Institute on Taxation and Economic Policy (ITEP)

Dallas Morning News: Texas Was Tougher Than Other States in Dealing with Amazon on Sales Taxes

March 30, 2018

When a Dallas resident or shopper in College Station or Lubbock makes a purchase from Amazon or any other online retailer with a physical presence in Texas such as Wayfair and RH.com, the state gets its 6.25 percent. The cities get their local sales taxes too. In Dallas, that’s an additional 2 percent for a […]

Bond Buyer: Why Cities in Some States Aren’t Getting E-Commerce Taxes from Amazon

March 28, 2018

Local governments in seven states are not getting a share of the sales taxes Amazon is collecting for e-commerce transactions because of gaps in state and local laws, according to a report by the Institute on Taxation and Economic Policy. Amazon began collecting sales tax in all 45 states that have statewide sales taxes as […]

Pacific Standard: Inside the Tax Law’s $25 Billion Oil Company Bonanza

March 27, 2018

More than 50 percent of the tax bill’s benefits will go to the wealthiest 5 percent of Americans, and more than 25 percent to the wealthiest 1 percent, according to the Institute on Taxation and Economic Policy. As Businessweek put it, “President Donald Trump and Republicans sold their $1.5 trillion tax cut as a boon […]

New York Times: As Amazon Steps Up Tax Collections, Some Cities Are Left Out

March 27, 2018

When Amazon agreed last year to begin collecting sales tax in New Mexico, state officials celebrated what they said could be tens of millions of dollars in annual tax revenue. But they aren’t cheering in Albuquerque City Hall. A year after that announcement, New Mexico’s largest city hasn’t seen a dime from Amazon. That’s because […]

Albuquerque Journal: NM cities miss out on Amazon tax payments

March 27, 2018

New Mexico is one of seven states in which Amazon is not collecting local sales taxes, even though the retail giant agreed last year to pay taxes to the state, according to a report released Monday. That’s because New Mexico has tax laws that prevent local collections, said the report by the Institute on Taxation […]

Seattle Times: As Amazon steps up tax collections, some cities are left out

March 27, 2018

Thanks in part to a series of deals with state governments in recent years, Amazon is collecting sales tax in every state that has one. But those deals do not always extend to taxes assessed by local governments. The company still is not collecting sales taxes in dozens of cities, including Philadelphia, Pittsburgh and Cedar […]

Bloomberg BNA: Tax Breaks Plentiful for Second Amazon HQ Even Without Bids

March 27, 2018

Amazon also benefits at the state and local level when it comes to sales tax, according to a report released March 26 by the Institute on Taxation and Economic Policy based in Washington, D.C. In seven states—Alabama, Alaska, Idaho, Iowa, Mississippi, New Mexico, and Pennsylvania—Amazon is either not collecting local taxes or charging a lower […]

Amazon Maintains Sales Tax Advantage over Local Businesses

This report concludes that lack of consistent sales tax collection is contributing to an unlevel playing field for local businesses “because millions of shoppers are able to pay less tax if they choose to buy from out-of-state companies over the Internet rather than at local stores.” It recommends that states explore reforms to bring their sales tax policies into the digital age.

Philadelphia Inquirer: Philly’s proposed property-tax increase to fund schools is actually bad for city kids

March 22, 2018

Already throughout Pennsylvania, those making less than $20,000 are paying a much greater share in taxes (at 12 percent) than those making more than $426,000 (at just 4.2 percent), according to the Institute on Taxation and Economic Policy. City officials’ proposing to drive up property taxes as a way to finance new city largesse — […]

Bloomberg Law: Arkansas Tax Reform Body Unveils List of Sales Taxes for Scrutiny

March 22, 2018

Arkansas Gov. Asa Hutchinson (R) Feb. 12 told lawmakers that he would seek a cut to the state’s top marginal tax rate, which effectively jump started the task force’s search for revenue to pay for the cuts, estimated to cost $180 million in annual revenue, Boch said. Outside groups, including the Heritage Foundation’s Institute on […]

Bangor Daily News: Wealth Hasn’t Trickled Down, It’s Surged Upward

March 17, 2018

Along the same lines, Republicans claim that reductions in the corporate tax rate will lead to higher wages for workers. Evidence suggests this isn’t true, either. After Reagan signed a tax overhaul in 1986 that reduced the country’s corporate tax rate from 46 percent to 34 percent, wages fell for four years. Despite this data, […]

Christian Science Monitor: In Blue States, ‘Tax the Rich’ Isn’t So Simple Anymore

March 16, 2018

The upset that governors like Cuomo and others are voicing is understandable, says Meg Wiehe, deputy director of the Institute on Taxation and Economic Policy, a left-leaning research group. These states see they’re getting the short end of the stick from the federal law, and they suspect that Republican motives were at least partly political. […]

