Institute on Taxation and Economic Policy

Bloomberg: Trump ‘Self-Help’ Infrastructure Plan Irks State, Local Leaders

June 1, 2017

Six states this year raised their gas taxes — joining 18 others that have raised or changed the tax since 2013 to generate more money for transportation work, according to the Institute on Taxation and Economic Policy. The federal gas tax hasn’t been increased since 1993. Read more

Chicago Magazine: What Can Illinois Learn from Other States’ Budget Disasters

June 1, 2017

In 2012, Kansas would go on to enact tax cuts that the Institute on Taxation and Economic Policy called ”among the largest” enacted by any state. Under the leadership of recently elected Governor Sam Brownback, the state dropped the top income tax rate by one-fourth, nixed taxes on “pass through” business profits (business profits passed directly to the […]

Avocado Toast, iPhones, Billionairesplaining and the Trump Budget

A couple weeks ago, a billionaire set the Internet ablaze when on 60 Minutes Australia he chided millennials to stop buying avocado toast and fancy coffee if they wanted to buy a home. The backlash was swift and deserved. Twenty- and early thirty-something people rightly took offense to the suggestion that they haven’t purchased homes […]

The Boston Globe: Ax the Sales Tax (Also the Income Tax)

May 27, 2017

A constitutional amendment to eliminate the sales tax and replace the flat state income tax with a progressive scale based on income would be a bold solution. It would both alleviate the tax burden for low- and moderate-income families and generate enough revenue to right our budget ship before the next recession hits. A couple […]

Besides Eviscerating the Safety Net, Trump Budget Would Put States in a Fiscal Bind

There has been considerable discussion about the human impact of the Trump budget’s draconian cuts to what remains of the social safety net. A long-standing conservative talking point in response to such criticism is that states can pick up the tab when federal dollars disappear. But at a time when many states are facing budget shortfalls and the effect of federal tax reform is yet to be determined, it is outlandish to suggest that states are flush with cash to make up for federal spending reductions.

Bloomberg BNA: A New School Argument for an Old School Credit

May 23, 2017

Scholarship or tuition tax credits have a way of staying in the public spotlight. Over the last several years, battles surrounding these credits have been waged in courtrooms, on the floors of state legislatures and in the public consciousness. A new front has emerged in this old fight as evidenced by the report “Public Loss […]

As ITEP has detailed, undocumented immigrants are taxpayers, contributing close to $12 billion a year in state and local taxes while also paying federal payroll, income, and excise taxes. In spite of these facts, Mick Mulvaney, President Trump’s budget director, has spread erroneous information to validate the administration’s cruel proposal to strip a proven anti-poverty benefit from undocumented immigrants and their children.

A month ago, President Trump released a tax sketch that likely would redistribute wealth upward, and today he has poured salt on the wound with a proposed budget that would gut safety net programs and cut funding for other services that help move people out of poverty. Yet the PR refrain is the same Orwellian prattle we’ve been hearing for years: water isn’t wet, tax cuts for the rich will eventually trickle down to the rest of us, and balancing the federal budget must always rely on cutting programs that benefit ordinary people.

Atlanta Journal-Constitution: Georgia’s Tax Credit Program Is Profitable for the Rich

May 22, 2017

The national School Superintendents Association, which opposes the tax-based tuition subsidies because they leave less money on the table for public schools, published the report Public Loss, Private Gain, with the Institute on Taxation and Economic Policy. It describes the “double-dipping” tax benefits gained by those who donate to such programs in Georgia and eight […]

ITEP’s Commitment to Being a Voice for Low-, Moderate- and Middle-Income People in Tax Policy Debates

A strong voice for working people in federal and state tax policy debates is absolutely critical. Sound, progressive tax policies make all the difference between high-quality educational systems or crowded classrooms with limited resources. They account for the difference between structurally sound roads and bridges or potholes and other crumbling infrastructure. At the federal level, good tax policy means raising enough revenue so the nation can adequately fund child care and early education, health care, food inspection, national parks, and a clean, safe environment among other things.

NPR: Leaked Education Budget Has Big Cuts

May 20, 2017

A bill now in Congress would expand tax-credit scholarships nationwide, creating a dollar-for-dollar federal tax credit for individuals and corporations. That could “undermine public education,” according to a new report by The School Superintendents Association and the Institute on Taxation and Economic Policy. It says that, as a result of tax-credit scholarships, more than a […]

If the lineup for today's House Ways and Means Committee hearing on tax reform is an indication of how the tax policy debate will unfold in the coming months, businesses and their lobbyists will have outsize influence in the process. This is a mistake.

