Recent Work by ITEP
Twenty-three states have legalized the sale of cannabis for general adult use, and sales are already underway in 21 of those states. Every state allowing legal sales applies an excise tax to cannabis based on the product’s quantity, its price, or both. Quantity taxes can be based on either overall product weight or the amount […]
Ending Direct File Program is a Gift to the Tax-Prep Industry That Will Cost Taxpayers Time and Money
April 17, 2025 • By Jon Whiten
The Trump administration reportedly plans to shutter the IRS Direct File program before it has a chance to get fully off the ground, taking away a free option for people to file their tax returns directly to the agency. Ending Direct File is another gift from this administration to large corporations, this time to the multibillion-dollar tax prep industry that profits from you filing your taxes.
State Rundown 4/16: No Vacation from Spring Tax Breaks as Bills Advance
April 16, 2025 • By ITEP Staff
While students and families are enjoying spring break vacations, legislative sessions are still in full swing. And some are poised for a spring tax break season as proposals advance with major implications for the sustainability of state budgets.
It’s Tax Day. You’ve Paid Your Share, but the Billionaires Haven’t.
April 15, 2025 • By Amy Hanauer
You likely had most of your federal taxes deducted from your paychecks throughout the year. This is not true, however, for mega-millionaires and billionaires, some of whom are practically running our government right now.
IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy
April 10, 2025 • By Marco Guzman
Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.
Residents and state lawmakers across the country are pushing back against anti-tax measures and are looking for ways to protect revenue and advance proposals that would raise revenue in progressive ways. This comes at a time when federal policy brings significant risks for state tax revenue.
Sharp Turn in Federal Policy Brings Significant Risks for State Tax Revenues
April 9, 2025 • By Carl Davis
Summary The new presidential administration and Congress have indicated that they intend to bring about a dramatic federal retreat in funding for health care, food assistance, education, and other services that will push more of the responsibility for providing these essential services to the states. Meeting these new obligations would be a challenging task for […]
A Windfall for the Wealthy: A Distributional Analysis of Mississippi HB 1
April 8, 2025 • By Aidan Davis, Dylan Grundman O'Neill, Neva Butkus
Mississippi lawmakers have approved the most radical and costly change to the state’s personal income tax system to date. House Bill 1 ultimately eliminates the state's personal income tax and cuts state revenues by nearly $2.7 billion a year when fully implemented. This deeply regressive legislation will create a windfall for the wealthiest residents of the poorest state in the nation while simultaneously jeopardizing the state’s ability to fund public services that support Mississippians and the state’s economy.
Philadelphia Mayor’s Proposal to Cut Business Taxes is Illogical and Imprudent
April 7, 2025 • By Kamolika Das
Mayor Cherelle L. Parker’s proposal to cut the city’s business income and receipts tax (BIRT), based off the Philadelphia Tax Reform Commission’s recommendation, is illogical and imprudent. This is more than the city spends each year on homelessness services, public health, the streets department, and countless other programs that directly benefit residents.
What the Wall Street Journal Editorial Board Got Wrong About Tesla’s Tax Avoidance
April 4, 2025 • By Matthew Gardner
Tesla’s income tax avoidance is still in the news, and that’s a good thing.
ITEP in the News
CT Mirror: Sales Tax Holidays Under Fire as CT Launches Its Promotion
The Sacramento Bee: Why California's Wealthiest Tax Payers Could Get Less of a Trump Tax Break
The Guardian: IRS Commissioner’s Removal Reportedly Over Clash on Undocumented Immigrant Data
CNBC: These States Have Sales Tax Holidays in 2025. Here’s Who Stands to Benefit, Tax Experts Say
CBS News: Florida's Month-long School Tax "Holiday" Kicks Off This Week
ITEP Work in Action
Hawai'i Appleseed: Incoming Federal Tax Cuts Will Heavily Favor Hawaiʻi’s Wealthiest Residents
New Hampshire Fiscal Policy Institute: New Federal Reconciliation Law Reduces Taxes, Health Access, and Food Assistance Supports for Granite Staters
United Ways of California: The Economic Impact of Immigrants in California
Center for American Progress: 2024 Findings Reveal What’s at Stake for Recipients and the United States
State Innovation Exchange: Funding Our Futures Despite Trump's Big Ugly Megabill
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