Institute on Taxation and Economic Policy

ITEP's Research Priorities

Inequality.org: Two Sides, Same Coin: Suppressing Votes, Cutting Rich People’s Taxes

January 24, 2022

But those surpluses, points out Institute on Taxation and Economic Policy analyst Neva Butkus, reflect a set of special circumstances that range from billions in federal Covid aid to changes in tax-filing deadlines during the pandemic that have left many 2020 and 2021 tax payments getting collected in the same fiscal year. Using the surpluses these special […]

The Street: The Top Corporate Tax Havens and Global Tax Reform

January 24, 2022

According to the Institute on Taxation and Economic Policy: FedEx (FDX) – Get FedEx Corporation Report zeroed out its federal income tax on $1.2 billion of U.S. pretax income and received a rebate of $230 million, Nike (NKE) – Get NIKE, Inc. Class B Report paid no federal income tax on almost $2.9 billion of […]

Idaho Press-Tribune: Who gets rebates, tax cuts under House bill

January 20, 2022

Idaho’s corporate income tax rate is a single rate of 6.5%; the bill would lower it to 6%. Necochea called that “throwing money out of the state,” citing figures from the Institute on Taxation and Economic Policy estimating that 81% of the benefit from that cut would flow out of state. “Corporate owners can live […]

Quad City Times: Record $600M Idaho tax cut clears House, heads to Senate

January 20, 2022

An analysis by the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan tax policy organization based in Washington, D.C., found that the total tax benefits of the package for a person in the top 1% of Idaho income earners making $557,000 or more annually would benefit by $13,254. Read more

Exposed: Bradley and Koch Cash Fuels Push to Eliminate Wisconsin Income Tax

January 10, 2022

In addition, “sales taxes inevitably take a larger share of income from low- and middle-income families than from rich families because sales taxes are levied at a flat rate and spending as a share of income falls as income rises,” according to the Institute on Taxation and Economic Policy. Read more

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The Pendulum Is Swinging Toward Tax Justice

January 5, 2022 • By ITEP Staff, Jenice Robinson, Kamolika Das

Tax justice is deeply connected to the movements for equality and racial justice. Progressive tax policy can ensure more of us share in the prosperous economy that our collective tax dollars make possible. It can mitigate economic disparities by class and race. And it can make sure the government has the resources it needs to function for all of us. 

CNN: We Can’t Afford to let Build Back Better Fail

January 3, 2022

The bill also has provisions to require corporations to pay their fair share of the nation’s tax bill. According to the Institute on Taxation and Economic Policy, 55 of the nation’s largest and most profitable corporations paid no federal tax at all in 2020. Build Back Better would require corporations with profits exceeding $1 billion […]

The Daily Beast: Joe Manchin Doomed the Child Tax Credit. Can States Save Kids Instead?

December 31, 2021

A 2019 report from the Institute on Taxation and Economic Policy suggested state-level CTCs are also a means for reducing “a myriad of inequities that are exacerbated by the tax codes in many states,” including by rectifying existing racial inequities in state tax policy and lifting tax burdens off of the poor. “​​State lawmakers… do […]

CNBC: Some Americans may receive more stimulus money this tax season

December 23, 2021

Still, many America have money coming to them if they still have not received all that was due them from the three stimulus checks, or if they are eligible for the enhanced child tax credit or earned income tax credit. “It could be quite a bit of money for people who may be struggling in […]

Zero Hedge: American “Super Rich” Feel “Immense Relief” As ‘BBB’ Tax Hikes Are Canceled

December 21, 2021

Of course, a bunch of  admittedly left-leaning economists say the Democrats’ plan would help “reduce inequality.” Though many of Democrats’ more radical tax proposals were scaled back or dropped in negotiations, the bill would be “a meaningful step for reducing inequality,” said Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy. […]

NBC News: Build Back Better demise ‘a crushing blow’ to child tax credit payments, advocates say

December 20, 2021

About 10 million children could sink into poverty or deeper into poverty if the credit is discontinued, according to CBPP. The poorest 20 percent in the U.S. would experience a 35 percent increase to their incomes if the credit was extended through next year, according to a study by the Institute on Taxation and Economic […]

Bloomberg: Super-Rich Americans Feel Relief as Tax Hikes Canceled for Now

December 20, 2021

Though many of Democrats’ more radical tax proposals were scaled back or dropped in negotiations, the bill would be “a meaningful step for reducing inequality,” said Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy. An analysis by the group estimated the plan’s changes to the child tax credit and earned […]

CNBC: Parents Worry About the End of Monthly Child Tax Credit Payments

December 18, 2021

The lowest-income households will be hit the hardest. If the credit were continued through 2022, the poorest 20% of families would have seen a 35% income boost, according to a study by the Institute on Taxation and Economic Policy. That’s significant for parents who are working but haven’t all been able to get back to […]

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Pandemic Policies Demonstrate Government Can Address Widening Economic Inequality If Policymakers So Choose

December 17, 2021 • By ITEP Staff, Jenice Robinson, Joe Hughes

We are surrounded by evidence that economic inequality is spinning out of control, yet we also see straightforward examples of how government can stop the downward spiral should it choose to do so. The Build Back Better Act, which invests in communities and ensures the wealthy and corporations pay their fair share, is one such example. Congress should pass it.  

