Institute on Taxation and Economic Policy (ITEP)

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Arizona Ruling Preserves High-Income Interests Over Education Investments, Popular Vote

• By Marco Guzman

An Arizona court decision delivered an unfortunate blow to voters and those in the state who favor a progressive, adequate tax system that can fund critical priorities including K-12 education.

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State Rundown 3/16: The Scramble to Curb Rising Gas Prices is On

• By ITEP Staff

Rising gas prices have lawmakers around the country searching for ways to ease the pressure on consumers and almost half the states are considering reducing or temporarily repealing their gas tax, but another idea is taking hold...

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State Gas Tax Holidays are Nothing to Celebrate

• By Carl Davis

It’s unlikely that state gas tax holidays will meaningfully benefit consumers, and they come with risks for states’ infrastructure quality.

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What We Can Learn Today from the American Rescue Plan – and Sen. Rick Scott’s Proposed Tax Increases

• By Steve Wamhoff

The success of the American Rescue Plan Act is worth revisiting today. Instead of pursuing Sen. Rick Scott’s agenda of making life more difficult for those already working the hardest, Congress should extend or make permanent some of the beneficial policies in ARPA.

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State Rundown 3/9: One State Stands Out Amid the Avalanche of Tax Cuts

• By ITEP Staff

The avalanche of regressive tax-cut proposals coming out of state legislatures has not slowed over the course of the winter months, but one state has provided a shot of hope to advocates of tax equity...

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A Better Alternative: New Mexico Prioritizes Targeted, Temporary Tax Cuts

• By Marco Guzman

New Mexico stands in stark contrast to the many examples of poorly targeted tax-cut proposals currently being considered around the country.

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Reality Check: Drastic Income Tax Cuts Are Dangerous Despite What Anti-Tax Supporters Say

• By Brakeyshia Samms

Income taxes are the backbone of most state budgets, but you wouldn't gather this fact based on the current trend to cut or eliminate them. A recent, cheerful Wall Street Journal op-ed from anti-government advocate Grover Norquist offers a clear sign that tax-cutting states are taking the wrong approach. The long-time proponent of anti-tax pledges wrote favorably about the legislative and gubernatorial plans to cut income tax cuts across the country. As usual, he failed…

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State Rundown 3/2: State Tax News When You Need It

• By ITEP Staff

ITEP is happy to announce the launch of our new State Tax Watch page, where you can find out about the most up-to-date tax proposals and permanent legislative changes happening across the country...

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SOTU and GOP Response Highlight Dramatic Difference in Parties’ Tax Policy Approach

• By Aidan Davis, ITEP Staff, Jenice R. Robinson

Since last year, multiple states across the country have proposed or are pursuing costly income and other tax cuts that are heavily tilted toward the highest-income households. State advocates have worked to beat back these proposals and sounded the alarm about the long-term consequences of tax cuts, but legislatures (most GOP-led) continue to introduce and approve top-heavy and permanent tax cuts. This state tax-cut fervor took center stage last night when Gov. Kim Reynolds of Iowa…

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Taxes Should be Part of the State of the Union Agenda

• By Amy Hanauer

President Biden should elevate his tax and revenue proposals which remain essential if we are to pay for environmental restoration, health priorities and peacekeeping, the front-burner items that may dominate the speech.

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State Rundown 2/23: Temporary Surplus, Permanent Cuts

• By ITEP Staff

Several state legislatures are continuing to push ahead this year with significant tax cut packages that are regressive and would dramatically reduce revenues and leave states in a bad position should they experience another unexpected economic shock...

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Senate Republicans Revive the Myth of the Takers

• By Steve Wamhoff

Sen. Scott and others who favor shifting taxes away from the rich and down the income distribution often focus solely on the federal personal income tax and ignore all the other taxes that Americans pay.

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The Federal Gas Tax Holiday is Not a New Idea, Just a Bad One

• By Steve Wamhoff

The argument for suspending the gas tax, which would cost $20 billion, is weaker than ever.

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State Rundown 2/16: Spending Priorities Emerge as the Votes Are Counted

• By ITEP Staff

State lawmakers have been busy working out deals and negotiating how best to use excess revenues, and as the votes are beginning to come in, spending priorities are becoming clearer...

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Imagine a Better Tax Code, Use Evidence to Make It Real

• By Amy Hanauer

It’s become popular to urge people to imagine a better world. But on tax policy, the last year gives us ample evidence that lets us move far beyond imagining.

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State Rundown 2/10: Dems Also Set Sights on Tax Cuts

• By ITEP Staff

While record state revenue surpluses have led to big pushes in red states to make unnecessary permanent income and corporate tax cuts, Democrats are also getting in on the tax-cut mania...

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More Than One in Three Young Workers Would Benefit from EITC Reforms in Build Back Better Plan

• By Aidan Davis

Although the EITC expansion did not receive as much attention as the expanded Child Tax Credit, a new ITEP report shows the positive impact of allowing young workers without children in the home to maintain access to one of the nation’s most significant and effective anti-poverty programs.

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Amazon Avoids More Than $5 Billion in Corporate Income Taxes, Reports 6 Percent Tax Rate on $35 Billion of US Income

• By Matthew Gardner

Amazon avoided about $5.2 billion of federal income tax on its record $36 billion in U.S. pretax income for fiscal year 2021.

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State Rundown 2/2: The First Tax Cut Domino Falls…

• By ITEP Staff

One-time payments have become a common theme around the country, as Idaho is one of roughly eleven states with plans to provide tax relief in a similar fashion...

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Netflix Posts a Record $5.3 Billion in Profits and a Federal Tax Rate of Just 1.1 Percent

• By Matthew Gardner

Netflix's 2021 financial report shows it doubled its profits to $5.3 billion from the previous year and reported an effective federal corporate income tax rate of 1.1 percent.

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Build Back Better’s Tax Provisions Would Help Advance Racial Equity

• By Brakeyshia Samms

Build Back Better can help ensure that all people are provided with the chance to lead healthy lives, have access to quality education, are treated fairly and justly, and thrive in today’s economy.

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State Rundown 1/26: States Offering Preview of Tax Themes and Trends for 2022

• By ITEP Staff

Governors and legislators are beginning to settle on and advance tax bills that could drastically shape the future of their states and several trends and themes are beginning to emerge...

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Why Tax Reform Should Remain on the Table

• By Amy Hanauer

In this country, wealthier than any other and wealthier than we’ve ever been, we can create a smarter, more equitable tax code that better taxes those most able to pay.

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State Rundown 1/20: Governors Eyeing Tax Cuts in Yearly Addresses

• By ITEP Staff

A common theme is emerging out of states, as governors around the U.S. begin the year with their annual state speeches, and the news does not bode well for long-term growth and sustainable budgets...

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Mississippi Is the Latest in a String of States Pursuing Short-Sighted, Top-Heavy Tax Cuts

• By Kamolika Das

Not only is Mississippi's latest tax proposal deeply inequitable, the state simply cannot afford it.