Blog
75 posts
Trump’s Proposed Higher Tax Rate on the Richest Taxpayers Would Affect Very Little of Their Income
• By Carl Davis, Steve Wamhoff
President Donald Trump has proposed allowing the top rate to revert from 37 percent to 39.6 percent for taxable income greater than $5 million for married couples and $2.5 million for unmarried taxpayers. But many other special breaks in the tax code would ensure that most income of very well-off people would never be subject to Trump’s 39.6 percent tax rate.
The Impact of Trump’s Tariffs
• By ITEP Staff
The tariffs proposed by Donald Trump, which are far larger than any on the books today, would significantly raise the prices faced by American consumers across the income scale.
Senate Republicans Rig Congressional Rules to Make Their Tax Cuts Appear Cost-Free
• By Steve Wamhoff
This week, members of Congress are arguing about whether extending Trump’s 2017 tax cuts would cost trillions of dollars over a decade or cost nothing.
Why Americans Are Right to Be Unhappy About Corporate Tax Avoidance
• By Matthew Gardner
If lawmakers wanted to reduce income inequality and racial inequality, shutting down or at least limiting corporate tax breaks would be one option to achieve that goal. Unfortunately, President Trump and the current Congress show little interest in this and may even move in the opposite direction by introducing new corporate tax breaks.
Two Ways a 2025 Federal Tax Bill Could Worsen Income and Racial Inequality
• By Joe Hughes
Two parts of Trump’s 2017 tax law that are particularly expensive and beneficial to the richest individuals are the changes in income tax rates and brackets and the special deduction for “pass-through” business owners. Lawmakers should not extend these provisions for high-income households past the end of this year, when they are scheduled to expire.
Trump’s Address to Congress Obscures His Actual Tax Agenda
• By Amy Hanauer
In last night’s address to Congress, President Trump spent more time insulting Americans, lying, and bragging than he did talking about taxes. But regardless of what President Trump and Elon Musk talk about most loudly and angrily, there is one clear policy that they and the corporations and billionaires that support them will try hardest […]
House Budget Resolution Tees Up Damaging Trump Tax Agenda
• By Steve Wamhoff
The budget resolution passed by House Republicans will enrich the richest, blow up the deficit, and decimate vital public services. The budget resolution allows Congress to pass reconciliation legislation with $4.5 trillion in tax cuts that would mostly flow to the wealthiest families in the country. Congressional Republicans have no way to pay for the massive tax cuts promised by President Trump during his campaign other than to dismantle fundamental parts of the government and…
Different Approaches to the Trump Tax Law’s Cap on Deductions for State and Local Taxes (SALT)
• By Steve Wamhoff
President Trump and the Republican majorities in the House and Senate may not extend the $10,000 cap on federal income tax deductions for state and local taxes (SALT), the one part of the 2017 law that significantly limits tax breaks for the rich. And, depending on which proposal they settle on, leaving out the existing cap on SALT deductions could add between $10 billion and over $100 billion each year to the total cost of…
Congress Could — But Won’t — Pass a Tax Package That Pays for Itself
• By Joe Hughes
If Republican lawmakers were serious about deficit-neutral tax reform, they would focus on increasing taxes for the ultra-wealthy and large corporations. The absence of such proposals in their plan reveals their true priority: delivering enormous tax cuts to the wealthiest Americans while average working families receive crumbs.
Tax Justice in the Crosshairs
• By Amy Hanauer
Billionaires and businesses have too much power in Washington. Tax revenue is needed to pay for things we all need. If we want economic justice, racial justice and climate justice, we must have tax justice.
How Would the Harris and Trump Tax Plans Affect Different Income Groups?
• By Jon Whiten
Presidential candidates Kamala Harris and Donald Trump have put forward a wide range of different tax proposals during this year’s campaign. We have now fully analyzed the distributional impacts of the major proposals of both Vice President Harris and former President Trump in separate analyses. In all, the tax proposals announced by Harris would, on average, lead to a tax cut for all income groups except the richest 1 percent of Americans, while the proposals…
Kyrsten Sinema’s Latest Fight to Protect Tax Breaks for Private Equity
• By Steve Wamhoff
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 House’s Debt Ceiling Smoke Screen: The GOP Budget Plan Gives Cover for Tax Cuts for the Rich
• By Joe Hughes
While it isn’t reasonable in the first place for Congress to debate whether it will pay the bills it has already incurred, some of the same lawmakers who are holding the economy hostage to exact budget cuts have decided to make the conversation even more irrational by proposing to increase deficits with tax cuts that enrich the already rich.
