Institute on Taxation and Economic Policy (ITEP)

Massachusetts

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Texas Property Tax Plan Mimics California’s Damaging Prop 13

December 19, 2025 • By Neva Butkus, Rita Jefferson

Texas Property Tax Plan Mimics California’s Damaging Prop 13

This proposal would disrupt the state’s housing market and jeopardize local revenues while doing very little to help workers and families struggling to pay their property tax bills – just as Prop 13 did in California.

State Tax Dollars Shouldn’t Subsidize Federal Opportunity Zones

The Opportunity Zones program benefits wealthy investors more than it benefits disadvantaged communities.

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The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy

October 30, 2025 • By Sarah Austin, Carl Davis

The Wealth Proceeds Tax: A Simple Way for States to Tax the Wealthy

Taxing the proceeds generated by wealth through a new Wealth Proceeds Tax is a simple way for states to raise billions in new revenue and improve the fairness of their tax systems.

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The Potential of Local Child Tax Credits to Reduce Child Poverty

October 8, 2025 • By Kamolika Das, Aidan Davis, Galen Hendricks, Rita Jefferson

The Potential of Local Child Tax Credits to Reduce Child Poverty

Local governments have a critical role to play in reducing child poverty. Local Child Tax Credits could provide large tax cuts to families at the bottom of the income scale, lessening the overall regressivity of state and local tax systems.

State Rundown 10/1: State and Local Governments Doing the Opposite of Shutting Down

State and local officials are staying very busy by considering a dizzying amount of reversals.

State Rundown 9/18: Lawmakers Confront Revenue Loss from Federal Policy Changes

Some states are trying to avoid revenue loss while others are welcoming it and doubling down.

State Child Tax Credits Boosted Financial Security for Families and Children in 2025

Child Tax Credits (CTCs) are effective tools to bolster the economic security of low- and middle-income families and position the next generation for success.

Trump’s Tax Law Clobbers State Budgets. Now’s the Time to Prepare.

The Trump megabill hands the richest 1% a trillion-dollar windfall while gutting funding for health care, education, and disaster relief — leaving communities to pick up the pieces. State and local leaders must step up, tax the wealthiest fairly, and safeguard the essentials that keep America healthy, educated, and safe.

Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform

Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.

Anti-Tax Revolts Backfire: What We’ve Learned from 50 Years of Property Tax Limits

Across-the-board property tax cuts create less fair local tax systems in the long run. State legislators and local governments should prioritize the residents who can least afford their property taxes, not the residents and businesses who can.

How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?

If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.

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Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

July 7, 2025 • By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela

Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates

President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.

Trump Megabill Will Give $117 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?

The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.

How Much Do the Top 1% in Each State Get from the Trump Megabill?

The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.

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Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

May 22, 2025 • By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff

Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

State Rundown 5/15: State Tax Debates Carry On in the Midst of Chaotic Federal Tax Landscape

Even as most major headlines have been about the ever-changing landscape of federal tax policy, the latest “ideas of the week," and now the House tax bill, state tax policy continues to be a priority for lawmakers.

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Trump 2025 Tax Law: Research and Resources

May 2, 2025 • By ITEP Staff

Trump 2025 Tax Law: Research and Resources

Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.

Trump Administration’s Decision to End Direct File is Another Gift to Big Corporations

Contact: Jon Whiten ([email protected]) According to multiple reports, the Trump administration plans to eliminate the IRS Direct File program, a free electronic system for filing tax returns directly to the agency. Statement from ITEP Executive Director Amy Hanauer “The tax preparation industry has for years lobbied to prevent the IRS from providing a tool to […]

NBC News: IRS Agreement with ICE to Share Immigrants’ Info Could Lead to Billions Less in Tax Revenue

April 15, 2025

Like millions of American citizens and immigrants, Ivan filed his taxes last year. But Ivan, 54, a Massachusetts resident who hails from Colombia, is worried a recent agreement between the IRS and Immigration and Customs Enforcement means he is in danger of being deported for doing what he believed was the right thing.

IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy

Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.

State Rundown 3/20: It’s March, Welcome to Tax Policy Madness

March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of most regressive state tax policies while others are looking to lift up best practices for more equitable outcomes.   The Mississippi legislature landed on a […]

Massachusetts Budget & Policy Center: By Taxing GILTI Profits, Massachusetts Can Reclaim Millions in Revenue Lost to Corporate Offshore Tax Dodging

March 20, 2025

Massachusetts loses out on hundreds of millions of tax dollars each year due to “profit-shifting”, a practice common among large, multinational corporations. International profit-shifting involves complex accounting maneuvers that make a corporation’s U.S. profits appear instead on the books of related companies located in offshore tax havens. It is an abusive form of tax avoidance that many multinational corporations use to lower their federal and state tax payments.

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Housing Affordability and Property Taxes: How to Actually Move the Needle

March 19, 2025 • By Kamolika Das, Rita Jefferson

Housing Affordability and Property Taxes: How to Actually Move the Needle

Tax policy alone cannot solve the housing crisis but lawmakers who are focused on tax policy solutions have better options available than sweeping property tax cuts and caps: property tax circuit breakers, renter credits, vacancy taxes, land value taxes, and changes to existing property tax assessments can move the needle on the affordable housing crisis.

Contact: Jon Whiten ([email protected]) A bill introduced in Congress would create an unprecedented 100% tax credit for donations to nonprofits that give out private K-12 school vouchers and create a lucrative tax shelter that would further enrich some of America’s wealthiest individuals. If passed, the Educational Choice for Children Act of 2025 (ECCA) would cost […]

A Revenue Impact Analysis of the Educational Choice for Children Act of 2025

The Educational Choice for Children Act of 2025 would provide donors to nonprofit groups that distribute private K-12 school vouchers with a dollar-for-dollar federal tax credit in exchange for their contributions. In total, the ECCA would reduce federal and state tax revenues by $10.6 billion in 2026 and by $136.3 billion over the next 10 years. Federal tax revenues would decline by $134 billion over 10 years while state revenues would decline by $2.3 billion.