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New House Rules: Low Taxes for the Wealthy on Cruise Control, Tax Credits for Working People Face Roadblock
• By Joe Hughes
Two new rules will hamper the new Congress’s ability to pass tax legislation in the next two years. One requires a supermajority for legislation that increases income tax rates, and the other requires cuts to mandatory spending programs—like Medicare, Social Security, veterans’ benefits or unemployment insurance—in exchange for changes to the Child Tax Credit or Earned Income Tax Credit that would mostly help low-income families.
New House Majority Quickly Moves to Help Wealthy Evade Taxes
• By Jon Whiten
The “Family and Small Business Taxpayer Protection Act” would rescind 90 percent of the new funding for the IRS included in last year’s Inflation Reduction Act. This would eliminate the new law’s $45.6 billion to enforce the tax code for people making more than $400,000 and repeal an additional $26 billion in IRS funding that would include, among other things, a pilot for a free e-file program to make it easier for people with relatively…
Trump’s Tax Shenanigans Show Need for Real Reforms
• By Amy Hanauer
Congress should unite around a basic principle that Republican, Democratic, and independent voters support: the wealthiest, whether they are presidents, CEOs, or just rich heirs, should pay their fair share. Using Trump's tax maneuvering as a guidebook could make the tax code much fairer for all of us.
The European Union Moves Forward on Global Minimum Tax. Time for the U.S. to Follow.
• By Joe Hughes
The European Union has reached unanimous agreement to implement a global minimum tax beginning in 2024. With the EU and UK fully on board, it's time for Congress to follow suit and implement the plan negotiated by the Biden administration. Doing so would improve the corporate tax system here and around the world while making the United States economy stronger and more competitive.
The Tax Deal That Wasn’t: Congress Decides Corporate Tax Cuts Are Too Expensive if it Means Also Helping Children
• By Joe Hughes
Congressional leaders announced their long-awaited omnibus spending package which will fund the government through September 2023. The good news: the bill does not include needless corporate tax giveaways. The bad news: it also leaves out any expansion of the child tax credit.
Guide to a Potential Year-End Tax Bill in Congress
• By Steve Wamhoff
Any tax legislation enacted before this Congress ends should prioritize policies that have a proven track record of helping workers and children rather than policies that cut taxes for corporations or for individuals who are already well-off. It's not clear right now whether lawmakers will do that - or whether they will enact any tax legislation at all before the year ends, but here we take a look at the key tax issues that lawmakers…
Lawmakers Seek to Extend Tax Break for “Research” that Corporations Use to Develop Frozen Foods, New Beer Flavors, Casino Games and Tax Avoidance
• By Steve Wamhoff
If Congress creates a tax break to encourage businesses to conduct research that benefits society, should Netflix be eligible for it? There is no shame in binge-watching Stranger Things or Bridgerton or The Crown, but how many of us really think Netflix deserves a tax break for whatever “research” the company did to provide this […]
Reversing the Stricter Limit on Interest Deductions: Another Huge Tax Break for Private Equity
• By Steve Wamhoff
Private equity is doing fine on its own and does not need another tax break. Congress should keep the stricter limit on deductions for interest payments —one of the few provisions in the 2017 tax law that asked large businesses to pay a little bit more.
Bipartisan Retirement Proposals Are Mostly Just More Tax Cuts for the Wealthy
• By Steve Wamhoff
The EARN Act and SECURE Act 2.0, two bipartisan retirement bills working their way through Congress, are major disappointments. They would mainly provide more tax breaks for the well-off who will most likely retire comfortably regardless of what policies Congress enacts. The bills would provide modest assistance for those who really need help to save.
Child Tax Credit Expansion Would Shrink the Racial Wealth Gap
• By ITEP Staff
Extending the expanded Child Tax Credit would benefit nearly every child in low- and middle-income families. Under current rules, 24% of white children, 45% of Black children, and 42% of Hispanic children will not receive the full credit in 2023 because their families make too little. These figures would drop to zero if the provisions were extended, helping families of all races and disproportionately helping families of color.
Key Republicans Say Negligible Decline in Economic Growth Outweighs Enormous Drop in Child Poverty
• By Joe Hughes
The expanded Child Tax Credit reduced child poverty dramatically and immediately. There is no debate or murkiness on this. Some lawmakers have decided that cutting child poverty in half is not worth the cost if it means an ambiguous and negligible decline in GDP growth. This view is not just cruel, it is bad economics.
Congress Should Not Leave Children Out of Possible Year-End Tax Deal
• By Steve Wamhoff
If lawmakers believe it’s worthwhile to extend corporate tax breaks, then it would be entirely unreasonable for them to not conclude the same about tax provisions that help low-income children.
Census Data Shows Need to Make 2021 Child Tax Credit Expansion Permanent
• By Joe Hughes
The Child Tax Credit expansion led to a 46 percent decline in childhood poverty. That it could be accomplished during the largest economic disruption in most of our lifetimes underscores a basic fact: thoughtful, decisive government action to combat poverty works.