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.
SALT Cap Repeal Would Worsen Racial Income and Wealth Divides
• By Carl Davis, ITEP Staff, Jessica Schieder
A bipartisan group of 32 House lawmakers banded together to form the “SALT Caucus,” demanding elimination of the SALT cap. None of their arguments in favor of repeal change the fact that it would primarily benefit the rich and, according to new research, exacerbate racial income and wealth disparities.
Dems, Don’t Repeal the SALT Cap. Do This Instead.
• By Steve Wamhoff
Ever since it was enacted as part of the Trump-GOP tax law, some Democrats in Congress have been pushing to repeal the cap on federal tax deductions for state and local taxes (SALT). Recently several Democratic members have suggested that repeal of the cap should be part of COVID relief legislation. While the cap on SALT deductions is problematic, repealing it without making other reforms would result in larger tax breaks for the rich. Instead,…
SALT Cap Repeal Has No Place in COVID-19 Legislation: National and State-by-State Data
• By Steve Wamhoff
The Trump-GOP tax law enacted at the end of 2017 includes a $10,000 cap on the amount of state and local taxes (SALT) that people can deduct on their federal tax returns, and this is one of the few limits the law places on tax breaks for high-income people. Unfortunately, it is also the provision that some Democrats are most determined to remove.
White House Incredibly Still Believes Tax Cuts Are the Answer to America’s Problems
• By Steve Wamhoff
White House officials continue to discuss tax cuts in response to the COVID-19 pandemic. Steve Wamhoff provides a roundup of these terrible ideas that would do little to boost investment or reach those who need it most.
Trump-GOP Tax Law Encourages Companies to Move Jobs Offshore–and New Tax Cuts Won’t Change That
• By ITEP Staff, Matthew Gardner, Steve Wamhoff
New tax cuts to incentivize bringing jobs back to the United States will fail. No new tax provisions can be more generous than the zero percent rate the 2017 law provides for many offshore profits or the loopholes that allow corporations to shift profits to countries with minimal or no corporate income taxes.
The HEROES Act Would Correct CARES Act Business Tax Mistakes
• By Steve Wamhoff
The Health Economic Recovery and Omnibus Emergency Solutions (HEROES) Act includes important changes to business tax provisions in the CARES Act, the most recent COVID-19 legislation enacted by Congress and the president. The House-passed plan would undo CARES Act changes that make it easy for businesses to claim losses to reduce or avoid all taxes. […]
The CARES Act Provision for High-Income Business Owners Looks Worse and Worse
• By Steve Wamhoff
A select group of millionaires will receive an average tax break of $1.6 million thanks to a CARES Act provision that is receiving delayed but well-deserved scrutiny. Wealthy business owners are receiving this windfall because the CARES Act provides tax breaks to people with losses from a business they own. This approach may seem sensible because businesses small and large are taking a hit from the economic recession, but on close inspection, these provisions benefit…
Partying Like It’s 2017: How Congress Went Overboard on Helping Businesses with Losses
• By Steve Wamhoff
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides some needed relief for individuals and families, but two arcane tax provisions related to business losses will further enrich the wealthy and fail to boost our economy more broadly.
Addressing the COVID-19 Economic Crisis: Advice for the Next Round
• By Steve Wamhoff
Americans need many things right now beyond tax cuts or cash payments. But for people whose incomes have declined or evaporated, money is the obvious, immediate need to prevent missed rent or mortgage payments, skipped hospital visits and other cascading catastrophes. So, what should Congress do next to get money to those who need it?
Trump to Restaurant Owners: “Let Them Eat Skyboxes”
• By Matthew Gardner
Last week, President Trump destroyed everyone’s coronavirus press conference bingo card by announcing that a conversation he had with celebrity chef Wolfgang Puck inspired him to propose restoring a corporate tax deduction for business entertainment expenses. Trump’s own signature tax plan repealed this break two years ago.
Boeing “CARES” A Lot About its Shareholders—But What about the Rest of Us?
• By Matthew Gardner
The gigantic Coronavirus-related tax and spending bill enacted last week, the so-called “CARES Act,” sets aside $17 billion in loans for “businesses critical to maintaining national security.” It’s generally understood that the bill’s authors want much, if not all, of this $17 billion to go to a single company: Boeing. So it behooves us to ask whether Boeing benefits America and its economy in ways that merit this largesse.
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