Recent Work

Policymakers Could Consider Using Tax and Transfer Policy to Reduce the Racial Retirement Wealth Gap

February 3, 2025 • By Brakeyshia Samms, Carl Davis

As we show in our recent study, this is, in part, due to longstanding discrimination shaping racial differences in economic wellbeing in the U.S. Moreover, aspects of federal and state tax policies have helped create the vast racial retirement wealth gap in place today. For this reason, we evaluate how tax and transfer policy reforms could help shrink racial retirement wealth inequality. To inform lawmakers as they approach the 2025 debates, below we offer several guiding principles.

Maryland Gov. Wes Moore’s Tax Plan Boosts Revenue, Increases Fairness

January 30, 2025 • By Miles Trinidad

Maryland’s Gov. Wes Moore put forward a tax reform plan that would make the tax system fairer, simpler, and better able to meet the state’s needs. The proposed changes to the income tax ask more of those at the top and provide an average tax cut for those earning less.

State Rundown 1/30: The Revenue Decrease is in the Details

January 30, 2025 • By ITEP Staff

More details on this year’s batch of major tax proposals are emerging from statehouses - and some revenue cuts look like they could be steep. A governor-backed and House-passed plan in Mississippi would phase out the personal income tax, while a recent tax cut proposal out of Idaho is anchored by a $253 million dollar income tax cut.  

Tesla Reported Zero Federal Income Tax on $2 Billion of U.S. Income in 2024

January 30, 2025 • By Matthew Gardner

Tesla reported $2.3 billion of U.S. income in 2024 but paid zero federal income tax. Over the past three years, the Elon Musk-led company reports $10.8 billion of U.S. income on which its current federal tax was just $48 million.

Maryland’s Tax Reform Likely Won’t Cause Millionaire Migration

January 30, 2025 • By Nick Johnson

The moment Gov. Wes Moore announced his proposal to reform Maryland’s tax system, in part, by raising income tax rates on high-income households, opponents began predicting that wealthy people would respond by leaving. Experience from other states says that’s not the case. 

Trump and Congress’ Tax Package Likely to Worsen Racial Inequities

January 29, 2025 • By Brakeyshia Samms

While the country transitions to a new, yet familiar, presidential administration, lawmakers must keep in mind: fighting racial injustice should still be one of the focal points of this year’s tax debates. In theory, the debate over extending much of 2017’s Trump tax law represents an opportunity to advance racial equity. In practice, the tax package is likely to do the opposite, worsening racial inequities that already exist.  

State Tax Watch 2025

January 28, 2025 • By ITEP Staff

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

State Rundown 1/22: Tax Policy, Affordability, and Where It Misses the Mark

January 22, 2025 • By ITEP Staff

As state legislative sessions ramp up many lawmakers discuss their prioritization of affordability of necessities like food and housing as they craft their legislative agendas. Arkansas, Mississippi and Utah are looking to reduce or fully exempt groceries from their state sales taxes. Meanwhile, multiple proposals to reduce property taxes are making their way around state […]

Different Approaches to the Trump Tax Law’s Cap on Deductions for State and Local Taxes (SALT)

January 17, 2025 • By Steve Wamhoff

President Trump and the Republican majorities in the House and Senate may not extend the $10,000 cap on federal income tax deductions for state and local taxes (SALT), the one part of the 2017 law that significantly limits tax breaks for the rich. And, depending on which proposal they settle on, leaving out the existing cap on SALT deductions could add between $10 billion and over $100 billion each year to the total cost of their tax plan.

Congress Could — But Won’t — Pass a Tax Package That Pays for Itself

January 17, 2025 • By Joe Hughes

If Republican lawmakers were serious about deficit-neutral tax reform, they would focus on increasing taxes for the ultra-wealthy and large corporations. The absence of such proposals in their plan reveals their true priority: delivering enormous tax cuts to the wealthiest Americans while average working families receive crumbs.

State Rundown 1/15: Tax Debates Heat Up Despite Winter Weather

January 15, 2025 • By ITEP Staff

While frigid temperatures expected across a large swath of the country, major tax proposals are heating up in the states. Governors are giving their State of the State addresses and state lawmakers have begun to convene for 2025. New York Gov. Kathy Hochul announced plans to expand the state’s Child Tax Credit earlier this year and has since announced nearly $1 billion in income tax cuts. Maryland Gov. Wes Moore unveiled a new tax proposal aimed at helping close the state’s looming revenue shortfall. The plan would increase taxes on the wealthy and cut taxes for many low- and middle-income…

Policymakers Unwisely Propose Cutting Property Taxes in Favor of Sales Taxes

January 14, 2025 • By Rita Jefferson

Lawmakers across the country are taking aim at property taxes with a new strategy: raising sales taxes instead. Doing so would create a regressive tax shift that puts unfair burdens on renters and reduces the strength of local government revenues.

State Rundown 1/9: New Year, New Pushes for Tax Policy Changes

January 9, 2025 • By ITEP Staff

It’s a new year, and state legislatures across the country are resolved to write new tax policy. Tax debates are heating up nearly everywhere in the early days of 2025, but states’ fiscal situations vary dramatically. New York is considering expanding the state’s Child Tax Credit following Gov. Hochul’s proposed expansion. On the other side […]

Trump’s Plan to Extend His 2017 Tax Provisions: Updated National and State-by-State Estimates

January 8, 2025 • By Steve Wamhoff

Trump’s plan to make most of the temporary provisions of his 2017 tax law permanent would disproportionately benefit the richest Americans. This includes all major provisions except the $10,000 cap on deductions for state and local taxes (SALT) paid.

Undocumented Immigrants Pay More Than Their Fair Share of Taxes

January 6, 2025 • By Marco Guzman

Undocumented immigrants help fund teacher salaries, road and bridge repairs and other local quality-of-life improvements. They also pay into vital programs that make up our social safety net (including Social Security, Medicare and unemployment insurance) even though they will likely never see any benefits from these programs — because, in most circumstances, they are legally prohibited from accessing them.