Institute on Taxation and Economic Policy (ITEP)

Huffpost: Why States Are Struggling To Tax Services

June 29, 2017

Another challenge is that taxes on services are regressive, with a disproportionate impact on low-income residents, and are sometimes seen as an unfair way to plug a budget hole or reduce other taxes, prompting opposition from advocates for the poor. “The services that get pulled into these plans … are not necessarily the ones that […]

Senate Health Care Reform Bill Just as “Mean” as the House Version

The Congressional Budget Office today released its score of the Senate Health Care proposal and the news is not good. It’s no wonder a narrow group of 13 lawmakers cobbled together the bill behind closed doors. Now that the measure has seen the light of day, we know that it epitomizes Robin Hood in reverse policies by snatching health coverage from 22 million people by 2026 (15 million in 2018) while showering tax cuts on the already wealthy.

Scripps News Service: Money Diverted from Public Schools?

June 26, 2017

All the programs basically work this way: Individuals and businesses make cash or stock donations to scholarship granting organizations. The organizations award scholarships to qualifying families with K-12 students, primarily children in failing public schools or whose families’ income meets the state’s poverty threshold. Students can then attend a private or religious school of their […]

Bloomberg: Corporate Tax Rate at 28% Seen as More Likely Than Historic Cut

June 26, 2017

Both men have pitched their rate-cut plans as a way to spur hiring and economic growth. But setting a 28 percent tax rate would be largely meaningless for more than 150 of the largest U.S. companies, which already paid lower rates than that from 2008 through 2015, according to a recent study. The companies took […]

Public News Service: GOP Health Bill Would Deliver Tax Breaks to the Wealthiest

June 20, 2017

Alan Essig, executive director of the Institute on Taxation and Economic Policy, says data from the Congressional Budget Office confirms that the health bill that cleared the U.S. House is less about health policy than tax breaks for the top 3 percent of U.S. earners. “The end result is 23 million people losing health care […]

Speaker Ryan’s “Bold Agenda” for the Country Boils Down to Tax Breaks for the Wealthy

Speaker Paul Ryan today correctly outlined some of working people’s concerns, including the desire for more good jobs and access to the training required to secure those jobs. But his bottom line policy prescriptions for addressing the concerns of working people are the same old trickle-down economic policies that time after time have proven to primarily benefit the wealthy.

Salon: Apple CEO Tim Cook Thinks a Big Corporate Tax Cut is “What’s Good for America”

June 18, 2017

Earlier this year, the Institute on Taxation and Economic Policy, a nonpartisan liberal think tank, published research showing that few large profitable companies even come close to paying the 35 percent federal income tax rate on U.S. profits. The study, which looked at 258 large U.S. companies that reported annual U.S.-based profit from 2008 to 2015, […]

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 […]

Trump Budget Plan Would Eliminate Child Tax Credits for Working Families Due to Parents’ Immigration Status

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.

Trump’s Budget Proposal and Tax Plan Are the Antithesis of Populism

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 […]

Corporate Lobbyists Should Not Shape the Nation’s Tax Reform Debate

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 […]

Report: Private School Voucher Proposal Creates Tax Shelter for Wealthy; Would Starve Public Schools of Critical Funds

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 […]