Institute on Taxation and Economic Policy

Arizona Center for Economic Progress: Extending the 2017 Tax Cuts and Jobs Act Will Further Solidify An Unequal Federal Income Tax Structure for Generations

May 23, 2023

A new report from the Institute on Taxation and Economic Policy (ITEP) predicts that making permanent the temporary provisions of the 2017 Tax Cuts and Jobs Act (TCJA) will cost nearly $290 billion in 2026. H.R. 976, the TCJA Permanency Act, would permanently enshrine the portions of the TCJA that were set to expire in 2025. In Arizona, […]

Washington Post: How California’s Wild Weather Brought the Debt-Ceiling ‘X Date’ Closer

May 22, 2023

As President Biden and lawmakers scramble to strike a debt ceiling deal before the government runs out of money, each day counts — to the tune of about $17 billion. That’s how much the U.S. Treasury spends daily, on average, to keep the government functioning. Read more.

Massachusetts Budget & Policy Center: What’s Race Got to Do With It? Some Tax Proposals Would Widen Racial Inequality, Others Would Advance Equity

May 17, 2023

Lawmakers have proposed a variety of tax cuts, some of which would provide outsize benefits to the most affluent households and widen existing racial and economic disparities. Other proposed tax changes would make the Commonwealth more equitable by targeting benefits to lower-income households who need them the most. Read more.

U.S. Senate Budget Committee: Extending Trump Tax Cuts Would Add $3.5 Trillion to the Deficit, According to CBO

May 17, 2023

According to a report released today by the nonpartisan Congressional Budget Office (CBO), extending the Trump tax cuts would add $3.5 trillion to the deficit through 2033. Read more.

Oklahoma Policy Institute: Flat Tax, Tax Triggers Would Make Oklahoma’s Tax System Less Fair, Less Adequate, and less stable

May 16, 2023

With less than two weeks left in the 2023 legislative session, lawmakers have very little time remaining to reach agreement on, reveal, and adopt the Fiscal Year 2024 state budget. Bills that would change tax policy are typically unveiled as part of the budget package. Though they have not yet been introduced, this year’s budget […]

Pittsburgh Post-Gazette: The Politics of the Debt Ceiling Fight: A Numbers Game

May 16, 2023

Republicans focus on the size of the federal debt in demanding spending cuts in exchange for lifting the debt ceiling. Democrats highlight the number of Americans who would lose benefits if those cuts are made. Read more.

The Texas Tribune: Why Tax Policy Experts Fear the Texas House Plan to Lower Property Taxes Could Have Dire Ripple Effects

May 16, 2023

Both the House and the Senate’s proposals on property tax cuts would give modest savings to the typical Texas homeowner, but critics say the House plan could create vast inequities and disproportionately benefit wealthy homeowners. Read more.

Many state legislatures this year have been considering property tax cuts – but too many are ignoring the solution that speaks more directly to questions of property tax affordability than any other policy option: the “circuit breaker."

OpenSky Policy Institute: Proposed Property Tax Breaks Benefit Wealthy While Restricting School Revenue

May 11, 2023

The Legislature on Wednesday and Thursday will consider property tax breaks and corresponding income tax cuts that together would restrict the revenue that’s available to fund important programs that all Nebraskans rely on for years to come. Read more.

Voters Could Approve Local Capital Gains Tax in Oregon

At nearly every turn, Oregon’s tax policies widen inequality; as a result, the top 1 percent pay less state and local taxes as a share of income than the poorest residents. Taxing capital gains at the local level is an important and exciting move in the other direction – to tax income from wealth and use it to address crucial needs.

The House’s Debt Ceiling Smoke Screen: The GOP Budget Plan Gives Cover for Tax Cuts for the Rich

While it isn’t reasonable in the first place for Congress to debate whether it will pay the bills it has already incurred, some of the same lawmakers who are holding the economy hostage to exact budget cuts have decided to make the conversation even more irrational by proposing to increase deficits with tax cuts that enrich the already rich.

Minnesota Poised to Enact Landmark Loophole-Closing Corporate Tax Reforms

With Minnesota poised to enact worldwide combined reporting of corporate income taxes, business lobbyists are pulling out all the stops to make state lawmakers believe the apocalypse is upon them.