Fiscal Times: Liberals and Conservative Agree Sneaky Tax Breaks Have to Go

March 16, 2018

There was rare agreement across the political spectrum at the House Ways and Means Tax Policy subcommittee hearing this week, with policy experts from Heritage Foundation, the Institute on Taxation and Economic Policy, the Center for American Progress, Taxpayers for Common Sense and the Committee for a Responsible Federal Budget supporting the elimination of “tax […]

Boston Globe: The Tax Act Will Make It Tougher for Cities to Pay Their Bills

March 11, 2018

Roughly 80 percent of Massachusetts residents will see their tax bills shrink next year, according to the Institute on Taxation and Economic Policy. Read more

CNN.com: Washington, Save Partisan Fighting for Actual Partisan Issues

March 10, 2018

DACA-eligible immigrants pay $2 billion each year in state and local taxes, according to a report from the Institute on Taxation and Economic Policy. One study indicates that 97% of DACA recipients are in school or employed. Read more

The Fiscal Times: How States Are Responding to the GOP Tax Overhaul

March 6, 2018

Concerned about the effects of the Republican tax overhaul on their local economies, some state legislatures are considering revamping their own tax systems to address everything from lost tax deductions to growing income inequality. Here’s a rundown some of those efforts, based on an analysis by the liberal-leaning Institute on Taxation and Economic Policy: Read […]

Atlanta Business Chronicle: General Assembly in Tax Cutting State of Mind

March 1, 2018

https://www.bizjournals.com/atlanta/news/2018/03/01/general-assembly-in-tax-cutting-state-of-mind.html?ana=bbg

New Republic: Has Amazon Become Too Big to Tax

March 1, 2018

Earlier this week, Matthew Gardner of the Institute on Taxation and Economic Policy reported that Amazon, which recorded $5.6 billion in profits in 2017, paid zero in federal taxes, thanks to “various tax credits and tax breaks for executive stock options.” That’s remarkable in isolation, but especially remarkable when you consider that Donald Trump’s corporate tax bill […]

Fiscal Times: New Tax Bill Takes Aim at US Companies Moving Overseas

February 28, 2018

Critics of the GOP tax overhaul say it rewards U.S. companies for moving jobs and profits offshore and may actually encourage outsourcing compared to the old rules. The liberal Institute on Taxation and Economic Policy estimates that the new international provisions will cost the Treasury an additional $14 billion in lost revenue over the next […]

Politico Morning Tax: Amazon/taxes

February 28, 2018

The Institute on Taxation and Economic Policy’s finding that Amazon won’t pay any federal taxes for 2017 gets picked up back in Seattle. Read more

Seattle Post-Intelligencer: Amazon Paid No U.S. Income Tax

February 27, 2018

Matthew Gardner, senior fellow at the Institute on Taxation and Economic Policy, wrote about Amazon’s tax bill that won’t come due in a Feb. 13 blog post. Without being privy to the company’s tax return, no one can say exactly how CEO Jeff Bezos and Co. avoided what could have been more than $1.3 billion […]

The Economist: The Spoils from American Corporate Tax Reform Are Unevenly Spread

February 23, 2018

Most are bonuses that amount to a small part of the total gains, leading sceptics to attribute the announcements to clever public relations. A few firms have gone further, announcing permanent wage increases or new investment projects. But these were probably in the pipeline anyway, given improving demand, says Matt Gardner, from the Institute on […]

Business Insider: Facebook Co-Founder Wants the Richest Americans to Fund a Basic Income for 90 Million People

February 22, 2018

“We know that when people get modest amounts of cash, they use it smartly, their kids stay in school longer, health outcomes improve, and they’re happier,” Hughes said on Reddit. “We have the power to rebalance our economic system and provide more opportunity to all — we just have to develop the political will to […]

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Cuomo’s Tax Overhaul Response Is a Missed Opportunity

February 21, 2018 • By Aidan Davis

Cuomo’s Tax Overhaul Response Is a Missed Opportunity

Any politician can score points by railing against President Trump and his wildly unfair, loophole-ridden tax law. But if New York’s working people find out they will be subjected to a new and complicated set of state tax rules all to help the richest 5 percent, they’ll wonder why a better solution that targets corporations and high-income earners who just received a sizable federal tax break, was not found. In the wake of the Trump-GOP tax law, this is a missed opportunity for lawmakers in New York to increase taxes on those who just benefited from a substantial tax cut.

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Why We’re Not Eternally Grateful for $1,000 Crumbs

February 20, 2018 • By Jenice Robinson

Why We’re Not Eternally Grateful for $1,000 Crumbs

Two narratives that intentionally obscure who benefits from the tax law are emerging. One focuses on the personal income tax cuts that will result in an increase in net take-home pay for many employees once their employers adjust withholding. Anecdotes abound of working people getting a $100 or more increase, after taxes, per paycheck, but the reality is that most workers will receive a lot less than that. Meanwhile, the wealthiest 1 percent of households will receive an average annual tax break of $55,000, an amount that nearly eclipses the nation’s median household income.