Recent Work by ITEP

Federal Inaction on the Gas Tax is Costing Us Dearly

February 26, 2020 • By Carl Davis

Lawmakers should keep in mind that transportation funding woes can be traced to the federal government’s extremely outdated gas tax rate, which has not been raised in more than 26 years⁠—not even to keep up with inflation.

Tax Cuts Floated by White House Advisors Are an Attempt to Deflect from TCJA’s Failings

February 21, 2020 • By ITEP Staff, Jenice Robinson, Steve Wamhoff

Now that multiple data points reveal the current administration, which promised to look out for the common man, is, in fact, presiding over an upward redistribution of wealth, the public is being treated to pasta policymaking in which advisors are conducting informal public opinion polling by throwing tax-cut ideas against the wall to see if any stick. But the intent behind these ideas is as transparent as a glass noodle.

State Rundown 2/20: Property Taxes and School Finance Take Center Stage

February 20, 2020 • By ITEP Staff

Property taxes and education funding are a major focus in state fiscal debates this week. California voters will soon vote on borrowing billions of dollars to fill just part of the funding hole created in large part by 1978’s anti-property-tax Proposition 13. Nebraska lawmakers are debating major school finance changes that some fear will create similar long-term fiscal issues. And Idaho and South Dakota leaders are looking to avoid that fate by reducing property taxes in ways that will target the families who most need the help. Meanwhile, Arkansas, Nevada, and New Hampshire are taking close looks at their transportation…

How Democratic Presidential Candidates Would Raise Revenue

February 19, 2020 • By Steve Wamhoff

One of the biggest problems with the U.S. tax code in terms of fairness is that investment income, which mostly flows to the rich, is taxed less than the earned income that makes up all or almost all of the income that working people live on.

States Can Lead on Making the EITC Benefit More Young and Older Workers

February 18, 2020 • By Aidan Davis

The federal Earned Income Tax Credit (or EITC) lifts millions out of poverty each year, but it is not created equal for everyone. Childless workers under 25 and over 64 receive no benefit from the existing federal credit. In the absence of immediate federal action, states have led–and continue to lead–the way.

Expanding State EITCs: Age Enhancements and a Credit Increase for Workers without Children in the Home

February 18, 2020 • By Aidan Davis

For 45 years, the federal Earned Income Tax Credit (EITC) has benefited low- and moderate-income workers. Yet, throughout its history, the EITC has provided little or no benefit to workers without children in the home—a group that includes noncustodial parents whose children live the majority of the year with another parent.

State Rundown 2/13: What’s Trendy in State Tax Debates This Year

February 13, 2020 • By ITEP Staff

We wrote earlier this week about Trends We’re Watching in 2020, and this week’s Rundown includes news on several of those trends. Maine lawmakers are considering a refundable credit for caregivers. Efforts to tax high-income households made news in Maryland, Oregon, and Washington. Grocery taxes are receiving scrutiny in Alabama, Idaho, and Tennessee. Tax cuts or shifts are being discussed in Arizona, Nebraska, and West Virginia. And Arizona, Maryland, and Nevada continue to seek funding solutions for K-12 education as Alaska and Virginia do the same for transportation infrastructure.

2021 Trump Budget Continues 40-Year Trickle-Down Economic Agenda

February 12, 2020 • By Jenice Robinson

The 2017 Tax Cuts and Jobs Act may as well have been called the Promise for Austerity Later Act.

ITEP Testimony In Support of H.B. 222 Income Tax Rates – Capital Gains Income & H.B. 256 Maryland Estate Tax – Unified Credit

February 12, 2020 • By Kamolika Das

Read as PDF Testimony of Kamolika Das, State Policy Analyst, Institute on Taxation and Economic Policy Submitted to: Ways and Means Committee, Maryland General Assembly Thank you for this opportunity to submit testimony. My name is Kamolika Das, and I represent the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan research organization that […]

Hearing Witness: Trump Administration Giving Tax Breaks Not Allowed by Law

February 12, 2020 • By Steve Wamhoff

The Treasury Department, tasked with issuing regulations to implement the hastily drafted Trump-GOP tax law, is concocting new tax breaks that are not provided in the law. This is the short version of what we learned while watching Tuesday’s House Ways and Means Committee hearing on “The Disappearing Corporate Income Tax.”