A February paper from the Institute on Taxation and Economic Policy that studied 342 profitable corporations found that these companies paid an effective tax rate of 14.1 percent, well below the historically low statutory rate of 21 percent signed into law by the Trump administration in 2017. At the same time, we have seen record corporate profits since 2021, culminating in an all-time high in the fourth quarter of 2023. Companies seek out excess profits in increasingly harmful ways, because they get to keep more of those excess profits.
Select Media Mentions
Members of the media rely on ITEP for analysis and insight about how tax policies affect people. If you’re a reporter looking to talk to one of our experts, contact Jon Whiten at [email protected].
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media mention June 14, 2024 The American Prospect: Taming the Price Beast
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media mention June 13, 2024 The Guardian: ‘Perilous for Democracy, Good for Profits’: Is Big Business Ready to Love Trump Again?
Chief executives of some of America’s largest companies will meet privately with Donald Trump later on Thursday, and many CEOs who were once critical of his unprecedented conduct appear increasingly open to the former president’s return to office, a Guardian analysis has found.
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media mention June 11, 2024 Yahoo Finance: 7 Places Your Taxes Will Go if Trump Wins in 2024
If you are subject to estate taxes under a second Trump term, you can expect to keep paying the historically low rate he set in motion during his first term. According to the Institute on Taxation and Economic Policy, only eight of every 10,000 people who died left an estate large enough to trigger the tax as of 2019, the most recent year data are available. Most of the estate tax is paid by estates worth more than $20 million, and in recent years the majority has been paid by estates worth more than $50 million.
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media mention June 6, 2024 Capital & Main: The Return of Trickle-Down Economics
The return of trickle-down economics — the much-criticized theory that tax cuts for corporations and the wealthy eventually result in job growth and higher wages for the middle class and working class — has inspired a fierce debate in the Kansas Legislature that has gone on for months. A bill that included a flat 5.25% personal income tax, an 8% reduction from the current rate for top earners, was approved by Republicans in both chambers, though critics say it would disproportionately benefit the wealthy in the state. The top 20% of earners in Kansas — those with average annual incomes above $315,000 — would get nearly 40% of the benefits, with Koch himself receiving an estimated $485,000 in annual tax breaks under the proposal, according to the Institute on Taxation and Economic Policy, a nonpartisan research group that favors a progressive tax system. It would also cost the state almost $650 million every year once fully implemented, per ITEP.
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media mention May 28, 2024 Governing: Are Florida Taxes Low? It Depends on Your Income Level
It’s been almost a hundred years since Florida eliminated its personal income tax. Not taxing income contributes to its reputation as a low-tax state and is part of the draw for retirees. But of course Floridians do pay taxes and the state’s system leads to some inequities, according to a new report from a progressive organization.
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media mention May 20, 2024 Yahoo Finance: Jeff Bezos Spent $237 Million On Florida Mansions — Billionaires Flock To ‘Upside Down’ Tax Haven Where Rich Pay Less Than Poor
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.
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media mention May 17, 2024 Forbes: California Is Not Actually a High-Tax State According To New Study
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.
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media mention May 16, 2024 Hawai’i Public Radio: Concerns Rise for Low-Income Families Over Legislature’s Recent Tax Cut Measure
Most Hawaiʻi residents will likely see lower income taxes next year due to a measure recently passed by the state Legislature. However, some advocates are concerned that those changes could also limit tax assistance for those who need it the most. Lawmakers are calling it the biggest tax cut in the state’s history: about $5 billion over the next five years.
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media mention May 13, 2024 WTAE: Commitment 2024: Fact-checking Former President Trump’s Claims in Interview
PITTSBURGH — During an interview with WTAE’s sister station WGAL, former President Donald Trump made claims of getting record-breaking votes in Pennsylvania’s 2024 primary, about the future of abortion in the courts, and concerning who benefited most from his tax cuts.
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media mention May 9, 2024 Mansion Global: Massachusetts Weighs Mansion Tax on $1 Million-Plus Homes
Massachusetts could join the growing number of cities and states with a mansion tax on high-value properties, as it considers a proposal to levy an additional transfer fee on commercial… -
media mention May 1, 2024 USA Today: Are California’s Taxes Really That High? Not If You’re of ‘Modest Means,’ Report Says
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… -
media mention April 25, 2024 Sacramento Bee: Is California Really a High-Tax State? New Findings Question That Claim
Maybe California is not such a high tax state after all — at least for lower income families. “For families of modest means, California is not a high tax state,”… -
media mention April 24, 2024 NewsRadio WFLA: Poorest Floridians Taxed at Higher Rate than Richest Californians
Florida Policy Institute (FPI) and the Institute for Taxation and Economic Policy (ITEP) released a study today that found California’s tax system is fairer than Florida’s.
