Institute on Taxation and Economic Policy (ITEP)

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1,405 posts
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Power to the People: How Workers Can Fight Tax Inequity

• By Brakeyshia Samms

Workers of all races and ethnicities are confronting a tax code that puts them at a disadvantage relative to those with immense wealth, and people of color and women are among those most likely to be negatively impacted by this injustice.

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Free Tax Filing Option from the IRS Would Benefit People of Color, Contrary to Corporate Warnings

• By Brakeyshia Samms

There's a patchwork of programs and preparers for people of color to turn to when filing taxes, and most come from corporations that profit from providing a service that the government could provide more effectively and efficiently for free. The Direct File program can change that and is a great step forward in the IRS’ work addressing racism in the tax code.

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Three Localities are Boosting Communities with Refundable EITCs; Others Should Follow Suit

• By Kamolika Das

Most states already offer their own Earned Income Tax Credits, typically matching a certain percentage of residents’ federal EITC, but this is still a rarity among localities.

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State Rundown 10/26: Off-Year Ballot Measures and State & Local Tax Policy

• By ITEP Staff

November elections are creeping closer and closer and while that typically means a new batch of lawmakers are elected, it also means voters have another chance to help shape state and local tax policy...

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On Corporate Tax Avoidance, Critics Take Aim at ITEP – and Miss

• By Matthew Gardner, Steve Wamhoff

In identifying companies that avoid taxes, ITEP presented evidence that our federal corporate income tax was not working the way most Americans think it should work. The public and lawmakers paid attention, including President Biden who then made the case that this demonstrated the need for reform. As a result, Congress enacted the corporate minimum tax, to make the tax system a bit closer to what most Americans want it to be. If you look…

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Intuit Receives Millions in Federal Subsidies While Arguing IRS Direct File Would Be Too Costly

• By Joe Hughes, Spandan Marasini

The tax preparation industry has for years lobbied to prevent the IRS from providing a tool that would allow Americans to file their taxes online for free. Recent public disclosures from Intuit, the maker of TurboTax and the leader of the pack, show that tax breaks the company claims for doing “research” might be larger […]

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2023’s State and Local Tax Ballot Measures: Voters to Weigh in on Property Taxes, Wealth Taxes, and More

• By Jon Whiten

Even in this slow year for candidate elections, the decisions that voters in states and cities make could strengthen or weaken revenue for needs in their communities and could change how taxes are distributed across the income spectrum. In the places where tax fairness is on the ballot, much is at stake.

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Eliminating Indiana’s Income Tax Would Jeopardize Public Services & Create a Windfall for the Well-Off

• By Neva Butkus

Meaningful investments in Indiana’s future require a smart, and fair, tax code that recognizes current economic realities and can raise a sustainable stream of funding  from those most able to pay.

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Large and Growing Tax Gap Underscores the Need to Adequately Fund the IRS

• By Jon Whiten

New figures released show the difference between what Americans paid and owed in taxes grew to $688 billion in 2021, a significant jump from previous estimates. This new data underscores that last year’s boost to IRS funding under the Inflation Reduction Act was absolutely necessary and should be protected by lawmakers.

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The Moore Case Before the U.S. Supreme Court Could Widen the Racial Wealth Gap

• By Brakeyshia Samms, Moore v. United States

Moore v. United States, already a cause for concern for tax lawyers, could create more barriers for racial equity advocates working to reverse the economic plight of many households of color.

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State Rundown 10/12: Tax Policy Debates Don’t Just Happen in the Statehouse

• By ITEP Staff

It may be the off-season for state legislatures, but tax policy changes could soon emerge from the ballot box or the courts. Advocates in Arkansas want voters to decide the future of taxing diapers and feminine hygiene products, and supporters of public education in Nebraska are working to make sure voters have a say on the state’s school choice tax credit. Meanwhile, cannabis firms in Missouri are suing the state over cities and counties stacking…

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The Campaign by Democratic Former Officials to Stop Taxes on the Wealthy

