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Carl Davis
Research DirectorCannabis tax revenue is becoming more significant as legal sales grow. The tax is far from a budgetary panacea, but an ITEP analysis of revenue data reported by the seven states with legal cannabis sales underway suggests that excise and sales tax revenues from the sale of the drug could reach $1.6 billion this year. -
Jenice R. Robinson
Communications DirectorAmong other things, this blog highlights how federal, state and local policies systematically work to reinforce the racial wealth gap by, for example, using the tax code to redistribute the nation’s wealth to billionaire developers and keeping low-income people of color in a perpetual cycle of debt through fines and fees to fund local governments. Opportunity zones and the top-heavy 2017 tax law are emblematic of a long history of policymaking that advantages wealthy white families. -
Steve Wamhoff
Federal Policy DirectorJuly 31, 2019
A Wealth Tax Might Be Easier to Implement than You Think
A direct federal tax on wealth, as described in a January report from ITEP and proposed by Sen. Elizabeth Warren, could raise substantial revenue to make public investments, curb rising inequality, and is supported by a large majority of Americans. But would it work? Recent research highlighted in a new academic paper outlines approaches that would make it easier than you might think. -
July 26, 2019
State Rundown 7/26: The Dog Days of Tax
OHIO legislators passed a budget with unfortunate income tax cuts for high-income households. Other states turned their attention to unconventional ideas during their legislative off-seasons, for better and for worse. And there are many gems to be found in our “What We’re Reading” section below, including new research on the racial inequities that continue to pervade our communities and schools. -
Steve Wamhoff
Federal Policy DirectorIf a future Congress and president enact a real tax reform, one that requires corporations to pay their fair share and ends TCJA’s various corporate breaks for offshore profits, then companies will use inversions and other tactics to dodge taxes once again—if lawmakers let them. That’s why any real tax reform will include something like the Stop Corporate Inversions Act, introduced last week by Sens. Dick Durbin and Jack Reed to block inversions. -
Meg Wiehe
Deputy Executive DirectorSeveral states this year proposed or enacted tax policies that would require high-income households and/or businesses to pay more in taxes. After years of policymaking that slashed taxes for wealthy households and deprived states of revenue to adequately fund public services, this is a necessary and welcome reversal. -
Dylan Grundman O'Neill
Senior AnalystSales tax holidays are wasteful, misguided policies that will drain more than $300 million of funding away from shared priorities like schools, roads, and health care this year in 16 states, while delivering little benefit to the families that could most use the help. Our newly updated brief reviews recent developments in sales tax holiday policy—including how online sales taxes are changing the picture—and explains why they are a misguided policy option for states. And the story below “follows the money” to show how sales tax holidays are a bad deal for families and communities alike. -
July 12, 2019
State Rundown Special Edition: Fiscal Year Wrap-Up
We've said it before, and we'll say it again: states don't have to wait for federal lawmakers to make moves toward progressive tax policy. And so far, 2019 has been a good year for equitable and sustainable tax policy in the states. With July 1 marking the start of a new fiscal year for most states, this special edition of the Rundown looks at how discussions in 2019 have been dominated by plans to raise revenue for vital investments, tax the rich and corporations fairly, use the tax code to help workers and families and advance racial equity, and shore up revenues for infrastructure. -
Matthew Gardner
Senior FellowEach year, state and local governments spend billions of dollars on targeted tax incentives—special tax breaks ostensibly designed to encourage businesses to relocate, expand or simply stay where they are. A law enacted by the Missouri legislature creates a template for states to work bilaterally to put the brakes on the “race to the bottom” in state business taxes. -
ITEP Staff
July 1, 2019
ITEP Summer Reading (and Watching) List
Mercury is rising, presidential primary debates are underway and most state legislative sessions have adjourned for summer. Whether you’re curling up with a good book (or your favorite e-Reader) or looking for a new television show to binge-watch, check out these recommendations on ITEP’s Summer Reading (and Watching) List. -
Carl Davis
Research DirectorThe last few years have brought big changes to sales tax collection for purchases made at Amazon.com and other e-retail websites. As recently as 2011, Amazon was only collecting sales tax on its direct sales in five states – a fact that gave the company a competitive edge over brick and mortar stores during a critical time in its growth. Today, Amazon is collecting state-level sales taxes on all its direct sales, but it still usually fails to collect sales tax on the large volume of sales it makes through the “Amazon Marketplace.” This points to a broader problem in state tax enforcement that lawmakers should move quickly to address. -
Steve Wamhoff
Federal Policy DirectorThe White House is reported to be planning to unilaterally adjust the way capital gains are assessed to benefit the wealthiest Americans. The proposal would adjust capital gains for inflation, reducing taxes disproportionately for the wealthiest households who own most assets by limiting their taxable gains to those above and beyond the inflation rate. -
Low-income working families got good news and bad news this week, as Earned Income Tax Credit (EITC) enhancements passed in California and advanced in Oregon, while minimum wage increases failed in Pennsylvania, Rhode Island, and Wisconsin. Meanwhile, the momentum for taxing wealth and the very rich continued to grow, as more one-percenters called for enacting progressive taxes, and Inequality.org held a star-studded conference on why and how to do so.
