Recent Work by ITEP

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.

COVID-19 Is No Excuse for Airline Industry or Any Other Corporate Tax Cut

March 10, 2020 • By Matthew Gardner

Trump administration officials have reportedly floated the idea of including tax breaks for the airline industry in its package of COVID-19-related stimulus proposals, which would allow airline companies to defer income taxes into the future. This is an odd policy choice since most of the biggest airlines are already using deferral to zero out most or all of their federal income taxes on billions of dollars in profits.

Taxes in a Time of Coronavirus 

March 10, 2020 • By Amy Hanauer

Some problems can only be solved when public officials have the resources to act. Today’s public health crisis is that kind of problem. Unfortunately, the Trump administration’s deep tax cuts leave our health infrastructure knee-capped, just when we need it most.

State and Local Cannabis Tax Revenue Jumps 33%, Surpassing $1.9 Billion in 2019

March 10, 2020 • By Carl Davis

Excise and sales taxes on cannabis raised more than $1.9 billion in 2019. This represents a jump of nearly half a billion dollars, or 33 percent, compared to a year earlier. These are the findings of an ITEP analysis of newly released tax revenue data from the eight states where legal sales of adult-use cannabis took place last year.