Circuit breaker credits are the most effective tool available to promote property tax affordability. These policies prevent a property tax “overload” by crediting back property taxes that go beyond a certain share of income. Circuit breakers intervene to ensure that property taxes do not swallow up an unreasonable portion of qualifying households’ budgets.
report May 11, 2023
Preventing an Overload: How Property Tax Circuit Breakers Promote Housing Affordability
report May 4, 2023
Extending Temporary Provisions of the 2017 Trump Tax Law: National and State-by-State Estimates
The push by Congressional Republicans to make the provisions of the 2017 Tax Cuts and Jobs Act permanent would cost nearly $300 billion in the first year and deliver the bulk of the tax benefits to the wealthiest Americans.
brief March 30, 2023
How Local Governments Raise Revenue—and What it Means for Tax Equity
Most local tax systems are falling short of their potential. Well-structured local tax policies support communities by facilitating important investments and advancing fairness, but the tax revenue sources most utilized by local governments tend to disproportionately weigh on households with fewer resources. Learning from these realities can inform the path to improved tax policies and stronger communities.
report March 23, 2023
State Income Tax Subsidies for Seniors
State governments provide a wide array of tax subsidies to their older residents. But too many of these carveouts focus on predominately wealthy and white seniors, all while the cost climbs.
report March 16, 2023
Effects of President Biden’s Proposal to Expand the Child Tax Credit
In his latest budget proposal, President Biden proposes enhancing the Child Tax Credit (CTC) based on the temporary credit that was in effect for 2021 as part of the American Rescue Plan Act. In this report we analyze how that proposal would help children and families.
report March 10, 2023
Revenue-Raising Proposals in President Biden’s Fiscal Year 2024 Budget Plan
President Biden’s latest budget proposal includes trillions of dollars of new revenue that would be paid by the richest Americans, both directly through increases in personal income, Medicare and estate taxes, and indirectly through increases in corporate income taxes.
brief March 3, 2023
Tax Avoidance Continues to Fuel School Privatization Efforts
Wealthy families are overwhelmingly the ones using school voucher tax credits to opt out of paying for public education and other public services and to redirect their tax dollars to private and religious institutions instead. Most of these credits are being claimed by families with incomes over $200,000.
brief February 13, 2023
Higher Stock Buyback Tax Would Raise Billions by Tightening Loophole for the Wealthy
A higher excise tax rate on buybacks is completely reasonable. Quadrupling the rate, as the President proposes, would raise more revenue and cut into the tax advantage buybacks have over dividends. When a company uses their cash holdings to repurchase their own stock, it is an admission that they have few productive investment opportunities. The public does have productive uses for the tax revenue like infrastructure and schools that create value for the entire economy.
brief January 17, 2023
The Pitfalls of Flat Income Taxes
Flat taxes have some surface appeal but come with significant disadvantages. Critically, a flat tax guarantees that wealthy families’ total state and local tax bill will be a lower share of their income than that paid by families of more modest means.
report November 16, 2022
State Child Tax Credits and Child Poverty: A 50-State Analysis
Regardless of future Child Tax Credit developments at the federal level, state policies can supplement the federal credit to deliver additional benefits to children and families. State credits can be specifically tailored to meet the needs of local populations while also producing long-term benefits for society as a whole
brief November 10, 2022
Twenty-Three Corporations Saved $50 Billion So Far Under Trump Tax Law’s “Bonus Depreciation” that Many Lawmakers Want to Extend
Nearly two dozen of America’s largest corporations together received roughly $50 billion in tax breaks from 2018 through 2021 under a Trump tax law provision that many lawmakers now want to extend. Corporate lobbyists are even asking Congress to extend this “accelerated depreciation” tax break as part of a possible year-end tax bill.
report October 13, 2022
The Geographic Distribution of Extreme Wealth in the U.S.
