A new report released today by the Institute on Taxation and Economic Policy explains how individuals and families will see their taxes change in 2026 as a result of the new law, using the “current policy baseline.” Key findings:  The megabill will raise taxes on the poorest 40 percent of Americans, barely cut them for […]

Over the next month, 15 states will temporarily exempt a range of products from sales tax, joining one that held its sales tax holiday earlier this summer and two that do so a little later in the year. While these temporary suspensions may have some surface appeal, they have many significant downsides, as we explain in […]

With home values rising across the country, some residents are increasingly unhappy with their rising property tax bills. As legislators search for solutions, it is important to realize we have been here before — and we know what does not work. The last time states were persuaded to “fix” their property taxes by passing tight […]

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

This country’s biggest historical challenge has been delivering this progress to all Americans, but Republicans have cut it back for everyone, retreating from many 20th century achievements in ways that will slam doors, rather than opening them, for the next generation.

President Trump this weekend signed into law a massive tax and spending megabill that will reduce revenue by around $570 billion in 2026 and mainly help the richest Americans and foreign investors. As a new report from ITEP details, Congress and the president could have spent less than half that much money on a tax bill […]

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

This afternoon President Trump signed the tax and spending megabill into law. See below for a statement from ITEP and related resources. STATEMENT FROM JON WHITEN, DEPUTY DIRECTOR OF THE INSTITUTE ON TAXATION AND ECONOMIC POLICY: “With the tax and spending megabill that was signed into law today, Donald Trump and Congressional Republicans are turning […]

The House of Representatives today narrowly passed a massive tax and spending reconciliation bill that now heads to President Trump’s desk. Please see below for a statement from ITEP and our latest updated analysis of how the bill’s tax provisions will affect families at different income levels nationally and in every state. STATEMENT from AMY […]

It is clear that this tax credit has the potential to come with an enormous cost if private school groups are successful in convincing their supporters to participate. In these times of very high debt and deficits, this is reason for all of us to be uneasy.

Today the Senate passed the tax and spending megabill, sending it to the House. See below for a statement from ITEP as well as our analyses of the tax impacts of the legislation.  STATEMENT from AMY HANAUER, EXECUTIVE DIRECTOR OF THE INSTITUTE ON TAXATION AND ECONOMIC POLICY: “This abominable bill will make history – in […]

Contact: Jon Whiten ([email protected]) With Senate Republicans hoping to hold a vote soon on their version of the tax and spending package passed by the House last month, a new national and state-by-state analysis from the Institute on Taxation and Economic Policy (ITEP) finds that, like the House-passed bill, the Senate proposal favors the richest […]

The idea of exempting overtime pay from income tax has gained traction, but there's little evidence it's an effective policy. Alabama tried it in 2023 but ended the policy after just two years. Their reversal highlights how exempting overtime is an expensive gimmick and a distraction from real worker issues.

This is a recklessly expensive bill that will expand economic inequality in America by making the tax code more tilted to the top, and pay for it in part by stripping health care from millions of Americans and rolling back critical climate investments.

On May 22, Congress passed the House reconciliation bill or “One Big Beautiful Bill Act” by a one-vote margin. The bill’s dozens of destructive tax provisions would supercharge inequality and force devastating cuts to health and food aid that have been bedrocks of the American safety net since the 1960s.

As the Washington, D.C. region heads toward a likely recession, local policymakers will need to look to new revenue sources to help lessen the pain. In D.C., lawmakers ought to adopt a simple reform that would raise substantial revenue and make the District’s business tax system fairer.

After a floor session that began in the middle of the night, the House of Representatives has passed its reconciliation bill including massive tax cuts and deep cuts to spending. Statement from Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy: “It’s not surprising that this bill was written behind closed doors […]

This bill gives enormous additional tax cuts to wealthy people and corporations, spikes the deficit, and strips health care from millions of Americans.