ITEP Work in Action
DC Fiscal Policy Institute: Taxing Capital Gains More Robustly Can Help Reduce DC’s Racial Wealth Gap
November 1, 2023
The federal and DC governments tax income from wealth more favorably than income from work. This preferential treatment means we under tax the most well-off, tax their wealth less often, and, in some cases, allow them to accumulate fortunes and pass vast sums of wealth to heirs tax-free. Read more.
Testimony of ITEP’s Amy Hanauer Before the D.C. Tax Revision Commission
May 3, 2023
The written testimony of ITEP Executive Director Amy Hanauer is below the embedded video of the hearing. Dear D.C. Tax Revision Commission, Thank you for inviting me to testify last week on the research of my colleagues at the Institute on Taxation and Economic Policy. We’re grateful to have our perspective included and as a […]
DC Fiscal Policy Institute: DC’s Earned Income Tax Credit – The Most Generous in the Nation, but not the Most Inclusive
April 6, 2022
The DC Earned Income Tax Credit (EITC) is a powerful tool for advancing racial, gender, and economic equity. Modeled after the federal tax credit by the same name, DC’s EITC goes to families and individuals earning low and moderate incomes to help them keep more of what they earn and meet basic needs. It is claimed […]
DC Fiscal Policy Institute: NEW VIDEOS: Why DC’s Wealthiest Should Pay their Fair Share
July 12, 2021
The highest income residents in DC pay less as a share of their income than the rest of us. At the same time, low-income Black and brown DC residents have been economically devastated by the pandemic. Watch videos
DC Fiscal Policy Institute: Tax Injustice: DC’s Richest Residents Pay Lower Taxes than Everyone Else
March 5, 2021
A tax system that adequately advances racial and economic justice must be progressive, requiring the richest people to pay a much higher share of their income in taxes than lower-income families who have little or no wiggle room in their family budget. Yet new findings from the Institute on Taxation and Economic Policy (ITEP), a […]
The DC Line: – David Schwartzman: By Offsetting Federal Tax Cuts Locally, We Can Improve the Quality of Life for All DC Residents
April 10, 2019
Misha Hill of the Institute on Taxation and Economic Policy (ITEP) has estimated that the top 20 percent income bracket of DC residents will receive almost $700 million in federal tax cuts this year, with most ($541 million) going to the top 5 percent (with incomes above $319,000 per year). The same study finds that […]
DC Fiscal Policy Institute: Narrowing Income Inequality Through the Tax Code
October 17, 2018
DC’s tax system stands out in two key ways, according to a new analysis on how state tax policies affect families at different income levels. First, taxes on DC families living on very low incomes–below about $24,000 a year–are lower than in any state in the U.S. That good news is due primarily to income and property tax credits targeted to help residents working hard to make ends meet. But the analysis shows that families with incomes just above that level pay the same share of their income in DC taxes (income, sales, and property taxes) as the District’s wealthiest…
DCFPI: As High-Income DC Taxpayers Reap Large Federal Tax Windfalls, DC Can Make Our Tax Code More Progressive
January 22, 2018
According to recent estimates from the Institute for Taxation and Economic Policy (ITEP), District of Columbia residents can expect to receive an $850 million federal tax break this year.
DC Fiscal Policy Institute, Maryland Center on Economic Policy, and The Commonwealth Institute: Triple Whammy: A Regional Sales Tax for Metro, Like Fare Hikes and Service Cuts, Would Fall Hardest on Struggling Families
August 28, 2017
A strong Metro system is important to all of us in the Washington region. And everyone agrees that the Metro system needs new resources to rebuild its health. But a regional sales tax—a widely discussed option—would be an unfair way to pay for it.
DC Fiscal Policy Institute: Revenue: Where DC Gets Its Money
February 9, 2017
The DC government collects revenue in a variety of ways from its residents, businesses, and the federal government. These revenues are used to fund the wide array of services provided by the District, from schools to health care to libraries to road construction. The DC government collected about $10.5 billion in revenue in fiscal year […]
DC Fiscal Policy Institute: The Recommendations of the D.C. Tax Revision Commission Are Having a Favorable Impact on the District
January 16, 2015
The Institute on Taxation & Economic Policy (ITEP) issued its 2015 report — Who Pays? A Distributional Analysis of the Tax Systems in All 50 States – today. The fifth edition of this report, which also includes findings for DC, shows the District of Columbia’s progress towards improving the fairness of the DC tax system. […]
DC Fiscal Policy Institute: Making DC’s Tax System Fair: Progress in the 2015 Budget
May 12, 2014
Most DC residents — like most Americans — agree that income tax rates should be graduated by income. Low-income households should pay the lowest rate, so that there is an incentive to work and they can support their basic needs. This kind of progressive approach also means tax rates get higher as incomes rise and […]
D.C. Tax Revision Commission: Final Report
May 8, 2014
On Dec. 18, 2013, the D.C. Tax Revision Commission unanimously approved a set of recommendations designed to improve the District’s tax system and help its residents and businesses prosper.The Commission’s recommendations are a roadmap to a more fair, competitive, and efficient tax system. Read the Full Report
DC Fiscal Policy Institute: Raising Revenue by Creating a New Tax Bracket for Top Earners: A Progressive Approach to Addressing DC’s Budget Shortfall
January 14, 2013
A DC Councilmember has proposed raising the income tax rate on the District’s wealthiest residents as a way to generate money for next year’s budget. The idea has been met with some skepticism, including the belief that this will push the well-off to leave the city. Yet for several reasons, this bill should be taken […]
DC Fiscal Policy Institute: Expanding the District’s Sales Tax Can Raise Revenue, While Increasing Tax Fairness
January 14, 2013
In response to the most recent revenue shortfall, the DC Council voted in July 2009 to raise the District’s sales tax rate from 5.75 percent to 6 percent. Raising revenue is important to ensure that DC can continue to provide education, transportation, and other critical services during this economic downturn. As policymakers approach future revenue […]
DC Fiscal Policy Institute: Tell It Like It Is: Combined Reporting Improves DC’s Tax System By Making Corporations Disclose Their Profits and Pay Their Fair Share
January 14, 2013
Mayor Fenty and the DC Council recently approved an important reform to the District’s corporate income tax which will prevent large corporations from avoiding taxes. The law, known as “combined reporting,” is recognized by economists and tax experts as the most comprehensive way for states to stop corporations from abusing tax shelters. A majority of […]
DC Fiscal Policy Institute: The Middle Class Squeeze: DC’s Tax System Falls Most Heavily on Moderate-Income Families
January 14, 2013
Families in the District with incomes of $20,000 to $60,000 pay one-tenth of their incomes in DC property, sales, and income taxes, according to a new study by the Institute on Taxation & Economic Policy. This is much higher than the share of income the city’s richest families pay in DC taxes. The study found […]
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