In just six short months, the enhanced Child Tax Credit (CTC), enacted as part of the American Rescue Plan (ARP), decreased the number of children living in poverty by 40 percent. ITEP estimated that the lowest-income 20 percent of households with children would receive a 35 percent income boost from this policy alone in 2021. This is a meaningful, life-changing sum.
Federal Policy
ITEP’s federal policy resources provide quantitative and qualitative research and analysis on current tax policies, proposals and reform options. Its distributional analyses highlight how tax proposals will affect Americans in different income groups nationally and in all 50 states.
ITEP's Federal Policy Research Priorities
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blog January 14, 2022 The Compelling Data and Moral Case for Continuing the Child Tax Credit Expansion
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blog January 13, 2022 The Problem with Returning to a $2,000 Non-Refundable Child Tax Credit
Millions of children in low-income families fared better last year thanks to expansions of the Child Tax Credit (CTC). But, as has been widely reported, the monthly payments of the… -
blog December 14, 2021 ITEP Data on Child Tax Credit and Earned Income Tax Credit Provisions Before Congress
Congress expanded the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) for 2021 as part of the American Rescue Plan Act (ARP). The additional benefits that millions of… -
blog December 9, 2021 Tax Credits in Build Back Better Support Millions of Families
Download the Fact Sheet Millions of people across the nation are better off financially thanks to temporary Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) expansions included in… -
blog December 7, 2021 Latest Proposal from Senate Democrats Would Bar the Rich from SALT Cap Relief
Richest taxpayers would receive $0 benefit under new compromise compared with 51 percent of the benefit of House-passed SALT provision DOWNLOAD NATIONAL AND STATE-BY-STATE ESTIMATES In the latest chapter of… -
blog November 18, 2021 Key Reform in Build Back Better Act Would Close Loophole Used by the Rich To Avoid Funding Healthcare
A proposal in the Build Back Better Act before the House of Representatives would close a loophole allowing wealthy business owners to avoid paying taxes to fund healthcare. The proposal… -
blog November 18, 2021 Tax Credit Reforms in Build Back Better Would Benefit a Diverse Group of Families
Download National and State-by-State Data Download Fact Sheet The Build Back Better plan working its way through Congress would bring transformative changes on many fronts, including to tax credits that… -
blog November 18, 2021 Report Illustrates How 70 Corporations Could Be Affected by Minimum Tax Proposal in the Build Back Better Act
Amazon, Bank of America, Facebook, FedEx, General Motors, Google, Netflix, PayPal, T-Mobile and Verizon are just a few of the 70 corporations that would have paid more taxes under the… -
blog November 4, 2021 Democrats Seek to Eliminate the Stock Buyback Advantage
A provision in the emerging Build Back Better framework would remove tax advantages for corporations that transfer profits to their shareholders through stock buybacks rather than dividends. Corporations can shift… -
blog November 3, 2021 Senators Menendez and Sanders Show the Way Forward on the SALT Cap
Congressional Democrats negotiating the Build Back Better legislation are at a crossroads. Some Democrats want to amend the Build Back Better plan to repeal the $10,000 cap on federal deductions… -
blog October 27, 2021 America’s Richest Would Finally Pay Taxes on Most of Their Income Under Wyden’s Billionaires Income Tax
The Billionaires Income Tax released today by Sen. Ron Wyden, chairman of the Senate Finance Committee, would ensure that the very richest Americans pay personal income taxes on all of… -
blog October 27, 2021 Senate Democrats’ Corporate Minimum Tax Could Address the Worst Corporate Tax Dodging
The corporate minimum tax proposal released Tuesday night by Sen. Ron Wyden, the chairman of the Finance Committee, and Sens. Elizabeth Warren and Angus King, would be a huge improvement… -
blog October 18, 2021 Federal Tax Reform Would be a Step in the Right Direction for Millennials of Color
The well-documented economic plight facing millennials, a generation born between 1981 and 1996 that was ravaged by one of the worst recessions in history and an economic crisis induced by… -
blog October 18, 2021 The Role of Census Data in Policy and Racial Equity
As the 2020 Decennial Census begins to release public data, the question of how the U.S. Census Department defines race and ethnicity is drawing attention. In particular, there is growing… -
brief October 14, 2021 Investment Income and Racial Inequality
Congress has a historic opportunity to fix the way the preferential treatment of investment income widens the racial wealth gap and to strive toward a racially equitable tax code.
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blog October 14, 2021 Limiting Tax Breaks for Capital Gains Would Mitigate the Racial Wealth Gap
A new report from ITEP finds that recent proposals to limit tax breaks for capital gains would reduce the racial wealth gap and mitigate economic inequality while affecting few people… -
blog October 4, 2021 State Income Tax Reform Can Bring Us Closer to Racial Equity
The origins of the racial wealth gap are far from mysterious. A long history of injustices and exclusionary policies and social practices created an economic system that privileges wealth and… -
blog September 28, 2021 The Billionaires’ Income Tax Is the Latest Proposal to Reform How We Tax Capital Gains
Last week, a new report from the White House examining the wealthiest 400 Americans reaffirmed what the public recently learned from a ProPublica expose: The very wealthy do not pay… -
blog September 28, 2021 Reforming Federal Capital Gains Taxes Would Benefit States, Too
Congress’s action or inaction on federal tax changes under consideration in the Build Back Better plan could have important implications for states on many fronts. One critical area of note… -
report September 23, 2021 Repealing the SALT Cap Would Wipe Out Revenue Raised by the House Ways and Means Bill’s Income Tax Provisions
Download National and State-by-State Figures A recent report from ITEP finds that the tax provisions in the House Ways and Means Committee Build Back Better bill would raise revenue from… -
blog September 21, 2021 New ITEP Report Examines the Tax Changes in the House Ways and Means Build Back Better Bill
Download National and State-by-State Data A new ITEP report finds that the combination of tax changes in the Build Back Better bill recently approved by the House Ways and Means… -
report September 21, 2021 Tax Changes in the House Ways and Means Committee Build Back Better Bill
Download National and State-by-State Data NOTE: This report was revised on October 1 to incorporate new estimates of one of the proposals, the 3 percent surcharge on income in excess… -
report September 17, 2021 Why Congress Should Reform the Federal Corporate Income Tax
Congress is considering legislative changes that would increase federal corporate income taxes partly by closing or limiting the special breaks and loopholes that companies use to avoid taxes. The following… -
blog September 15, 2021 House Ways and Means Provisions to Raise Revenue Would Significantly Improve Our Tax System But Fall Short of the President’s Plan
The Ways and Means Committee, the tax-writing body in the House of Representatives, is continuing its work today on tax provisions in a reconciliation bill. The provisions to raise revenue… -
blog September 14, 2021 New Census Data Highlight Need for Permanent Child Tax Credit Expansion
Millions of families struggled to make ends meet before Covid-19, and they continue to bear the brunt of the pandemic. Low- and moderate-income workers in the earliest days of the…