While it isn’t reasonable in the first place for Congress to debate whether it will pay the bills it has already incurred, some of the same lawmakers who are holding the economy hostage to exact budget cuts have decided to make the conversation even more irrational by proposing to increase deficits with tax cuts that enrich the already rich.
Tax Reform Options and Challenges
In addition to distributional analyses of existing and proposed tax law, ITEP provides policy recommendations for lawmakers to build a more equitable tax code, from progressive revenue-raising options to corporate tax reform to establishing a model for a wealth tax.
blog May 9, 2023
The House’s Debt Ceiling Smoke Screen: The GOP Budget Plan Gives Cover for Tax Cuts for the Rich
blog May 9, 2023
Congress Should Raise Taxes on the Rich, But That’s a Totally Separate Issue from the Debt Ceiling
Congress absolutely should raise taxes on the rich and on corporations to generate revenue and improve the fairness of our tax code. President Biden has several proposals to do exactly that. But this is an entirely separate question from whether we should raise the debt ceiling to honor the debts the nation has already incurred and avoid an economic apocalypse.
blog May 3, 2023
The GOP is Finally Ready to Raise Taxes. (Or, When a Tax Hike is Not a Tax Hike.)
House Republicans recently voted to rescind the green energy and electric vehicle tax credits that were enacted last Congress as part of the Inflation Reduction Act. This newfound willingness to raise taxes stands in contrast to the recent position of almost the entire House Republican Caucus.
blog April 3, 2023
It’s the Revenue Shortfall, Stupid
Lawmakers have repeatedly stepped on the same rake of slashing tax rates and expecting revenues to magically go up. Now they want middle-class Americans to be the ones who get hit in the face. The con is getting tired. If Congress wants to reel in the debt then it’s time to raise taxes on the wealthy.
blog March 14, 2023
Worried About the Debt? Tax the Rich
As one of the most prosperous countries in human history, we have enough resources for our collective needs. By better taxing corporations and the wealthiest, we can generate revenue to improve family security, strengthen our communities, and reduce the debt too.
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.
blog March 9, 2023
Politifalse: A Fact-Checker Does Biden an Injustice on Taxes Paid by Billionaires
Most Americans pay more in Social Security and Medicare payroll taxes than they pay in federal personal income tax. So just looking at the personal income tax for comparison misses most of the taxes middle-income Americans pay. That is not true for billionaires because a much, much smaller proportion of their income is subject to the federal payroll taxes.
blog February 7, 2023
State of the Union Likely to Continue Progress on Tax Justice
After decades of Presidents who ran away from taxes, it’s a sea change to have a chief executive who understands that the rich should pay their fair share, extremely profitable corporations should pay their fair share, and the public sector should have revenue to invest in problems – like climate change and healthcare – that will only be solved with pathbreaking public action.
blog January 11, 2023
“Fair Tax” Plan Would Abolish the IRS and Shift Federal Taxes from the Wealthy to the Rest of Us
The “Fair Tax” bill would impose a 30 percent federal sales tax on everything we buy – groceries, cars, homes, health care – and lead to a giant tax shift from the well-off to everyone else.
blog January 10, 2023
New House Rules: Low Taxes for the Wealthy on Cruise Control, Tax Credits for Working People Face Roadblock
Two new rules will hamper the new Congress’s ability to pass tax legislation in the next two years. One requires a supermajority for legislation that increases income tax rates, and the other requires cuts to mandatory spending programs—like Medicare, Social Security, veterans’ benefits or unemployment insurance—in exchange for changes to the Child Tax Credit or Earned Income Tax Credit that would mostly help low-income families.
blog January 4, 2023
Trump’s Tax Shenanigans Show Need for Real Reforms
Congress should unite around a basic principle that Republican, Democratic, and independent voters support: the wealthiest, whether they are presidents, CEOs, or just rich heirs, should pay their fair share. Using Trump’s tax maneuvering as a guidebook could make the tax code much fairer for all of us.