• By Steve Wamhoff

One of the most attention-grabbing anti-tax campaigns at work today is called SAFE, which stands for Saving America’s Family Enterprises. But it might as well mean Saving Aristocrats From Everything given the outfit’s knack for opposing any national proposal to limit special tax advantages that only the wealthy enjoy. The basic approach of SAFE is […]

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The IRS Shouldn’t Be Lawmakers’ Sacrificial Lamb 

• By Joe Hughes

Last year, Congress reversed decades of funding cuts to the IRS to help the agency improve taxpayer services and crack down on wealthy tax cheats through the Inflation Reduction Act. The IRS adopted their assignment, and this past tax filing season was a marked improvement from the year before – both for the agency and […]

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State Rundown 9/27: Some States are Looking to Paint the Budgets Red

• By ITEP Staff

When it comes to investments, state lawmakers across the country are positioning their states to be in the red as they pass or debate further tax cuts that will overwhelmingly benefit the wealthy – and some states are now adding an additional coat of red paint...

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Government Shutdown is Rooted in Hypocrisy, Dysfunction, and, As Always, Tax Cuts for the Rich

• By Joe Hughes

The priorities in this shutdown drama couldn’t be clearer. House Republicans once again threaten the financial security of the millions of Americans to exact cuts to programs like Head Start, the Social Security Administration, and the EPA – all while seeking unaffordable tax cuts for multinational corporations, the wealthy, and foreign investors.

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Moore Case Could Enrich Tax-Avoiding Multinational Corporations – and the SCOTUS Justices Who Own Their Stock

• By Matthew Gardner

The Moore v. United States case that will soon be heard by the U.S. Supreme Court could jeopardize at least $270 billion if SCOTUS finds the entire transition tax to be unconstitutional. The decision could also invalidate other important parts of the current tax system while preempting progressive wealth tax proposals. Such an outcome would represent one of the costliest—and most ethically questionable - Supreme Court decisions in U.S. history.

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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.

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State Rundown 9/13: The (Policy) Choices We Make

• By ITEP Staff

The U.S. Census Bureau released its annual assessment of poverty in America this week...

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State Tax Credits Have Transformative Power to Improve Economic Security

• By Aidan Davis

The latest analysis from the U.S. Census Bureau provides an important reminder of the compelling link between public investments and families’ economic well-being. Policy decisions can drastically reduce poverty and improve family economic stability for low- and middle-income families alike, as today’s data release shows.

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Lapse of Expanded Child Tax Credit Led to Unprecedented Rise in Child Poverty

• By Joe Hughes

The new Census data should provide both concern and optimism for lawmakers. The steep rise in child poverty is an inexcusable tragedy. But it shows that child poverty is avoidable when Congress makes the decision to make tax policy for those who need the hand up rather than for the rich and powerful.

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How to Better Tax the Rich Men North (and South) of Richmond

• By Amy Hanauer

When you examine tax policy through the lens of how much working (and poor) people are taxed compared to rich men north (and south) of Richmond, it’s hard not to take Oliver Anthony's runaway hit as a jumping off point to amplify some important facts.

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State Rundown 8/23: Tax and Effect

• By ITEP Staff

While a number of state tax laws are debated, approved, and vetoed in any given year, many go unnoticed...

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The Innovative Non-Tax Tax Parts of the Inflation Reduction Act

• By Michael Ettlinger

In the year since Congress enacted the Inflation Reduction Act (IRA), ITEP has written extensively on the law’s provisions to increase tax fairness and raise revenue for public investments. The IRA, however, also includes tax provisions that serve purposes other than ensuring that we raise adequate revenue and that we do so in a fair […]

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Celebrating One Year Since the Landmark Inflation Reduction Act

• By Joe Hughes

The Inflation Reduction Act was a course correction from decades of tax cuts that primarily went to the richest Americans and left the rest of us with budget shortfalls that conservative lawmakers now seek to plug with cuts to Social Security and Medicare. For the first time in generations we are finally asking those who have benefited the most from our economy to contribute back.

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State Rundown 8/10: Pump the ‘Breaks’ on Sales Tax Holiday Celebrations

• By ITEP Staff

August is here, school is starting, and with that comes back to school shopping...