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Individual Income and Payroll Taxes

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Individual Taxes Are the Most Important Tax Revenue Source for the United States Sources of Tax Revenue in the United States US tax revenue, governmetn revenue in the US, US federal tax revenue 2021

Sources of U.S. Tax Revenue by Tax Type, 2021 Update

In the United States, individual income taxes (federal, state, and local) are the primary source of tax revenue, at 41.5 percent of total tax revenue. Social insurance taxes make up the second-largest share, at 24.9 percent, followed by consumption taxes, at 17.6 percent, and property taxes, at 12.1 percent.

4 min read
2021 state income tax rates. 2021 state individual income tax rates. States with no income tax. 2021 top state marginal individual income tax rates

State Individual Income Tax Rates and Brackets, 2021

Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Several states had notable individual income tax changes in 2020: Arizona, Arkansas, Massachusetts, Michigan, Minnesota, North Carolina, Ohio, Tennessee, Virginia, and Wisconsin.

22 min read
Canada's Provinces Collect Almost the Same Amount of Revenue as Its Central Government Sources of OECD Tax Revenue by Level of Government, 2019, Sources of tax revenue in the OECD tax revenue

Sources of Government Revenue in the OECD, 2021 Update

Developed countries have on average become more reliant on consumption taxes and less reliant on individual income taxes. These policy changes matter, considering that consumption-based taxes raise revenue with less distortionary effects than taxes on income.

16 min read
State tax reliance, State income tax reliance. How much do states rely on income taxes? To what extent does your state rely on individual income taxes in 2021?

To What Extent Does Your State Rely on Individual Income Taxes?

Sources of state revenue have come under closer scrutiny in light of the impact of the coronavirus pandemic, as different tax types have differing volatility and economic impact—although even beyond these unique circumstances, it is important for policymakers to understand the trade-offs associated with different sources of tax revenue.

4 min read
Maryland digital advertising tax litigation internet tax, Maryland digital ad tax, Maryland tax increases and Maryland tax proposals 2021

Tax-A-Rama in Maryland

The potential override of Gov. Larry Hogan’s (R) veto of a digital advertising tax (HB732) looms large over the current legislative session in Maryland, though it is only one of many tax proposals under consideration in the state.

7 min read
GOP Covid GOP proposal GOP Covid proposal and Biden American Rescue Plan Biden GOP covid proposal GOP covid relief bill

Modeling Different Proposals for Round Three Direct Payments

President Biden is calling for a third round of economic impact payments to households as part of his $1.9 trillion American Rescue Plan. Under the plan, the payments would be $1,400 per person, topping off the recent round of $600 payments for a combined $2,000 per person. Senate Republicans have proposed payment amounts of $1,000 per individual and $500 per dependent, lower income thresholds, and faster phaseout rates.

5 min read
Nebraska income tax reform and Nebraska tax relief pro-growth tax modernization in nebraska Nebraska Tax Modernization A Key to Economic Recovery and Growth in Nebraska

Thirteen Priorities for Pro-Growth Tax Modernization in Nebraska

We identify 13 of the highest tax reform priorities Nebraska policymakers should consider in their effort to create a more growth-friendly tax code. We also offer a sample comprehensive tax reform plan to show one way policymakers could begin tackling these objectives over the next couple legislative sessions, with further progress to be made in the years ahead.

8 min read
Build Back Better Act: Details & Analysis of the House Ways and Means Committee Tax Proposals Reconciliation Bill Tax, Biden taxes, Biden tax plan, Biden tax increases

Who Benefits from the State and Local Tax Deduction?

Some lawmakers have expressed interest in repealing the SALT cap, which was originally imposed as part of the Tax Cuts and Jobs Act (TCJA) in late 2017. It is important to understand who benefits from the SALT deduction as it currently exists, and who would benefit from the deduction if the cap were repealed.

6 min read
tax exemption definition TaxEDU 2021 state tax changes. net operating loss policies in the OECD NOL omnibus covid-19 relief deal. phase 4 coronavirus relief, phase 4 business relief, phase 4 relief net operating loss, cost recovery

State Tax Changes Effective January 1, 2021

Twenty-six states and the District of Columbia had notable tax changes take effect on January 1, 2021. Because most states’ legislative sessions were cut short in 2020 due to the COVID-19 pandemic, fewer tax changes were adopted in 2020 than in a typical year.

24 min read
Federal cigarette tax harm reduction efforts, federal cigarette tax proposal House Democrats tobacco tax New Year's Resolutions for tax policymakers. New Year's Resolutions for tax policy

Three New Year’s Resolutions for Tax Policymakers

The world is ready to close the book on 2020 and start fresh in 2021, awaiting widespread vaccination, an end to the pandemic, and the beginning of a new chapter of economic recovery. With a fresh start in mind, and a healthy dose of optimism, here are three New Year’s resolutions for crafting better tax policy in the coming year.

2 min read