Recent Work by ITEP

Inverter Mylan Finds Yet Another Way to Avoid Taxes

June 23, 2017 • By Richard Phillips

Rather than being known for its pioneering pharmaceuticals, Mylan is increasingly becoming infamous for its pioneering tax avoidance strategies. In 2015, Mylan used an inversion to claim that it is now based in the Netherlands for tax purposes. It is a Dutch company only on paper because ownership of the company was mostly unchanged and it continues to operate largely out of the United States. This maneuver has allowed the company to avoid millions in taxes on its earnings in the U.S. and abroad. But that’s not the end of Mylan’s innovation when it comes to tax planning. A new…

Explaining our Analysis of Washington State’s Highly Regressive Tax Code

June 22, 2017 • By Carl Davis

Supporters of creating a local personal income tax in Seattle are rightly concerned about the lopsided nature of their state’s tax code. In a 50-state study titled Who Pays?, produced using our microsimulation tax model, we found that Washington State’s tax system is the most regressive in the nation.

West Virginia Lawmakers Settle on Imperfect Budget, Delay Tax Debate for Next Session

June 21, 2017 • By Aidan Davis

West Virginia’s roller coaster ride of a session is nearing its tumultuous end. In a press conference this morning, Gov. Jim Justice announced that he will let the legislature’s most recent budget bill become law without his signature.

State Rundown 6/21: Crunch Time for Many States with New Fiscal Year on Horizon

June 21, 2017 • By Meg Wiehe

This week several states rush to finalize their budget and tax debates before the start of most state fiscal years on July 1. West Virginia lawmakers considered tax increases as part of a balanced approach to closing the state’s budget gap but took a funding-cuts-only approach in the end. Delaware legislators face a similar choice, […]

The GOP Health Plan Cuts Medicaid to Lower Taxes for the Richest 3 Percent

June 16, 2017 • By Alan Essig

The bill passed by the House of Representatives last month to repeal the Affordable Care Act (ACA) is the most unpopular legislation in decades. Lawmakers should reverse course and take the necessary time to put together legislation that would preserve or, better yet, improve access to health care. But this isn’t likely to happen because at its core, the American Health Care Act isn’t truly health care reform. It is tax cuts that disproportionately benefit the rich shrouded in legislative provisions that would weaken the existing health care law.

Which States Benefit from the Tax Cuts in the GOP Health Plan?

June 15, 2017 • By Steve Wamhoff

Congressional Republicans’ plans to repeal the two largest tax increases on individuals that were enacted as part of the Affordable Care Act (ACA) would disproportionately benefit residents of Connecticut, New York, the District of Columbia and 10 other states. The remaining states would receive a share of the tax cuts that is less than their share of the total U.S. population.

State Rundown 6/14: Some States Wrapping Up Tax Debates, Others Looking Ahead to Next Round

June 14, 2017 • By ITEP Staff

This week lawmakers in California and Nevada resolved significant tax debates, while budget and tax wrangling continued in West Virginia, and structural revenue shortfalls were revealed in Iowa and Pennsylvania. Airbnb increased the number of states in which it collects state-level taxes to 21. We also share interesting reads on state fiscal uncertainty, the tax experiences of Alaska and Wyoming, the future of taxing robots, and more!

How to Recover from A Failed Tax Experiment: Part 1

June 13, 2017 • By Lisa Christensen Gee

Gov. Sam Brownback’s tax experiment in Kansas was a failure. His radical tax cuts for the rich eventually had to be partly paid for through tax hikes on low- and middle-income families and also failed to deliver on promises of economic growth. Meanwhile, the tax cuts decimated the state’s budget, diminished its credit rating, and compromised its ability to meet the state’s constitutional standard of adequacy for public education.

The Best Way to Radically Simplify Tax Filing

June 12, 2017 • By Richard Phillips

One of the supposed selling points of the House GOP’s “Better Way” tax plan is that it will make the tax system so simple that you could do your taxes on a postcard. The reality, however, is that their promised postcard is a deception that would require numerous additional pages of worksheets to fill out. A better solution to making tax preparation simpler is called “return-free filing.” It does not just reduce your work to filling out a postcard, it could eliminate it altogether.

Kansas May Have Saved Us All

June 8, 2017 • By Steve Wamhoff

Sitting in the National Museum of American History in Washington, DC, hidden in the jumble of Americana like Thomas Jefferson’s desk, Michelle Obama’s inaugural gown and the ruby slippers worn in the Wizard of Oz, is a napkin with a drawing on it. Probably one of the least known exhibits in the museum, this napkin, quietly hiding behind glass lest some child wandering from a school group wipe his nose on it, has on several occasions destroyed the finances of the federal government and several state governments, most recently in Kansas.