Institute on Taxation and Economic Policy

Recent Work

2067 items
The ‘Big, Beautiful’ Bill Creates a $5 Billion Tax Shelter for Private School Donors

On May 22, Congress passed the House reconciliation bill or “One Big Beautiful Bill Act” by a one-vote margin. The bill’s dozens of destructive tax provisions would supercharge inequality and force devastating cuts to health and food aid that have been bedrocks of the American safety net since the 1960s.

D.C.’s Budget Crisis Demands Fairer Business Tax System

As the Washington, D.C. region heads toward a likely recession, local policymakers will need to look to new revenue sources to help lessen the pain. In D.C., lawmakers ought to adopt a simple reform that would raise substantial revenue and make the District’s business tax system fairer.

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Musk-Trump Feud Shows Need to Tax the Rich

June 6, 2025 • By Amy Hanauer

Musk-Trump Feud Shows Need to Tax the Rich

Our tax policies enable people like Elon Musk and Donald Trump to accumulate more wealth than anyone could ever use in a lifetime. They then use it to steer elections and shape public policy to further enrich themselves and others like them. We should defeat the enormously destructive tax bill in Congress and instead craft tax policy that taxes the rich, makes our democracy more fair, and returns resources to the rest of the country.

State Rundown 6/5: States Wrap Sessions, Some Prepare for Fiscal Uncertainty

States use the final hours of their legislative sessions to address deficits and preserve revenue in preparation for the times ahead.

Trump’s Last Tax Cuts Failed Americans Like Me. Let’s Not Repeat the Mistake.

Now as more GOP tax cuts for the rich move through Congress, history is poised to repeat itself. The bill would disproportionately benefit the well-off — and harm the financial well-being of millions of working Americans, including Black women like me.

Amid Economic Uncertainty, Delaware Lawmakers Should Consider Progressive Revenue Proposals

Delaware leaders cited the ongoing federal tax debate and economic uncertainty amid the Trump administration's tariffs and trade wars as reasons to delay pursuing some of the progressive tax increases that Gov. Matt Meyers proposed in recent months. But just the opposite is needed. Delaware lawmakers should advance tax policies that can simultaneously protect state revenue to fund important priorities and improve tax equity in the state ahead of the approaching fiscal storm.

Sweeping Federal Tax and Spending Changes Threaten Local Governments

Given this environment, local leaders must do what they can to preserve and strengthen progressive revenue tools, advocate for expanded local taxing authorities and flexibility, and push their state leaders to decouple from harmful federal tax changes.

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Five Issues for States to Watch in the Federal Tax Debate

June 3, 2025 • By Dylan Grundman O'Neill, Kamolika Das, Marco Guzman, Miles Trinidad, Neva Butkus

Five Issues for States to Watch in the Federal Tax Debate

This post covers five particularly notable provisions for states: increasing deductions for state and local taxes (SALT) paid, allowing more generous tax write-offs for businesses, offering new avenues for capital gains tax avoidance to people contributing to private school voucher funds, carving tips and overtime out of the tax base, and re-upping Opportunity Zone tax breaks for wealthy investors.

House Bill’s $164 Billion Giveaway to Multinational Corporations Puts America Last

The House of Representatives’ recently passed tax bill changes course on taxing multinational corporations engaged in shifting U.S. profits overseas, offering massive tax giveaways that weaken American revenues and risk sending more American corporate investment offshore.

House Tax Bill Would Create a Parallel, Harsher Tax Code for Immigrant Filers and their Citizen Family Members

Immigrant tax filers face a harsher tax code than citizens in some important respects. Sweeping tax legislation recently passed by the House of Representatives would apply new or stricter limits for immigrant tax filers to 10 additional areas of the tax code.

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Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

May 22, 2025 • By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff

Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates

The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.

State Rundown 5/21: Big and Not-So Beautiful Tax Cut Bills Abound in States

As a sprawling, regressive tax bill continues to take shape at the federal level, many states are moving forward with major tax cut proposals of their own.

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The House Tax Plan, By the Numbers

May 16, 2025 • By Carl Davis

The House Tax Plan, By the Numbers

The House of Representatives unveiled a sprawling piece of tax legislation earlier this week that would extend temporary tax changes enacted in 2017 and layer various kinds of tax cuts and increases on top. The JCT analysis makes clear that the House tax plan would be regressive, meaning it would offer larger tax cuts as a share of income to high-income taxpayers than to either middle-class or working-class families. It also makes clear that most of the tax cuts would go to families with above-average incomes.

Trump Megabill Will Encourage Dynastic Wealth Hoarding by Further Weakening the Estate Tax

The tax and spending megabill signed into law by President Trump on July 4 will cut nearly $200 billion from food assistance, affecting tens of millions adults and children, while providing an estate tax cut costing roughly the same amount to a few thousand people who will leave behind more than $7 million to their heirs.

House Tax Bill Enlists the Wealthy to Spread Private School Vouchers

The House tax plan cuts charitable giving tax incentives for donors to most nonprofit groups while roughly tripling the incentive available to donors to groups that fund private K-12 school vouchers. The bill would also allow private school voucher donors to avoid capital gains tax on their gifts of corporate stock, creating a profitable tax shelter for wealthy people who agree to help funnel public funds into private schools. The bill would reduce federal tax revenue by $23.2 billion over the next 10 years as currently drafted, or by $67 billion over the next 10 years if it is extended…

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