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blog
September 3, 2020
The Rich Are Weathering the Pandemic Just Fine: Tax Them
Reductions in critical state and local investments, including health care and education, would only exacerbate the economic crisis brought on by COVID-19 and worsen racial and income inequality for years to come. Higher taxes on top earners are among the best options for addressing pandemic-related state revenue shortfalls in the coming months.
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blog
August 26, 2020
State Rundown 8/26: Progressive Revenue Ideas Featured in Many States’ Fiscal Debates
Voters could significantly change the tax landscape through ballot measures this November regarding oil taxes in Alaska and a high-income surcharge for education funding in Arizona. Legislators are doing their part to bring progressive tax ideas to the fore as well, including a possible wealth tax in California, a millionaires tax in New Jersey, and a pied-a-terre proposal in New York. And Nebraska lawmakers reached a property tax and business tax subsidy compromise before closing out their session, but did not identify progressive revenue sources to fund it and will likely be back at the bargaining table before long.
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ITEP Work in Action
August 26, 2020
South Strong: Racial Equity and Taxes in Southern States
Southern states have a particularly egregious record on tax equity, rooted partly in racism. Lawmakers baked some of the most egregious and anti-democratic tax policies… -
blog
August 25, 2020
Missed Opportunity: Flimsy Paper Touts Flawed Program
Republicans continue to tout Opportunity Zones as their main vehicle to assist poor people, most recently with a deeply flawed report from President Trump’s White House Council of Economic Advisors and a mention from Donald Trump Jr. in his opening night convention speech. The report purports to compare—as a way of cutting poverty—tax breaks for investors vs food, cash or health insurance coverage for struggling families.
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blog
August 18, 2020
Analysis: Trump’s Proposed Capital Gains Break Almost Exclusively Benefits Top 1 Percent
On Aug. 13, President Trump pledged to cut the top federal income tax for capital gains to 15 percent. The Institute on Taxation and Economic Policy estimates that 99 percent of the benefits would go to the richest 1 percent of taxpayers. This is unsurprising given that only those with taxable income of nearly half a million dollars are subject to a capital gains tax rate higher than 15 percent.
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blog
August 17, 2020
Trump’s Executive Order on Social Security Payroll Taxes Is a Mess
President Trump’s executive order that would supposedly allow workers to delay paying Social Security taxes, along with his related public statements, have created a situation that is bizarre even by 2020 standards.
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blog
August 14, 2020
Action (lack thereof) on Economic Aid Reflects Longstanding Anti-Government Agenda
The biggest danger we face right now is that politicians will fail to get this health crisis under control and Americans will continue to die. The second biggest danger is that elected officials will fail to help families and communities, leading to foreclosures, evictions, and impoverishment—and also torpedoing the economy. With their inaction this week, the Senate seems determined to do both. Hold on everyone, we’re in for a sickening ride.
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blog
August 12, 2020
State Rundown 8/12: States Find Themselves in New Unemployment Pickle
Even in statehouses, many eyes remained on Congress and President Trump this week as state lawmakers advocated for needed federal fiscal relief and debated whether they can afford to join in on the president’s executive order requiring states to partially fund a new version of enhanced unemployment benefits that have otherwise expired.
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blog
August 12, 2020
IRS Rule Leaves the Door Open for Private/Religious School Voucher Donation Schemes, Broader SALT Cap Workarounds
An IRS regulation released last Friday sanctions a widely derided tax dodge that allows profitable businesses to avoid taxes by sending money to private and religious school voucher funds. It also leaves the door open to a brand of state and local tax (SALT) cap workaround that previously appeared to be on its way out.
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blog
August 6, 2020
State Rundown 8/6: States Fiscal Solutions Getting Bolder
This week, voters in Missouri approved Medicaid expansion, Nevada lawmakers moved to amend their Constitution to raise taxes on the state’s mining industry, and leaders in California and New York continued to push for needed revenues through tax increases on their richest households.