Institute on Taxation and Economic Policy

ITEP's Research Priorities

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. […]

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Paying The Estate Tax Shouldn’t Be Optional for the Super Rich

November 9, 2021 • By Carl Davis

Paying The Estate Tax Shouldn’t Be Optional for the Super Rich

ProPublica this year released multiple exposés revealing how the nation’s wealthiest individuals and families avoid taxes on an unimaginable scale. Most recently, it uncovered Republican and Democratic elected officials and political appointees who used complex strategies to avoid taxes.  Richard Painter, a White House ethics lawyer under George W. Bush, said these revelations should be “troubling […]

PennLive: Several billionaires received federal direct relief payments, report says

November 8, 2021

Institute on Taxation and Economic Policy responded to the controversy via Twitter: “This disgrace is why we need real tax reform.” Tax reform is exactly what Democratic lawmakers have been advocating. These lawmakers argue billionaires and other wealthy individuals should pay more in taxes out of fairness. Read more

New York Post: At least 18 billionaires got COVID stimulus checks, report claims

November 8, 2021

The Institute on Taxation and Economic Policy, a left-leaning think tank, called ProPublica’s findings a “disgrace” that shows “why we need real tax reform.” Read more

The Washington Post: Biden’s minimum tax proposal could hit these ultra-profitable corporations

November 8, 2021

In 2020, 55 profitable corporations paid no federal income tax, according to an analysis by the Institute on Taxation and Economic Policy, a progressive think tank. Biden noted the statistic while announcing his budget plan, saying “If they report big profits to their shareholders, they should be paying taxes. It’s that simple.” Read more

Star-Ledger: On SALT, Dems push tax relief for the rich, not the middle class

November 8, 2021

It’s true: Eliminating the limit on the SALT deduction would be more costly than the other parts of Biden’s social spending agenda, including the extension of the child tax credit, universal pre-K, affordable childcare and more. Steve Wamhoff, a tax expert at the Institute on Taxation and Economic Policy, echoed this point: “We could be […]

1945: How Is This Possible? Billionaire George Soros Received A Stimulus Check

November 8, 2021

In response to the eye-opening findings, the Institute on Taxation and Economic Policy tweeted: “This disgrace is why we need real tax reform.” Read more

CBSNews.com: At least 18 billionaires got federal stimulus checks, report says

November 5, 2021

“This disgrace is why we need real tax reform,” the Institute on Taxation and Economic Policy, a left-leaning think tank, said on Twitter about the findings.  Read more

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New Study: Increase in Working from Home Could Depress Commercial Real Estate Prices, Reduce Local Tax Revenue

November 4, 2021 • By ITEP Staff

New Study: Increase in Working from Home Could Depress Commercial Real Estate Prices, Reduce Local Tax Revenue

Covid-19 dramatically altered how and where many employees work, a shift that could have a long-term negative effect on commercial real estate occupancy rates and, ultimately, on local governments’ tax revenue base, a new study reveals.  The Impact of Work from Home on Commercial Property Values and the Property Tax in U.S. Cities concludes that even as the recovery strengthens, if […]

Washington Post: Democrats look at expanding minimum tax on wealthy in exchange for state and local tax break

November 3, 2021

“The majority of benefits from repealing the SALT cap just go to the 1 percent,” said Steve Wamhoff, a tax expert at the Institute on Taxation and Economic Policy. “If BBB [the Build Back Better legislation] is amended to include that, we could be looking at a bill that cuts taxes for a lot of […]

Newsmax: Dems Consider Upping Minimum Tax on Rich in Exchange for SALT Deduction Cap

November 3, 2021

Steve Wamhoff, an expert on taxes with the Institute on Taxation and Economic Policy, said that “the majority of benefits from repealing the SALT cap just go to the 1 percent. If BBB [the Build Back Better legislation] is amended to include that, we could be looking at a bill that cuts taxes for a […]

CNBC: Democrats still weighing changes to limit on state and local taxes deduction

October 30, 2021

One proposal, for example, removes the cap for 2022 and 2023 and restores it for 2026 and 2027, after it’s scheduled to sunset per the Tax Cuts and Jobs Act. However, future changes and projected revenue may hinge on who controls Congress, said Steve Wamhoff, director of federal tax policy for the Institute on Taxation […]

Wall Street Journal: Corporate Minimum Tax Resurfaces

October 28, 2021

But there is little evidence that immediate expensing significantly encourages more investment, said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy, a progressive think tank in Washington. That may be in part because a key audience for corporations—their investors—typically watch net income and per-share earnings, which aren’t affected […]

Business Insider:Biden Stock Buyback Tax: What to Know About the Latest Proposal

October 28, 2021

The plan aims to collect taxes from companies that dodge most of the 21% corporate tax rate. Companies including Amazon, Nike, and FedEx have avoided paying federal taxes for years through a collection of loopholes, tax breaks, and rebates, according to the Institute on Taxation and Economic Policy. Read more

The Wall Street Journal: Biden Stock Buyback Tax: What to Know About the Latest Proposal

October 28, 2021

Supporters of the buyback tax acknowledge companies can instead shift spending to regular or special dividends, which would be taxed to the recipients. “Isn’t that the issue with stock buybacks?” said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy, a progressive Washington think-tank. Read more

The Hill: Tech billionaires in the crosshairs of new tax proposals

October 28, 2021

The proposal is aimed at preventing large corporations from paying zero in federal income taxes. According to the left-leaning Institute on Taxation and Economic Policy, at least 55 large U.S. corporations paid no federal income taxes in 2020, including FedEx and Nike. Read more

Forbes: Salesforce Billionaire Marc Benioff Pledges $200 Million For Reforestation, Climate Entrepreneurs

October 28, 2021

Benioff, 57, and his wife have in the past supported health care in San Francisco, donating $200 million since 2010 to U.C. San Francisco’s children’s hospitals. Salesforce, which is based in San Francisco and employs 65,000 people, paid no federal income tax in 2020 despite having $2.6 billion in net income in the fiscal year […]

The Economist: The Democrats target companies with giant profits but tiny tax bills

October 28, 2021

The structure of the minimum tax looks simple enough. Companies that report more than $1bn in profits to shareholders would pay a tax of at least 15% on those profits. The levy would be explicitly aimed at firms such as Amazon, which had an effective federal income-tax rate of just 4.3% from 2018 to 2020, […]