Institute on Taxation and Economic Policy (ITEP)

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State Rundown 12/19: Anti-Tax Playbook in Action

• By ITEP Staff

The anti-tax playbook has been on full display in recent weeks as state policymakers run their offenses against public services and shared priorities. As the playbook dictates, if you have a little breathing room in your budget, propose cuts to the one major tax (personal income tax) that tends to ask more of those who […]

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ITEP’s Top Charts of 2024

• By Alex Welch

As we close out 2024, we want to lift up the tax charts we published this year that received the most engagement from readers. Covering federal, state, and local tax work, here are our top charts of 2024. 

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Defunding the IRS Would Cost Taxpayers

• By Joe Hughes

As Congress negotiates a bill for federal funding during the lame-duck session, lawmakers would be wise to remember that stripping funds from the IRS costs more than it saves. On the table in the appropriations bill is a $20 billion recission of funds to the nation’s tax administration. While this may look like a spending cut, it will increase deficits by $46 billion due to a drop in the agency’s capacity to enforce taxes on…

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State Rundown 12/3: Some States Cast Away Fiscal Responsibility as They Plan for 2025

• By ITEP Staff

The 2025 legislative season will be here before we know it, and state lawmakers have begun unveiling their priorities and proposals. Unfortunately, despite stagnating revenue growth, many lawmakers continue to push for deep, regressive tax cuts - often before the full impact of previous tax cuts is felt.

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Louisiana Lawmakers Pass Deeply Regressive Tax Plan

• By Neva Butkus

Louisiana Gov. Jeff Landry called the legislature back to the capitol the day after the national election to take up his plan to overhaul the state’s tax system during a 20-day special session. Our analysis shows the tax overhaul would worsen the inequity already rampant in Louisiana’s tax system while potentially shortchanging essential services for families across the state.

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Average Louisianans Will Pay for Gov. Landry’s Tax Break for the Rich

• By Neva Butkus

Tax cuts for the wealthy and corporations will not make Louisiana more competitive. Rather, they will blow a hole in the state budget while asking low- and middle-income working families to make up the difference. Gov. Landry and the Louisiana legislature would make much better use of their time looking for ways to make Louisiana’s tax structure fairer and more capable of adequately funding important priorities.

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State Rundown 11/20: Some Budgets and Tax Proposals Fail to Defy Gravity, Fall Short

• By ITEP Staff

This week, there are high-profile budget and tax debates at both the state and local levels. The Louisiana legislature continues to debate Gov. Jeff Landry’s deeply regressive tax package in a special session focused on replacing corporate and personal income tax revenue with additional sales taxes, but some efforts to find offsets for the cuts […]

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State Tax Policy Should Adopt the Principles of ‘Black Women Best’

• By Brakeyshia Samms

Focusing policy analysis on Black women illustrates how Black women have long shouldered the shortcomings of the economy and clearly points to solutions that work for all. Black women are at their best when they are financially secure, healthy, and free – and our economy is at its best when all people can thrive and benefit.

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On Election Day, Voters Across the Country Chose to Invest in Their States & Communities

• By Kamolika Das

On election day, voters across the country — in states red and blue and communities rural and urban — approved a wide range of state and local ballot measures on taxation and public investment. The success of these measures clearly shows that voters are willing to invest in public priorities that feel tangible and close to home.

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Taxing Transportation Is One Great Way to Reduce Carbon Emissions

• By Amy Hanauer

Federal, state, and local tax codes are important but underused tools that can create a more climate-resilient, less carbon-emitting America. A modernized tax code would stop subsidizing emissions and instead encourage lower-carbon design. Because cars and trucks produce roughly one-fourth of US greenhouse gas emissions, transportation taxation is a great starting point.

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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.

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State Rundown 11/07: Election Week and New Special Sessions

• By ITEP Staff

Tax policy results are mixed across the country as many voters weigh in on state and local ballot measures. For example, Washington state voted to maintain its new progressive tax on capital gains; Georgia voters capped growth in property tax assessments; Illinois voters approved a call for a millionaires’ tax; North Dakota voters rejected property […]

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How Tax Decisions in 2025 Can Advance Racial Justice

• By Brakeyshia Samms, Jon Whiten

In the coming 14 months, federal lawmakers should address longstanding issues of racism in the tax code. With a presidential election this fall and many provisions of 2017’s Trump tax law expiring at the end of 2025, the debate over tax policy and economic fairness is in full swing.