More than one in four dollars of wealth in the U.S. is held by a tiny fraction of households with net worth over $30 million. Nationally, we estimate that wealth over $30 million per household will reach $26 trillion in 2022 with roughly one-fifth of that amount ($4.5 trillion) held by billionaires.
report October 4, 2022
Unfinished Tax Reform: Corporate Minimum Taxes
While the Inflation Reduction Act’s corporate minimum tax is a huge improvement in our tax system, implementing the global corporate minimum tax would improve it much more. And if other governments implement the global minimum tax, the United States will have an even stronger interest in joining them to ensure that new revenue collected from American corporations flows to the U.S. rather than to other countries.
brief September 20, 2022
How the Inflation Reduction Act’s Tax Reforms Can Help Close the Racial Wealth Gap
Lawmakers have many opportunities to pass reforms that will make our tax code fairer and further reduce racial inequity in our economy. The Inflation Reduction Act is a great step forward; better taxing wealth and income from wealth and expanding targeted refundable tax credits would build on this progress.
brief September 15, 2022
Boosting Incomes and Improving Tax Equity with State Earned Income Tax Credits in 2022
States continued their recent trend of advancing EITCs in 2022, with nine states plus the District of Columbia either creating or improving their credits. Utah enacted a 15 percent nonrefundable EITC, while the District of Columbia, Hawaii, Illinois, Maine, Vermont and Virginia expanded existing credits. Meanwhile, Connecticut, New York and Oregon provided one-time boosts to their EITC-eligible populations.
brief September 15, 2022
More States are Boosting Economic Security with Child Tax Credits in 2022
After years of being limited in reach, there is increasing momentum at the state level to adopt and expand Child Tax Credits. Today ten states are lifting the household incomes of families with children through yearly multi-million-dollar investments in the form of targeted, and usually refundable, CTCs.
report September 7, 2022
National and State-by-State Estimates of Two Approaches to Expanding the Child Tax Credit
The Romney Child Tax Credit plan would leave a quarter of children worse off compared to current law and help half as many low-income children as the 2021 expansion of the credit.
brief July 20, 2022
Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform
Lawmakers in many states have enacted “sales tax holidays” (20 states will hold them in 2022) to temporarily suspend the tax on purchases of clothing, school supplies, and other items. These holidays may seem to lessen the regressive impacts of the sales tax, but their benefits are minimal while their downsides are significant—particularly as lawmakers have sought to apply the concept as a substitute for more meaningful, permanent reform or arbitrarily reward people with specific hobbies or in certain professions. This policy brief looks at sales tax holidays as a tax reduction device.
July 13, 2022
Abortion-Restricting States Do Least for Children
Lawmakers have passed laws in 22 states that either immediately or soon will greatly restrict women’s rights to decide whether and when to have children. These states have some of the worst tax, spending and labor market policies for families in the U.S.
report June 21, 2022
Creating Racially and Economically Equitable Tax Policy in the South
The South’s negative outcomes on measures of wellbeing are the result of a century and a half of policy choices. Lawmakers have many options available to make concrete improvements to tax policy that would raise more revenue, do so equitably, and generate resources that could improve schools, healthcare, social services, infrastructure, and other public resources.
report June 15, 2022
State-by-State Tax Expenditure ReportsBelow is a list of tax expenditure reports published in the states: Alabama Report on Alabama Tax Expenditures Report on Alabama Tax Expenditures (2021 and earlier) Alaska Revenue Sources Book…
report April 26, 2022
Revenue-Raising Proposals in President Biden’s Fiscal Year 2023 Budget Plan
President Biden’s latest budget plan includes proposals that would raise $2.5 trillion in new revenue. While many of these reforms appeared in his previous budget, some of them are brand new, such as his proposal to prevent basis-shifting in partnerships and his Billionaires Minimum Income Tax.
report March 25, 2022
What the Biden Administration Can Do on Its Own, Without Congress, to Fix the Tax Code
The Biden administration has several options to address tax reform even when Congress is unable or unwilling to help.
report March 7, 2022
State-by-State Estimates of Sen. Rick Scott’s “Skin in the Game” Proposal
A proposal from Sen. Rick Scott would increase taxes for more than 35% of Americans, with the poorest fifth of Americans paying 34% of the tax increase.
report February 8, 2022
Federal EITC Enhancements Help More Than One in Three Young Workers
More than one in three young adults would benefit from workers without children being eligible to receive the federal EITC. This policy change would bolster young adults’ economic security.