Recent Work

Arkansas Advocates for Children and Families: Proposed Cuts to the Top Tax Rate Are Costly and Heavily Favor the Rich

October 8, 2021 • By ITEP Staff

As the Arkansas Legislature concludes the 2021 general session, our attention must turn to the special session they are preparing to begin to discuss personal income tax cuts. Although income tax cuts may sound like something everyday Arkansans would welcome, when we examine the details, it turns out most Arkansans will be getting a bad […]

State Income Tax Reform Can Bring Us Closer to Racial Equity

October 4, 2021 • By Carl Davis, ITEP Staff, Marco Guzman

To pave the way for a more racially equitable future, states must move away from poorly designed, regressive policies that solidify the vast inequalities that exist today.

State Income Taxes and Racial Equity: Narrowing Racial Income and Wealth Gaps with State Personal Income Taxes

October 4, 2021 • By Carl Davis, Jessica Schieder, Marco Guzman

10 state personal income tax reforms that offer the most promising routes toward narrowing racial income and wealth gaps through the tax code.

State Rundown 9/29: Where There’s Smoke, There’s Revenue?

September 29, 2021 • By ITEP Staff

One of the few industries to excel during the economic downturn brought on by the pandemic has been the marijuana business, and lawmakers around the country are taking notice as they try to ensure that sales in their state are both legal and subject to tax...

The Billionaires’ Income Tax Is the Latest Proposal to Reform How We Tax Capital Gains

September 28, 2021 • By Steve Wamhoff

When people first hear about proposals to tax unrealized capital gains, they often ask, “Is this income, and if so, should we tax it?” The answers to those questions are “yes” and “yes, when we are talking about the very rich.”

Reforming Federal Capital Gains Taxes Would Benefit States, Too

September 28, 2021 • By Carl Davis

Congress’s action or inaction on federal tax changes under consideration in the Build Back Better plan could have important implications for states on many fronts. One critical area of note is at the foundation of income tax law: setting the definition of income that most states will use in administering their own income taxes.

Repealing the SALT Cap Would Wipe Out Revenue Raised by the House Ways and Means Bill’s Income Tax Provisions

September 23, 2021 • By Steve Wamhoff

There are several ways that the House leadership could avoid this problem. One approach is for lawmakers to replace the SALT cap with a different kind of limit on tax breaks for the rich that actually raises revenue and avoids disfavoring some states compared to others as the SALT cap does. ITEP has suggested a way to do this.

New ITEP Report Examines the Tax Changes in the House Ways and Means Build Back Better Bill

September 21, 2021 • By Steve Wamhoff

The vast majority of these tax increases would be paid by the richest 1 percent of Americans and foreign investors. The bill’s most significant tax cuts -- expansions of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) -- would more than offset the tax increases for the average taxpayer in all income groups except for the richest 5 percent.

Tax Changes in the House Ways and Means Committee Build Back Better Bill

September 21, 2021 • By ITEP Staff, Matthew Gardner, Steve Wamhoff

This report finds that the vast majority of these tax increases would be paid by the richest 1 percent of Americans and foreign investors. The bill’s most significant tax cuts -- expansions of the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) -- would more than offset the tax increases for the average taxpayer in all income groups except for the richest 5 percent.

House Ways and Means Provisions to Raise Revenue Would Significantly Improve Our Tax System But Fall Short of the President’s Plan

September 15, 2021 • By Steve Wamhoff

High-income people and corporations would pay more than they do today, which is a monumental change. But some wealthy billionaires like Jeff Bezos would continue to pay an effective rate of zero percent on most of their income, and American corporations would still have some incentives to shift profits offshore.

State Rundown 9/15: It’s a Little Too Quiet…

September 15, 2021 • By ITEP Staff

Though we can’t fault anyone for being distracted by the major stories of the day, we at ITEP remain committed to keeping you up to date on what’s happening in the tax world around you...

New Census Data Highlight Need for Permanent Child Tax Credit Expansion

September 14, 2021 • By Neva Butkus

The status quo was a choice, but the Census data released today shows that different policy choices can create drastically different outcomes for children and families. It is time for our state and federal legislators to put people first when it comes to recovery.

A Data-Driven Case for the CTC Expansion in the Ways & Means Committee’s Recent Proposal

September 13, 2021 • By Aidan Davis

The move toward permanent full refundability and inclusion of all immigrant children are crucial components of the future of the CTC. Together they will help ensure that the credit reaches the children most in need, making a vital dent in our nation’s unacceptably high rate of child poverty.

Extending Federal EITC Enhancements Would Bolster the Effects of State-Level Credits

September 13, 2021 • By Aidan Davis

The EITC expansion targets workers without children in the home. In 2022 it would provide a $12.4 billion boost, benefiting 19.5 million workers who on average would receive an income boost of $730 dollars.

Frequently Asked Questions about Proposals to Repeal the Cap on Federal Tax Deductions for State and Local Taxes (SALT)

September 3, 2021 • By Carl Davis, ITEP Staff, Steve Wamhoff

Even though Democrats in Congress uniformly opposed the TCJA because its benefits went predominately to the rich, many Democratic lawmakers now want to give a tax cut to the rich by repealing the cap on SALT deductions.