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ITEP Staff
June 27, 2019
ICYMI: A Brief Summary of Our June Blogs and Reports
A summary of ITEP reports, analyses and blogs this month. -
Steve Wamhoff
Federal Policy DirectorA February survey found that 61 percent of registered voters supported a wealth tax proposal, including 51 percent of Republican voters. And it’s not just the non-rich wanting to tax the very rich. A June survey found that 60 percent of millionaires support the idea. -
Carl Davis
Research DirectorOn July 1, 12 states will boost their gasoline taxes and 11 will boost their diesel taxes. The reasons for these increases vary, but they’re generally intended to fund maintenance and improvement of our nation’s transportation infrastructure–a job at which Congress has not excelled in recent years. -
Carl Davis
Research DirectorJune 27, 2019
Most States Have Raised Gas Taxes in Recent Years
Ohio now enjoys the distinction of being the 30th state to raise or reform its gas tax this decade, and the third state to do so this year, under a bill signed into law by Gov. Mike DeWine. While state tax policy can be a contentious topic, there has been a remarkable level of agreement on the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies. These actions are helping reverse losses in gas tax purchasing power caused by rising construction costs and improvements in vehicle fuel efficiency. -
Steve Wamhoff
Federal Policy DirectorA refundable tax credit proposed by Rep. Rashida Tlaib (D-MI) would be more expansive than other recent tax credit proposals, new estimates from ITEP show. Rep. Tlaib’s proposal, unlike others, does not require households to work to receive the benefit. -
Steve Wamhoff
Federal Policy DirectorAmerica needs a new tax code. The Democratic presidential debates beginning this week present an opportunity for candidates to make clear how they would address inequality or to raise enough revenue to make public investments that make the economy work for everyone. Here are some of the big tax issues that we hope they will touch on. -
Carl Davis
Research DirectorA House Ways and Means subcommittee hearing on Tuesday will explore a highly controversial provision of the Tax Cuts and Jobs Act (TCJA) that prevents individuals and families from writing off more than $10,000 in state and local tax (SALT) payments on their federal tax forms each year. The focus of the hearing will be whether the cap negatively affects state and local revenue streams that fund schools, firefighters, and other services. There are at least three ways this could happen though only one of those is plausible, and it’s not the one that the organizers of this hearing likely expected. -
Steve Wamhoff
Federal Policy DirectorToday the House Ways and Means Committee is marking up the Economic Mobility Act of 2019, a bill introduced by Chairman Richard Neal to expand some key tax credits to help low- and moderate-income people and families. New data generated with the ITEP microsimulation tax model show how adults and children would benefit nationally and in each state. -
As Americans observe Juneteenth today–the day two years after the Emancipation Proclamation on which news of the end of the Civil War and slavery reached some of the last slaves in Texas—most people’s attention should be on celebrating victories, remembering losses, gathering strength to continue the fight for racial justice, and the accompanying Congressional reparations hearings. In comparison, state tax debates over matters such as reluctance to invest in infrastructure in Michigan and Missouri, approval of income tax cuts in Wisconsin, and a budget standoff in New Jersey may seem unimportant and irrelevant. But we encourage our readers to think about how state policies often serve to enrich and empower white and wealthy households, and how our tax codes and public investments can be redirected toward advancing racial equity in all states.
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ITEP Staff
June 18, 2019
We’re Hiring: Lead Tax Model Platform Developer
Join our team! ITEP has an opening for a Senior Software Engineer (Full Stack) to join our creative, passionate and productive staff as Lead Tax Model Platform Developer. This position will work directly with the technical engine behind our work: ITEP’s Microsimulation Tax Model. The Lead Tax Model Platform Developer reports directly to ITEP’s senior economist and works closely with the entire policy analyst team. -
Steve Wamhoff
Federal Policy DirectorDismissing calls for progressive taxes as “radical,” “extreme,” or “socialism” are taunts meant to distract from the real question: Why should we ignore the bottom half of Americans, whose share of the economic pie shrank and now have negative net worth, while allowing the wealthy and powerful, whose net worth more than tripled, to dictate our public policies? -
This week saw lawmakers in Ohio propose significant harmful tax cuts, leaders in California and Oregon work toward strengthening the state Earned Income Tax Credits (EITCs), and governors in Missouri and Kansas declare a truce to end the practice of bribing businesses in the Kansas City area with tax cuts to move from one side of the state line to the other. Meanwhile, Massachusetts leaders are discussing ways of raising taxes on their richest households, which our latest Just Taxes blog post notes is a promising trend this year across many states.
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?