Institute on Taxation and Economic Policy (ITEP)

ITEP's Research Priorities

The Hill: We Still Have More Hate to Remove from the White House

August 25, 2017

The DACA program was implemented through an executive action by President Obama in 2012, and has since provided temporary relief from deportation to the young immigrant population. According to the PEW Research Center, more than 750,000 young unauthorized immigrants have received work permits and relief from deportation and in 2017 up to 512,000 unauthorized immigrants […]

Politico: Here We Go Again

August 25, 2017

House tax writers have been doing their part to drum up support over the recess, with Ryan stopping by Boeing on Thursday. Critics were quick to note that Boeing is hardly the poster child for a company weighed down by a high corporate tax rate. “GOP leaders tout corporate tax cuts at Boeing and AT&T, […]

The Seattle Times: Paul Ryan Picked the Most Awkward Spot in America to Argue for Corporate Tax Cuts

August 25, 2017

“The question with Boeing isn’t whether high taxes are hurting them, because that’s ludicrous on the face of it,” says Matt Gardner, a senior fellow at the Institute on Taxation and Economic Policy, a Washington, D.C., outfit that tracks the taxes companies pay. “The question with Boeing is: How much lower could their taxes possibly […]

The Fiscal Times: Why Boeing Isn’t the Best Poster Child for Corporate Tax Reform

August 25, 2017

Critics have been lighting up the internet pointing out that Boeing isn’t the ideal poster child for corporate tax reform since it and many other major corporations don’t pay anything like a 35 percent tax rate. Matthew Gardner of the left-leaning Institute on Taxation and Economic Policy points out that according to ITEP’s analysis, Boeing […]

The American Prospect: Paul Ryan Is Lying About High Corporate Tax Rates

August 24, 2017

Republicans are taking their corporate tax-cut campaign on the road. House Speaker Paul Ryan visited airplane manufacturer Boeing on Thursday in Washington state, where he lamented how the company is quivering underneath the weight of a 35 percent tax rate. Meanwhile, Ways & Means Chair Kevin Brady sang the same song at telecom giant AT&T’s […]

Illinois Public Radio: Flat Vs. Graduated Income Tax

August 24, 2017

Obviously to be fair to taxpayers, Illinois needs the flexibility to tax lower levels of income at lower rates and higher levels of income at higher rates. The constitutional prohibition against that makes Illinois a national outlier. Of the 41 states in America with an income tax, 33 have graduated rate structures. Illinois is one […]

Chicago Tribune: Put the Brakes on GOP’s Backdoor Voucher Idea

August 24, 2017

Donors to the scholarship funds are also allowed to count that donation as a standard charitable donation for federal income tax purposes, meaning, as one Georgia agency that distributes to schools enthuses on its website, “You will end with more money than when you started.” And the higher your tax bracket, the higher your risk-free […]

Think Progress: Trump Plans Major Tax Cut for the Rich But Americans Want the Exact Opposite

August 23, 2017

“Regardless of what state you live in, the Trump tax proposals were not created to benefit you unless you are really well-off,” Steve Wamhoff, senior fellow for federal tax policy at the left-leaning Institute on Taxation and Economic Policy, wrote in July. “In fact, low- and middle-income people would inevitably face a net loss after cuts […]

The Epoch Times: Trump Targets Amazon Over Sales Tax and Retail Jobs

August 23, 2017

More than half of items sold on Amazon are coming through third-party retailers, according to a CNBC report. These retailers can benefit from Amazon’s facilities or payment system, but they are not required to collect sales tax. It is still a pending issue and a meaningful revenue loss for states, said Carl Davis, research director […]

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Inaccuracies Pile Up During Speaker Ryan’s Town Hall Meeting

August 22, 2017 • By Steve Wamhoff

Inaccuracies Pile Up During Speaker Ryan’s Town Hall Meeting

On Monday, House Speaker Paul Ryan participated in a live-broadcast town hall meeting in his district in Wisconsin where he discussed tax reform, among other issues. One could credit Ryan for holding such a meeting, but sadly, anyone wishing to learn about the rationale for Ryan’s ideas on taxes would have been disappointed.

Journal Transcript: Apple Inc., Microsoft Corporation and Cisco Systems, Inc. Buoyed By Trump Proposed 10% Tax Rate

August 18, 2017

The fact that the 5.25% one-time rate in 2004 failed to have the desired impact on American job growth is another headwind that could hinder the proposed 10% rate from coming into effect. The Trump administration will have to come up with a way of preventing the likes of Apple, Microsoft, Cisco, and Apple from […]

NPR’s MarketPlace: Doing the Math on Back-to-School Tax Breaks

August 18, 2017

This week, we’re going to talk a little about saving. Sixteen states offer tax holidays during the year, a tax-free day or two of purchasing certain items, like hunting gear and weather-preparedness products. Several of those states have specific back-to-school sales tax holidays targeting school supplies. It’s a popular but controversial tool meant to help […]

New York Times: Does Amazon Pay Taxes?

