2,364 posts
Unfinished Tax Reform: Corporate Minimum Taxes
• By Steve Wamhoff
While the Inflation Reduction Act's corporate minimum tax is a huge improvement in our tax system, implementing the global corporate minimum tax would improve it much more. And if other governments implement the global minimum tax, the United States will have an even stronger interest in joining them to ensure that new revenue collected from American corporations flows to the U.S. rather than to other countries.
Congress Should Not Leave Children Out of Possible Year-End Tax Deal
• By Steve Wamhoff
If lawmakers believe it’s worthwhile to extend corporate tax breaks, then it would be entirely unreasonable for them to not conclude the same about tax provisions that help low-income children.
State Rundown 9/21: Earth, Wind, Fire & Taxes Edition
• By ITEP Staff
Do you remember/the big tax news innn September? Well, if not, we at ITEP got you covered...
How the Inflation Reduction Act’s Tax Reforms Can Help Close the Racial Wealth Gap
• By Brakeyshia Samms, Joe Hughes
Lawmakers have many opportunities to pass reforms that will make our tax code fairer and further reduce racial inequity in our economy. The Inflation Reduction Act is a great step forward; better taxing wealth and income from wealth and expanding targeted refundable tax credits would build on this progress.
Boosting Incomes and Improving Tax Equity with State Earned Income Tax Credits in 2022
• By Aidan Davis
States continued their recent trend of advancing EITCs in 2022, with nine states plus the District of Columbia either creating or improving their credits. Utah enacted a 15 percent nonrefundable EITC, while the District of Columbia, Hawaii, Illinois, Maine, Vermont and Virginia expanded existing credits. Meanwhile, Connecticut, New York and Oregon provided one-time boosts to their EITC-eligible populations.
More States are Boosting Economic Security with Child Tax Credits in 2022
• By Aidan Davis
After years of being limited in reach, there is increasing momentum at the state level to adopt and expand Child Tax Credits. Today ten states are lifting the household incomes of families with children through yearly multi-million-dollar investments in the form of targeted, and usually refundable, CTCs.
Census Data Shows Need to Make 2021 Child Tax Credit Expansion Permanent
• By Joe Hughes
The Child Tax Credit expansion led to a 46 percent decline in childhood poverty. That it could be accomplished during the largest economic disruption in most of our lifetimes underscores a basic fact: thoughtful, decisive government action to combat poverty works.
Billionaires Should Pay Taxes on Their Income Every Year Like the Rest of Us
• By Steve Wamhoff
The Inflation Reduction Act signed by President Biden last month will crack down on corporate tax dodgers and strengthen enforcement of tax laws already on the books, raising hundreds of billions of dollars to be spent on climate, health and other priorities. But these reforms will not directly raise taxes on even the wealthiest individuals. […]
State Rundown 9/7: Labor Day Week Provides Sobering Reminder of Steps Forward, Back
• By ITEP Staff
Though Labor Day has passed, advocates on the ground in states across the country are continuing to uphold the spirit of the labor movement...
Romney Child Tax Credit Plan Would Leave Millions of Children Worse Off and Raise Taxes for the Average Black Family
• By Steve Wamhoff
Sen. Romney’s plan would expand the Child Tax Credit and offset the costs by scaling back other tax benefits. All told, it would raise taxes on a fourth of all kids in the U.S. This includes about a fourth of the children among the poorest fifth of U.S. families.
National and State-by-State Estimates of Two Approaches to Expanding the Child Tax Credit
• By Emma Sifre, Joe Hughes, Steve Wamhoff
The Romney Child Tax Credit plan would leave a quarter of children worse off compared to current law and help half as many low-income children as the 2021 expansion of the credit.
Gimmicky Sales Tax Holidays Are Short-Term and Ineffective
• By Marco Guzman
Everyone loves a deal, so it’s no surprise why the appeal of the state sales tax holiday continues to persist. This year, 20 states will forgo more than $1 billion in combined revenue to enact a variety of sales tax holidays that—like most things that are too good to be true—will do little to provide meaningful benefits and instead undermine funding for public services.
