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  • ITEP Work in Action   March 31, 2019

    Connecticut Voices for Children: Connecticut’s Radical New Budget Rules: Locking in Decreased Investment in our State for the Next Decade

    Faced with increasingly difficult decisions in crafting the Fiscal Year (FY) 2018-19 biennial budget, the Connecticut General Assembly found itself at an impasse. In order to break the log jam,…
  • blog   March 29, 2019

    ICYMI: A Brief Summary of Our March Blogs and Reports

    This month in tax policy news: Corporate profits soar while corporate tax collections plummet. Also inside: A look at regressive state tax policies and progressive remedies and the continued unpackaging of the Tax Cuts and Jobs Act. It’s ITEP’s March 2019 Monthly Digest.

  • blog   March 27, 2019

    The Trump Tax Law Further Tilted an Already Uneven Playing Field

    Proponents sold the Tax Cuts and Jobs Act (TCJA) as a way to spur new investment, increase workers’ paychecks, and reverse the off-shoring of jobs. Testimony presented during a House Ways and Means hearing held today reflected on how—more than a year after the law’s passage—each of those pitches ring hollow.

  • ITEP Work in Action   March 25, 2019

    Policy Matters Ohio: Senate Transportation Budget Zeroes Out Public Transit, Slightly Improves EITC

    Last week, the Ohio Senate took a leap backwards by removing $100 million for public transit from the Transportation Budget allocated by the Ohio House of Representatives. They also took…
  • blog   March 25, 2019

    Corporate Profits ?, Corporate Federal Tax Collections ?

    Data released Friday by the U.S. Treasury Department should give great pause to all who care about the federal government’s ability to raise revenue in a fair, sustainable way. In the wake of the 2017 corporate tax overhaul, corporate tax collections have fallen at a rate never seen during a period of economic growth.

  • blog   March 22, 2019

    Unfair State Tax Codes Also Exacerbate Racial Inequity

    A 2019 ITEP analysis found that Black and Latinx households are overrepresented in the lowest-income quintiles; while they represent about 22 percent of overall tax returns, they account for 30 percent of the poorest quintile of taxpayers.

  • ITEP Work in Action   March 20, 2019

    North Carolina Justice Center: Higher Rates on Higher Income: Why a Graduated Income Tax is Good Policy for North Carolina

    At the same time, a graduated rate structure — in contrast with the state’s current flat tax rate on income — can make more revenue available for key public investments,…
  • blog   March 15, 2019

    Rep. Doggett and Sen. Whitehouse Reintroduce Bill to End Offshore Tax Avoidance

    On Thursday, Representative Lloyd Doggett and Senator Sheldon Whitehouse announced that they are reintroducing the “No Tax Breaks for Outsourcing Act.” Our international corporate tax rules have been a mess for a long time, and Tax Cuts and Jobs Act (TCJA) failed to resolve the problems. The old rules and the new rules under TCJA both tax offshore corporate profits more lightly than domestic corporate profits, but in different ways. The No Tax Breaks for Outsourcing Act would create rules that tax domestic profits and foreign profits in the same way.

  • ITEP Work in Action   March 15, 2019

    State Millionaires’ Taxes Can Advance Racial Justice

    Millionaires’ taxes can help address this problem. They can raise substantial revenue for public services by asking more of those at the top, a group that’s disproportionately white. White families are three times likelier than Black and Latinx families to be in the top 1 percent, according to a report by Prosperity Now and the Institute on Taxation and Economic Policy.

  • ITEP Work in Action   March 12, 2019

    Policy Matters Ohio: Loopholes Upon Loopholes

    As noted, of the three deductions, by far the most taxpayers took advantage of the deduction for self-employment taxes. The Institute on Taxation and Economic Policy, which has a model…
  • news release   March 7, 2019

    Gov. Pritzker’s Tax Proposal Is a Huge Step Toward Fairer Taxes

    Gov. Pritzker’s Fair Tax proposal reflects a necessary and strong commitment to reforming Illinois’s tax system in a fair way that will help the state raise the revenue it needs to stabilize its finances and improve quality of life for all its residents. The state’s financial crisis spans several years and getting the state back on firm fiscal footing requires bold solutions and—yes—tax increases.

  • blog   March 6, 2019

    How State Tax Systems Worsen the Economic Divide – in Charts

    The nation is currently engaging in serious discourse about how to expand economic opportunity and remedy income inequality via the federal tax code. State tax systems are also important and have a dismal effect on the growing economic divide. In a new report, Fairness Matters: A Chart Book on Who Pays State and Local Taxes, we further parse our Who Pays? data.

