Opportunity Zones Have Nothing to Do with Reparations, Except …

August 2, 2019 • By Jenice Robinson

Among other things, this blog highlights how federal, state and local policies systematically work to reinforce the racial wealth gap by, for example, using the tax code to redistribute the nation’s wealth to billionaire developers and keeping low-income people of color in a perpetual cycle of debt through fines and fees to fund local governments. Opportunity zones and the top-heavy 2017 tax law are emblematic of a long history of policymaking that advantages wealthy white families.

How Do Tax Rates on the Poor Compare to Taxes on the Rich in Your State?

August 1, 2019 • By ITEP Staff

No two state tax systems are the same, but 45 states have one thing in common: Low-income residents are taxed at a higher rate than the top 1 percent.  Effective tax rates for the lowest 20 percent of families range from a high of 17.8 percent in Washington State to a low of 5.5 percent in Delaware.

A Wealth Tax Might Be Easier to Implement than You Think

July 31, 2019 • By Steve Wamhoff

A direct federal tax on wealth, as described in a January report from ITEP and proposed by Sen. Elizabeth Warren, could raise substantial revenue to make public investments, curb rising inequality, and is supported by a large majority of Americans. But would it work? Recent research highlighted in a new academic paper outlines approaches that would make it easier than you might think.

State Rundown 7/26: The Dog Days of Tax

July 26, 2019 • By ITEP Staff

OHIO legislators passed a budget with unfortunate income tax cuts for high-income households. Other states turned their attention to unconventional ideas during their legislative off-seasons, for better and for worse. And there are many gems to be found in our “What We’re Reading” section below, including new research on the racial inequities that continue to pervade our communities and schools.

July 26, 2019 • By Meg Wiehe

We shouldn’t wait for Washington to tax the rich. We can begin at the state level. Examining the federal policy landscape is a logical place to start, but state policymakers are missing a key opportunity if they don’t join this national conversation and take a hard look at how their tax codes are affecting individuals […]

Election 2020: Tax Policy Essentials

July 26, 2019 • By ITEP Staff

The nation’s tax policies and their role in economic inequality are front and center during this election cycle. For those interested in how the nation can move toward a fairer tax system and or more detailed information about progressive tax policy ideas, ITEP created this quick guide.

Combined Reporting Lessens Corporate Tax Avoidance at State Level

July 26, 2019 • By ITEP Staff

"Combined reporting" lessens the effectiveness of a tax avoidance scheme known as income shifting, in which large multi-state corporations dubiously claim that their income was earned in states with little or no corporate income tax.

Legislation to Block Corporate Inversions Is Still Needed

July 24, 2019 • By Steve Wamhoff

If a future Congress and president enact a real tax reform, one that requires corporations to pay their fair share and ends TCJA’s various corporate breaks for offshore profits, then companies will use inversions and other tactics to dodge taxes once again—if lawmakers let them. That’s why any real tax reform will include something like the Stop Corporate Inversions Act, introduced last week by Sens. Dick Durbin and Jack Reed to block inversions.

Many States Move Toward Higher Taxes on the Rich; Lower Taxes on Poor People

July 18, 2019 • By Meg Wiehe

Several states this year proposed or enacted tax policies that would require high-income households and/or businesses to pay more in taxes. After years of policymaking that slashed taxes for wealthy households and deprived states of revenue to adequately fund public services, this is a necessary and welcome reversal.

Is Your State Holding Sales Tax Holidays in 2019?

July 17, 2019 • By ITEP Staff

Lawmakers in many states have enacted “sales tax holidays” (16 states will hold them in 2019), to provide a temporary break on paying the tax on purchases of clothing, school supplies, and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. ITEP’s policy brief […]

Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform

July 17, 2019 • By Dylan Grundman O'Neill

Lawmakers in many states have enacted “sales tax holidays” (16 states will hold them in 2019), to provide a temporary break on paying the tax on purchases of clothing, school supplies, and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. This policy brief looks at sales tax holidays as a tax reduction device.

Sales Tax Holidays Are Outdated Gimmicks That Have Run Their Course

July 17, 2019 • By ITEP Staff

Just as the very first sales tax holiday for car sales did not fix the auto industry’s challenges, providing consumers a temporary reprieve on sales tax will not address families’ pocketbook concerns.

Does Your State Levy Estate and Inheritance Taxes?

July 12, 2019 • By ITEP Staff

States have been repealing estate taxes since the early 2000s. Now, just 17 states and the District of Columbia (D.C.) levy estate and/or inheritance taxes. Twelve states and D.C. levy estate taxes while six states levy inheritance taxes (Maryland levies both). These taxes have long been used not just to raise revenue for vital public services, but to promote equality of opportunity and reduce the transfer of concentrated wealth from one generation to the next.

Missouri’s Creative Approach to Ending the “Race to the Bottom” in State Business Taxes

July 10, 2019 • By Matthew Gardner

Each year, state and local governments spend billions of dollars on targeted tax incentives—special tax breaks ostensibly designed to encourage businesses to relocate, expand or simply stay where they are. A law enacted by the Missouri legislature creates a template for states to work bilaterally to put the brakes on the “race to the bottom” in state business taxes.

Which States Have the Highest Tax Rates for Low-income People?

July 3, 2019 • By ITEP Staff

No two state tax systems are the same, but 45 states have one thing in common: Low-income residents are taxed at a higher rate than the top 1 percent. This map shows the effective tax rates for the lowest-income 20 percent in each state--ranging from a high of 17.8 percent in Washington to a low of 5.5 percent in Delaware.