What's New
-
report
December 16, 2017
The Final Trump-GOP Tax Plan: National and 50-State Estimates for 2019 & 2027
The final Trump-GOP tax law provides most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill goes into effect in 2018 but the provisions directly affecting families and individuals all expire after 2025, with the exception of one provision that would raise their taxes. To get an idea of how the bill will affect Americans at different income levels in different years, this analysis focuses on the bill’s impacts in 2019 and 2027.
-
blog
March 5, 2018
Trends We’re Watching in 2018, Part 1: State Responses to Federal Tax Cut Bill
Over the next few weeks we will be blogging about what we’re watching in state tax policy during 2018 legislative sessions. And there is no trend more pervasive in states this year than the need to sort through and react to the state-level impact of federal tax changes enacted late last year.
-
blog
March 2, 2018
Five Ways States Can Recoup Corporations’ Massive Federal Tax Giveaway
Corporate America is doing alright. Corporate profits soared last year, and 2018 has already brought a major windfall in the form of the Trump-GOP tax law, which dramatically cut the federal corporate tax rate from 35 percent to 21 percent and shifted to a territorial tax system, giving income earned offshore by U.S. companies a free pass by no longer making it subject to U.S. taxes.
-
blog
February 28, 2018
State Rundown 2/28: February a Long Month for State Tax Debates
February may be the shortest month but it has been a long one for state lawmakers. This week saw Arizona, Idaho, Oregon, and Utah seemingly approaching final decisions on how to respond to the federal tax-cut bill, while a bill that appeared cleared for take-off in Georgia hit some unexpected turbulence. Other states are still studying what the federal bill means for them, and many more continue to debate tax and budget proposals independently of the federal changes. And be sure to check our “What We’re Reading” section for news on corporate tax credits from multiple states.
-
blog
February 27, 2018
New Legislation Would End Tax Incentives to Move Jobs and Profits Offshore
New legislation introduced today, the No Tax Breaks for Outsourcing Act, by Rep. Lloyd Doggett (D-TX) and Sen. Sheldon Whitehouse (D-RI) would help repair the damage to the international tax code wrought by the new Trump-GOP tax law and move toward a system where U.S. corporations can’t reap tax benefits from shifting jobs and profits offshore.
-
blog
February 23, 2018
Why the Minute Federal 529 Provision Has Huge Consequences for States
When Republican leaders rushed through an overhaul to the federal tax code over a seven-week legislative period, they failed to acknowledge that many provisions in their bill would have negative consequences for states. One such provision of the Tax Cuts and Jobs Act that undermines state laws is the expansion of federal tax breaks that now allows taxpayers to use 529 savings plans to pay for private K-12 education.
How the New Federal Tax Law Affects State Tax Codes
As state legislative sessions swing into high gear, the recently enacted Tax Cuts and Jobs Act (TCJA) is figuring prominently in policy discussions, with officials examining how the bill affects their states and weighing the necessary policy responses.
The 35 Percent Corporate Tax Myth
Before the recent tax law passed, profitable corporations were subject to a 35 percent federal income tax rate on their U.S. profits. Although lobbyists complained about this rate for years, this report (which examines eight years of corporate data) reveals many profitable corporations exploited loopholes and paid no where near the official corporate tax rate.
Corporations Stand to Reap at Least $413 Billion or More in Tax Breaks from New Tax Law
Under the new law, corporations' accumulated offshore earnings will be taxed at a rate of 15.5 percent and all other offshore earnings at a rate of 8 percent. This change gives corporations a more than $413 billion tax break on the trillions they were sheltering offshore.
State and Local Tax Contributions of Young Undocumented Immigrants
This report specifically examines the state and local tax contributions of undocumented immigrants who are currently enrolled or immediately eligible for DACA and the fiscal implications of various policy changes.
Who Pays? 5th Edition
ITEP's Who Pays? report assesses the fairness of state and local tax systems, examining the share of income paid in state and local taxes by people across the economic spectrum. The new federal tax law is expected to effect changes in many state tax codes this year. ITEP staff continues to monitor and analyze tax policy in all 50 states and plans to update this report in late 2018.
Impact
Whether it’s at the state or federal level, ITEP produces careful research and in-depth analyses of tax policies, and provides a voice for working people in tax policy debates. State advocates, policymakers and media often use our work to inform public discourse on current and proposed tax policies.
ITEP's Work in Action
Expertise
Federal Policy
ITEP’s federal policy resources provide quantitative and qualitative research and analysis on current tax policies, proposals, and reform options. Its distributional analyses highlight how tax proposals will affect low-income, middle-class and wealthy Americans nationally and in all 50 states.
Learn more about our Federal Policy work
State Policy
State taxes pay for essential public services, from education to health care. But the ideal design of a tax system is complicated. ITEP’s state policy resources offer insights into central issues, including the impact of state tax systems on individuals, families, and businesses. Its work also analyzes the sustainability of revenue sources over time.
Learn more about our State Policy work
Corporate Tax Research
ITEP’s corporate tax research examines the tax practices of Fortune 500 companies. Besides its corporate study on average effective tax rates paid by the nation’s largest, most profitable corporations, ITEP produces research on subjects such as offshore cash holdings, tax haven abuse, executive stock options and other tax loopholes.
Expert's View
The truth is, if lawmakers truly wanted to craft a tax overhaul that would benefit working people most, they would have started from fundamentally different principles and developed policies that would provide true tax relief for all working families while shutting down favorable tax treatment for rich people.
