Recent Work by ITEP
How Much Do the Top 1% in Each State Get from the Trump Megabill?
June 30, 2025 • By Carl Davis
The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.
With Fiscal Uncertainty Looming, Louisiana Senate Did the Right Thing on Tax Bills
June 27, 2025 • By Neva Butkus
If you find yourself in a hole, stop digging. This is exactly what Louisiana Senators did when they rejected two tax-cut bills that would have created a billion-dollar shortfall in the coming fiscal years.
Many states are reaching their end-of-June budget deadlines, and major tax policy changes look to have big implications as states are forced, per federal policy, to do more with less.
Analysis of Tax Provisions in the Senate Reconciliation Bill: National and State Level Estimates
June 25, 2025 • By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff
Compared to its House counterpart, the Senate bill makes certain tax provisions more generous, including corporate tax breaks that it makes permanent rather than temporary. But the bottom line for both is the same. Both bills give more tax cuts to the richest 1 percent than to the entire bottom 60 percent of Americans, and both bills particularly favor high-income people living in more conservative states.
Senate Republicans Rig the Rules to Make Their Tax Bill Look Responsible. It’s Not.
June 24, 2025 • By Jon Whiten, Steve Wamhoff
No matter how much Senate leadership bends the rules to make their tax cuts look better on paper, the cost and impact on the deficit remains the same under a current policy baseline. It’s a move meant to mask the true cost and push a reckless bill through.
State Rundown 6/20: Federal tax policy heats up, states wrap sessions and weigh impacts
June 18, 2025 • By ITEP Staff
As state legislative sessions come to a close, decisions on tax policy are being made. Several southern states have cut taxes, while the northeast is making some more measured reforms.
The idea of exempting overtime pay from income tax has gained traction, but there's little evidence it's an effective policy. Alabama tried it in 2023 but ended the policy after just two years. Their reversal highlights how exempting overtime is an expensive gimmick and a distraction from real worker issues.
House Bill’s Deduction for Car Loan Interest Would Not Offset Tariff-Related Auto Price Increases for Most Buyers
June 12, 2025 • By Carl Davis, Sarah Austin
The auto loan interest deduction that recently passed the House is designed, at least in part, to mitigate the impact of tariff-induced price increases on vehicles assembled in America. But the deduction is incapable of offsetting even small-scale price increases, especially for working-class families and others with moderate incomes.
State legislatures are enjoying a relatively quiet period right now, though it is merely a temporary calm before the storm of the federal tax and budget debate begins raging again.
North Carolina Tax Proposal Prioritizes Millionaires Over Everyone Else
June 11, 2025 • By Dylan Grundman O'Neill, Miles Trinidad
North Carolina Senators are proposing to yet again ignore the core needs of the majority of North Carolinians in favor of more income tax cuts for the wealthy few. The Senate's budget would take the personal income tax rate to 1.99 percent as soon as 2031 if certain revenue triggers are met, once again delivering billions of dollars in tax cuts mostly to the rich. And the cost of those tax cuts for North Carolina will be steep cuts to the state’s future, including public education and community colleges.
ITEP in the News
New York Times: States Brace for Added Burdens of Trump’s Tax and Spending Law
Washington Post: How Trump’s Big Bill Will Affect You, From Medicaid Cuts to Tax Credits
Yahoo Finance: Child Tax Credit Gets Small Boost in Trump's Tax Bill, but Millions of Families Are Left Out
New York Times: Congress Passes a National School Voucher Program
Video: ITEP's Amy Hanauer Discusses Megabill on BreakThrough News
ITEP Work in Action
CAP: A New Immigration System To Safeguard America’s Security, Expand Economic Growth, and Make Us Stronger
DC Fiscal Policy Institute: Statement on Final Passage of Federal Budget Reconciliation Bill
More Perfect Union: The One Big Beautiful Bill Is a Big Corporate Cash Grab
Center for Law and Social Policy: Senate Budget Reconciliation Bill Sacrifices the Well-Being of Working Families to Give Tax Breaks to Billionaires
CBPP: Missouri Poised to Enact Appalling Giveaway to its Richest Residents
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