Institute on Taxation and Economic Policy

ITEP's Research Priorities

Bloomberg Tax: Tax Executives Fear Overhaul Impermanence as Dems Mull Tweaks

February 28, 2019

The GILTI income subject to the tax is the income earned through a controlled foreign corporation that exceeds 10 percent of the value of the CFC’s tangible, depreciable assets, such as machinery and other equipment. The Institute on Taxation and Economic Policy, a Washington think tank, said in a June 2018 post that this measurement […]

Reuters: Illinois Budget Debate Raises Key Questions on Taxing Retirement Income

February 28, 2019

But the policies of various states are all over the map. Data provided by the Institute on Taxation and Economic Policy shows that 11 states tax some portion of Social Security benefits, usually mirroring the federal formula. Many others tax pensions and tax-deferred accounts, although some have exemptions that protect lower-income, public sector workers and […]

Napa Valley Register: Congress Must Address Marijuana Banking Issue

February 25, 2019

According to tax data compiled by the Institute on Taxation and Economic Policy, tax revenues in 2018 derived from state-sanctioned recreational sales surpassed $1 billion – a 57 percent increase over 2017 levels. Annual excise tax revenues on adult-use cannabis sales ($1.04 billion) rivaled those for all forms of alcohol ($1.16 billion). Here in California, […]

The Hill: Pollster Says Most Americans Feel It’s Not Fair That Corporations Pay Lower Taxes

February 15, 2019

The Institute on Taxation and Economic Policy found that Amazon, which reported $11.2 billion in profits in 2018, did not pay income taxes due to unidentified “tax credits” in their disclosure. The report also found that the company will get a $129 million federal income tax rebate, making their tax rate -1 percent. A Politico/Morning Consult poll released earlier […]

CBS News: After Amazon’s HQ2 Hunt, Some States Target Corporate Tax Breaks

February 13, 2019

While it’s common for corporations to seek tax breaks in exchange for moving to a particular location, Amazon’s solicitation was unusual in how public it was. Corporate location experts say tax considerations are rarely a deciding factor in where a company chooses to locate. And it’s not certain this type of interstate warfare creates genuinely […]

Cheddar: Netflix’s Tax Hack

February 11, 2019

Following is link to a video featuring Matt Gardner, ITEP senior fellow, discussing Netflix’s zero-tax bill.    

NJTV: Lawmakers Introduce Bipartisan Bill to Fully Restore SALT Deduction

February 11, 2019

But analysts with the nonpartisan Institute on Taxation and Economic Policy say it’s inaccurate to isolate the SALT deduction. In reality, the average taxpayer in New Jersey will pay less. On balance, New Jersey will pay $8.1 billion less in federal taxes due to the GOP reform. Their figures show 82 percent of taxpayers will […]

Forbes: Why Some of the Rich Want to Pay More in Taxes

February 11, 2019

Those with the very highest incomes have benefited disproportionately from tax cuts, and that lost revenue is driving the federal deficit ever higher. The Institute on Taxation and Economic Policy estimates that since 2001, “significant federal tax changes have reduced revenue by $5.1 trillion, with nearly two-thirds of that flowing to the richest fifth of […]

Morning Tax: The Latest in Wealth Taxes

February 11, 2019

The Institute on Taxation and Economic Policy noted recently that Netflix logged record profits in the U.S. in 2018, some $845 million, and ended up not owing any federal taxes. (Not only that: The video streamer got a $22 million rebate.) Over at The Guardian, Gene Marks uses an educated guess to predict that Netflix […]

KFDM (CBS Affiliate): Shrinking Tax Refunds Stir Controversy

February 11, 2019

With the benefits of the tax cut spread out across 52 weeks, the gain may have been hard to spot, especially if workers saw increases in health insurance premiums or other costs. According to the Institute on Taxation and Economic Policy, the middle 20 percent of income earners received an average of about $33 more […]

Newsweek: We Shouldn’t Wait for Washington to Tax the Rich: We Can Begin at the State Level

February 11, 2019

Following is an excerpt from an op-ed by ITEP deputy director Meg Wiehe published in Newsweek Magazine: The historic role tax and other policies have played in exacerbating the wealth divide and discussions about how to remedy this injustice is a national conversation that is long overdue. Examining the federal policy landscape is a logical […]

The Guardian: How Did Netflix Get Away with Not Paying Income Tax in 2018

February 9, 2019

According to a blogpost from the Institute on Taxation and Economic Policy, the company posted its largest ever profit in 2018 – $845m – but paid no federal (or state) income tax. “After a year of speculation and spin, the public is getting its first hard look at how corporate tax law changes under the […]