blog August 5, 2022
They Might Really Do It: The Senate Is About to Reform Our Tax Code
For now, the Senate is poised to reverse cuts to the IRS enforcement against wealthy tax evaders for the first time in a decade, crack down on tax-dodging by huge corporations for the first time since 1986, and finally address the method increasingly used by corporations to transfer income to shareholders to avoid federal taxes. The multi-decade winning streak of corporate lobbyists and special interests who have practically written many of our tax laws in recent years is about to come to an end.
blog July 19, 2022
The Tax Legislation Debated in Congress Would Reduce Inflation and Help Americans Deal with Rising Costs
Opposing a fully paid-for spending bill because of inflation concerns does not make any sense. Opposing a deficit-reducing bill because of inflation is absurd.
blog June 30, 2022
No Reason to Water Down the Tax Reforms in the Build Back Better ActThere is no justification for recently reported efforts to scale back the tax reforms in the Build Back Better Act, a bill passed by the House of Representatives in November…
blog April 18, 2022
Public Problems Demand Public Solutions
Long-term troubles for this country and this planet now demand our attention. Progressive tax policy would transform our ability to tackle them.
blog March 25, 2022
New ITEP Report Explains How the Biden Administration Can Act on Its Own to Fix Our Tax Code
The Biden administration should revise regulations from the TCJA to enforce the law as it was written and passed by Congress, not as big banks and multinational corporations have lobbied for it to be enforced.
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.
blog March 24, 2022
Women’s History Month is a Reminder that Sensible Tax Policy is Central to Women’s Economic Security
Women’s History Month is a chance to remember what happens for women when tax policy becomes more progressive, boosts income, and helps make raising a family more affordable.
blog November 18, 2021
Key Reform in Build Back Better Act Would Close Loophole Used by the Rich To Avoid Funding Healthcare
The proposal in the Democrats’ Build Back Better proposal applies the 3.8 percent Net Investment Income Tax to all profit distributions from partnerships and S-corporations so that this income of wealthy pass-through business owners no longer escapes.
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
High-income people and corporations would pay more than they do today, which is a monumental change. But some wealthy billionaires like Jeff Bezos would continue to pay an effective rate of zero percent on most of their income, and American corporations would still have some incentives to shift profits offshore.
July 7, 2021
The Child Tax Credit in Practice: What We Know About the Payoffs of Payments (Webinar)
Join us for a discussion on why tax credits like the Child Tax Credit (CTC) expansion are good economic policy. You’ll hear from anti-poverty experts on why Congress should extend the policy beyond 2021 and what we can learn from an initiative providing low-income mothers in Jackson, Miss., $1,000 cash on a monthly basis, no strings attached. From theory to practice and what it means for American families, this CTC webinar will provide a unique angle through which to view this transformative policy.
blog July 7, 2021
Congress Should Follow States’ Lead on Inclusive Economic Recovery
President Joe Biden’s American Families and Jobs plans intend to “build back better” and create a more inclusive economy. To fully live up to this ideal, the final plan must include undocumented people and their families.
blog June 25, 2021
When Tax Breaks for Retirement Savings Enrich the Already Rich
Members of Congress frequently claim they want to make it easier for working people to scrape together enough savings to have some financial security in retirement. But lawmakers’ preferred method to (ostensibly) achieve this goal is through tax breaks that have allowed the tech mogul Peter Thiel to avoid taxes on $5 billion. This is just one of the eye-popping revelations in the latest expose from ProPublica.
brief May 25, 2021
Income Tax Increases in the President’s American Families Plan
President Biden’s American Families Plan includes revenue-raising proposals that would affect only very high-income taxpayers. The two most prominent of these proposals would restore the top personal income tax rate to 39.6 percent and eliminate tax breaks related to capital gains for millionaires. As this report explains, these proposals would affect less than 1 percent of taxpayers and would be confined almost exclusively to the richest 1 percent of Americans. The plan includes other tax increases that would also target the very well-off and would make our tax system fairer. It would raise additional revenue by more effectively enforcing tax laws already on the books.
blog April 20, 2021
SALT Cap Repeal Would Worsen Racial Income and Wealth Divides
A bipartisan group of 32 House lawmakers banded together to form the “SALT Caucus,” demanding elimination of the SALT cap. None of their arguments in favor of repeal change the fact that it would primarily benefit the rich and, according to new research, exacerbate racial income and wealth disparities.