Institute on Taxation and Economic Policy

Recent Work

2048 items
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Power to the People: How Workers Can Fight Tax Inequity

October 31, 2023 • By Brakeyshia Samms

Power to the People: How Workers Can Fight Tax Inequity

Workers of all races and ethnicities are confronting a tax code that puts them at a disadvantage relative to those with immense wealth, and people of color and women are among those most likely to be negatively impacted by this injustice.

Free Tax Filing Option from the IRS Would Benefit People of Color, Contrary to Corporate Warnings

There's a patchwork of programs and preparers for people of color to turn to when filing taxes, and most come from corporations that profit from providing a service that the government could provide more effectively and efficiently for free. The Direct File program can change that and is a great step forward in the IRS’ work addressing racism in the tax code.

Three Localities are Boosting Communities with Refundable EITCs; Others Should Follow Suit

Most states already offer their own Earned Income Tax Credits, typically matching a certain percentage of residents’ federal EITC, but this is still a rarity among localities.

Local Earned Income Tax Credits: How Localities Are Boosting Economic Security and Advancing Equity with EITCs

Leading localities are using refundable EITCs to boost incomes and reduce taxes for workers and families with low and moderate incomes. These local credits build on the success of EITCs at the federal and state levels, reduce economic hardship and improve the fairness of the tax code.

State Rundown 10/26: Off-Year Ballot Measures and State & Local Tax Policy

November elections are creeping closer and closer and while that typically means a new batch of lawmakers are elected, it also means voters have another chance to help shape state and local tax policy...

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On Corporate Tax Avoidance, Critics Take Aim at ITEP – and Miss

October 25, 2023 • By Matthew Gardner, Steve Wamhoff

On Corporate Tax Avoidance, Critics Take Aim at ITEP – and Miss

In identifying companies that avoid taxes, ITEP presented evidence that our federal corporate income tax was not working the way most Americans think it should work. The public and lawmakers paid attention, including President Biden who then made the case that this demonstrated the need for reform. As a result, Congress enacted the corporate minimum tax, to make the tax system a bit closer to what most Americans want it to be. If you look closely at this, you might just see an example of democracy working.

Intuit Receives Millions in Federal Subsidies While Arguing IRS Direct File Would Be Too Costly

The tax preparation industry has for years lobbied to prevent the IRS from providing a tool that would allow Americans to file their taxes online for free. Recent public disclosures from Intuit, the maker of TurboTax and the leader of the pack, show that tax breaks the company claims for doing “research” might be larger […]

2023’s State and Local Tax Ballot Measures: Voters to Weigh in on Property Taxes, Wealth Taxes, and More

Even in this slow year for candidate elections, the decisions that voters in states and cities make could strengthen or weaken revenue for needs in their communities and could change how taxes are distributed across the income spectrum. In the places where tax fairness is on the ballot, much is at stake.

Meaningful investments in Indiana’s future require a smart, and fair, tax code that recognizes current economic realities and can raise a sustainable stream of funding  from those most able to pay.

Large and Growing Tax Gap Underscores the Need to Adequately Fund the IRS

New figures released show the difference between what Americans paid and owed in taxes grew to $688 billion in 2021, a significant jump from previous estimates. This new data underscores that last year’s boost to IRS funding under the Inflation Reduction Act was absolutely necessary and should be protected by lawmakers.

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The Moore Case Before the U.S. Supreme Court Could Widen the Racial Wealth Gap

October 17, 2023 • By Brakeyshia Samms, Moore v. United States

The Moore Case Before the U.S. Supreme Court Could Widen the Racial Wealth Gap

Moore v. United States, already a cause for concern for tax lawyers, could create more barriers for racial equity advocates working to reverse the economic plight of many households of color.

State Rundown 10/12: Tax Policy Debates Don’t Just Happen in the Statehouse

It may be the off-season for state legislatures, but tax policy changes could soon emerge from the ballot box or the courts. Advocates in Arkansas want voters to decide the future of taxing diapers and feminine hygiene products, and supporters of public education in Nebraska are working to make sure voters have a say on the state’s school choice tax credit. Meanwhile, cannabis firms in Missouri are suing the state over cities and counties stacking sales tax on marijuana.

The Campaign by Democratic Former Officials to Stop Taxes on the Wealthy

One of the most attention-grabbing anti-tax campaigns at work today is called SAFE, which stands for Saving America’s Family Enterprises. But it might as well mean Saving Aristocrats From Everything given the outfit’s knack for opposing any national proposal to limit special tax advantages that only the wealthy enjoy. The basic approach of SAFE is […]

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The IRS Shouldn’t Be Lawmakers’ Sacrificial Lamb 

September 29, 2023 • By Joe Hughes

The IRS Shouldn’t Be Lawmakers’ Sacrificial Lamb 

Last year, Congress reversed decades of funding cuts to the IRS to help the agency improve taxpayer services and crack down on wealthy tax cheats through the Inflation Reduction Act. The IRS adopted their assignment, and this past tax filing season was a marked improvement from the year before – both for the agency and […]

State Rundown 9/27: Some States are Looking to Paint the Budgets Red

When it comes to investments, state lawmakers across the country are positioning their states to be in the red as they pass or debate further tax cuts that will overwhelmingly benefit the wealthy – and some states are now adding an additional coat of red paint...

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