November 28, 2017
Between the mortgage and SALT limits, the bills hit many upper-middle-class taxpayers, especially in blue states. The Institute on Taxation and Economic Policy calculates that by 2027 the Senate bill would raise taxes on about 45 percent of households between the 80th and 95th income percentiles in California, Virginia, New Jersey, and New York; and […]
November 27, 2017
U.S. companies booked 61 percent of foreign earnings in just 10 low-tax countries in 2014, according to the Institute on Taxation and Economic Policy (ITEP). In five of those countries — Bermuda, the Cayman Islands, the British Virgin Islands, the Bahamas and Luxembourg — American businesses claimed profits that exceeded the value of the nation’s […]
November 25, 2017
Currently, the U.S. government taxes foreign earnings at the same 35 percent corporate rate charged on domestic profits, but only when the foreign earnings are returned to the United States. Under the bills moving through Congress, overseas profits would be mostly excluded from U.S. taxation. Instead, those profits might be taxed by the nations where […]
November 21, 2017
And maybe they should. Higher taxes on the upper middle class make sense to some liberal tax experts—but only if the proceeds are used the right way, they said, for things like better health care, more affordable college, and rebuilding infrastructure. Under the House bill, though, any new tax revenue is used to offset tax […]
November 20, 2017
However, according to the Institute on Taxation and Economic Policy, Alabama voters may be taking a bit of a risk by assuming that a vote for the GOP tax plan is in their best interest. According to the non-profit, non-partisan research organization, nearly half — 48 percent — of the federal tax cuts would go to the […]
November 20, 2017
That’s because this “tax cut” is actually a tax increase for millions of Americans. According to the Joint Committee on Taxation, Congress’ official scorekeeper on tax issues, the Senate’s version of the bill would increase taxes on all income groups making under $75,000 per year. The Institute on Taxation and Economic Policy says the bill […]
November 18, 2017
The Institute on Taxation and Economic Policy has determined that 30.5 percent of Marylanders would pay substantially higher taxes under the Republican plan. The capping of deductions for state and local taxes would make this bill onerous to Maryland residents. The removal of the tax deduction for student loan interest is mean-spirited and anti-education. Read […]
November 18, 2017
A study by the Institute on Taxation and Economic Policy published this year shows that 366 of the 500 American companies with the highest revenue (those that are part of the Fortune 500) use subsidiaries located in tax havens to reduce their income taxes. Among these are important banks, financial institutes, pharmaceutical corporations, and multinational […]
November 17, 2017
While this JCT document doesn’t say exactly how many people will see their taxes rise, other analyses give us a hint. For instance, the Institute on Taxation and Economic Policy estimates that under the Senate plan, 19 million households will see a tax increase in 2019, and more than 23 million will get a tax […]
November 17, 2017
In the view of Carl Davis, research director at the left-leaning Institute on Taxation and Economic Policy, the track record for supply-side economics “is not particularly inspiring.” In 1981, in the midst of a deep recession, President Reagan pushed through an aggressive tax cut. The economy did rebound strongly over the next few year. But […]
November 17, 2017
Compared with current law, the House bill, which was passed Thursday, would raise personal federal income taxes on California, New Jersey, New York and Maryland residents by $16.7 billion in 2027, according to an Institute on Taxation and Economic Policy analysis. Florida and Texas, however, would get $31.2 billion in cuts. Read more
November 17, 2017
Another point to consider: The corporate tax cuts are permanent, while the individual tax cuts are not. Nationwide, only one income group — individuals making $20,000 to $30,000 — would still be receiving a tax cut by 2027. An analysis by the Institute on Taxation and Economic Policy projected that Californians would be paying a […]
November 16, 2017
Now it’s fair to complain that the tax plan over all doesn’t give needy billionaires quite as much as they deserve. For example, the top 1 percent receive only a bit more than 25 percent of the total tax cuts in the Senate bill, according to the Institute on Taxation and Economic Policy. Read more
November 16, 2017
The House GOP tax plan nixes most state and local deductions, hitting higher-taxed states harder. Jim Tankersley reports on a new analysis by Carl Davis of the Institute on Taxation and Economic Policy in Washington: The House bill would raise personal taxes on Californians and New Yorkers by a combined $16 billion in 2027, Mr. […]
November 16, 2017
The plans also differ on their treatment of state and local tax deductions. The Senate would kill them entirely. The House would maintain them only for property taxes and cap the deduction at $10,000 a year. Economists generally say that those tax breaks are inefficient. But eliminating them, in the context of the House bill, […]
November 16, 2017
The Republican tax plan supercharges these changes. To a striking degree, the changes are about benefiting not just the well-off but those who are well-off because they own capital, as the Institute on Taxation and Economic Policy notes in its analysis of the Senate bill. That’s because the plans are tilted toward corporate income tax […]
November 16, 2017
To pay for its extensive perks for the wealthy, the House bill adds $1.5 trillion to the national deficit over 10 years, according to the Institute on Taxation and Economic Policy (ITEP). It also cuts or caps popular middle-class tax deductions for homeowners, families, and students, and intentionally excludes millions of low-income children from modest […]
November 16, 2017
But the bill’s cuts in personal tax rates, its increase in the standard deduction and other benefits for individual taxpayers are partially offset by reductions in some popular tax deductions — including those for state and local taxes and mortgage interest payments, many of whose beneficiaries live in states with high income or sales taxes […]
November 16, 2017
Of the $1.5 trillion in proposed cuts in the House version of the bill, about $1 trillion will go to corporations and businesses over the next decade. About $500 billion will go to individuals. Of that second amount, the top-1% of earners will get 31% of revenue in 2018 and 48% by 2027, according to the […]
November 15, 2017
A separate analysis released by the Institute on Taxation and Economic Policy found that District-wide, about 39 percent of households earning between $77,220 and $131,900 would see their taxes increase next year under the House plan. Read more
November 15, 2017
According to the Institute on Taxation and Economic Policy, the richest 5% of households will receive 61% of the tax cuts in 2027 under the House plan. The middle fifth of households would get 8% of the cuts, just one-sixth of the 48% share going to the top 1%. The bottom 60% of Americans would […]
November 15, 2017
The bite from the GOP bill is deeper for upper-middle-class families in major metropolitan areas, particularly in Democratic-leaning states where taxes, and usually property values, are higher. While only about one-in-five families between the 80th and 95th income percentiles in most red states would face higher taxes by 2027 under the House GOP bill, that […]
November 15, 2017
The Senate tax bill is now skewed toward millionaires. In 2027, according to an analysis by the Institute on Taxation and Economic Policy, the Republican plan provides the richest one percent of Americans an average tax break of $43,300, compared to just $190 for the poorest 20 percent. With another $300 billion or so to […]
November 14, 2017
As Thomas Frank wrote in the Guardian, these “tax havens are not a sideshow” to the global economy; “they are a central reality.” And that reality makes a mockery of the Republican case for their tax cuts. The Institute on Taxation and Economic Policy reports that the most recent data from the IRS in 2012 […]
November 9, 2017
Let’s take the second part first. Republicans have been promoting their tax “reform” plan – which is really more of a big tax cut with some modest reforms chucked in – as helping mostly the middle class. Per analyses from the Institute on Taxation and Economic Policy, the Tax Policy Center and former Treasury official […]
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