Institute on Taxation and Economic Policy (ITEP)

Citations

ITEP's Citations Research Priorities

ITEP cited in testimony in favor of a California policy that would close a profit shifting loophole and ensure that corporations pay their fair share. Read more.

USA Today: Californians Want To Tax Billionaires. They’re Threatening To Leave.

March 25, 2026

Carl Davis, research director at the Institute on Taxation and Economic Policy, predicts the number of billionaires who might leave California over the billionaire tax “will be greater than zero, but still very, very small.” Read more.

Los Angeles Times: Eliminating a Corporate Tax Break Is Pitched as a Way To Make Up for Federal Healthcare Cuts

March 17, 2026

Carl Davis, a research director at the Institute on Taxation and Economic Policy, stated that there is growing support nationwide to repeal the water’s edge tax break as public awareness of profit shifting spreads. “Folks are outraged when they hear that these companies are pretending that they are earning their profits in the Caymans or […]

Several large corporations pay next to nothing in corporate taxes in California, largely due to overly generous state tax breaks. Reforming the state’s corporate tax system is a necessary step to support the health and well-being of Californians and strengthen economic security for all. Read more.

Undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 — a number that would rise to $10.3 billion if these taxpayers could apply to work lawfully. People are afraid to leave their homes, children are left without their parents, and families unable to afford groceries. Families are even foregoing critical medical care. […]

San Francisco Chronicle: New SALT cap means savings for California homeowners. Here’s how much

October 6, 2025

Steve Wamhoff, director of federal tax policy for the Institute on Taxation and Economic Policy, said his organization’s analysis found less SALT savings for Californians than Redfin reported. He ran the new SALT rules through ITEP’s tax microsimulation model, which uses a database of taxpayer and census records to create a computer model of state […]

The Sacramento Bee: Why California’s Wealthiest Tax Payers Could Get Less of a Trump Tax Break

August 12, 2025

The rich will get richer from President Donald Trump’s Big Beautiful Bill’s tax provisions – but California’s millionaires won’t get as much of a benefit as their counterparts in most other states.

Communities across California are feeling the effects of immigration raids and mass deportation efforts, both in the fabric of their communities as well as their economies. Actions and threats against employees, jobs, and neighbors will have a profound impact on our state and nation in both the short and long term. Here, we delve deeper into one aspect of why by discussing the impact immigrants have on our economy.

Sacramento Bee: Child Tax Credits: California’s Winners and Losers in New GOP Congressional Plan

May 13, 2025

But there’s also a sobering feature: The parents of an estimated 910,000 California children would lose the credit because their child has at least one undocumented immigrant parent without a Social Security number, according to an analysis by several research groups including Washington’s Institute on Taxation and Economic Policy.

Los Angeles Times: IRS Plan to Give Data to ICE Could Wallop California, Where Many Immigrants Pay Taxes

April 14, 2025

Also like many of her clients, she has routinely paid U.S. taxes in the past using what’s known as an individual taxpayer identification number, or ITIN, in lieu of a Social Security number. The process seemed pretty straightforward, she said, until recently, when Trump administration officials announced that IRS data would be shared with ICE agents and used to target undocumented taxpayers for the first time.

Newsweek: Florida Wants to Cut Property Taxes—But California Has a Warning

April 10, 2025

As state lawmakers consider cutting and even abolishing property taxes in Florida, California—which passed major reform in the late 1970s protecting homeowners against significant hikes—offers a cautionary tale of how well-intended tax revolts can backfire against those they should benefit. Read more.

Newsweek: California Braces for Donald Trump’s Immigration Crackdown

January 23, 2025

California is gearing up for President Donald Trump’s immigration crackdown, which includes mass deportations and sweeping raids targeting undocumented immigrants. Read more.

Audio: ITEP’s Eli Byerly-Duke Discusses California’s Tax System with Stew Jenkins

January 22, 2025

ITEP State Policy Analyst Eli Byerly Duke appeared on the SLO County Public Policy & The Law program on K-News 98.5 to discuss California’s tax system. Listen here.

Capital & Main: Why Mass Deportations Would Cripple California’s Economy

November 22, 2024

Trump has, after all, already made full-throated declarations that his administration will conduct the largest deportation of undocumented residents in U.S. history. That should resonate in a place like California, with its estimated 1.8 million undocumented immigrants — and it certainly would shake up a state agriculture industry in which nearly half of all workers are undocumented.