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State Rundown 10/24: Tricks, Treats, and Tax Policy

• By ITEP Staff

Louisiana Gov. Jeff Landry is proposing a regressive tax reform package that would enact a flat personal and corporate income tax while expanding the state’s sales tax base and eliminating certain exemptions to make up for a portion of the lost revenue. West Virginia continues to chip away at its personal income tax, one of the state’s few progressive revenue options. And advocates in New York are rallying around a package of progressive tax legislation…

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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…

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2024 Local Tax Ballot Measures: Voters in Dozens of Communities Will Shape Local Policy

• By Rita Jefferson

Next month, voters across the country will weigh in on many local ballot measures that will have a profound effect on the adequacy of our local tax systems and whether cities and communities can fund public needs. These are in addition to statewide ballot questions, many of which have local implications this year.  

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2024 State Tax Ballot Questions: Voters to Weigh in on Tax Changes Big and Small

• By Jon Whiten

As we approach November’s election, voters in several states will be weighing in on tax policy changes. The outcomes will impact the equity of state and local tax systems and the adequacy of the revenue those systems are able to raise to fund public services.

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Fifteen Companies Each Avoided More than $1 Billion in Taxes from a Single Trump Tax Cut

• By Joe Hughes, Spandan Marasini

The deduction for Foreign-Derived Intangible Income (FDII), one of the tax cuts included in former President Trump’s signature 2017 tax law, provides a lower effective tax rate on income earned from intangible assets, such as patents, trademarks, and other forms of intellectual property. Since the law went into effect in 2018, 15 corporations have separately reported more than $1 billion in tax benefits. Alphabet (the parent company of Google) reported the most, at more than…

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State Rundown 10/10: More Special Sessions, More Proposed Tax Cuts

• By ITEP Staff

This week several states are getting an early start at writing new tax policy in special sessions. In West Virginia, the legislature has come to an agreement with Gov. Justice on an additional tax cut—on top of already-planned cuts. The 2 percent cut will cost the state $49 million a year and come from spending […]

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State Rundown 9/18: Special Tax Session Results? “Reply Hazy, Try Again”

• By ITEP Staff

As the dust settles...

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Trump’s Plan to Vaporize the Economy Through Mass Deportation

• By Michael Ettlinger

This op-ed originally appeared in the Boston Globe. What would happen if 22 percent of America’s farmworkers vanished from the workforce? Would workers from across the country flock to the cotton fields of Texas, the sugar fields of Florida, and the peanut farms of Georgia to take low-paying jobs in the blazing heat? Or would […]

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Voucher Boondoggle: House Advances Plan to Give the Wealthy $1.20 for Every $1 They Steer to Private K-12 Schools

• By Carl Davis

The U.S. House Ways & Means Committee has advanced a new school voucher bill. H.R. 9462—the Educational Choice for Children Act of 2024—would create an unprecedented tax incentive designed to fund private, mostly religious, K-12 schools.

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Expanded Child Tax Credit is Key to Reducing Child Poverty, New Census Data Illustrate

• By Jon Whiten

From 2021-2023, child poverty has more than doubled from 5.2 to 13.7 percent. The latest Census data make clear that lawmakers have the tools to help millions of children and their families – and it’s beyond time they take action.

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The Quiet Effort to Make Single Parenthood More Expensive

• By Carl Davis

After the dust settles on this year’s election, one of the most pressing issues confronting the next Congress and President will be how to deal with the expiration of the 2017 Trump tax cuts and, more specifically, who will pay for the cost of extending some or all of those cuts. Among the more widely accepted ideas circulating on the right is to raise income taxes on single parents, more than four in five of…

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State Rundown 9/5: Property Tax Policy Continues to Make Headlines

• By ITEP Staff

Property tax bills are undeniably a concern for many low- and moderate-income households across the nation...