ITEP – Page 2 – Informing tax policy debate nationwide

blog March 26, 2025
Two Ways a 2025 Federal Tax Bill Could Worsen Income and Racial Inequality

Two parts of Trump’s 2017 tax law that are particularly expensive and beneficial to the richest individuals are the changes in income tax rates and brackets and the special deduction for “pass-through” business owners. Lawmakers should not extend these provisions for high-income households past the end of this year, when they are scheduled to expire.
report March 26, 2025
Federal Tax Policy: What Should It Accomplish?

The U.S. needs a tax code that is more adequate, meaning any major tax legislation should increase revenue, not reduce it. The U.S. also needs a tax code that is more progressive, meaning any significant tax legislation should require more, not less, from those most able to pay.
blog March 25, 2025
Tip Exemptions Have No Place in State Income Tax

Creating a special tax break for tipped income – as at least 20 states are considering this spring – would harm state budgets, encourage tax avoidance, and fail to reach the vast majority of low- and middle-income workers.
blog March 20, 2025
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…
brief March 19, 2025
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.
report March 18, 2025
Shelter Skelter: How the Educational Choice for Children Act Would Use Tax Avoidance to Fuel School Privatization

The Educational Choice for Children Act of 2025 would ostensibly provide a tax break on charitable donations to organizations that give out private K-12 school vouchers. Most of the so-called “contributions,” however, would be made by wealthy people solely for the tax savings, as those savings would typically be larger than their contributions.
report March 18, 2025
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.
blog March 13, 2025
Circuit Breakers Are a Better Option for Property Tax Relief

To curb the impact of property taxes on working families, lawmakers should improve or implement a property tax circuit breaker program. The program works like this: when families are overloaded with their property taxes, the circuit breaker kicks in and helps alleviate the pressure these taxes put on family budgets.
blog March 12, 2025
State Rundown 3/12: Last-Minute Tax Cut Mayhem and New Progressive Revenue Raisers

A bevy of tax cut proposals sprung to life this week while others were signed into law. In Kentucky, lawmakers are working to make it easier for the legislature to enact income and business tax cuts. The governor in Idaho signed into law a personal and corporate income tax cut.
map March 11, 2025
State Approaches to Global Intangible Low-Taxed Income (GILTI)

Many states with corporate income taxes include some amount of federally defined Global Intangible Low-Taxed Income (GILTI) in their tax bases. Twenty-one states plus D.C. include some amount of GILTI in their tax calculations in 2025.