Institute on Taxation and Economic Policy (ITEP)

Blog

1,405 posts
blog  

The ‘Low-Tax’ Lie: States Hyped for Low Taxes Usually Only Low-Tax for the Rich

• By Jon Whiten

It’s hard to go a week without seeing a politician or a news article hype up a state as the place that everyone is moving to – or should move to – because of low taxes. However, there’s a big problem with these proclamations: they aren’t true.  

blog  

IRS Commissioner, New GAO Report Highlight Importance of Proper IRS Funding

• By Joe Hughes

A new GAO report and Commissioner Werfel’s testimony highlight the value and necessity of a well-funded and functioning IRS. Most families and businesses do their best to pay taxes accurately and on time. The nation benefits from a modern revenue agency that can make this process as easy and simple as possible and identify complex tax schemes that deprive the country of revenues.

blog  

State Rundown 2/14: Our Love Language is Taxes

• By ITEP Staff

As many of you may know, we love taxes, along with the many great things they provide for our communities...

blog  

State Rundown 2/8: Flowers, Chocolates, and Tax Cuts for the Wealthy?

• By ITEP Staff

While we were hoping to get progressive tax policy wins for Valentine’s Day, many state lawmakers have another idea in mind...

blog  

State Rundown 2/1: Black History Month Begins as Tax Debates Heat Up Nationwide

• By ITEP Staff

This week the showdown between the Kansas legislature and governor continued as Gov. Kelly vetoed the legislature’s latest attempt to pass a flat personal income tax. Elsewhere, the focus is on doing more for working families through proposals to expand refundable credits in Maryland and adding a millionaire tax bracket in Rhode Island. Meanwhile, there’s […]

blog  

What Do We Mean By “The Rich” — and Does it Matter?

• By Michael Ettlinger

It doesn’t matter if someone with a family income of $800,000 per year thinks they aren’t rich because they can’t quit their jobs and retire to a luxury home on the beach in Malibu. They can call themselves what they want. The point is that they are richer than 99 percent of the population and can afford to pay more.

blog  

Three Things to Know This Tax Filing Season

• By Joe Hughes

The IRS Direct File pilot is currently open to eligible taxpayers here. Millions of American families have now received their W-2s for 2023, signaling the start to a new tax filing season. The IRS has set January 29 as the first date that people can file their tax returns for the previous year, and the […]

blog  

State Rundown 1/26: Wealth Taxes Drawing Interest Early in Legislative Sessions

• By ITEP Staff

Bills are moving and state legislative sessions are picking up across the country, giving elected officials the opportunity to consider two distinct paths when it comes to tax policy...

blog  

New Mexico Making Tremendous Progress Making Taxes Less Regressive

• By Carl Davis

Recent tax reforms have helped to bring greater balance to New Mexico's tax code. A new in-depth look at taxes in all 50 states finds New Mexico is an emerging leader, though there’s still plenty of room for improvement.

blog  

Latest Kansas Tax Plan Would Provide an Estimated $875,000 Tax Cut to Charles Koch

• By Carl Davis, Neva Butkus

Last week, both houses of the Kansas legislature approved a significant tax cut centered around replacing the state’s graduated rate income tax structure with a flat tax instead. The bulk of this would flow to upper-income families, mostly through lowering the state’s top income tax rate from 5.7 to 5.25 percent. This tax cut would […]

blog  

How the Fairness of State Tax Codes Affects Public Education

• By Carl Davis

The findings of Who Pays? go a long way toward explaining why so many states are failing to raise the amount of revenue needed to provide full and robust support for our public schools.

blog  

State Rundown 1/18: State Tax Priorities Taking Shape in 2024

• By ITEP Staff

Tax policy themes have begun to crop up in states as governors give their yearly addresses and legislators lay out their plans for the 2024 legislative season...

blog  

Worthwhile Ideas for a Stronger and Fairer D.C. Tax Code

• By Andrew Boardman, Kamolika Das, Marco Guzman

The nation’s capital has a once-in-a-decade opportunity to advance a stronger and fairer local tax code. New draft recommendations from a key advisory panel will help leaders make the most of the moment.

blog  

State Rundown 1/11: Sounding the Alarm on Regressive State & Local Tax Codes

• By ITEP Staff

States got a wake-up call this week as ITEP released the latest edition of our flagship Who Pays? report...

blog  

In Most States, the Tax Code Makes Inequality Worse

• By Carl Davis

The vast majority of state and local tax systems are upside-down, with the wealthy paying a far lesser share of their income in taxes than low- and middle-income families. Yet a few states have made strides to buck that trend and have tax codes that are somewhat progressive and therefore do not worsen inequality.

blog  

State Rundown 1/4: New Year, New Opportunities, Same Tax Cut Proposals

• By ITEP Staff

The year may be new, but state lawmakers seem to have the same old resolution: slashing state income taxes...

blog  

Everything You Need to Know About Proposals to Better Tax Billionaires

• By Steve Wamhoff

Tax policy may not be on the minds of most Americans during the final weeks of 2023, but billionaires with an eye on their own tax bills have been riveted by developments in D.C.

blog  

State Rundown 12/14: Tax Policy Debates Ramp Up for 2024

• By ITEP Staff

Even as revenue collections slow in many states, some are starting the push for 2024 tax cuts early. For instance, policymakers in Georgia and Utah are already making the case for deeper income tax cuts. Meanwhile, Arizona lawmakers are now facing a significant deficit, the consequence of their recent top-heavy tax cuts. There is another […]

blog  

With the Moore vs. United States Case, the Supreme Court Could Unleash Chaos on Our Tax System

• By Steve Wamhoff

On Tuesday, the U.S. Supreme Court will begin hearing oral arguments in Moore vs. United States, which could become the most important tax case in a century. A broad ruling could destabilize our tax system, enrich many profitable corporations, and widen existing economic and racial inequalities.

blog  

State Rundown 11/29: Thankful for Good Tax Policy

• By ITEP Staff

Though Turkey Day has passed, lawmakers in states across the U.S. have yet to get their fill of delicious tax policy goodness...

blog  

Hidden in Plain Sight: Race and Tax Policy in 2023 State Legislative Sessions

• By Brakeyshia Samms

Race was front and center in a lot of state policy debates this year, from battles over what’s being taught in schools to disagreements over new voting laws. Less visible, but also extremely important, were the racial implications of tax policy changes. What states accomplished this year – both good and bad – will acutely affect people and families of color.

blog  

The Latest Convoluted Arguments in Favor of Rich People Not Paying Taxes

• By Steve Wamhoff

Two Senate hearings last week focused on how the richest Americans are avoiding and evading taxes in ways that ordinary Americans could hardly imagine. All the experts brought in to testify seemed to agree that the House GOP’s recent tactic of “paying for” a spending proposal by cutting IRS funding makes no sense because it […]

blog  

Abortion-Restricting States Skimp on Funding for Children

• By Amy Hanauer

States differ dramatically in how much they allow families to make choices about whether and when to have children and how much support they provide when families do. But there is a clear pattern: the states that compel childbirth spend less to help children once they are born.

blog  

Year-End Tax Package Must Prioritize Children and Families Over Corporations and Private Equity

• By Joe Hughes

While Congress considers extending expired tax provisions, it should first and foremost focus on expanding the Child Tax Credit, a policy with a proven track record of helping families and children.

blog  

State Rundown 11/8: Election Results Bring Victories, Opportunities for More Common-Sense Tax Reform

• By ITEP Staff

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...