Inflation Reduction Act
Congress Could — But Won’t — Pass a Tax Package That Pays for Itself
January 17, 2025 • By Joe Hughes
If Republican lawmakers were serious about deficit-neutral tax reform, they would focus on increasing taxes for the ultra-wealthy and large corporations. The absence of such proposals in their plan reveals their true priority: delivering enormous tax cuts to the wealthiest Americans while average working families receive crumbs.
Large and Growing Tax Gap Underscores the Need to Adequately Fund the IRS
October 17, 2023 • By Jon Whiten
New figures released show the difference between what Americans paid and owed in taxes grew to $688 billion in 2021, a significant jump from previous estimates. This new data underscores that last year’s boost to IRS funding under the Inflation Reduction Act was absolutely necessary and should be protected by lawmakers.
Government Shutdown is Rooted in Hypocrisy, Dysfunction, and, As Always, Tax Cuts for the Rich
September 27, 2023 • By Joe Hughes
The priorities in this shutdown drama couldn’t be clearer. House Republicans once again threaten the financial security of the millions of Americans to exact cuts to programs like Head Start, the Social Security Administration, and the EPA – all while seeking unaffordable tax cuts for multinational corporations, the wealthy, and foreign investors.
The Innovative Non-Tax Tax Parts of the Inflation Reduction Act
August 23, 2023 • By Michael Ettlinger
In the year since Congress enacted the Inflation Reduction Act (IRA), ITEP has written extensively on the law’s provisions to increase tax fairness and raise revenue for public investments. The IRA, however, also includes tax provisions that serve purposes other than ensuring that we raise adequate revenue and that we do so in a fair […]
Celebrating One Year Since the Landmark Inflation Reduction Act
August 14, 2023 • By Joe Hughes
The Inflation Reduction Act was a course correction from decades of tax cuts that primarily went to the richest Americans and left the rest of us with budget shortfalls that conservative lawmakers now seek to plug with cuts to Social Security and Medicare. For the first time in generations we are finally asking those who have benefited the most from our economy to contribute back.
The GOP is Finally Ready to Raise Taxes. (Or, When a Tax Hike is Not a Tax Hike.)
May 3, 2023 • By Joe Hughes
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.
Worried About the Debt? Tax the Rich
March 14, 2023 • By Amy Hanauer
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.
How the Inflation Reduction Act’s Tax Reforms Can Help Close the Racial Wealth Gap
September 20, 2022 • By Brakeyshia Samms, Joe Hughes
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.
Four Tax Policy Wins in the Inflation Reduction Act and Four More That Can Build on This Progress
August 22, 2022 • By Joe Hughes, Jon Whiten
With four major tax policy provisions, the IRA takes a huge step toward a fairer tax code and a more equitable economy. But as always, there are more steps lawmakers should take to build on this progress.
Putting Cleveland and the Nation on a Path Toward Tax and Climate Justice
August 22, 2022 • By Amy Hanauer
Editor’s note: This originally ran as an opinion piece in the Cleveland Plain Dealer. When I left Cleveland to work on federal tax policy after 20 years running Policy Matters Ohio, I knew Ohio would stay in my heart and fuel my work. Accustomed to an America that often ignores our toughest problems, I understood […]
The Case for More IRS Funding
August 22, 2022 • By Jon Whiten
Editor’s note: This originally ran as an opinion piece in The Hill. Though the Inflation Reduction Act is enormously popular, some politicians and pundits are trying to generate hysteria about one feature: Funding for the IRS. All the false claims are distracting us from two important things: how necessary the funding increase is to reverse […]
ITEP: Inflation Reduction Act is Biggest Corporate Tax Reform in Decades
August 12, 2022 • By Amy Hanauer
Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy, issued the following statement on “The Inflation Reduction Act (IRA) of 2022,” the reconciliation bill passed today by the House of Representatives. “Today Congress signed off on the biggest corporate tax reform in decades as part of a bill that will provide a […]
Lawmakers Must Choose Between Funding the IRS or Protecting Wealthy Tax Cheaters
August 12, 2022 • By Steve Wamhoff
Grasping for some way to criticize the popular Inflation Reduction Act as it approaches final passage, Congressional Republicans have decided to attack its provisions that will reverse a decade of budget cuts to the IRS and instruct the agency to crack down on tax evasion by big corporations and individuals making more than $400,000. Of […]
What Tax Provisions are in the Senate-Passed Inflation Reduction Act?
August 9, 2022 • By Steve Wamhoff
The Inflation Reduction Act approved by the Senate on Aug. 7 would raise more than $700 billion in new revenue over a decade by closing corporate tax loopholes, empowering the IRS to enforce the tax laws on the books, taxing stock buybacks, and extending a limitation on deductions for business losses. The IRA – if […]
Inflation Reduction Act Will Increase Tax Fairness, Reduce Inequality
August 7, 2022 • By Amy Hanauer
Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy, issued the following statement on “The Inflation Reduction Act (IRA) of 2022,” the reconciliation bill passed today by the Senate. “Today we made remarkable progress for America’s tax and climate policy. The IRA reduces corporate loopholes, collects revenue from those who defy tax […]
They Might Really Do It: The Senate Is About to Reform Our Tax Code
August 5, 2022 • By Steve Wamhoff
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.
Corporations are Shifting Profits to Wealthy Investors Tax-Free—Stock Buyback Tax Would Change That
August 5, 2022 • By Joe Hughes
Senate Democrats have announced an agreement on the Inflation Reduction Act that, among other changes to a previous version of the bill, would apply a 1 percent tax on corporations repurchasing their own stock. This proposal was included in the House-passed Build Back Better Act last year and was estimated at that time to raise $124 billion over 10 years. This measure would ensure that income transferred from corporations to wealthy shareholders does not continue to escape taxation.
Corporate Minimum Tax Examples: Apple Would Likely Pay More, 3M Would Not
August 5, 2022 • By Matthew Gardner
Apple, one of the largest corporations in the United States despite manufacturing most of its physical products offshore, would likely pay the corporate minimum tax that is included in the Inflation Reduction Act that the Senate is debating this week. 3M, a manufacturer that has about 40 percent of its workforce in the United States, likely would not pay the corporate minimum tax if current trends in the company’s profits and taxes continue, because it is already paying above 15 percent of its profits in taxes.
Opponents of Inflation Reduction Act Call for Continued Tax Avoidance by Large Manufacturers
August 2, 2022 • By Steve Wamhoff
The biggest revenue-raising provision in the Inflation Reduction Act, the 15 percent minimum tax for corporations that have more than a billion dollars in profits, is under attack from members of Congress who argue that manufacturing companies should not be required to pay any minimum amount of tax. Sen. Mike Crapo, the top Republican on […]
Top Republican Tax-Writer Falsely Claims that Minimum Tax for Huge Corporations Is a Tax Hike on Middle-Class
August 2, 2022 • By Steve Wamhoff
Opponents of requiring corporations to pay even a minimum amount of taxes hold an unpopular position. But Sen. Mike Crapo, the top Republican on the Senate Finance Committee and a leader of that opposition, is using a one-sided and incomplete analysis to claim that the corporate minimum tax would raise taxes on low- and middle-income people.
ITEP: Reconciliation Deal Represents “Transformational Change” for U.S. Tax Policy
July 28, 2022 • By Amy Hanauer
Amy Hanauer, Executive Director of the Institute on Taxation and Economic Policy, issued the following statement on “The Inflation Reduction Act of 2022,” the reconciliation bill announced yesterday by Senate Democrats. “This is a transformational change for U.S. tax and energy policy. The bill restores sorely needed and long-overdue accountability to our tax code. By […]
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