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media mention April 15, 2024 The Atlantic: The Myth of the Mobile Millionaire
In 2010, as California was moving forward with plans to raise taxes sharply on million-dollar earners, opponents issued dire warnings that the hike would drive away entrepreneurs and cripple the state economy. “There’s nothing more portable than a millionaire and his money,” warned the ranking Republican on the state Senate’s budget committee. The tax hike passed anyway—and California’s share of the nation’s million-dollar earners actually grew, reaching 18 percent in 2021. (Californians make up just less than 12 percent of the overall population.) And yet, when California recently considered a proposal to impose a wealth tax on mega-rich households, even some Democrats echoed the same old worry.
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media mention April 15, 2024 Yahoo Finance: US Cities’ Mansion Taxes See Mixed Results
When Los Angeles voters approved an extra tax last year on home sales over $5 million, officials projected annual revenue of $700 million to help alleviate the city’s rampant homelessness crisis.
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media mention April 15, 2024 The American Prospect: The $6 Trillion Decision
Enormous amounts of presidential election messaging and coverage will unfurl between now and November 5. You will surely hear a lot about abortion, immigration, and inflation. You will hear about a fight for the future of American democracy. Even more likely, you’ll hear about polls, strategies to attract working-class and minority voters, or what one candidate said or tweeted or posted, or designated a surrogate to say or tweet or post. Oh, and court cases. Lots and lots of court cases. What you might not hear as much about are the stakes of the election’s outcome for all the money in the country. On Tax Day, of all days, it seems like a good time to lay that out.
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media mention April 15, 2024 The Lever: Pfizer’s Massive Tax Dodge
While jacking up drug prices, Pfizer recently reported more than $27 billion in revenue from its U.S. sales in 2023. But the Big Pharma titan owes nothing in federal income taxes, despite being one of the most profitable pharmaceutical companies in the world. That’s largely thanks to existing loopholes and a 2017 tax law signed by former President Donald Trump.
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media mention April 11, 2024 Mother Jones: America’s 806 Billionaires Are Now Richer Than Half the Population Combined—a Lot Richer
Are you better off now than you were when Donald Trump was president? That’s a dumb question for Republicans to pose, because the answer by most measures would be, “Oh, heck… -
media mention April 8, 2024 Money: These States Are Using Their Budget Surpluses to Give Tax Breaks to Residents
The most impactful changes in state taxes this year have come in the form of new or expanded tax credits targeted at families with children, according to Aidan Davis, state policy director at the Institute of Taxation and Economic Policy (ITEP), a nonprofit, nonpartisan tax policy organization. “The first really incredible — and, I would say, positive — trend was that 18 states created or enhanced child tax credits or income tax credits in their states,” Davis says. Three of those states (Minnesota, Oregon and Utah) launched brand-new child tax credits, she says, with the remainder altering, and usually improving, existing credits.
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media mention April 3, 2024 Associated Press: Lawmakers in GOP-Led Nebraska Advance Bill To Raise Sales Tax
LINCOLN, Neb. (AP) — With no votes to spare, Nebraska lawmakers advanced a bill that would raise the state’s sales tax by 1 cent to 6.5% on every taxable dollar spent — which would make it among the highest in the country.
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media mention April 3, 2024 Capital & Main: Extreme Wealth Is on the Ballot This Year — Will Americans Vote to Tax the Rich?
On March 7, President Joe Biden reintroduced proposals to increase taxes on the wealthiest Americans and the nation’s most profitable corporations. The move virtually ensures that the nation’s extreme wealth inequality — more than one in four dollars in the country is held by a tiny sliver of households with a net worth over $30 million — will be part of the national election debate. But excessive wealth may take center stage in at least 10 states, ranging from Democratic bastions such as California, Hawaii and New York to swing states such as Nevada and Pennsylvania.
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media mention March 13, 2024 The Nation: Biden Should Channel His Inner FDR and Soak the Rich
There’s no risk and everything to gain politically. According to a Navigator Research poll from last month, 79 percent of registered voters favor higher taxes on billionaires and corporations. Only 16 percent are opposed. Democrats favor wealth taxes on billionaires by a 94-2 margin, independents by a 78-15 margin, Republicans by a 63-30 margin.
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media mention March 12, 2024 Sacramento Bee: California Families Could Save Thousands of Dollars From Proposed Child Tax Break. Here’s Why
President Joe Biden’s child tax credit plan would benefit millions of California parents, saving eligible families an average of $2,980, according to data from Washington’s Institute on Taxation and Economic Policy.
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media mention March 12, 2024 Newsweek: What a Second Trump Term Means for Taxes
A second Donald Trump presidency would likely see another round of tax cuts targeted at the wealthy, similar to his 2017 Tax Cuts and Jobs Act, according to a prominent taxation expert and lawyer.
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media mention March 11, 2024 USA Today: What President Joe Biden Got Wrong (and Right)
Though President Joe Biden largely stuck to the facts during his third State of the Union address Thursday, on several occasions he overstated the truth, left out key context or was simply wrong.