ITEP Work in Action
NC Policy Watch: Devastating consequences if Congress fails to replace DACA in three months
December 20, 2017
State and local government coffers would also take a hit if Congress fails to pass the Dream Act, or another effective solution. The Institute for Taxation and Economic Policy estimates that current DACA recipients pay almost $58 million in state and local taxes, contributions which could grow to $78 million if the Dream Act were […]
NC Policy Watch: In N.C., 42% of Trump’s proposed tax cuts would go to the few making more than $1 million
August 25, 2017
A newly released report confirms that the White House is not really interested in tax reform that helps “ordinary Americans”. Instead, under President Trump’s proposed tax cut plan, “ordinary Americans” will hardly benefit at all, as nearly half of Trump’s proposed tax cuts would go to people making more than $1 million annually.
Budget and Tax Center: Costly Tax Cuts in New State Budget Continue Precarious Road Ahead for North Carolina
August 21, 2017
The new two-year state budget passed by lawmakers included another package of tax cuts that will further limit the amount of revenue available for public investments. The latest tax cuts will reduce annual available revenue by $900 million and, when combined with tax cuts passed since 2013, result in an estimated $3.5 billion in less annual revenue compared to the tax system that was in place prior to tax changes in 2013.
Failed Tax-Cut Experiment (in North Carolina) Will Continue Under Final Budget Agreement, Pushes Fiscal Reckoning Down the Line
June 21, 2017
The final budget agreement from leaders of the House and Senate puts North Carolina on precarious fiscal footing, The tax changes that leaders agreed to—which were less a compromise and more of a decision to combine the tax cuts in both chambers’ proposals—make the cost of these tax cuts bigger than what either chamber proposed. Including the new tax cuts,approximately 80 percent of the net tax cut since 2013 will have gone to the top 20 percent. More than half of the net tax cut will go to the top 1 percent.
The Cost Of Trickle-Down Economics For North Carolina
May 26, 2017
Since 2013, state lawmakers have passed significant income tax cuts that largely benefit the state’s highest income earners and profitable corporations. These costly tax cuts have made the state’s tax system more upside-down by delivering the greatest income tax cuts to the state’s highest income taxpayers, while maintaining a heavier tax load on low- and […]
The Progressive Pulse: Young Undocumented Immigrants’ Tax Contributions Would Drop by Nearly Half Without the Protection of the DACA Program
May 3, 2017
Young immigrants eligible for DACA (Deferred Action for Childhood Arrivals) annually contribute $2 billion in state and local taxes, according to new analysis from the Institute on Taxation and Economic Policy. The ITEP report finds that this number would drop by nearly half without DACA protection at a time when the Trump Administration has sent mixed signals on whether it intends to honor the DACA executive order in the long term.
North Carolina Justice Center: Prosperity Watch (Issue 72, No 3): Tax cuts since 2013 reinforce racial and ethnic exclusion
April 18, 2017
Changes to North Carolina’s tax system in recent years have had an impact on the level of available revenue for public investments and shifted tax responsibility among taxpayers. BTC analysis has already noted how the tax chances since 2013 have delivered a significant share of the net tax cut to the state’s highest income earners […]
The Progressive Pulse: Undocumented immigrants pay their fair share of taxes, too
April 12, 2017
Tax Day is just around the corner, and this year is no different than any other for countless undocumented immigrants filling tax forms in North Carolina. Current rhetoric on immigration often overlooks the important contributions undocumented immigrants make to our communities as neighbors, workers, and taxpayers. The Institute on Taxation and Economic Policy recently released […]
NC Policy Watch: What you need to know as the state Senate moves to cut taxes yet again
April 3, 2017
The North Carolina Senate is moving ahead yet again – perhaps as early as this afternoon – with a new proposal to further reduce state taxes and the revenues they generate to fund essential public structures and services. While the plan is billed as “a billion dollar middle class tax cut,” a closer look at […]
The Progressive Pulse: New analysis: Most of NC senate’s “middle class” tax cut would actually flow to the wealthy
April 3, 2017
BTC’s analysis of SB 325 uses a more robust model developed by the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan organization. ITEP’s microsimulation tax model calculates tax revenue yield and incidence, by income group, of federal, state and local taxes. The model is used in states across the country to analyze state […]
The Progressive Pulse: Why cutting taxes for business again makes no sense
March 31, 2017
When businesses pay their share of taxes, North Carolina is able to invest in the things that build thriving communities and a prosperous economy – things like good schools, roads, public health and a clean environment. The Senate’s tax plan, Senate Bill 325, includes a tax cut for businesses that goes against this proven principle. […]
North Carolina Justice Center: BTC POLICY BASIC: Marginal versus Effective Personal Income Tax Rates
March 19, 2017
A great deal of confusion abounds in discussions about state personal income tax rates and how they apply to income. This policy basic clarifies the difference between marginal and effective tax rates, and gives a North Carolina-specific example of how these rates work in action. Read more here
North Carolina Justice Center: Still walking the path to zero: The Senate tax plan will harm North Carolina’s goal of building a stronger, inclusive economy
March 19, 2017
Senate leaders continue to pursue reductions to the income tax rate for wealthy taxpayers and profitable corporations even as they claim to be focused on helping low- and moderate-income taxpayers. This year they will do so without proposing immediate replacement of the revenue with sales-tax base expansions. The result is a loss of nearly $1 […]