California’s undocumented residents contribute nearly $8.5 billion in taxes, playing a crucial role in supporting public services while remaining excluded from essential programs. Read more.

Los Angeles Times: Here Are 4 Campaign Promises from Trump. What Are Their Chances if He Wins?

October 16, 2024

The economic impacts would be huge. In California, an estimated 1.5 million workers — 7% of the state’s labor force — are undocumented, according to the Pew Research Center. The Institute on Taxation and Economic Policy, a left-leaning think tank, found that undocumented workers paid $96.7 billion in taxes in 2022, including $8.5 billion in California.

Los Angeles Times: Trump Says He Would Uncap the State and Local Tax Deduction

September 19, 2024

Days after mingling with wealthy donors in Beverly Hills and the Bay Area, former President Trump said that if he is reelected, he would reinstate a tax break that benefits residents of high-tax states such as California.

ITEP’s Kamolika Das Responds to Misleading Baltimore Sun Op-ed

September 19, 2024

ITEP Local Policy Director Kamolika Das had this letter to the editor published in the Baltimore Sun on September 18: David F. Tufaro’s recent commentary about the Renew Baltimore campaign is wildly misleading (“Baltimore’s high property taxes sustain a broken system,” Sept. 15). The Renew Baltimore proposal to drastically cut and permanently cap Baltimore’s property tax […]

Recent research from the Institute on Taxation and Economic Policy (ITEP) reveals that undocumented immigrants contributed an astounding $96.7 billion in federal, state, and local taxes in 2022. Six of the most immigrant-populous states accounted for a combined $21.1 billion of these contributions, with California leading the way at $8.5 billion in tax revenue. The research further showed that these workers pay into programs that they’re barred from accessing, and in most areas pay higher state and local tax rates than their wealthiest neighbors. 

McClatchy DC: Undocumented Immigrants in California Are Paying Billions in Taxes. Here’s How Much.

July 30, 2024

Amid pledges for mass deportations of undocumented immigrants by presidential candidate Donald Trump, a new study has highlighted the increasingly positive economic effects of this community. The report from the Institute on Taxation and Economic Policy, a Washington-based progressive research group, found undocumented immigrants nationwide paid an estimated $96.7 billion in taxes in 2022. About $37.3 billion was spent on state and local taxes, and the rest went to federal taxes.

New York Times: Newsom Uses Annual State Address to Confront Republicans Across the Nation

June 27, 2024

Gov. Gavin Newsom of California, whose liberal state has been hammered by Republicans for months as a hellscape of homelessness, crime and high taxes, used his annual State of the State address on Tuesday to slam “conservatives and delusional California bashers” and defend “the California way of life.”

Sacramento Bee: Governor Gavin Newsom Claims California Is Not a ‘High-Tax State.’ Is He Correct?

June 26, 2024

“Here’s the truth Republicans never tell you: California is not a high tax state,” Gov. Gavin Newsom declared Tuesday in his taped State of the State address.

Yahoo Finance: Jeff Bezos Spent $237 Million On Florida Mansions — Billionaires Flock To ‘Upside Down’ Tax Haven Where Rich Pay Less Than Poor

May 20, 2024

The Sunshine State has become a magnet for billionaires seeking tax relief. Among the latest to join the trend is Amazon founder Jeff Bezos, who has recently expanded his real estate holdings in Miami’s exclusive Billionaire Bunker area. Bezos’ acquisitions include three properties, bringing his total investment in the neighborhood to $237 million.

Forbes: California Is Not Actually a High-Tax State According To New Study

May 17, 2024

Depending on where you fall on the income scale, California may not actually be that high tax of a state. For many in the middle class and below, California may let you keep more of your hard-earned income than many other states, according to a new study, “Who Pays” from the Institute on Taxation and Economic Policy (ITEP). While California has the highest marginal tax rate in the nation at 13.3%, only some households pay this rate on their income. That doesn’t stop so-called low-tax states like Texas and Florida from blasting the tax policy of the Golden State.

USA Today: Are California’s Taxes Really That High? Not If You’re of ‘Modest Means,’ Report Says

May 1, 2024

Whether it be that all Californians surf, live by the beach or only vote blue, there are a lot of assumptions about residents of the Golden State. Yet a new report is challenging one of the most widely held belief – that Californians shoulder the nation’s highest tax burdens. Read more.