CNNMoney: Becoming a Sanctuary State Could Help California Protect Its Economy Too

May 18, 2017

Not only do California’s undocumented workers fill jobs, but they pay taxes too. In 2014, almost $3.2 billion of California’s state and local taxes came from undocumented immigrants, according to the Institute on Taxation and Economic Policy, a Washington D.C.-based research group. Read more

New York Times: In Some States, Donating to Private Schools Can Earn You a Profit

May 17, 2017

AASA and the liberal-leaning Institute on Taxation and Economic Policy examined programs in 17 states that send more than $1 billion a year to private schools via tuition tax credits, and concluded that private schools were benefiting from a “federally sanctioned voucher tax shelter” for wealthy taxpayers. The study called it a “get-rich scheme for […]

A new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being used as profitable tax shelters by high-income taxpayers. Further, legislation pending in Congress would create new opportunities for corporations and successful investors to earn huge […]

International Business Times: How Much Do Companies Really Pay When Settling With The Government? Warren Pushes Bill That Makes It Public

May 17, 2017

While is doesn’t strive for a reform in the tax system that allows those firms to write off huge chunks of their fines, the senators’ measure, which applies to settlement agreements with executive agencies worth at least $1 million, requires the agency in question to “make publicly available in a searchable format” a list of those […]

National Law Review: Beneficiaries of $14.4 Billion Over Last Decade, Tax Lobbyists Ready for Trump Bonanza

May 13, 2017

About 4,000 registered lobbyists work on tax issues in the nation’s capital, but spending is highly concentrated among large multinational conglomerates and trade organizations. Fifteen companies and organizations, ranging from the U.S. Chamber of Commerce to the American Association of Retired Persons, have spent more than $2.7 billion while lobbying on tax issues since 2008, […]

The American Prospect: Trickle Downer of the Week

May 11, 2017

Meanwhile, the Trump administration works tirelessly to ease tax rates for millionaires, billionaires, and corporations while ripping away affordable health care for everyone else. The president wants to dramatically reduce the 35 percent corporate tax rate under the guise of spurring economic growth. Yet research has shown that many companies pay nowhere near the top […]

Education Week: Federal Tax Credits Poised to Make a Big Education Impact

May 11, 2017

Given DeVos’ repeated states-rights pronouncements, it also seems likely that individual states will have substantial ability to shape how tax credits scholarships are distributed in their jurisdictions to support their vision of public education. Each state will have to protect itself, and its children, against waste, fraud and abuse that are already apparent in state […]

Fast Company: Drain the Swamp? Tax Lobbyists Are Ready for Trump Bonanza

May 11, 2017

The lobbying activity has coincided with a continuing slide in the percentage of federal revenues collected from corporate income taxes. During the 1950s, corporate taxes made up 28% of federal revenue. By 2015, the corporate share had fallen to roughly 11%. Individual income tax receipts have remained relatively stable, accounting for almost half of federal receipts. […]

Bloomberg BNA: Q and A with ITEP’s Meg Wiehe

May 10, 2017

Bloomberg BNA: Tell us a little bit about yourself and your work at the Institute on Taxation and Economic Policy (ITEP)? Wiehe: I am ITEP Deputy Director, my primary responsibility being to plan and execute state policy work, so I have a real bird’s eye view for what is happening in all 50 states, plus […]

Governing: Raising the Gas Tax Is No Longer Taboo in Many States

May 7, 2017

Already this year, governors in California, Indiana and Tennessee signed laws to raise fuel taxes, meaning a total of 22 states have passed laws imposing higher gas taxes in the past five years. Chances are also good that the list will grow even longer this year. “It is such an unusual thing to see nearly […]

International Business Times: Who Ends Up Paying for the Gig Economy?

May 4, 2017

As the gig economy has grown, the tax gap has widened. Because of inconsistencies in sales tax policies, state and local governments across the U.S. may be missing out on $300 million in annual tax revenues from transportation network companies like Uber and Lyft, according to a March study from the non-profit Institute on Taxation […]

San Diego Union Tribune: Report Tallies Taxes from Unauthorized Immigrants

May 4, 2017

Unauthorized immigrants in San Diego County pay an estimated $218.5 million in state and local taxes annually, according to a report from the left-leaning Institute on Taxation and Economic Policy. That amount could increase by more than $30 million, according to the report, if those unauthorized immigrants were granted legal status. In California as a […]

Charleston Gazette Mail: Beware a Compromise That Takes from the Poor and Gives to the Rich

May 3, 2017

An assessment by Mark Muchow, deputy secretary of the Department of Revenue, estimates that by 2020, this will cause a revenue decline of $220 million due to income tax cuts. This would come on top of year after year of major budget cuts. On top of that, the Institute on Taxation and Economic Policy found […]