Institute on Taxation and Economic Policy (ITEP)

Citations

ITEP's Citations Research Priorities

One of Ohio House Speaker Jason Stephens’ top-priority bills, House Bill 1, is a massive giveaway to the rich, and the first of two such proposals by leading Republicans in Ohio’s House. According to a new analysis by Policy Matters Ohio, HB 1 slashes funding to children and all manner of local services, does nothing […]

Kansas Reflector: Kansas Senate Flat Tax Would Cut $1 for Low-Wage Earners, Hand Windfall to Top 1%

February 22, 2023

A flat tax plan moving through the Senate is structured to provide minimal relief to low-income Kansans while granting a windfall to high wage earners. Read more.

The Walz administration’s recently released budget proposal names as their priorities making Minnesota the best state for children, investing in the state’s economic future, and promoting the health and safety of Minnesotans. Read more.

The state has seen increased revenue in recent years, with the state budget including millions of dollars in surplus revenue. The temporary, higher receipts have led to several tax cut proposals. Now, some politicians and special business interest groups are proposing to use lingering budget surpluses to tilt the tax code even further in their favor. […]

Fortune: More Than Half of States are Considering Personal Income Tax Cuts This Year

February 15, 2023

State governments are still flush with cash from federal COVID-19 aid dollars and increased revenues. And more than half are considering using those budget surpluses to institute or accelerate tax cuts for residents. Read more.

Yahoo Finance: Stock Buybacks Have Surged in the Weeks Since Washington Began Taxing Them

February 13, 2023

A new excise tax on stock buybacks went into effect Jan. 1 and has been followed by what seems to be an unexpected development: corporate share repurchase announcements have exploded. Read more.

As Oklahoma’s 2023 legislative session begins, the perennial push for tax cuts that would shrink state revenue will likely return. In 2022, leaders of the Oklahoma House of Representatives championed tax cuts – primarily focusing on reducing the personal income tax, the corporate income tax, and the sales tax on groceries. Ultimately, the legislative session ended without any major […]

CBS News: States are Flush with Cash. It’s Setting Off ‘Tax Cut Fever.’

February 11, 2023

Even as the U.S. economy shows signs of slowing down, many states around the U.S. are flush with cash, with their so-called rainy day funds estimated to reach a record high of $136.8 billion this fiscal year. And lawmakers in more than half of states are responding to their new cash cushions with similar proposals: cutting taxes. […]

FiveThirtyEight: Congress’s U-Turn Has States Thinking About Giving Parents Cash

February 9, 2023

Last year, Congress walked away from what looked like one of the most effective fixes for child poverty in a generation. Now, state legislators are trying to walk it back. Lawmakers in at least 10 states are considering some new version of the expanded child tax credit, a federal program that lifted millions of children out of poverty but […]

Wall Street Journal: Top GOP Tax Legislator Says He’ll Boost Workers, Probe Companies

February 7, 2023

Rep. Jason Smith (R., Mo.), the House’s new top tax writer, is promoting an approach he says would favor working-class Americans over large corporations, a shift in tone from his predecessors that raises questions about companies’ ability to push tax cuts through Congress. Read more.

President Biden has long believed that we must build the economy from the bottom up and middle out, not the top down. …  In 2020, 55 of the largest corporations that were profitable paid $0 in federal income tax. To end that unfairness in the tax code, President Biden signed into law a 15 percent minimum tax […]

States Newsroom: States Take Heat for Spending Federal Relief Funds on Tax Cuts, Prisons

February 2, 2023

As states plan how they’ll spend the $25 billion remaining in federal COVID relief funds, some also are facing criticism and renewed scrutiny over how they allocated money already received from the American Rescue Plan Act. Read more.

Eliminating the preferential tax treatment of capital gains income will increase tax fairness and help fund our future. Read more.

Doubling the maximum credit amount would help hundreds of thousands of children and their families pay for basic needs. Read more.

Kansas Reflector: Analysis Show Kansas Chamber’s Flat Tax Proposal Costs $1.5B, Favors Top 20% of Wage Earners

January 30, 2023

Assessments by the Kansas budget director and an independent tax policy institute Monday showed the flat tax proposal by the Kansas Chamber would reduce the state budget by $1.5 billion per year and primarily benefit the state’s most affluent wage earners. Read more.

Center for Public Integrity: How Will a Divided Government Affect Taxes?

January 27, 2023

House Republicans want tax changes that experts say would increase inequality and aren’t likely to pass the Senate. In a gridlocked federal landscape, states may hold the key. Read more.

Idaho Statesman: A Warning About Cutting Taxes in States Like Idaho That are Flush with Cash

January 27, 2023

During his State of the State address this year, Idaho Gov. Brad Little quoted Lt. Gov. Scott Bedke’s piece of ranch family wisdom. “It won’t be the bad years that put you out of business; it’s what you did in the good years that sets you up for failure or success.” Flush with cash, too […]

The American Prospect: Reanimating the Taxman

January 26, 2023

At its core, the Internal Revenue Service (IRS) is the federal government’s revenue collector and benefits administrator. Yet with Congress inclined to run virtually every function of the government through the tax code in some form, the agency is equivalent to the central processing unit of every electronic device on the planet. Read more.

Wisconsin Examiner: Tax Analyst Says Flat-Rate System Will Benefit Wealthy at the Expense of the Majority

January 26, 2023

The wealthiest Wisconsin residents already pay a smaller share of their incomes in state taxes than the rest of the population, and replacing the state’s current graduated-rate income tax structure with a flat tax would increase that disparity, a national tax expert says. Read more.

Newsweek: The GOP’s 30 Percent Sales Tax Plan Is Tearing the Republican Party Apart

January 26, 2023

Republicans in the House of Representatives appear divided over a proposed national sales tax that would replace income taxes, with Democrats using the issue to attack the GOP. Read more.

House Bill 1 in the 2022 Kentucky General Assembly is the next step in a legislative effort to phase down and even eliminate Kentucky’s income tax. This policy path is quite likely the most dangerous ever considered in the modern history of the commonwealth. It marches toward elimination of the source of 41% of state […]

Yahoo Money: The Fair Tax Act Aims to Abolish the IRS and Set a National Sales Tax. Here’s How It Would Work

January 25, 2023

Imagine this: Instead of paying federal taxes to the IRS, you pay them to your local cafe every time you buy a latte or to your supermarket when you make a grocery run — or to countless other businesses when you make purchases. Read more.

Yahoo News: Flat Income Taxes: Who Are the Biggest Winners and Losers?

January 25, 2023

From Kansas to Wisconsin to Nebraska, the conversation surrounding a flat tax has picked up as of late, with more state legislators pushing for as much. Read more.

The cost of high-profile K-12 finance and tax packages introduced this week would entirely consume the projected $1.9 billion that lawmakers have to enact new legislation in the current two-year budget cycle and then some. Read more.

KUOW Seattle: WA Democrats Join Nationwide Rollout of ‘Wealth Tax’ Proposals

January 20, 2023

Washington state Democrats Sen. Noel Frame and Rep. My-Linh Thai announced legislation Thursday to create a state wealth tax on financial assets in excess of $250 million. They say it could generate an estimated $3 billion per year to fund housing and education, and decrease the tax burden on working-class people. Read more.