  • report   March 6, 2019

    Fairness Matters: A Chart Book on Who Pays State and Local Taxes

    There is significant room for improvement in state and local tax codes. State tax codes are filled with top-heavy exemptions and deductions and often fail to tax higher incomes at higher rates. States and localities have come to rely too heavily on regressive sales taxes that fail to reflect the modern economy. And overall tax collections are often inadequate in the short-run and unsustainable in the long-run. These types of shortcomings provide compelling reason to pursue state and local tax reforms to make these systems more equitable, adequate, and sustainable.

  • ITEP Work in Action   March 5, 2019

    Georgia Budget and Policy Institute: Georgia Work Credit Grows the Middle Class

    A non-refundable Georgia Work Credit would cut state taxes for more than 700,000 lower and middle-income households by up to $475. The Institute on Taxation and Economic Policy estimates that…
  • news release   February 28, 2019

    Education Department Tax Credit Proposal Would Undermine Public Schools

    The Education Department today announced a proposed new federal tax credit for so-called school choice. The $5 billion proposal would give those who donate to private school voucher programs a tax credit. Following is a statement by Carl Davis, research director at the Institute on Taxation and Economic Policy.

  •   February 28, 2019

    Americans have long wanted progressive taxes but few, if any, lawmakers publicly backed this view. What’s happening now isn’t a shift in public opinion, rather it’s Washington finally catching up…
  • ITEP Work in Action   February 27, 2019

    Public News Service: Could Fast-Moving Tax-Cut Proposal Blow WV Budget?

    House Bill 3137 would create a fund where new money, including out-of-state online sales taxes, would go. Then, each time that fund reached a certain level, it would trigger compounding…
  • blog   February 26, 2019

    Overdue Gas Tax Hikes are Back on the Agenda in Statehouses

    State tax policy can be a contentious topic, but one issue on which lawmakers largely agree is that higher gas tax rates are necessary to keep our nation’s infrastructure operating safely and efficiently. Lawmakers in 27 states have approved gas tax increases since 2013.

  • ITEP Work in Action   February 25, 2019

    Chicago Resilient Families Task Force: Big Shoulders, Bold Solutions: Economic Security for Chicagoans

    People with low and middle-incomes are financially savvy in ways that are often underestimated, but despite this are on thin ice financially. Despite doing all the right things, they are…
  • ITEP Work in Action   February 25, 2019

    West Virginia Center on Budget & Policy: House Income Tax Cut Plan Mostly Benefits Wealthy and Puts Large Holes in the State Budget (HB 3137)

    According to the Institute on Taxation and Economic Policy, a one-percentage reduction in each personal income tax rate would give a West Virginian with an income between $36,000 and $56,000…
  • media mention   February 22, 2019

    Bloomberg: Amazon Doesn’t Plan to Pay the IRS Anything This Tax Season

    The fact that Amazon can legally reduce its tax bill to nothing calls into question the effectiveness of the code, said Matthew Gardner, a senior fellow at the Institute of…
  • media mention   February 22, 2019

    InsideSources: Amazon Paid Zero Corporate Taxes Last Year. Why Aren’t 2020 Democrats Talking About It?

    “I blame Congress,” says Matt Gardner, a senior fellow at the Institute on Taxation and Economic Policy which first released the news of Amazon’s zero corporate tax bill. “Unless we…
  • media mention   February 22, 2019

    Financial Post: Lawrence Solomon: Amazon Is Fleecing Taxpayers. Strangely, Socialists Are the Ones Saving Us

    According to the non-partisan Institute on Taxation and Economic Policy, while profitable major corporations have paid an average of over 21 per cent in federal taxes, over the last 10 years Amazon’s use of tax loopholes has lowered its average to just three per cent. In the last two years, during which it earned US$16.8 billion in profits, it paid no federal income tax at all, thanks to its use of unspecified tax credits and executive stock options.

  • media mention   February 22, 2019

    The Guardian: Why Didn’t Amazon Pay Federal Taxes for the Second Consecutive Year?

    Amazon is already getting plenty of benefits from the federal government. The company nearly doubled its profits to $11.2bn in 2018 from $5.6bn the year before and, for the second year running didn’t pay a single cent of federal income tax. In fact, Amazon reported a federal income tax rebate for the past two years totalling almost $270m according to the Institute on Taxation and Economic Policy analysis of Securities and Exchange Commission filings. Netflix also paid no federal or income tax on profits of $845m last year.

  • media mention   February 21, 2019

    Irish Examiner: New EU Competition Commissioner Must Take on US Tech Giants, Says ISME

    “The Institute on Taxation and Economic Policy report in Washington DC has noted that Amazon enjoyed a negative tax rate in the US in 2018. That is not a misprint.…
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