Recent Work
2085 items
55 Corporations Paid $0 in Federal Taxes on 2020 Profits
April 2, 2021 • By Matthew Gardner, Steve Wamhoff
At least 55 of the largest corporations in America paid no federal corporate income taxes in their most recent fiscal year despite enjoying substantial pretax profits in the United States. This continues a decades-long trend of corporate tax avoidance by the biggest U.S. corporations, and it appears to be the product of long-standing tax breaks preserved or expanded by the 2017 tax law as well as the CARES Act tax breaks enacted in the spring of 2020.
Read as PDF Note: This report is adapted from written testimony submitted by Amy Hanauer before testifying in person to the Senate Budget Committee on March 25, 2021. In 2020, the pandemic killed hundreds of thousands of Americans and unemployment soared to levels not seen since the Bureau of Labor Statistics started collecting data in […]
State Rundown 4/1: Most States Resisting Foolish Tax Cut Games That Tear Revenues Apart
April 1, 2021 • By ITEP Staff
Supporters of tax fairness and adequate funding for public needs are hoping West Virginia’s income tax elimination effort turns out to be a prank, but most states are not fooling around with such harmful policies this year. For example...
The corporate tax plan put forth on Wednesday by President Joe Biden to offset the cost of his infrastructure priorities would be the most significant corporate tax reform in a generation if enacted.
A New Look at Taxes and Race at the State and Local Levels
March 31, 2021 • By Carl Davis, ITEP Staff, Meg Wiehe
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.
Taxes and Racial Equity: An Overview of State and Local Policy Impacts
March 31, 2021 • By ITEP Staff
Historic and current injustices, both in public policy and in broader society, have resulted in vast disparities in income and wealth across race and ethnicity. Employment discrimination has denied good job opportunities to people of color. An uneven system of public education funding advantages wealthier white people and produces unequal educational outcomes. Racist policies such as redlining and discrimination in lending practices have denied countless Black families the opportunity to become homeowners or business owners, creating extraordinary differences in intergenerational wealth. These inequities have long-lasting effects that compound over time.
The Biden administration has made clear that its top priorities include a major recovery package with critical investments to boost the nation’s economy and tax increases for corporations and the wealthy. Adequately funding the IRS must be part of that agenda. It seems every week, a new study, data set or research-driven commentary reveals how […]
Looking at the Tax Code Through A Race Equity Lens Presents a Strong Case for Reforms
March 25, 2021 • By Carl Davis
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: How the Tax System Impoverishes Black Americans—And How Can We Fix It uses a mix of data, legal scholarship, interviews, and personal stories to tear […]
We all need the things that the public sector provides. When corporate taxes go unpaid, the American people have less for the things that would help our communities. That means less repair of our failing infrastructure, less investment in greening our economy, less funding to help young people attend college.
Testimony to Senate Budget Committee on Ending a Rigged Tax Code: The Need To Make the Wealthiest People and Largest Corporations Pay their Fair Share of Taxes
March 25, 2021 • By Amy Hanauer
Following is testimony of ITEP Executive Director Amy Hanauer before the Senate Budget Committee to consider “Ending a Rigged Tax Code: The Need To Make the Wealthiest People and Largest Corporations Pay their Fair Share of Taxes” “Chairman Sanders and Ranking Member Graham, thank you for the opportunity to speak to this committee. My name […]
It was a relatively quiet week in state fiscal policy, likely partly due to states waiting for federal guidance on some of the details in the American Rescue Plan. As they await those details, lawmakers in Mississippi and West Virginia continue to wrangle over whether to recklessly eliminate their income taxes, while leaders in states including Connecticut and New York considered more productive and progressive reforms. And in the meantime, groundbreaking work on the intersection of race and tax policy is now available.
Zoom Video Communications, the company providing a platform used by remote workers and school children across the country during the pandemic, saw its profits increase by more than 4,000 percent last year but paid no federal corporate income tax on those profits.
State Rundown 3/17: Momentum for Sound Progressive Tax Reforms Continues to Build
March 17, 2021 • By ITEP Staff
We wrote last week that the inclusion of fiscal relief for states and localities in Congress’s American Rescue Plan should free up state lawmakers’ time and attention to focus on the comprehensive reforms needed to address upside-down and inadequate tax codes, and some states are already doing just that.
Trickle-Down Myths Swamp Tax Policy Debates in Mississippi and West Virginia
March 15, 2021 • By Aidan Davis
Recent proposals in both Mississippi and West Virginia seek to pare back, and ultimately eliminate, each state’s income tax while shifting the responsibility of funding services even more onto low- and middle-income taxpayers through increased consumption taxes. The states are moving forward with this tax experiment even though a similar experiment notoriously and immediately sent Kansas into a financial tailspin.
State and Local Cannabis Tax Revenue Jumps 58%, Surpassing $3 Billion in 2020
March 15, 2021 • By Carl Davis
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 also one of states’ fastest-growing revenue sources. Powered by an expanding legal market and a pandemic-driven boost in cannabis use, excise and sales taxes on […]
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