Institute on Taxation and Economic Policy

Payroll Tax

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Equitable (and Less Equitable) Washington State Revenue Raisers

April 24, 2025 • By Dylan Grundman O'Neill

Washington state came into the year with strong tax justice momentum. Lawmakers’ innovative Capital Gains Excise Tax on the state’s highest-income households was upheld by the state and federal Supreme Courts and was overwhelmingly affirmed by voters despite a well-funded repeal effort. The new tax is bringing in much-needed revenue for schools, child care, and […]

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The (Mostly Untapped) Power of Local Income Taxes

February 5, 2025 • By Rita Jefferson

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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Tax Payments by Undocumented Immigrants

July 30, 2024 • By Carl Davis, Emma Sifre, Marco Guzman

Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022. Providing access to work authorization for undocumented immigrants would increase their tax contributions both because their wages would rise and because their rates of tax compliance would increase.

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Our Taxes Can Set Kids Up for Success

March 26, 2024 • By Brakeyshia Samms

Every child deserves the opportunity to succeed in society – and tax policy has a huge role to play in making that happen. Better tax policy can help prepare our young children with skills to become successful and thriving adults.

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President’s Budget Would Strengthen Medicare Taxes Paid by the Wealthy

March 8, 2023 • By Joe Hughes

As part of his new budget plan, President Biden is asking the richest Americans to pay a little bit more to strengthen Medicare. The proposal includes raising taxes related to Medicare very slightly for the highest earners and closing a loophole that some wealthy individuals use to avoid Medicare taxes altogether.

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Trump’s Executive Order on Social Security Payroll Taxes Is a Mess 

August 17, 2020 • By Steve Wamhoff

President Trump’s executive order that would supposedly allow workers to delay paying Social Security taxes, along with his related public statements, have created a situation that is bizarre even by 2020 standards.  

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New ITEP Report on Trump’s Payroll Tax Holiday

July 21, 2020 • By Steve Wamhoff

While the White House hasn’t clarified what it is proposing, we know that a payroll tax cut would not be well-targeted. In a new report, ITEP estimates the effects of suspending Social Security and Medicare payroll taxes for employees and employers from September 1 through the end of the year. We find that 64 percent of the benefits would go to the richest 20 percent of Americans while 24 percent of the benefits would go to the richest 1 percent.