A direct federal tax on wealth, as described in a January report from ITEP and proposed by Sen. Elizabeth Warren, could raise substantial revenue to make public investments, curb rising inequality, and is supported by a large majority of Americans. But would it work? Recent research highlighted in a new academic paper outlines approaches that would make it easier than you might think.
Steve Wamhoff
Steve Wamhoff is ITEP’s director of federal tax policy. In this role, he is responsible for setting the organization’s federal research and policy agenda. He is the author of numerous reports and analyses of federal tax policies as well as in-depth policy briefs that outline how the federal income tax and corporate tax code can be overhauled to improve tax fairness.
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blog July 31, 2019 A Wealth Tax Might Be Easier to Implement than You Think
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blog July 24, 2019 Legislation to Block Corporate Inversions Is Still Needed
If a future Congress and president enact a real tax reform, one that requires corporations to pay their fair share and ends TCJA’s various corporate breaks for offshore profits, then companies will use inversions and other tactics to dodge taxes once again—if lawmakers let them. That’s why any real tax reform will include something like the Stop Corporate Inversions Act, introduced last week by Sens. Dick Durbin and Jack Reed to block inversions.
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media mention July 14, 2019 The Hill: 2020 Democrats Push Tax Hike on Wealthy Investors
Former President Obama proposed raising capital gains rates for high earners to 28 percent, still short of the top ordinary income tax rate. During the 2016 presidential campaign, Democratic nominee… -
ITEP Work in Action July 3, 2019 The American Prospect: Without Congressional Input, Trump May Further Widen the Gap Between Rich and Poor
“This is just another tax break for rich people,” says Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economy Policy, who authored a blog post… -
media mention July 1, 2019 Nevada Business: Taxes and Nevada: The Give and Take
Many of those breaks and loop holes were left in place by the new policies, said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic… -
blog June 28, 2019 Why Trump Administration’s Plan to Index Capital Gains to Inflation Is Just Another Giveaway to the Wealthy
The White House is reported to be planning to unilaterally adjust the way capital gains are assessed to benefit the wealthiest Americans. The proposal would adjust capital gains for inflation, reducing taxes disproportionately for the wealthiest households who own most assets by limiting their taxable gains to those above and beyond the inflation rate.
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blog June 27, 2019 Wealth Tax Is Supported by Basically Everyone Who Is Not a Politician
A February survey found that 61 percent of registered voters supported a wealth tax proposal, including 51 percent of Republican voters. And it’s not just the non-rich wanting to tax the very rich. A June survey found that 60 percent of millionaires support the idea.
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media mention June 27, 2019 Washington Post: Democratic presidential candidates engage in ‘arms race to the left’ in first debate
On taxes, many of the candidates also emphasized their more left-leaning ideas to raise rates on corporations and make the tax system more progressive, while none touted plans to keep… -
blog June 26, 2019 Rep. Tlaib’s Tax Credit Proposal Is Most Expansive to Date
A refundable tax credit proposed by Rep. Rashida Tlaib (D-MI) would be more expansive than other recent tax credit proposals, new estimates from ITEP show. Rep. Tlaib’s proposal, unlike others, does not require households to work to receive the benefit.
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blog June 25, 2019 What to Watch for on Tax Policy During the Presidential Primary
America needs a new tax code. The Democratic presidential debates beginning this week present an opportunity for candidates to make clear how they would address inequality or to raise enough revenue to make public investments that make the economy work for everyone. Here are some of the big tax issues that we hope they will touch on.
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media mention June 24, 2019 The Hill: Dems Talk up Tax Credits to Counter Trump Tax Law
The left-leaning Institute on Taxation and Economic Policy (ITEP) released a report last month finding that the bulk of the benefits for many of Democrats’ tax-credit proposals would go to… -
blog June 20, 2019 UPDATED: New ITEP Data Shows the House Ways and Means Bill to Expand EITC and Child Tax Credit Would Benefit Low- and Moderate-Income People and Families
Today the House Ways and Means Committee is marking up the Economic Mobility Act of 2019, a bill introduced by Chairman Richard Neal to expand some key tax credits to help low- and moderate-income people and families. New data generated with the ITEP microsimulation tax model show how adults and children would benefit nationally and in each state.