North Carolina Budget and Tax Center: The Road to Nowhere Good for North Carolina
February 22, 2017
Tax changes passed in the 2016 legislative session reduced the income tax rate and increased reliance on the sales tax. This continued flawed approach to taxation that policymakers have followed since 2013 has proven disastrous to other states’ fiscal and economic outlook. Such an approach delivers the greatest reduction in the tax load to the […]
North Carolina Justice Center: 12 Charts about N.C.’s Economy in 2016
January 6, 2017
“The economic challenges that face North Carolina families were front and center in 2016. North Carolina wrestled with the disconnect between political rhetoric and everyday reality this election year, thanks to a recovery that failed to boost wages or provide enough jobs for many of our communities. Here are 12 charts that tell the story […]
North Carolina Budget and Tax Center: North Carolina’s “Tax Swap” Gives Biggest Breaks to the Wealthiest, Undermines Public Investments for All
April 11, 2016
“Efforts to rely more on the state sales tax and less on the income tax to support public services have shifted tax obligations to less affluent North Carolinians, while saving the wealthiest the most money, and reduced resources available for public investments that build a strong economy.” Read full report
North Carolina Tax and Justice Center: Prosperity Watch Issue 58, No. 3: State EITC allows working North Carolinians keep more of what they earn, boosts economy
February 17, 2016
Low- and middle-income taxpayers in North Carolina pay a larger share of their income in state and local taxes than the wealthiest taxpayers in the state. This inequity in North Carolina’s tax code makes it difficult for working families to make ends meet and further challenges the state’s ability to invest in communities and […]
North Carolina Tax and Budget Center: BTC REPORTS: Doubling Down on a Losing Strategy – More Income Tax Cuts Will Grow Budget Shortfalls, Not the Economy
October 21, 2015
North Carolina policymakers have proposed another round of income tax cuts on top of those they passed in 2013. Senate Bill 526 would cost at least $1.4 billion by 2017, causing a new wave of cuts to services North Carolinians rely on each day and compounding the problems created by the tax cuts passed two […]
North Carolina Budget and Tax Center: FACTSHEET: Keep Arbitrary Tax & Spending Limits Out of North Carolina – Vote No on Senate Bill 607
October 21, 2015
A suite of severe changes to the state constitution laid out in Senate Bill 607 would undermine the foundations of the North Carolina economy and make our current challenges much worse. The bill changes the state constitution in three ways: 1. Limits spending on education, health, and other services through a rigid, arbitrary, and fundamentally […]
North Carolina Budget and Tax Center: BTC REPORTS: Diminished Expectations and the Resulting Drag on NC’s Economy – A Summary of the 2015-17 Budget
October 21, 2015
The budget North Carolina will live under through June of 2017 will sharply constrain the state’s ability to make public investments crucial to promoting widespread prosperity and a growing economy. Read the full report here
NC Policy Watch: The Senate Tax Plan Fails to Fix the Problem
June 16, 2015
Last week, we raised concerns with the Senate leadership’s new tax plan. Rather than reinvesting and regaining ground lost in recent years, the Senate is pursuing another round of costly income tax cuts. When fully implemented, the $1 billion price tag for the Senate tax plan will mean North Carolina must forgo investments in the foundations […]
Budget and Tax Center: Tax Credits for Working Families Deliver Broad Benefits to the State
April 14, 2015
The North Carolina EITC was a vital facet of the state’s tax system, building off of the federal tax credit—one of the nation’s most powerful anti-poverty tools for children. The benefi ts of the state EITC extended to the broader economy by promoting work and helping families afford things that make it possible to work, […]
North Carolina Justice Center: A Capital Loss – Eliminating taxes on capital gains would make North Carolina’s tax system more unfair
January 24, 2015
Tax cut proponents in North Carolina are pushing another plan that would benefit the wealthy at the expense of everyone else, turning their sights to eliminating the state income tax on the sale of artwork, vacation homes and other high-end capital gains that only a few North Carolinians profit from. Contrary to supporters’ claims, this […]
North Carolina Justice Center: Low-income taxpayers in North Carolina pay nearly twice the tax rate paid by the richest North Carolinians
January 21, 2015
The lowest income North Carolinians pay over 70 percent more in taxes as a percent of their income compared to the state’s wealthiest residents, according to a new study released today by the Institute on Taxation and Economic Policy (ITEP) and the Budget & Tax Center, a project of the NC Justice Center. Read the […]
NC Policy Watch: North Carolina’s unfair tax system highlighted in new report
January 16, 2015
The latest Who Pays? report released today by the Institute on Taxation and Economic Policy (ITEP) takes a look at the fairness of state tax systems. For North Carolina, the lowest income North Carolinians pay over 70 percent more in state and local taxes as a share of their income compared to the state’s wealthiest […]
Institute on Taxation
and Economic Policy
ITEP is a non-profit, non-partisan tax policy organization. We conduct rigorous analyses of tax and economic proposals and provide data-driven recommendations to shape equitable and sustainable tax systems.
Subscribe to ITEP Emails
Tax research and policy news in your inbox.
Promote Fair Tax Policy
Your gift to ITEP promotes tax justice. With your help, we do research that supports taxing millionaires and billionaires, taxing big corporations and raising revenue for the things our people, our communities and our planet need.
Together, we can create a country with more economic justice, more racial justice, more climate justice… and more tax justice.