corporations and rich people contribute more in taxes to support the economy that makes their wealth and profits possible, the Institute on Taxation and Economic Policy (ITEP) said today.
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blog May 27, 2021 State Rundown 5/27: State Legislatures Step Back, Advocates Push Forward
As more and more state legislatures wrap up their sessions and we reflect on the whirlwind that is this past year, it’s easy to focus on the steps back that states like Oklahoma have taken and Nebraska, North Carolina, and Arizona are trying to take. We have had some significant wins in states over the course of the year, but not every development will be a good one. However, we know advocates are on the ground, working tirelessly to help states maintain equity and progressivity in their tax codes. And for that, we have many of you—our intrepid readers of the Rundown—to thank. So, thank you, we can’t wait to continue to press on together.
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ITEP Work in Action May 26, 2021 The Arizona Center for Economic Progress: Flat Tax Exacerbates Inequalities for Households of Color
Arizona’s elected leaders have created a tax code that is upside down and regressive– meaning that those with low incomes pay a much higher share of their income in taxes… -
blog May 25, 2021 How Biden’s Plan Would Crack Down on Wealthy Tax Evaders
The Treasury Department released a report explaining what the administration’s tax enforcement plan would do—and how it fits into the president’s overall plan to collect more revenue from profitable corporations and individuals making more than $400,000 a year.
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brief May 25, 2021 Income Tax Increases in the President’s American Families Plan
President Biden’s American Families Plan includes revenue-raising proposals that would affect only very high-income taxpayers.[1] The two most prominent of these proposals would restore the top personal income tax rate to 39.6 percent and eliminate tax breaks related to capital gains for millionaires. As this report explains, these proposals would affect less than 1 percent of taxpayers and would be confined almost exclusively to the richest 1 percent of Americans. The plan includes other tax increases that would also target the very well-off and would make our tax system fairer. It would raise additional revenue by more effectively enforcing tax laws already on the books.
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May 24, 2021 Emma Sifre
Emma Sifre joined ITEP in 2021. As a Senior Data Analyst, Emma supports ITEP’s microsimulation model and conducts research on the different effects of tax policy changes on race, income, and geography. Prior to joining ITEP, Emma researched domestic social policy at the Congressional Research Service.
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ITEP Work in Action May 21, 2021 New Hampshire Fiscal Policy Institute: Elimination of the Interest and Dividends Tax Would Disproportionately Benefit High-Income Individuals
A new analysis of the proposed elimination of New Hampshire’s Interest and Dividends Tax shows nearly nine out of every ten dollars of the tax reduction would flow to the… -
blog May 18, 2021 IRS Clock Runs Out, Saving 14 Large Companies $1.3 Billion
Each year, corporations publicly state that some of the tax breaks they claim are unlikely to withstand scrutiny from tax authorities. And each year, corporations report that they will keep some of the dubious tax breaks they declared in previous years simply because the statute of limitations ran out before tax authorities made any conclusions. This suggests that, perhaps because of cuts to its enforcement budget, the IRS is not even investigating corporations that publicly announce they have claimed tax breaks that tax authorities would likely find illegal.
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blog May 17, 2021 State and Local Lessons on Tax Day 2021
Take a minute on this Tax Day to reflect on all that you survived, accomplished, and contributed to the collective good this past year, and be proud. There is always more work to be done to build the communities we desire, and paying your share is what allows that work to continue.
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blog May 17, 2021 Research That Presents an Airtight Case for Taxing the Rich
Taxes not only provide revenue so we can have a functioning government, they also shape broader society. Currently economic inequality is one of the most pressing challenges of our time. ITEP has produced research over the years that shows the nation’s overall tax system (local, state and federal combined) is barely progressive. With real tax reform that centers ordinary people, tax policy can help create a more equitable society.
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media mention May 17, 2021 AZ Central: Flat tax plan could decimate Arizona revenue, benefit a few. Don’t buy it
This is not a tax plan that will benefit most Arizonans. According to an analysis of the plan by the Institute on Taxation and Economic Policy, 53% of the tax… -
ITEP Work in Action May 17, 2021 Massachusetts Budget & Policy Center: Ending the Tax Penalty Against Working Immigrants: MA Should Follow Other States Extending EITC to Immigrant Tax Filers
The Earned Income Tax Credit (EITC) is a key program for reducing poverty in the United States. Together with the federal Child Tax Credit, these low-income federal credits lifted 7.5…