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blog June 18, 2019 Calling Progressive Tax Proposals “Extreme” Are Taunts Meant to Distract
Dismissing calls for progressive taxes as “radical,” “extreme,” or “socialism” are taunts meant to distract from the real question: Why should we ignore the bottom half of Americans, whose share of the economic pie shrank and now have negative net worth, while allowing the wealthy and powerful, whose net worth more than tripled, to dictate our public policies?
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media mention June 10, 2019 Bloomberg: When an Eight-Figure IPO Windfall Can Mean a Zero-Digit Tax Bill
It’s supposed to help young companies attract capital. The congressional Joint Committee on Taxation says the provision costs the U.S. Treasury $1.3 billion a year. “There is no evidence that… -
blog June 6, 2019 Congress Steers Away from Entrenching So-Called Free File Program
Just before tax day in April, ITEP’s Jessica Schieder wrote that two proposals before Congress would take taxpayers in opposite directions. One was a bill passed in the House on… -
media mention May 31, 2019 Yahoo! Finance: Corporations Paid $91 Billion Less in Taxes in 2018 under Trump’s Tax Law
“There are a lot of breaks and loopholes that allow a company not to pay,” said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic… -
blog May 22, 2019 Proposals for Refundable Tax Credits Are Light Years from Tax Policies Enacted in Recent Years
A new ITEP report examines five big proposals that have been announced this year to create or expand tax credits to address inequality and help low- and middle-income households.
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report May 22, 2019 American Family Act
The American Family Act would expand the Child Tax Credit (CTC) for low- and middle-income families. The CTC would increase from $2,000 under current law to $3,000 for each child age six and older and to $3,600 for each child younger than age six. The proposal removes limits on the refundable part of the credit so that low- and moderate-income families with children could receive the entire credit.
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report May 22, 2019 Working Families Tax Relief Act
The Working Families Tax Relief Act would expand the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) for low- and middle-income families.
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report May 22, 2019 LIFT the Middle Class Act
The LIFT (Livable Incomes for Families Today) the Middle Class Act would create a new tax credit of up to $3,000 for single people and up to $6,000 for married couples, which would be an addition to existing tax credits. Eligible taxpayers would be allowed a credit equal to the maximum amount or their earnings, whichever is less. Income limits would prevent well-off households from receiving the credit.
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report May 22, 2019 Rise Credit
The Rise Credit would replace the existing EITC. In most cases, the Rise Credit would be $4,000 for single people and $8,000 for married couples. Eligible taxpayers would be allowed a credit equal to the maximum amount or their earnings, whichever is less.
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media mention May 9, 2019 ABC News: Trump Lobbied for Tax Loopholes in the 1990s
The sweeping, bipartisan law that Trump railed against was popular in both Democrat and Republican circles, as it got rid of numerous loopholes, reduced tax-code chicanery and lowered tax rates… -
media mention May 8, 2019 The Hill: Tax Prep Companies Under Fire over Free File Program
Steve Wamhoff, director of federal tax policy for the left-leaning Institute on Taxation and Economic Policy, said that it’s inevitable that when private companies are tasked with offering a public… -
blog May 6, 2019 Proponents of Trump Tax Law Cite ITEP with Obvious Lack of Context
Sen. Chuck Grassley, the chairman of the Senate Finance Committee, today has an op-ed defending Trump-GOP tax law. “One of the most-covered falsehoods being spread about tax reform,” as he calls the law, “is that it’s a middle-class tax hike.” He cites ITEP’s estimates to back up his point that most people in every income group have lower taxes because of the law. As Sen. Grassley and his staff know full well, this leaves out the important point of our findings.
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media mention April 24, 2019 New York Times: Dealbook Briefing
“There’s a general rule that you’re not supposed to be able to claim losses for more than you put into a deal,” Steve Wamhoff, director of federal tax policy at…