In December 2017, federal lawmakers hastily enacted the Tax Cuts and Jobs Act. So rushed was its passage that provisions of the legislative text were scrawled in the margins. Scroll through this timeline for an in-depth look at the Tax Cuts and Jobs Act and the impact since its passage.
August 2, 2019 • By Jenice Robinson
Among other things, this blog highlights how federal, state and local policies systematically work to reinforce the racial wealth gap by, for example, using the tax code to redistribute the nation’s wealth to billionaire developers and keeping low-income people of color in a perpetual cycle of debt through fines and fees to fund local governments. Opportunity zones and the top-heavy 2017 tax law are emblematic of a long history of policymaking that advantages wealthy white families.
August 1, 2019 • By ITEP Staff
No two state tax systems are the same, but 45 states have one thing in common: Low-income residents are taxed at a higher rate than the top 1 percent. Effective tax rates for the lowest 20 percent of families range from a high of 17.8 percent in Washington State to a low of 5.5 percent in Delaware.
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.
OHIO legislators passed a budget with unfortunate income tax cuts for high-income households. Other states turned their attention to unconventional ideas during their legislative off-seasons, for better and for worse. And there are many gems to be found in our “What We’re Reading” section below, including new research on the racial inequities that continue to pervade our communities and schools.
The nation’s tax policies and their role in economic inequality are front and center during this election cycle. For those interested in how the nation can move toward a fairer tax system and or more detailed information about progressive tax policy ideas, ITEP created this quick guide.
"Combined reporting" lessens the effectiveness of a tax avoidance scheme known as income shifting, in which large multi-state corporations dubiously claim that their income was earned in states with little or no corporate income tax.
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.
July 18, 2019 • By Meg Wiehe
Several states this year proposed or enacted tax policies that would require high-income households and/or businesses to pay more in taxes. After years of policymaking that slashed taxes for wealthy households and deprived states of revenue to adequately fund public services, this is a necessary and welcome reversal.
July 17, 2019 • By Dylan Grundman O'Neill
Sales tax holidays are wasteful, misguided policies that will drain more than $300 million of funding away from shared priorities like schools, roads, and health care this year in 16 states, while delivering little benefit to the families that could most use the help. Our newly updated brief reviews recent developments in sales tax holiday policy—including how online sales taxes are changing the picture—and explains why they are a misguided policy option for states. And the story below “follows the money” to show how sales tax holidays are a bad deal for families and communities alike.
Lawmakers in many states have enacted “sales tax holidays” (16 states will hold them in 2019), to provide a temporary break on paying the tax on purchases of clothing, school supplies, and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. ITEP’s policy brief […]
July 17, 2019 • By Dylan Grundman O'Neill
Lawmakers in many states have enacted “sales tax holidays” (16 states will hold them in 2019), to provide a temporary break on paying the tax on purchases of clothing, school supplies, and other items. While these holidays may seem to lessen the regressive impacts of the sales tax, their benefits are minimal. This policy brief looks at sales tax holidays as a tax reduction device.
We've said it before, and we'll say it again: states don't have to wait for federal lawmakers to make moves toward progressive tax policy. And so far, 2019 has been a good year for equitable and sustainable tax policy in the states. With July 1 marking the start of a new fiscal year for most states, this special edition of the Rundown looks at how discussions in 2019 have been dominated by plans to raise revenue for vital investments, tax the rich and corporations fairly, use the tax code to help workers and families and advance racial equity, and shore…
States have been repealing estate taxes since the early 2000s. Now, just 17 states and the District of Columbia (D.C.) levy estate and/or inheritance taxes. Twelve states and D.C. levy estate taxes while six states levy inheritance taxes (Maryland levies both). These taxes have long been used not just to raise revenue for vital public services, but to promote equality of opportunity and reduce the transfer of concentrated wealth from one generation to the next.
July 10, 2019 • By Matthew Gardner
Each year, state and local governments spend billions of dollars on targeted tax incentives—special tax breaks ostensibly designed to encourage businesses to relocate, expand or simply stay where they are. A law enacted by the Missouri legislature creates a template for states to work bilaterally to put the brakes on the “race to the bottom” in state business taxes.