The push by Congressional Republicans to make permanent a series of tax laws that expire at the end of 2025 would cost nearly $300 billion in the first year and deliver the bulk of the tax benefits to the wealthiest Americans.

Testimony of ITEP’s Amy Hanauer Before the D.C. Tax Revision Commission

May 3, 2023

The written testimony of ITEP Executive Director Amy Hanauer is below the embedded video of the hearing. Dear D.C. Tax Revision Commission,  Thank you for inviting me to testify last week on the research of my colleagues at the Institute on Taxation and Economic Policy. We’re grateful to have our perspective included and as a […]

The GOP is Finally Ready to Raise Taxes. (Or, When a Tax Hike is Not a Tax Hike.)

House Republicans recently voted to rescind the green energy and electric vehicle tax credits that were enacted last Congress as part of the Inflation Reduction Act. This newfound willingness to raise taxes stands in contrast to the recent position of almost the entire House Republican Caucus.

Minnesota Lawmakers Re-Envision State Tax System to Center Equity

Minnesota’s House, Senate and Governor’s office have each proposed their own vision as to how the state should maximize its $17.5 billion surplus and raise new revenue, and these tax plans make one thing clear: Minnesota lawmakers are serious about using tax policy to advance tax equity and improve the lives of Minnesotans.

Arkansas Times: A Decade of Tax Cuts for the Rich (and Pretty Much Nothing for You or Me)

May 2, 2023

Taxes help pay for the public services that many of us take for granted — most of our state budget goes to funding education and health services that benefit us all, whether we personally use them or not. But there are better and worse ways for a state to raise revenue. Read more.

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Taxes Save Babies’ Lives

May 1, 2023 • By Amy Hanauer

Taxes Save Babies’ Lives

A compelling new examination over multiple years and multiple states found that infants are more likely to survive to age one in states that raise more revenue and raise it from those most able to pay. Generating taxes from rich people and corporations can help babies make it to their first birthday.

Policy Matters Ohio: How Ohio’s Income Tax Works – and How the House Budget Would Change It

April 25, 2023

The proposed changes to the state’s personal income tax in the House substitute budget bill are another blow to Ohio’s only tax that is based on the ability to pay, weakening the public programs, institutions, and supports that make the state strong. Read more.

The New York Times: What’s the Matter With New York?

April 25, 2023

Bashing New York City has long been a popular pastime on the right. Conservatives routinely portray the Big Apple as a dystopian wasteland. And the bashing has reached a fever pitch since Alvin Bragg, the Manhattan district attorney, announced multiple charges against Donald Trump. Read more.

The New Republic: The Future of the Expanded Child Tax Credit Is With the States (for Now)

April 25, 2023

Congress failed to renew the wildly successful measure, but state lawmakers across the country are working to bring it back. Read more.

The Lever: Joe Manchin’s Tax Hike On The Working Class

April 25, 2023

Despite representing one of America’s poorest states, West Virginia Sen. Joe Manchin (D) decided in 2021 to kill legislation to extend expanded child and antipoverty tax credits that were helping the working class. The expiration of the expanded tax credits resulted in more than three million kids being thrown into poverty. New data shows it also resulted in a massive regressive tax increase […]

Racial Justice Requires Tax Justice: Our Analysis Helps Deliver Both

ITEP’s analytical approach, our comprehensive microsimulation model, and our unique state-level capacities enable us to do pioneering analyses that enrich the debate on racial justice in tax policy that no other entity can do.

The Hill: The Racial Wealth Gap Won’t Budge: There’s a Tax for That

April 24, 2023

The racial wealth gap is one of the most glaring injustices in the U.S. today. Hundreds of years of structural and legal barriers excluded and prevented Black households from being able to accumulate and hold onto wealth — and policies continue to perpetuate those barriers today. While the civil rights movement brought changes that narrowed the gap, […]

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We Can Create a Fair, Feminist Tax Code

April 14, 2023 • By Amy Hanauer

We Can Create a Fair, Feminist Tax Code

Everything! Taxing wealthy people and corporations and using the revenue for paid leave, child care, education, health care and college would transform America for girls and women of every race and family type, in every corner of this country.