ITEP: Inflation Reduction Act is Biggest Corporate Tax Reform in Decades
• By Amy Hanauer
Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy, issued the following statement on “The Inflation Reduction Act (IRA) of 2022,” the reconciliation bill passed today by the House of Representatives. “Today Congress signed off on the biggest corporate tax reform in decades as part of a bill that will provide a […]
Lawmakers Must Choose Between Funding the IRS or Protecting Wealthy Tax Cheaters
• By Steve Wamhoff
Grasping for some way to criticize the popular Inflation Reduction Act as it approaches final passage, Congressional Republicans have decided to attack its provisions that will reverse a decade of budget cuts to the IRS and instruct the agency to crack down on tax evasion by big corporations and individuals making more than $400,000. Of […]
State Rundown 8/10: States Still Talking Taxes as IRA Dominates Headlines
• By ITEP Staff
While federal tax policy has dominated the headlines with the Senate’s recent approval of the Inflation Reduction Act, lawmakers in statehouses across the country...
What Tax Provisions are in the Senate-Passed Inflation Reduction Act?
• By Steve Wamhoff
The Inflation Reduction Act approved by the Senate on Aug. 7 would raise more than $700 billion in new revenue over a decade by closing corporate tax loopholes, empowering the IRS to enforce the tax laws on the books, taxing stock buybacks, and extending a limitation on deductions for business losses. The IRA – if […]
Inflation Reduction Act Will Increase Tax Fairness, Reduce Inequality
• By Amy Hanauer
Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy, issued the following statement on “The Inflation Reduction Act (IRA) of 2022,” the reconciliation bill passed today by the Senate. “Today we made remarkable progress for America’s tax and climate policy. The IRA reduces corporate loopholes, collects revenue from those who defy tax […]
They Might Really Do It: The Senate Is About to Reform Our Tax Code
• By Steve Wamhoff
For now, the Senate is poised to reverse cuts to the IRS enforcement against wealthy tax evaders for the first time in a decade, crack down on tax-dodging by huge corporations for the first time since 1986, and finally address the method increasingly used by corporations to transfer income to shareholders to avoid federal taxes. The multi-decade winning streak of corporate lobbyists and special interests who have practically written many of our tax laws in…
Corporations are Shifting Profits to Wealthy Investors Tax-Free—Stock Buyback Tax Would Change That
• By Joe Hughes
Senate Democrats have announced an agreement on the Inflation Reduction Act that, among other changes to a previous version of the bill, would apply a 1 percent tax on corporations repurchasing their own stock. This proposal was included in the House-passed Build Back Better Act last year and was estimated at that time to raise $124 billion over 10 years. This measure would ensure that income transferred from corporations to wealthy shareholders does not continue…
Corporate Minimum Tax Examples: Apple Would Likely Pay More, 3M Would Not
• By Matthew Gardner
Apple, one of the largest corporations in the United States despite manufacturing most of its physical products offshore, would likely pay the corporate minimum tax that is included in the Inflation Reduction Act that the Senate is debating this week. 3M, a manufacturer that has about 40 percent of its workforce in the United States, likely would not pay the corporate minimum tax if current trends in the company’s profits and taxes continue, because it…
Jon Whiten
• By ITEP Staff
Jon leads ITEP’s work to shape the public debate around tax policy and ensure that policymakers, advocates, and other stakeholders are using ITEP’s data and analysis in order to make sound decisions.
Bloomberg Tax Op-Ed: Manchin-Schumer Deal Takes Sensible Aim at Corporate Tax Dodging
August 2, 2022
Revenue-raising provisions in the Inflation Reduction Act would bring long-overdue fairness to a tax system that for decades has been eroded by special breaks for the powerful and well-connected, says Steve Wamhoff of the Institute on Taxation and Economic Policy. Read more.
Opponents of Inflation Reduction Act Call for Continued Tax Avoidance by Large Manufacturers
• By Steve Wamhoff
The biggest revenue-raising provision in the Inflation Reduction Act, the 15 percent minimum tax for corporations that have more than a billion dollars in profits, is under attack from members of Congress who argue that manufacturing companies should not be required to pay any minimum amount of tax. Sen. Mike Crapo, the top Republican on […]
Top Republican Tax-Writer Falsely Claims that Minimum Tax for Huge Corporations Is a Tax Hike on Middle-Class
• By Steve Wamhoff
Opponents of requiring corporations to pay even a minimum amount of taxes hold an unpopular position. But Sen. Mike Crapo, the top Republican on the Senate Finance Committee and a leader of that opposition, is using a one-sided and incomplete analysis to claim that the corporate minimum tax would raise taxes on low- and middle-income people.
The Washington Post: How the Schumer-Manchin Climate Bill Might Impact You and Change the U.S.
July 28, 2022
“This would certainly be the biggest corporate tax increase in decades,” said Steve Wamhoff, a tax expert at Institute on Taxation and Economic Policy. “We’ve had decades of tax policy benefiting the rich, but this is really the first attempt to raise revenue in a progressive way that would begin to combat wealth and income […]
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