Tax revenue as a percent of GDP is one metric many use to gauge how much corporate income tax revenue the United States is raising. The advantage of this metric is that it controls for the size of the economy and gives...
- Monday Map: Adjustment of State Income Tax Brackets for Inflation
Monday Map: Adjustment of State Income Tax Brackets for Inflation
Today's Monday Map touches on a lesser known, but still important, aspect of state tax policy - it shows which states index their income tax brackets for inflation.
Indexation of tax brackets is important for stable tax policy - otherwise, as nominal incomes rise, more and more taxpayers end up in higher tax brackets and pay higher rates, even if the real value of their income remains flat. The federal income tax code has had most of its parameters indexed for inflation since 1986, yet many states lag behind.
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View previous Monday Maps here.
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