| Institute on Taxation and Economic Policy | |
|---|---|
| Motto | Informing the Debate Over Tax Policy Nationwide |
| Formation | 1980 |
| Type | Public Policy Think Tank |
| Headquarters | 1616 P Street, NW Suite 200, Washington, DC 20036 |
| Location | Washington, DC |
| Website | www.itepnet.org/ |
The Institute on Taxation and Economic Policy (ITEP) is a non-profit, non-partisan think tank that works on state and federal tax policy issues. ITEP was founded in 1980, and is a 501(c)(3) tax-exempt organization. ITEP describes its mission as striving to “keep policymakers and the public informed of the effects of current and proposed tax polices on tax fairness, government budgets and sound economic policy.” [1]
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ITEP’s flagship publication is its “Who Pays” report.[2] The report was originally released in 1996, and has since been updated in 2003 and again in 2009 – which gives 2007 data. “Who Pays” analyzes the distribution, by income level, of state and local taxes in all 50 states, as well as in the District of Columbia. Its core finding is that: “on average, state and local tax systems require the poorest taxpayers to pay the highest effective tax rates.” The majority of the data contained in this report is produced using the ITEP Microsimulation Tax Model.[3]
Other major reports released by ITEP have dealt with issues such as capital gains tax breaks, or the treatment of itemized deductions, on a multi-state basis.[4] Many of ITEP’s reports deal with issues or proposals that are relevant to only a single state – including proposed tax reforms or budget packages.[5]
ITEP lists a number of foundations among its funders, including the Annie E. Casey Foundation, the Ford Foundation, and the New York Community Trust.[6] ITEP also accepts individual donations.
ITEP is generally described as left-leaning in its policy positions and recommendations.[7] Nonetheless, its quantitative analyses are widely regarded as reliable by observers from across the political spectrum, and by analysts within government.[8][9] ITEP’s sister organization, Citizens for Tax Justice, is often referred to as a progressive group.[10]
Many of ITEP's analyses rely on the ITEP Microsimulation Tax Model. The ITEP Model is a computer program capable of estimating the revenue yield and distribution of federal, state, and local taxes, as well as proposed changes to those taxes.[3]
According to ITEP, its model "relies on one of the largest databases of tax returns and supplementary data in existence, encompassing close to three quarters of a million records."[3] Similar microsimulation models are housed at the Joint Committee on Taxation, the U.S. Treasury Department, and the Congressional Budget Office.[3] The Urban-Brookings Tax Policy Center has more recently built a similar model.[11] The ITEP model, however, stands apart from each of these in that it adds state-by-state estimating capabilities not found anywhere else.[3]
• Center for American Progress
• Center on Budget and Policy Priorities
• Good Jobs First