The Daily Mail: Netflix Paid NOTHING in Federal or State Taxes in 2018

February 7, 2019

Netflix didn’t pay a cent in state or federal income taxes last year, despite posting its largest-ever U.S. profit in 2018 of $845million, according to a new report. In addition, the streaming giant reported a $22 million federal tax rebate, according to the Institute on Taxation and Economic Policy (ITEP). Senior fellow at ITEP Matthew Gardner […]

Montana Public Radio: Lawmakers Hear Massive Proposal For Statewide Sales Tax

February 6, 2019

Another D.C. based think tank, the Institute on Taxation and Economic Policy, puts Montana’s current tax system among their top ten most equitable systems in the country, in part because there’s no statewide sales tax. However ITEP research also indicates the poorest 20 percent of families in Montana pay more of a share of their […]

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New Report Outlines Seven Progressive Revenue-Raising Options

February 5, 2019 • By ITEP Staff

ITEP today released a report that charts a path for Congress to enact progressive, revenue-raising tax policies that would target high-income households and reverse the damage from TCJA and prior rounds of tax cuts that disproportionately benefited the well-off.

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Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Taxes

February 5, 2019 • By Matthew Gardner

Netflix Posted Biggest-Ever Profit in 2018 and Paid $0 in Taxes

The popular video streaming service Netflix posted its largest-ever U.S. profit in 2018­­—$845 million—on which it didn’t pay a dime in federal or state income taxes. In fact, the company reported a $22 million federal income tax rebate.

Arkansas Democrat Gazette: Arkansas Senate Panel Fives Fast Nod to Governor’s Tax-cut Plan

February 5, 2019

While the finance department projected the governor’s tax will eventually reduce tax revenue by $97 million a year after it’s fully implemented, Lisa Gee, a senior policy analyst for the Institute on Taxation and Economic Policy in Washington, D.C., said last week that she projected the governor’s income-tax cut would reduce state revenue by $157 […]

Bloomberg Tax: Economic Policy Group Proposes Slew of Progressive Tax Policies

February 5, 2019

The Institute on Taxation and Economic Policy in a new report detailed several potential progressive tax policy proposals—including a revamp of capital gains taxation that would pull in nearly $2.5 trillion. The group previously released an outline of a wealth tax proposal just one day before Sen. Elizabeth Warren (D-Mass.), a likely 2020 presidential contender, […]

Washington Post: Live Commentary on Trump’s SOTU

February 5, 2019

E.J. DIONNE JR., 9:27 p.m.: “A massive tax cut for working families.” Really? “If you look at the richest 1 percent, they’re getting more than the bottom 60 percent of Americans,” said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy. Read more

City Lab: The Airbnb Effect: It’s Not Just Rising Home Prices

February 4, 2019

And cities with less stringent Airbnb regulations might also be losing out on a lot of tax revenue. Traditional lodging entities (when combining city, state, and county taxes), are taxed at an average rate of 13 percent in the 150 largest cities. But Airbnb is treated differently in different jurisdictions, and is trusted to self-report […]

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Why We Should Talk about Progressive Taxes Despite Billionaires’ Objections

January 30, 2019 • By Jenice Robinson

Why We Should Talk about Progressive Taxes Despite Billionaires’ Objections

It was the tone-deaf remark heard ‘round the world. Last week on CNBC’s Squawk Box, Commerce Secretary Wilbur Ross suggested that furloughed government employees who hadn’t been paid in a month could go to a bank and get a loan to make ends meet. This was not a gaffe. It’s hard to fathom how a […]

Washington Post: Warren’s Push for a Wealth Tax Could Be a Game Changer

January 29, 2019

Many on the right are already lashing out at Warren’s proposal. (On Fox News, it was preposterously likened to Venezuelan socialism.) Others have argued that it would be unconstitutional, a dubious claim that relies on a controversial 1895 Supreme Court ruling that, as the Institute on Taxation and Economic Policy explains, “has been limited to […]

The Hill: Warren Stakes out Ground with Wealth Tax Proposal

January 28, 2019

Steve Wamhoff, director of tax policy at the Institute on Taxation and Economic Policy, said middle-income Americans are essentially already taxed on their wealth because most of it is in their homes, which come with property taxes. For the rich, however, homes tend to comprise a smaller percentage of their financial assets. Warren’s proposal would […]

Arizona Republic: Fact Check on Immigration

January 28, 2019

“It sounds extraordinarily high to me,” Meg Wiehe, deputy director at the nonpartisan Institute on Taxation and Economic Policy told NBC. Read more

Chicago Sun-Times: 47th Ward Candidate for Alderman

January 28, 2019

We need more progressive revenue sources to help address our pension obligations. Our state’s combination of a flat income tax, high sales taxes, and heavy local reliance on property taxes is the basis for the Institute on Taxation and Economic Policy ranking of Illinois as having the fifth most regressive tax system in the United […]