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.
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blog July 24, 2019 Legislation to Block Corporate Inversions Is Still Needed
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blog July 18, 2019 Many States Move Toward Higher Taxes on the Rich; Lower Taxes on Poor People
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.
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map July 17, 2019 Is Your State Holding Sales Tax Holidays in 2019?
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… -
brief July 17, 2019 Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
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.
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news release July 17, 2019 Sales Tax Holidays Are Outdated Gimmicks That Have Run Their Course
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.
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ITEP Work in Action July 16, 2019 CommonWealth: Before the T Derailed, its Funding Got on the Wrong Track
Overall, funding for the Commonwealth during the last two decades has relied increasingly on sales taxes and regressive user fees, while cutting income tax rates. As a result, we have… -
map July 12, 2019 Does Your State Levy Estate and Inheritance Taxes?
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.
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ITEP Work in Action July 11, 2019 Arizona Center for Economic Progress: Using Increased Revenues from Conformity on More Tax Cuts is Fiscally Irresponsible
Arizona Should Use Increased Revenues to Prepare for Next Recession Instead of Giving Tax Cuts While a recession does not appear imminent, the current economic expansion began in June 2009… -
media mention July 11, 2019 MarketWatch: Here’s What 2020 Democratic Candidates Have Said About Universal Basic Income
Harris’s proposal would cost more than $270 billion in 2020, according to an estimate by the Washington, D.C.-based Institute on Taxation and Economic Policy. Read more -
blog July 10, 2019 Missouri’s Creative Approach to Ending the “Race to the Bottom” in State Business Taxes
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.
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media mention July 7, 2019 Daily Progress: Opinion/Commentary: New IRS Rule Narrows Tax Loophole in Virginia
First, people and businesses making stock contributions, rather than cash, may still be able to profit from their donations through avoidance of capital gains taxes. A fix suggested by the… -
media mention July 6, 2019 The Washington Post: States Are Doing It. So Why Hasn’t Congress Increased the Federal Gas Tax?
All told, 31 of the 50 states have raised or reformed their motor fuel taxes during the past decade, according to the Institute on Taxation and Economic Policy. What’s more,… -
media mention July 5, 2019 Public News Service: Deadline Today for WA Initiative Requiring Voter Approval for Tax Increases
Taxes took center stage because of a finding that Washington has the most regressive tax code in the country. According to the Institute on Taxation and Economic Policy, people in… -
media mention July 5, 2019 CT Mirror: Gasoline Taxes Are on the Rise — Just not in CT
Twelve states ordered gasoline tax hikes that took effect this week, according to the nonprofit Institute on Taxation and Economic Policy (ITEP). While many policymakers say fuel levies are on… -
ITEP Work in Action July 3, 2019 The American Prospect: Without Congressional Input, Trump May Further Widen the Gap Between Rich and Poor
“This is just another tax break for rich people,” says Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economy Policy, who authored a blog post… -
media mention July 3, 2019 Business Insider: Gas and Diesel Prices Rose at the Worst Possible Time for Drivers in the US and These States Are Being Affected Most
For some states, the gas tax increase has been long delayed. Some states have postponed this increase for several years due to the political challenges, Carl Davis, a research director… -
map July 3, 2019 Which States Have the Highest Tax Rates for Low-income People?
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.
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media mention July 2, 2019 Pacific Standard: Developers Aren’t Reporting How They’re Using Tax Incentives Meant for Low-Income Areas
Even for those who have tracked the bill closely, the reporting process remains opaque. “This bill was thrown together so incredibly quickly—there weren’t hearings on it, these types of questions… -
media mention July 2, 2019 The Wall Street Journal: From Gas Taxes to Vaping Rules, New State Laws Take Effect Across U.S.
Drivers in a number of states will now pay higher taxes on gas as part of a broader push to fund infrastructure improvements. In Illinois, the gas tax has doubled… -
blog July 1, 2019 ITEP Summer Reading (and Watching) List
Mercury is rising, presidential primary debates are underway and most state legislative sessions have adjourned for summer. Whether you’re curling up with a good book (or your favorite e-Reader) or looking for a new television show to binge-watch, check out these recommendations on ITEP’s Summer Reading (and Watching) List.
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media mention July 1, 2019 Bloomberg: Horse Racing Tax Credit Backers Not Deterred by House Setback
Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy, said there are sensible reasons to ask whether these tax breaks are more generous than they should… -
media mention July 1, 2019 Nevada Business: Taxes and Nevada: The Give and Take
Many of those breaks and loop holes were left in place by the new policies, said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic… -
media mention July 1, 2019 Bloomberg: Gas Tax Hike Takes Effect in Five States This Month
All state gas taxes are tacked onto the federal government’s 18.4 cent-per-gallon levy, according to the Institute on Taxation and Economic Policy. Read more -
blog July 1, 2019 Gaps in Sales Tax Collection Linger at Amazon.com and Among Other E-Retailers
The last few years have brought big changes to sales tax collection for purchases made at Amazon.com and other e-retail websites. As recently as 2011, Amazon was only collecting sales tax on its direct sales in five states – a fact that gave the company a competitive edge over brick and mortar stores during a critical time in its growth. Today, Amazon is collecting state-level sales taxes on all its direct sales, but it still usually fails to collect sales tax on the large volume of sales it makes through the “Amazon Marketplace.” This points to a broader problem in state tax enforcement that lawmakers should move quickly to address.
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blog June 28, 2019 Why Trump Administration’s Plan to Index Capital Gains to Inflation Is Just Another Giveaway to the Wealthy
The White House is reported to be planning to unilaterally adjust the way capital gains are assessed to benefit the wealthiest Americans. The proposal would adjust capital gains for inflation, reducing taxes disproportionately for the wealthiest households who own most assets by limiting their taxable gains to those above and beyond the inflation rate.