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ITEP Work in Action July 12, 2021 DC Fiscal Policy Institute: NEW VIDEOS: Why DC’s Wealthiest Should Pay their Fair Share
The highest income residents in DC pay less as a share of their income than the rest of us. At the same time, low-income Black and brown DC residents have… -
ITEP Work in Action July 9, 2021 Washington State Budget & Policy Center: New Reforms Bring Balance and Equity to State’s Tax Code and Economy
People seeking a more equitable state tax code and stronger supports for parents scored major victories earlier this year in Washington state, after more than a decade of hard work… -
blog July 7, 2021 In Drive to Cut Taxes, States Blow an Opportunity to Invest in Underfunded Services
Many states find themselves in a peculiar fiscal situation right now: federal pandemic relief money has been dispersed to states and revenue projections have exceeded expectations set during the pandemic. Meanwhile, more and more workers are returning to jobs as vaccines roll out and typical economic activity resumes. Some states, however, have decided to squander their unexpected fiscal strength on tax cuts.
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July 7, 2021 The Child Tax Credit in Practice: What We Know About the Payoffs of Payments (Webinar)
Join us for a discussion on why tax credits like the Child Tax Credit (CTC) expansion are good economic policy. You’ll hear from anti-poverty experts on why Congress should extend the policy beyond 2021 and what we can learn from an initiative providing low-income mothers in Jackson, Miss., $1,000 cash on a monthly basis, no strings attached. From theory to practice and what it means for American families, this CTC webinar will provide a unique angle through which to view this transformative policy.
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blog July 7, 2021 Congress Should Follow States’ Lead on Inclusive Economic Recovery
President Joe Biden’s American Families and Jobs plans intend to “build back better” and create a more inclusive economy. To fully live up to this ideal, the final plan must include undocumented people and their families.
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ITEP Work in Action July 1, 2021 Center for Migration Studies: Innovating Inclusion: A New Wave of State Activism to Include Immigrants in Social Safety Nets
States across the country are tackling an equity issue in the tax code by breaking from federal eligibility standards for their state Earned Income Tax Credits (EITCs). Specifically, states are… -
ITEP Work in Action June 29, 2021 Policy Matters Ohio: Ohio Tax Cuts Would Go Mostly to the Very Affluent
Instead of using Ohio’s public resources to build strong, resilient communities, the General Assembly approved income-tax cuts that would favor the very wealthiest Ohioans, while providing only modest benefits for… -
ITEP Work in Action June 29, 2021 Policy Matters Ohio: Ohio Income-tax Cuts Would Reward the Wealthiest
Income-tax cuts approved by the General Assembly in the budget bill would favor the very wealthiest Ohioans, while providing only modest benefits for moderate-income Ohioans and nothing at all to… -
blog June 28, 2021 State-Level EITC Victories in 2021
A growing group of state lawmakers are recognizing the extent to which low- and middle-income Americans are struggling and the ways in which their state and local tax systems can do more to ensure the economic security of their residents over the long run. To that end, lawmakers across the country have made strides in enacting, increasing, or expanding tax credits that benefit low- and middle-income families. Here is a summary of those changes and a celebration of those successes.
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blog June 25, 2021 When Tax Breaks for Retirement Savings Enrich the Already Rich
Members of Congress frequently claim they want to make it easier for working people to scrape together enough savings to have some financial security in retirement. But lawmakers’ preferred method to (ostensibly) achieve this goal is through tax breaks that have allowed the tech mogul Peter Thiel to avoid taxes on $5 billion. This is just one of the eye-popping revelations in the latest expose from ProPublica.
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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.