Billionaires Should Pay Taxes on Their Income Every Year Like the Rest of Us
• By Steve Wamhoff
The Inflation Reduction Act signed by President Biden last month will crack down on corporate tax dodgers and strengthen enforcement of tax laws already on the books, raising hundreds of billions of dollars to be spent on climate, health and other priorities. But these reforms will not directly raise taxes on even the wealthiest individuals. […]
Romney Child Tax Credit Plan Would Leave Millions of Children Worse Off and Raise Taxes for the Average Black Family
• By Steve Wamhoff
Sen. Romney’s plan would expand the Child Tax Credit and offset the costs by scaling back other tax benefits. All told, it would raise taxes on a fourth of all kids in the U.S. This includes about a fourth of the children among the poorest fifth of U.S. families.
Four Tax Policy Wins in the Inflation Reduction Act and Four More That Can Build on This Progress
• By Joe Hughes, Jon Whiten
With four major tax policy provisions, the IRA takes a huge step toward a fairer tax code and a more equitable economy. But as always, there are more steps lawmakers should take to build on this progress.
Putting Cleveland and the Nation on a Path Toward Tax and Climate Justice
• By Amy Hanauer
Editor’s note: This originally ran as an opinion piece in the Cleveland Plain Dealer. When I left Cleveland to work on federal tax policy after 20 years running Policy Matters Ohio, I knew Ohio would stay in my heart and fuel my work. Accustomed to an America that often ignores our toughest problems, I understood […]
The Case for More IRS Funding
• By Jon Whiten
Editor’s note: This originally ran as an opinion piece in The Hill. Though the Inflation Reduction Act is enormously popular, some politicians and pundits are trying to generate hysteria about one feature: Funding for the IRS. All the false claims are distracting us from two important things: how necessary the funding increase is to reverse […]
Lawmakers Must Choose Between Funding the IRS or Protecting Wealthy Tax Cheaters
• By Steve Wamhoff
Grasping for some way to criticize the popular Inflation Reduction Act as it approaches final passage, Congressional Republicans have decided to attack its provisions that will reverse a decade of budget cuts to the IRS and instruct the agency to crack down on tax evasion by big corporations and individuals making more than $400,000. Of […]
What Tax Provisions are in the Senate-Passed Inflation Reduction Act?
• By Steve Wamhoff
The Inflation Reduction Act approved by the Senate on Aug. 7 would raise more than $700 billion in new revenue over a decade by closing corporate tax loopholes, empowering the IRS to enforce the tax laws on the books, taxing stock buybacks, and extending a limitation on deductions for business losses. The IRA – if […]
They Might Really Do It: The Senate Is About to Reform Our Tax Code
• By Steve Wamhoff
For now, the Senate is poised to reverse cuts to the IRS enforcement against wealthy tax evaders for the first time in a decade, crack down on tax-dodging by huge corporations for the first time since 1986, and finally address the method increasingly used by corporations to transfer income to shareholders to avoid federal taxes. The multi-decade winning streak of corporate lobbyists and special interests who have practically written many of our tax laws in…
Corporations are Shifting Profits to Wealthy Investors Tax-Free—Stock Buyback Tax Would Change That
• By Joe Hughes
Senate Democrats have announced an agreement on the Inflation Reduction Act that, among other changes to a previous version of the bill, would apply a 1 percent tax on corporations repurchasing their own stock. This proposal was included in the House-passed Build Back Better Act last year and was estimated at that time to raise $124 billion over 10 years. This measure would ensure that income transferred from corporations to wealthy shareholders does not continue…
Corporate Minimum Tax Examples: Apple Would Likely Pay More, 3M Would Not
• By Matthew Gardner
Apple, one of the largest corporations in the United States despite manufacturing most of its physical products offshore, would likely pay the corporate minimum tax that is included in the Inflation Reduction Act that the Senate is debating this week. 3M, a manufacturer that has about 40 percent of its workforce in the United States, likely would not pay the corporate minimum tax if current trends in the company’s profits and taxes continue, because it…
Opponents of Inflation Reduction Act Call for Continued Tax Avoidance by Large Manufacturers
• By Steve Wamhoff
The biggest revenue-raising provision in the Inflation Reduction Act, the 15 percent minimum tax for corporations that have more than a billion dollars in profits, is under attack from members of Congress who argue that manufacturing companies should not be required to pay any minimum amount of tax. Sen. Mike Crapo, the top Republican on […]
Top Republican Tax-Writer Falsely Claims that Minimum Tax for Huge Corporations Is a Tax Hike on Middle-Class
• By Steve Wamhoff
Opponents of requiring corporations to pay even a minimum amount of taxes hold an unpopular position. But Sen. Mike Crapo, the top Republican on the Senate Finance Committee and a leader of that opposition, is using a one-sided and incomplete analysis to claim that the corporate minimum tax would raise taxes on low- and middle-income people.
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