Carl Davis
Carl Davis is the research director at ITEP, where he has worked since 2008. Carl works on a wide range of issues related to both state and federal tax policy. He has advised policymakers, researchers, and advocates on tax policy issues in nearly every state. Much of his work relates to the link between taxes and economic growth, and the shortcomings of dynamic scoring and supply-side economic theories.
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media mention June 10, 2021 Sacramento Bee: White, Asian families have most to gain if Congress restores tax break Trump capped, report says
“Outright repeal of the SALT cap without an adequate replacement would exacerbate racial inequities in this country,” said a study from the Institute on Taxation and Economic Policy’s Carl Davis… -
media mention June 8, 2021 Marketplace: Why are some states experiencing a tax revenue surplus?
But according to Carl Davis, research director at the Institute on Taxation and Economic Policy, no one is swimming in cash. “A lot of states were just barely trying to… -
blog May 13, 2021 Attacks on Voting Rights, Secret Tax-Cut Negotiations in Arizona Reflect Broader Trend to Undermine Democracy
The onslaught of news about multiple states introducing or passing legislation to make it harder to vote is a clear signal that our democracy is in crisis. Decades of policymaking and judicial rulings have created a system in which the voices of the wealthy and powerful have more weight, and some lawmakers are determined to further rig the system and keep it that way.
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blog May 12, 2021 Arizonans Voted to Tax the Rich. Now Lawmakers Want to Undo Most of That.
In 2018, Arizona teachers took part in a national wave of teacher walkouts, protesting inadequate education funding and some of the lowest teacher pay in the nation—direct results of the state’s penchant for deep tax cuts and its decision to levy some of the lowest tax rates in the country on high-income families.
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media mention May 1, 2021 New York Times: Why a $10,000 Tax Deduction Could Hold Up Trillions in Stimulus Funds
There’s no debate that the SALT deduction goes mostly to wealthier taxpayers. About 85% of its benefits accrue to the richest 5% of households, according to an analysis by the… -
media mention April 28, 2021 MarketWatch: Some lower-tax states won big in the 2020 Census count. Are Americans moving to escape the taxman?
Carl Davis, research director at the Institute on Taxation and Economic Policy, a left-leaning think tank, sees the Census results quite differently. “I really don’t see a tax story here,”… -
media mention April 21, 2021 CNBC: Black, Hispanic Families Would Benefit Less from a SALT Cap Repeal than Whites
Repealing the $10,000 state and local tax deduction cap is likely to have uneven results for Americans. In fact, Black families are 42% less likely and Hispanic families are 33%… -
media mention April 20, 2021 Forbes: Repealing The Cap On State And Local Tax Deductions Would Widen The Racial Wealth Gap, New Study Shows
As some lawmakers from high-tax Blue states push for the elimination of the Trump-era $10,000 cap on state and local tax (SALT) deductions, a new study from the left-leaning Institute… -
news release April 20, 2021 SALT Cap Repeal Would Exacerbate Racial Inequities
A new ITEP analysis provides critical data for the debate over whether to repeal the $10,000 cap on state and local tax (SALT) deductions. The report finds that repeal of the SALT cap without other reforms would worsen economic disparities and exacerbate racial inequities baked into the federal tax system.
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blog April 20, 2021 SALT Cap Repeal Would Worsen Racial Income and Wealth Divides
A bipartisan group of 32 House lawmakers banded together to form the “SALT Caucus,” demanding elimination of the SALT cap. None of their arguments in favor of repeal change the fact that it would primarily benefit the rich and, according to new research, exacerbate racial income and wealth disparities.
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report April 20, 2021 Not Worth Its SALT: Tax Cut Proposal Overwhelmingly Benefits Wealthy, White Households
A previous ITEP analysis showed the lopsided distribution of SALT cap repeal by income level. The vast majority of families would not benefit financially from repeal and most of the tax cuts would flow to families with incomes above $200,000.
This report builds on that work by using a mix of tax return and survey data within our microsimulation tax model to estimate the distribution of SALT cap repeal across race and ethnicity. It shows that repealing the SALT cap would be the latest in a long string of inequitable policies that have conspired to create the vast racial income and wealth gaps that exist today.
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blog March 31, 2021 A New Look at Taxes and Race at the State and Local Levels
A new ITEP report reveals how different taxes have very different impacts on racial equity and unveils data for two states showcasing the consequences of their contrasting tax policy choices. In short, we find that income taxes can help narrow the racial income and wealth divides while sales taxes generally make those divides worse.
