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Carl Davis
Research DirectorFebruary 28, 2023
Dear Ohio: Beware the Flat Tax
The flat tax plan and others being discussed that would cut even deeper would be windfalls for the wealthy, and expensive ones at that. Families with incomes over $300,000 per year, for example, could expect to gain, as a group, about a billion dollars annually under the flat tax plan. If you asked Ohio families about their top priorities for this legislative session, it’s a safe bet that very few of them would choose a billion-dollar tax cut for this group over funding for schools, parks, and infrastructure. -
The 2023 legislative session is in full swing, and dominos continue to be set up as others fall... -
Carl Davis
Research DirectorFebruary 22, 2023
The Five Best Tax Ideas Coming from Governors This Year
The word “tax” appears 97 times and counting in one recent summary of governors’ addresses to state legislators so far this year. The policy visions that governors are bringing, however, vary enormously. While there's good reason to worry about tax cuts for wealthy families and the flattening or elimination of income taxes, there are at least five great tax ideas coming directly out of governors’ offices this year. -
February 15, 2023
State Rundown 2/15: Love You, Love You Not – Tax Edition
This week, a fresh bouquet of tax proposals was delivered by state lawmakers, but not all of them have left us with that warm, fuzzy feeling in our stomachs... -
Steve Wamhoff
Federal Policy DirectorFebruary 14, 2023
The No Tax Breaks for Outsourcing Act Is Needed More than Ever
The new corporate minimum tax enacted as part of last year’s Inflation Reduction Act will address some of the worst corporate tax dodging, but what else is needed? A group of Democrats have answered this question with the No Tax Breaks for Outsourcing Act. -
Joe Hughes
Senior AnalystA higher tax on stock buybacks would reduce the tax disparity between dividends and buybacks, raise more revenue for productive public investments, and recoup some of Trump's corporate tax cuts that went to wealthy shareholders. -
February 9, 2023
State Rundown 2/9: We <3 Taxes
The great women’s philosopher, Pat Benatar, once said “love is a battlefield,” and there’s no greater test of our love for state tax policy than following the ups and downs of state legislative sessions... -
Amy Hanauer
Executive DirectorFebruary 9, 2023
Why the States Have a Major Role to Play If We Want Tax Justice
With fears of gridlock in a divided Washington, tax justice champions are building momentum in other places where there's dire need for better tax policy: the states. We can upgrade communities across the country by making 2023 a year to win tax improvements in statehouses. -
Amy Hanauer
Executive DirectorFebruary 7, 2023
State of the Union Likely to Continue Progress on Tax Justice
After decades of Presidents who ran away from taxes, it’s a sea change to have a chief executive who understands that the rich should pay their fair share, extremely profitable corporations should pay their fair share, and the public sector should have revenue to invest in problems – like climate change and healthcare – that will only be solved with pathbreaking public action. -
Tax bills across the U.S. are winding their way through state legislatures and governors continue to set the tone for this year’s legislative sessions...
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Jon Whiten
Deputy DirectorBlack households are between 2.9 and 4.7 times more likely to be audited by the Internal Revenue Service than non-Black households. This disparity is driven in part but not wholly by a lack of resources at the IRS, which itself is driven by years of budget cuts the agency has faced. -
Tax season has officially kicked off and with Earned Income Tax Credit (EITC) Awareness Day right around the corner, it serves as another reminder for how important the EITC is...
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State legislatures are buzzing as leaders and lawmakers jockey to advance their 2023 goals...
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Jon Whiten
Deputy DirectorJanuary 18, 2023
Several States Make New Moves to Tax Wealth
Lawmakers in seven states will introduce legislation this week to tax wealth in a new coordinated effort to combat ever-increasing income and wealth inequality. The bills couldn’t come at a better time, as those at the very top continue to pull apart from the rest of us and far too many states contemplate piling on to this runaway inequality with seemingly endless tax cuts for those at the top. -
Miles Trinidad
State AnalystDespite mixed economic signals for 2023, including a possible recession, many state lawmakers plan to use temporary budget surpluses to forge ahead with permanent, regressive tax cuts that would disproportionately benefit the wealthy at the expense of low- and middle-income households. These cuts would put state finances in a precarious position and further erode public investments in education, transportation and health, all of which are crucial for creating inclusive, vibrant communities where everyone, not just the rich, can achieve economic security and thrive. In the event of an economic downturn, these results would be accelerated and amplified. -
Miles Trinidad
State AnalystRefundable tax credits are an important tool for improving family economic security and advancing racial equity, and there is incredible momentum heading into 2023 to boost two key state credits: the Child Tax Credit and the Earned Income Tax Credit. -
Jon Whiten
Deputy DirectorA new report from the National Taxpayer Advocate – part of an independent oversight arm inside the IRS – found that the agency struggled in 2022 with timely processing of tax returns and refunds, responding to taxpayer correspondence quickly, and answering phone calls. It expects these issues to improve in 2023, thanks in part to the influx of $80 billion in new funding from last year’s Inflation Reduction Act, which the Advocate’s office calls a “gamechanger” for Americans. -
Steve Wamhoff
Federal Policy DirectorA new report from the Government Accountability Office finds the average effective federal income tax rate paid by large, profitable corporations fell to 9 percent in the first year the Trump tax law was in effect, and the share of such companies paying nothing at all rose to 34 percent that year. -
Governors have begun their annual trek to the podium in statehouses across the U.S. to lay out their visions for 2023, and so far, taxes look like they will play a major role in debates throughout state legislative sessions...
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Steve Wamhoff
Federal Policy DirectorThe "Fair Tax" bill would impose a 30 percent federal sales tax on everything we buy – groceries, cars, homes, health care - and lead to a giant tax shift from the well-off to everyone else. -
Joe Hughes
Senior AnalystTwo 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. -
Jon Whiten
Deputy DirectorJanuary 10, 2023
New House Majority Quickly Moves to Help Wealthy Evade Taxes
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 simple tax returns to file. The slash-and-burn bill comes just weeks after Republicans forced a 2 percent cut in annual IRS funding as part of the omnibus spending plan. -
January 5, 2023
State Rundown 1/5: State Taxes Coming in Hot in New Year
The new year often brings with it new goals and a desire to take on complex problems with a fresh perspective. Unfortunately, that doesn’t always apply to state lawmakers when considering tax policy... -
Amy Hanauer
Executive DirectorJanuary 4, 2023
Trump’s Tax Shenanigans Show Need for Real Reforms
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. -
Joe Hughes
Senior AnalystThe 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.
Blog Categories
- Corporate Taxes
- Earned Income Tax Credit
- Education Tax Breaks
- Federal Policy
- Fines and Fees
- Immigration
- Inequality and the Economy
- Local Income Taxes
- Local Policy
- Local Property Taxes
- Local Refundable Tax Credits
- Local Sales Taxes
- Maps
- Personal Income Taxes
- Property Taxes
- Refundable Tax Credits
- Sales, Gas and Excise Taxes
- SALT Deduction
- State Corporate Taxes
- State Policy
- Tax Analyses
- Tax Basics
- Tax Credits for Workers and Families
- Tax Credits for Workers and Families
- Tax Reform Options and Challenges
- Taxing Wealth and Income from Wealth
- Trump Tax Policies
- Who Pays?