Recent Work by ITEP

Why the GOP Senate Bill Fails to Address the Crisis, and Why a Democratic Bill Looks More Promising

March 20, 2020 • By ITEP Staff, Meg Wiehe, Steve Wamhoff

National and state-by-state data available for download By Steve Wamhoff and Meg Wiehe On Thursday night, Senate Majority Leader Mitch McConnell released a bill that reportedly cost more than $1 trillion, most of which would go toward breaks for corporations and other businesses. A provision in the bill to provide payments to families would cost […]

State Rundown 3/19: Spring Is Here but States Brace for Long Winter

March 19, 2020 • By ITEP Staff

As the COVID-19 pandemic continues to disrupt more and more aspects of life and cause greater and greater harms to public health and the economy, information is changing by the hour. State policymakers, if they are even able to convene, are wholly focused on how to respond to the crisis. The pandemic is certain to pose a series of fiscal challenges for states and their economies, and this week’s Rundown focuses on the most helpful resources and the latest state-by-state updates available.

It’s Time for Some State Fiscal Policy Triage

March 18, 2020 • By Carl Davis, Dylan Grundman O'Neill, ITEP Staff

The COVID-19 novel coronavirus’s effects on public health and economies at all scales are creating a daunting situation for state budgets as well. Lawmakers can choose and prioritize their responses through a straightforward approach similar to that taken by health professionals: marshal and reinforce available resources, triage response options to prioritize the most vital services and most vulnerable people, and enact or strengthen the policies that will help address longer-term issues as well as immediate emergencies.

Checks to All vs. Trump’s Payroll Tax Cut

March 17, 2020 • By Steve Wamhoff

A payroll tax cut would help those lucky enough to keep their job and would provide a bigger break to those with more earnings. Sending checks to every household would be a far more effective economic stimulus because it would immediately put money in the hands of everyone who would likely spend it right away, pumping it back into the economy.

New ITEP Report on President’s Misguided Payroll Tax Proposal

March 13, 2020 • By Steve Wamhoff

Earlier this week, ITEP analyzed what would happen if Congress and the President repeated the 2 percentage-point cut in the Social Security payroll tax that was enacted for two years during the last recession. Little did we know that President Trump was about to propose something far more radical: eliminating all Social Security and Medicare […]

Trump’s Proposed Payroll Tax Elimination

March 13, 2020 • By Steve Wamhoff

President Trump has proposed to eliminate payroll taxes that fund Social Security and Medicare through the end of the year. ITEP estimates that this would cost $843 billion and 65 percent of the benefits would go to the richest 20 percent of taxpayers, as illustrated in the table below.

An Overload of Pie Graphs and Metaphors for Pi Day

March 13, 2020 • By ITEP Staff, Jenice Robinson, Stephanie Clegg

For Pi Day, we’re doubling down on the pie metaphor to reiterate the compelling case for progressive tax policies to ensure more of us have an opportunity to share a slice of this nation’s economic pie.

State Rundown 3/11: Georgia Bucks Trend of Cautious Policymaking Amid Crises

March 11, 2020 • By ITEP Staff

With all eyes on the potential effects of the oil price war and COVID-19 coronavirus on lives, communities, and economies, Georgia House lawmakers this week crammed through a regressive and costly tax cut for the rich with essentially no debate, information, or transparency. Most states are proceeding much more responsibly, assessing the ramifications for their service provision needs and revenues to fund those needs.

ITEP Testimony on the Illinois Earned Income Credit

March 11, 2020 • By Lisa Christensen Gee

Read as PDF Testimony of Lisa Christensen Gee, Director of Special Initiatives, Institute on Taxation and Economic Policy Submitted to: Illinois House Revenue Committee Chairman Zalewski, committee members—thank you for holding this subject matter hearing this morning on the Earned Income Credit (EIC) and its importance for hard working Illinoisans and their families. My name […]

Trump’s Proposed Payroll Tax Cut Is Not the Right Answer

March 10, 2020 • By Steve Wamhoff

The Trump administration is floating a cut in the Social Security payroll tax as a measure to counteract a potential economic downturn related to the COVID-19 virus. It should go without saying that a public health crisis requires government interventions that have nothing to do with taxes. But even if policymakers want to find ways to stimulate the economy beyond solving the health crisis, the payroll tax cut is not likely to be very effective.