The Hill: Build Back Better is a chance to finally make corporate taxes line up better with profits

December 16, 2021

These planning opportunities have long helped to make corporate tax avoidance both incredibly successful and publicly infamous. Between 2018 and 2020, the Institute on Taxation and Economic Policy reports that 39 of America’s largest companies paid zero dollars in federal income tax, despite their reporting combined net profits of $122 billion. During this same period, an […]

Time: A Wonky Tax Break for the Well-Off Is a Bigger Problem for Democrats Than You’d Think

December 16, 2021

That’s because raising the cap on SALT deductions from $10,000 to $80,000, as prescribed in the House-passed version of BBB, would disproportionately help taxpayers rich enough to benefit from itemizing their federal tax deductions—which is to say, the richest fifth of Americans. According to a November analysis from the nonpartisan Institute on Taxation and Economic […]

McClatchy: Parents Are Receiving Their Final Monthly Child Tax Credits. Will Congress Bring Them Back?

December 16, 2021

Continuing the expanded credit in 2022 would mean these savings for California families with tax cuts next year, according to the Institute on Taxation and Economic Policy: — Less than $29,100 income (lowest 20%): $4,080 — $29,100 to $51,700 (next 20%): $2,850 — $51,700 to $83,200 (next 20%): $2,780 — $83,200 to $151,100 (next 20%): […]

Bloomberg: SALT Debate Forces Rich Americans to Confront Widening Tax Gap

December 10, 2021

Lawmakers in Arizona, Arkansas, Idaho, Iowa, Louisiana, Missouri, Montana, North Carolina, Ohio and Oklahoma have also approved cuts to their top personal income tax going into effect either this year or in future years. “There are states moving in different directions,” said Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy. […]

USA Today: With inflation spiking, will states and voters give grocery taxes a second look?

December 9, 2021

Read more: https://www.usatoday.com/story/news/politics/2021/12/08/inflation-food-prices-grocery-taxes/8800601002/?gnt-cfr=1

Arkansas Democrat-Gazette: Income tax cut bills roll through Arkansas House and Senate; steel plant incentive also meets approval

December 9, 2021

The state Democratic House Caucus held a news conference Wednesday morning to release several proposals that they said would be a better use of the $600 million a year that the Institute on Taxation and Economic Policy estimated was how much the income tax rate cuts would eventually reduce state general revenue. The House Democrats’ […]

NJ.com: 96% of N.J. residents would get their full property tax break restored under this Senate plan

December 9, 2021

According to the progressive Institute on Taxation and Economic Policy, the Senate proposal would encompass 96% of New Jersey taxpayers. The higher cap for what is known as SALT would be phased out for those making $400,000 to $475,000, and anyone making more than that would be limited to the $10,000 deduction currently in the […]

Tax Notes: Looking Ahead: State Tax Policy Trends To Watch Next Year

December 7, 2021

This pod cast features ITEP research director Carl Davis: https://www.forbes.com/sites/taxnotes/2021/12/07/looking-ahead-state-tax-policy-trends-to-watch-next-year/?sh=7f2a4ba02add

McClatchy: What would the Biden tax-break plan mean for your wallet?

December 7, 2021

Most families with children as well as taxpayers with higher six-figure incomes are the biggest California winners from the tax changes in the Biden administration’s Build Back Better plan so far. Middle income people see a somewhat smaller tax break on average, according to an analysis from the Institute on Taxation and Economic Policy, a […]

Washington Post: Treasury officials raised concerns about new minimum tax on corporations, key to Biden spending plan

December 5, 2021

The proposal gained traction among some liberals in recent years amid reports that 55 major corporations are effectively able to zero out their tax liability by aggressive use of tax deductions. Biden repeatedly embraced it as a key campaign pledge. Read more

New York Times: A proposed minimum tax would hit Amazon, Facebook and others, a report shows

November 18, 2021

“Giant corporations have figured out how to game the system so that the costs of running this country are borne by hardworking families while these big corporations scoop up all of the profits and pay little or nothing in taxes,” Ms. Warren said in an interview. “It’s time to put a stop to that.” Ms. […]