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map
February 21, 2025
Corporate Income Tax Filing Methods: States with Water's Edge or Worldwide Combined Reporting
The purpose of state corporate income taxes is to tax the profit, or net income, an incorporated business earns in each state. Ascertaining the state… -
blog
February 20, 2025
State Rundown 2/20: Tools to Address Corporate Tax Avoidance and Property Tax Affordability
A new ITEP report finds that states could raise $19 billion a year with one policy change targeting corporate tax avoidance. That policy, worldwide combined reporting, strengthens state corporate taxation by giving states a full view of multinational corporate profits, essentially eliminating the tax savings that companies currently see by pretending their profits were earned in Switzerland, the Cayman Islands, and other international tax havens.
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blog
February 20, 2025
Wide-Ranging 2025 State Tax Debates Come into Focus
In the face of immense uncertainty around looming federal tax and budget decisions, many of which could threaten state budgets, state lawmakers have an opportunity to show up for their constituents by raising and protecting the revenue needed to fund shared priorities. Lawmakers have a choice: advance tax policies that improve equity and help communities thrive, or push tax policies that disproportionately benefit the wealthy, drain funding for critical public services, and make it harder for most families to get ahead.
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report
February 20, 2025
A Revenue Analysis of Worldwide Combined Reporting in the States
Universal adoption of mandatory worldwide combined reporting would boost state corporate income tax revenues by roughly 14 percent. Thirty-eight states and the District of Columbia would experience revenue increases totaling $19.1 billion.
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blog
February 12, 2025
State Rundown 2/12: State Tax Policy Heats Up as Winter Storms Sweep Much of the Country
Tax policy proposals are a hot topic of conversation across the country. Both North and South Dakota are considering property taxes cuts, while proposed cuts in Florida, Mississippi, and Texas are percolating. Meanwhile, fiscal conditions are tight in states like Alaska, Tennessee, Oklahoma, and West Virginia. None are on the cusp of passing new revenue, but years of recent tax cuts and inflation have caught up to states and many lawmakers have revenue gaps to close.
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blog
February 11, 2025
Turning IRS Agents to Deportation Will Reduce Public Revenues
The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.
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blog
February 11, 2025
The Five Biggest Corporations Represented at Trump's Inauguration Could Save $75 Billion from One Tax Break Before Congress
New financial reports indicate five of America’s biggest corporations—Alphabet, Amazon, Apple, Meta, and Tesla—could win $75 billion in tax breaks if Congress and the President satisfy demands from corporate lobbyists to reinstate a provision repealed under the 2017 Trump tax law.
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blog
February 6, 2025
State Rundown 2/6: Tax Proposals in the Spotlight
Tax changes have been proposed or are nearing the finish line in many states. Kentucky is poised to enact an income tax cut as a bill heads to the governor’s desk. In Pennsylvania, Gov. Josh Shapiro’s budget proposal called to accelerate existing corporate tax cuts while closing corporate tax loopholes by enacting combined reporting. Ohio Gov. Mike DeWine proposed a new credit for children of working parents. And Virginia Democrats countered Gov. Glenn Youngkin’s proposed tax cuts with a plan of their own that includes an increase to the state’s Earned Income Tax Credit (EITC) and a one-time, nonrefundable tax rebate.
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brief
February 5, 2025
The (Mostly Untapped) Power of Local Income Taxes
Local income taxes can be an important progressive revenue raiser, as they ask more of higher-income households and are connected to ability to pay. They can raise substantial revenue to fund key public services to make cities and regions better off.
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blog
February 3, 2025
Policymakers Could Consider Using Tax and Transfer Policy to Reduce the Racial Retirement Wealth Gap
As we show in our recent study, this is, in part, due to longstanding discrimination shaping racial differences in economic wellbeing in the U.S. Moreover, aspects of federal and state tax policies have helped create the vast racial retirement wealth gap in place today. For this reason, we evaluate how tax and transfer policy reforms could help shrink racial retirement wealth inequality. To inform lawmakers as they approach the 2025 debates, below we offer several guiding principles.