August 17, 2017

“If this was five years ago, the tweet would be making a very compelling point,” said Carl Davis, the research director of the left-leaning Institute on Taxation and Economic Policy. Historically, “there is no doubt that Amazon used its ability to not collect sales tax to gain a competitive advantage.” But that criticism is outdated. […]

Philadelphia Inquirer: If We are Overpaid and Underworked, Why is There a Teacher Shortage?

August 17, 2017

Lower-income Pennsylvanians pay nearly three times as much of their income in taxes as higher-income residents (those making more than $426,000/year). The Institute on Taxation and Economic Policy has ranked Pennsylvania as the 6th most unfair state tax system in the country. In other words, Pennsylvania’s poor and middle class families are already paying more […]

The Atlantic: The Tax Break Dividing the Republican Party

August 17, 2017

“You can never really know if they’re changing people’s behavior,” said Matt Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy. Gardner pointed me to a quote from Paul O’Neill, President George W. Bush’s first Treasury secretary, who told a Senate committee at his 2001 confirmation hearing: “If you want to […]

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Context Is Everything

August 17, 2017 • By Alan Essig

Context Is Everything

Today, the economic climate is starkly different, but it seems GOP leaders are relying on messaging and luck to push through the biggest tax package since 1986. The White House, Republican leaders and anti-tax advocates all have been toeing the same erroneous line: their plans to cut individual and corporate taxes will benefit middle class families and grow the economy. This is, of course, baloney.

Associated Press: Tense Days for Business Owners without Legal Status in US

August 17, 2017

Those selling often see no choice but to take a loss. Under Trump, detentions of immigrants in the country illegally rose 37 percent over the first six months of the year compared with the same period in 2016. The administration says it is focused on those with criminal records, but the number of detainees who […]

The Motley Fool: Seven States that Tax the Poor the Most

August 16, 2017

According to the Institute on Taxation and Economic Policy (ITEP), here are the seven worst offenders when we’re talking about the working-age population. Specifically, these are the seven states where inequality increases to the greatest degree from pre-state-tax income to post-state-tax incomes, as calculated by ITEP’s formula. Read more

Portland Tribune: Workers without Legal Documents Still Pay Taxes

August 15, 2017

All in all, undocumented working Oregonians contribute about $81 million in state and local taxes per year, according to recent estimates by the Institute on Taxation and Economic Policy (ITEP). To put that in perspective, that is enough to hire 925 Oregon teachers. And these figures do not include the federal income taxes undocumented workers […]

USA Today Network: Gov. Rick Scott Wants Super Majority Vote for Tax Hikes

August 14, 2017

But one tax policy expert said future lawmakers will eventually find ways around the super majority requirement. Matt Gardner, senior fellow at the Washington, D.C.-based Institute on Taxation and Economic Policy, said voters expect elected officials to make financial decisions without such a mandate.  “What they’re trying to do is artificially limit the amount of […]

Washington Examiner: Mitch McConnell Faces Dug-in Democrats on Tax Reform

August 13, 2017

“There’s been more and more awareness that actually C-corporations are not paying 35 percent in taxes,” said Steven Wamhoff, a tax expert at the Institute on Taxation and Economic Policy, a left-of-center think tank. His group has highlighted that corporations as a group pay much lower than 35 percent of their profits in taxes, thanks […]

New York Times: Questions Emerge Over What Wisconsin Must Give for Foxconn Plant

August 11, 2017

Mr. Walker, who has made promises of job creation a centerpiece of his two terms in office, has pushed lawmakers to move quickly in approving the bill, which would offer Foxconn, a producer of flat-panel display screens for televisions and other consumer electronics, close to $3 billion in state tax credits. The subsidies for the […]

AP: School Voucher Programs Raise Questions about Transparency and Accountability

August 11, 2017

The AAA Scholarship Foundation Inc. which runs programs in Nevada and five other states, says it doesn’t give tax advice but has, when asked, shared an IRS memo on the matter. The Institute on Taxation and Economic Policy say loopholes in the tax code would allow contributors to both eliminate their state tax bill and […]

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The Many Reasons for the Seattle Income Tax

August 10, 2017 • By Lisa Christensen Gee

The Many Reasons for the Seattle Income Tax

A month ago, the Seattle City Council passed an income tax measure, which has garnered a lot of attention as well as volumes of supportive and opposition commentary. Haven’t had a chance to dive into the details yet? We’ve got you covered. What is the new income tax law and who does it impact? The […]

Wall Street Journal: Lawsuit Says Seattle’s ‘Tax-the-Rich’ Measure Violates State Constitution

August 9, 2017

The tax would bring in about $140 million every year for the city. The money would be used to fund affordable housing, education and transit services, and replace federal funding that might be lost because of federal budget cuts. Backers of the tax say they want the rich to pay their fair share. The state […]