Recent Work by ITEP
Minnesota stands apart from the rest of the country with a moderately progressive tax system that asks slightly more of the rich than of low- and middle-income families. Recent reforms signed by Gov. Tim Walz have contributed to this reality.
Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform
August 6, 2024 • By Marco Guzman
Nineteen states have sales tax holidays on the books in 2024. These suspensions combined will cost states and localities over $1.3 billion in lost revenue this year. Sales tax holidays are poorly targeted and too temporary to meaningfully change the regressive nature of a state’s tax system.
Undocumented immigrants pay taxes that help fund public infrastructure, institutions, and services in every U.S. state. Nearly 39 percent of the total tax dollars paid by undocumented immigrants in 2022 ($37.3 billion) went to state and local governments.
Tax Payments by Undocumented Immigrants
July 30, 2024 • By Carl Davis, Emma Sifre, Marco Guzman
Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. Providing access to work authorization for undocumented immigrants would increase their tax contributions both because their wages would rise and because their rates of tax compliance would increase.
Four states expanded or boosted refundable tax credits for children and families, and the District of Columbia is poised to create a new Child Tax Credit. These actions — in Colorado, Illinois, New York, Utah, and D.C. — continue the recent trend of improving the well-being of children and families with refundable tax credits.
State Rundown 7/25: Summertime Hits Different in Different States
July 25, 2024 • By ITEP Staff
State lawmakers will have a lot to discuss when they compare notes on how they spent their summer vacations this year...
Major tax cuts were largely rejected this year, but states continue to chip away at income taxes. And while property tax cuts were a hot topic across the country, many states failed to deliver effective solutions to affordability issues.
Improving Refundable Tax Credits by Making Them Immigrant-Inclusive
July 17, 2024 • By Emma Sifre, Marco Guzman
Undocumented immigrants who work and pay taxes but don't have a valid Social Security number for either themselves or their children are excluded from federal EITC and CTC benefits. Fortunately, several states have stepped in to ensure undocumented immigrants are not left behind by the gaps in the federal EITC and CTC. State lawmakers should continue to ensure that immigrants who are otherwise eligible for these tax credits receive them.
Corporate Tax Breaks Contribute to Income and Racial Inequality and Shift Resources to Foreign Investors
July 16, 2024 • By Emma Sifre, Steve Wamhoff
Corporate tax cuts and corporate tax avoidance worsen income and racial inequality in our country. Most of the benefits flow to foreign investors and the richest 20% of Americans.
While Massachusetts legislators recently dropped a real estate transfer tax from their major housing bill, the District of Columbia council sent a budget to the mayor that includes a mansion tax that would increase the tax rate on properties valued over $2.5 million. Meanwhile, lawmakers in New Jersey and South Carolina continue to, respectively, raise and reduce needed revenues.
ITEP in the News
AP News: Ohio Budget Bill With Browns Stadium Funding, LGBTQ+ Restrictions Heads to Gov. Mike DeWine
CNBC: How the Republican Megabill Targets Immigrant Finances
The Wall Street Journal: The Tax Bill Would Deliver a Big Win for Private Schools – and Investors
USA Today: Trump Orders ICE to Expand Efforts in NYC, LA, Chicago: See How Many Immigrants Live in Major Metros
WHYY News: ‘Every dollar counts’: Critics Say Plan to Increase Fees, Taxes and Tolls Will Disproportionately Hurt Poor Delawareans
ITEP Work in Action
NC Budget & Tax Center: It’s Time for a Millionaire’s Tax in North Carolina
Nebraska Legislature: Poverty Elimination Action Plan
Video: ITEP's Amy Hanauer Discusses 2025 Tax Bill on Power at Work Blogcast
League of Women Voters: What's Happening with Medicaid, Tax Cuts, and Budget Bills?
EdTrust: The Great American Heist: Taxing Education, Not Billionaires or Corporations
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