The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
Illinois
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November 6, 2017 How the House Tax Proposal Would Affect Illinois Residents’ Federal Taxes
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October 4, 2017 GOP-Trump Tax Framework Would Provide Richest One Percent in Illinois with 69.4 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Illinois equally. The richest one percent of Illinois residents would receive 69.4 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $651,700 next year. The framework would provide them an average tax cut of $84,170 in 2018, which would increase their income by an average of 3.1 percent.
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blog September 13, 2017 State Rundown 9/13: The Year of Unprecedented State Budget Impasses Continues
This week, Pennsylvania lawmakers risk defaulting on payments due to their extremely overdue budget and Illinois legislators will borrow billions to start paying their backlog of unpaid bills. Governing delves into why there were more such budget impasses this year than in any year in recent memory. And Oklahoma got closure from its Supreme Court on whether closing special tax exemptions counts as “raising taxes” (it doesn’t).
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August 17, 2017 In Illinois 54.9 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Illinois population (0.8 percent) earns more than $1 million annually. But this elite group would receive 54.9 percent of the tax cuts that go to Illinois residents under the tax proposals from the Trump administration. A much larger group, 41.0 percent of the state, earns less than $45,000, but would receive just 3.9 percent of the tax cuts.
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July 20, 2017 Trump Tax Proposals Would Provide Richest One Percent in Illinois with 56.1 Percent of the State’s Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Illinois would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $2,726,200 in 2018. They would receive 56.1 percent of the tax cuts that go to Illinois’s residents and would enjoy an average cut of $134,270 in 2018 alone.
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blog July 11, 2017 State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
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blog June 28, 2017 State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
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ITEP Work in Action January 9, 2017 Voices for Illinois Children: Fair Tax Bill Introduced
Representative Lou Lang introduced a fair tax rate structure (House Bill 689), which would provide over 99% of income taxpayers with a tax cut while raising $1.9 billion to prevent… -
media mention November 16, 2016 Chicago Herald: New Chicago bag tax will boost revenue, but will it cut waste?
“Meg Wiehe, state tax policy director at the Institute on Taxation and Economic Policy, a research group based in Washington, D.C., said these one-off taxes on goods exacerbate income inequality.… -
media mention October 18, 2016 Standard-Times: Immigrants bring value to nation
“And though there are competing analyses about whether unlawfully present immigrants contribute more to the economy than they cost in education and health expenses, what cannot be denied is that,… -
media mention October 14, 2016 Pharos-Tribune: Immigrants bring immense value to America
“And though there are competing analyses about whether unlawfully present immigrants contribute more to the economy than they cost in education and health expenses, what cannot be denied is that,… -
media mention June 21, 2016 Reboot Illinois: A look at state and local tax revenue from undocumented immigrants in Illinois
“Undocumented immigrants living in Illinois pay an estimated $743 million in state and local taxes a year, according to a report by the Institute on Taxation and Economic Policy. The… -
media mention May 9, 2016 Pantagraph: Graduated tax amendment won’t be on November ballot
“The Institute on Taxation and Economic Policy, a nonpartisan but left-leaning group based in Washington, D.C., put out a statement Wednesday criticizing the department’s analysis for not taking into account… -
media mention May 5, 2016 Herald and Review: Lawmakers unable to get graduated income tax on ballot
“The Institute on Taxation and Economic Policy, a nonpartisan but left-leaning group based in Washington, put out a statement Wednesday criticizing the department’s analysis for not taking into account the… -
news release May 4, 2016 ITEP Statement on Illinois Department of Revenue Analysis of House Bill 689
For Immediate Release: May 4, 2016 Contact: Jenice R. Robinson, 202.299.1066 X29, [email protected] Earlier today, the Illinois Department of Revenue (ILDOR) released an economic analysis of the tax changes… -
media mention May 3, 2016 Herald & Review: Graduated income tax seen as help for budget woes
“Matt Gardner, executive director of the left-leaning Institute on Taxation and Economic Policy, said adopting a graduated income tax would go “right to the heart of the state’s budget woes.”… -
media mention July 13, 2015 Cheat Sheet: 10 Worst States in America for Fair Tax Systems
Americans generally believe that higher income households should pay a greater percentage of their incomes in taxes than lower income households. Yet the exact opposite occurs. The Institute on Taxation… -
media mention June 5, 2015 Chicagoist: Addressing Property Taxes And Gentrification Along The 606
Most gentrification narratives go vaguely like this: hipsters come to a neighborhood and open up fancy businesses and build fancy stuff and the original residents get pushed out. But often… -
ITEP Work in Action May 7, 2015 Voices for Illinois Children: Avoid Cuts, Choose Revenue
Governor Rauner has proposed to close this massive gap through damaging cuts to essential programs and services that strengthen Illinois families, children, communities, and our economy — including child care… -
ITEP Work in Action January 21, 2015 Fiscal Policy Center: Fair For Whom? IL Taxes the Lowest Earners at the Highest Rates
As part of his campaign platform and “Jobs and Growth Agenda,” Governor Rauner has identified the need to “overhaul the tax code so that it’s fair to all taxpayers.” We… -
media mention January 20, 2015 Public News Service: Illinois Poor Face Unfair Tax Burden
A new study finds Illinois’ poorest residents are paying almost three times more in taxes than the top one percent of earners. According to the Institute on Taxation and Economic… -
media mention January 16, 2015 WJBC: Illinois among most unfair tax states
“The Illinois system is the fifth most unfair in the nation, in terms of low-income people paying the highest proportion of their income in taxes vs. the wealthy paying the… -
media mention January 15, 2015 Capital Fax: Illinois has fifth most regressive state/local taxation in nation
A new study by the Institute on Taxation and Economic Policy (ITEP) and the Fiscal Policy Center at Voices for Illinois Children finds that the lowest income Illinoisans pay nearly… -
media mention January 9, 2015 Illinois Times: Illinois Broken Tax System
It adds up to the fourth-most regressive tax code in the nation, according to the Institute on Taxation and Economic Policy, a nonpartisan research group based in Washington, D.C. In… -
media mention December 15, 2014 The Register-Mail: Progressive Income Tax Better for Illinois
The flat in Illinois tax seems fair, but when grouped with all the other taxes people pay it is out of balance. According to the Institute on Taxation and Economic…