Recent Work by ITEP

Tax Avoidance: Nike “Just Did It” Again, Moving $1.5 Billion Offshore Last Year

July 21, 2017 • By Matthew Gardner

The Nike Corporation’s annual financial disclosure of income tax payments is always notable for two recurring trends: the Oregon-based company’s steady shifting of profits into offshore tax havens, and Nike’s apparent effort to conceal how it’s achieving this tax avoidance. This year’s report, released earlier this week, is no exception.

States May Be Finally Learning Their Lesson on Back-To-School Sales Tax Holidays

July 21, 2017 • By Dylan Grundman O'Neill

State lawmakers face a dilemma when it comes to sales tax holidays, an attractive and popular policy that nonetheless proves to be a poor choice compared to developing thoughtful, targeted tax policies or investing in well-executed public services. Luckily, word seems to be getting out that the costs associated with these holidays far outweigh their purported benefits.

Trump’s $4.8 Trillion Tax Proposals Would Not Benefit All States or Taxpayers Equally

July 20, 2017 • By Matthew Gardner, Steve Wamhoff

The broadly outlined tax proposals released by the Trump administration would not benefit all taxpayers equally and they would not benefit all states equally either. Several states would receive a share of the total resulting tax cuts that is less than their share of the U.S. population. Of the dozen states receiving the least by this measure, seven are in the South. The others are New Mexico, Oregon, Maine, Idaho and Hawaii.

State Rundown 7/19: Handful of States Still Have Their Hands Full with Tax and Budget Debates

July 19, 2017 • By ITEP Staff

Tax and budget debates drag on in several states this week, as lawmakers continue to work in Alaska, Connecticut, Rhode Island, Pennsylvania, Texas, and Wisconsin. And a showdown is brewing in Kentucky between a regressive tax shift effort and a progressive tax reform plan. Be sure to also check out our "What We're Reading" section for a historical perspective on federal tax reform, a podcast on lessons learned from Kansas and California, and more!

FedEx Pays Just 7.5% of Its Profits in Taxes While Pushing for a Lower Corporate Tax Rate

July 18, 2017 • By Matthew Gardner

The latest annual financial report released by shipping giant FedEx is yet another reminder that where you stand often depends on where you sit. The report shows that last year FedEx paid a 7.5 percent federal income tax rate on nearly $3.6 billion of U.S. pretax income and this low rate is due in part to accelerated depreciation, a provision in the tax code that allows the company to write off capital investments faster than they wear out. It’s not surprising, then, that FedEx’s leadership is currently promoting a tax plan that would drop the company’s statutory tax rate even…

Comment Letter on Tax Reform to Senate Finance Chairman

July 17, 2017 • By Alan Essig

This letter outlines ITEP’s two broad objectives for meaningful federal tax reform and discusses six recommendations that would achieve them.

Sales Tax Holidays: An Ineffective Alternative to Real Sales Tax Reform

July 12, 2017 • By ITEP Staff

Sales taxes are an important revenue source, composing close to half of all state tax revenues. But sales taxes are also inherently regressive because the lower a family’s income, the more the family must spend on goods and services subject to the tax. Lawmakers in many states have enacted “sales tax holidays” (at least 16 states will hold them in 2017), to provide a temporary break on paying the tax on purchases of clothing, school supplies, and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. This policy brief…

State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime

July 11, 2017 • By ITEP Staff

Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.

Why We Need to End the Era of Anonymous Shell Corporations

July 6, 2017 • By Richard Phillips

What do terrorists, opioid and human traffickers, corrupt government officials and tax evaders have in common? They all depend on the secrecy provided by anonymous shell corporations to allow them to finance and profit from their crimes. Momentum is building in the House and Senate to pass legislation that would strike against illicit finance in the United States and around the world by bringing an end to the anonymity provided by U.S. incorporation.

CBO Just Shot Down Trump’s Economic Forecast

June 29, 2017 • By Carl Davis

Last month, the Trump Administration released a budget proposal that relies on unrealistic projections of economic growth to create the illusion that it will balance the budget by 2027. By making the federal budget outlook appear more favorable than it actually is, the administration is seeking to bolster its case for enacting a multi-trillion-dollar tax cut. Fortunately, Congress has its own independent forecaster that just chimed in with a more rational assessment of the economy.