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.

So far this costly bill appears to double down on trickle down, with huge tax cuts that will further enrich the rich and not much for the rest of us. What’s more, many of the modest improvements for lower- and middle-income families are proposed to be temporary, whereas the benefits for the wealthiest are proposed to be permanent.

President Donald Trump has proposed allowing the top rate to revert from 37 percent to 39.6 percent for taxable income greater than $5 million for married couples and $2.5 million for unmarried taxpayers. But many other special breaks in the tax code would ensure that most income of very well-off people would never be subject to Trump’s 39.6 percent tax rate.

You likely had most of your federal taxes deducted from your paychecks throughout the year. This is not true, however, for mega-millionaires and billionaires, some of whom are practically running our government right now.

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.