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blog March 25, 2021 Looking at the Tax Code Through A Race Equity Lens Presents a Strong Case for Reforms
An important new book from Professor Dorothy Brown at Emory University offers a timely look at the federal tax code through the lens of racial equity. The Whiteness of Wealth:… -
media mention March 17, 2021 The Hill: Ohio AG Sues Biden Administration Over Pandemic Bill
Carl Davis, the research director for the left-leaning Institute on Taxation and Economic Policy, said that the rhetoric from the conservative attorneys general has been overblown. “There’s a lot of… -
media mention March 17, 2021 Newsweek: This Last-Minute Provision Blocks GOP Govs from Using Stimulus Money to Subsidize Tax Cuts
“Basically any tax cut done at the state level has doubled in cost,” said Carl Davis, research director at the Institute on Taxation and Economic Policy. For example, if a… -
media mention March 16, 2021 Law360: 3 Questions State Tax Pros Have About The Pandemic Relief Law
Policymakers and state tax specialists noticed almost immediately that if states want to take full advantage of the $350 billion cash infusion the ARPA gives state and local governments, it… -
media mention March 15, 2021 MinnPost: Is Minnesota’s Tax System Unfair?
The Institute on Taxation and Economic Policy’s regular assessment of state taxes concludes that just five states and the District of Columbia have positive scores on progressivity: California, Delaware, New… -
blog March 15, 2021 State and Local Cannabis Tax Revenue Jumps 58%, Surpassing $3 Billion in 2020
Cannabis taxes are a small part of state and local budgets, clocking in at less than 2 percent of tax revenue in the states with legal adult-use sales. But they’re… -
brief March 5, 2021 How Long Has It Been Since Your State Raised Its Gas Tax?
Many state governments are struggling to repair and expand their transportation infrastructure because they are attempting to cover the rising cost of asphalt, machinery, and other construction materials with fixed-rate gasoline taxes that are rarely increased.
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media mention March 1, 2021 Marketplace: High-income taxpayers help some states stay above water
However, in 22 states, tax revenue actually increased, with revenue in four states — Idaho, Utah, South Dakota and Colorado — up more than 5%. Revenue fell in the remaining… -
blog February 24, 2021 Income Tax Discussion Continues in Alaska
Alaska is notoriously reliant on tax and royalty revenue from oil to fund vital public services and institutions, but declining oil prices and production levels have rendered those revenues inadequate to meet the state’s needs. ITEP analysis of potential state income tax options in Alaska shows the potential to raise between $526 million and $696 million per year yet are quite modest compared to personal income tax structures in other states. When measured relative to state residents’ incomes, any of these options would rank among the bottom five lowest state income taxes in the nation.
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report February 24, 2021 Comparing Flat-Rate Income Tax Options for Alaska
Alaska lawmakers are facing an unprecedented fiscal crisis. The state is more dependent than any other on oil tax and royalty revenues but declines in oil prices and production levels have sapped much of the vitality of these revenue sources. One way of diversifying the state’s revenue stream and narrowing the yawning gap between state revenues and expenses would be to reinstitute a statewide personal income tax. Alaska previously levied such a tax until 1980. This report contains ITEP’s analysis of the distributional impact and revenue potential of a variety of flat-rate income tax options for Alaska, based on draft legislation provided by the Legislative Budget and Audit Committee.
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media mention February 16, 2021 The New York Times: California: Liberal Model or Cautionary Tale?
Below is an excerpt of an LTE by ITEP Research Director Carl Davis: Of course, the very richest people in California pay more tax than they would if they… -
blog February 12, 2021 It’s Been 10,000 Days Since the Federal Government Raised the Gas Tax
10,000 days. More than 27 years. By next Tuesday that’s how long it will have been since the federal government last raised the gas tax. Over that time, vehicle fuel efficiency has improved by 25 percent and construction costs have grown 185 percent. And yet the federal gas tax has remained frozen at 18.3 cents per gallon, with its purchasing power shrinking by the day. The federal government has never gone this long without updating the nation’s gas tax rate.
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blog February 9, 2021 Does New York’s Cannabis Tax Idea Offer a Glimpse of the Future?
Taxing cannabis won’t end New York’s budget difficulties, but a potency tax could bring New York a more sustainable stream of cannabis tax revenue than we see in most states. It could also have significant benefits for cannabis consumers.