California

Voters had the chance to impact tax policy across the country on election day, and some chose to enact common-sense reforms to raise revenue...

State lawmakers are increasingly interested in reforming their corporate tax bases to start from a comprehensive measure of worldwide profit. This provides a more accurate, and less gameable, starting point for calculating profits subject to state corporate tax. Mandating this kind of filing system, known as worldwide combined reporting (WWCR), would be transformative, as it would all but eliminate state corporate tax avoidance done through the artificial shifting of profits into low-tax countries.

There's a patchwork of programs and preparers for people of color to turn to when filing taxes, and most come from corporations that profit from providing a service that the government could provide more effectively and efficiently for free. The Direct File program can change that and is a great step forward in the IRS’ work addressing racism in the tax code.

Leading localities are using refundable EITCs to boost incomes and reduce taxes for workers and families with low and moderate incomes. These local credits build on the success of EITCs at the federal and state levels, reduce economic hardship and improve the fairness of the tax code.

November elections are creeping closer and closer and while that typically means a new batch of lawmakers are elected, it also means voters have another chance to help shape state and local tax policy...

It may be the off-season for state legislatures, but tax policy changes could soon emerge from the ballot box or the courts. Advocates in Arkansas want voters to decide the future of taxing diapers and feminine hygiene products, and supporters of public education in Nebraska are working to make sure voters have a say on the state’s school choice tax credit. Meanwhile, cannabis firms in Missouri are suing the state over cities and counties stacking sales tax on marijuana.

Sen. Sinema's bill to stop a seemingly arcane business tax increase that was enacted as part of the 2017 Trump tax law would be hugely beneficial to the private equity industry.

The U.S. Census Bureau released its annual assessment of poverty in America this week...

The latest analysis from the U.S. Census Bureau provides an important reminder of the compelling link between public investments and families’ economic well-being. Policy decisions can drastically reduce poverty and improve family economic stability for low- and middle-income families alike, as today’s data release shows.

Fourteen states now provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. This year alone, lawmakers in three states created new Child Tax Credits while lawmakers in seven states expanded existing credits. To maximize impact, lawmakers should consider making their credits fully refundable, not including an earnings requirement, setting a maximum amount per child instead of per household, setting state-specific phase-out ranges that target low- and middle-income families, indexing to inflation, and offering the option of advanced payments.

Nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit, an effective tool that boosts low-paid workers’ incomes and helps lower-income families achieve greater economic security. This year, 12 states expanded and improved EITCs.

While a number of state tax laws are debated, approved, and vetoed in any given year, many go unnoticed...

Too many state and local governments tap legal-system collections, rather than adequate tax systems, to fund shared essentials like public safety and education. But a growing number of states and localities are choosing a better approach. Momentum for change has continued to build in 2023, with no fewer than seven states enacting substantial improvements.

We can make modest reforms to better tax those who are taking a larger share of our wealth and income in order to reinforce a major pillar of our promise to Americans.

The trend of state lawmakers taking big steps on important tax credits like the Child Tax Credit and Earned Income Tax Credit is coming out in full force this week...

Across the country, the marathon budget season has held pace, with a steady stream of bills continuing to cross the finish line...

Short-sighted tax cuts continue to make their way to Governors’ desks this week. In Florida, Gov. DeSantis signed a $1.3 billion tax cut package with $550 million of the tax cuts from sales tax holidays, alone. The Nebraska legislature also sent $6.4 billion in tax cuts to Gov. Pillen’s desk which includes an enormous personal income tax cut that will reduce taxes on the top 1 percent by tens of thousands of dollars.

The push by Congressional Republicans to make the provisions of the 2017 Tax Cuts and Jobs Act permanent would cost nearly $300 billion in the first year and deliver the bulk of the tax benefits to the wealthiest Americans.

While the conversations on the debt ceiling heat up in the nation's capital, debates on state tax policy also continue to unfold in capitol buildings across the nation...

The written testimony of ITEP Executive Director Amy Hanauer is below the embedded video of the hearing. Dear D.C. Tax Revision Commission,  Thank you for inviting me to testify last week on the research of my colleagues at the Institute on Taxation and Economic Policy. We’re grateful to have our perspective included and as a […]

Over the past week Washington state saw a major victory for tax fairness after the state Supreme Court held the state’s capital gains tax—passed in 2021—constitutional...

From dedicating new taxes to fund climate action and public health to vacancy and “mansion” taxes, many local leaders are already exploring ways to make their tax systems more progressive and sustainable. ITEP is committed to helping local leaders and advocates build on this work by advancing knowledge about local tax solutions.