Alabama Passes Tax Reform Aimed at Throwback, GILTI, and More
Learn more about the recent Alabama tax reform measures (House Bill 170), which combines pandemic-era tax policy responses with broader tax policy reforms.
4 min read
Blog Articles
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Sugar Taxes Back on the Menu
At least four states—Connecticut, Hawaii, New York, and Washington—are considering statewide excise taxes on sugary drinks this year.
4 min read
Smoking High Excise Taxes on Vapor Products Could Be Coming to West Virginia
West Virginians would face extraordinarily high taxes on vapor products in state if Senate Bill 68 becomes law. The bill would increase taxes on liquid used in vapor products from 7.5 cents per milliliter (ml) to $1 per ml—an increase of over 1,300 percent.
3 min read
Pandemic-Era Unemployment Compensations Could Generate $78 Billion in Income Tax Collections
Approximately $78 billion might be owed in federal and state income taxes on the unemployment compensation payments made since the pandemic began.
3 min read
Marginal Tax Rates on Labor Income Under the Democratic House Ways and Means Child Tax Credit Proposal
The coronavirus relief legislation passed out of the House Ways and Means Committee would significantly expand the child tax credit for 2021, from its current $2,000 maximum to a fully refundable $3,600 for children 6 and under and $3,000 for children over 6.
4 min read
Marginal Tax Rates on Labor Income Under Sen. Mitt Romney’s Family Security Act
Sen. Mitt Romney’s Family Security Act would replace the Child Tax Credit with a monthly child allowance administered by the Social Security Administration, making the benefit more generous and accessible to low-income households without earned income.
4 min read
Join Us for a Free “State Tax Policy Boot Camp”
The Tax Foundation’s “State Tax Policy Boot Camp,” is ideal for anyone interested in gaining a better understanding of state taxation.
2 min read
An “Interest”ing Tax Hike in the COVID-19 Relief Proposal
As the House Ways and Means Committee continues working on the latest round of fiscal relief amid the pandemic, one curious provision in the legislation is a tax hike on multinational companies. One section of the legislation would repeal a provision in current law that allows U.S. multinationals to choose to allocate their interest costs on a worldwide basis (more on that in a moment).
4 min read
House Ways and Means Committee Takes First Steps Toward Additional Coronavirus Relief Legislation
The House Ways and Means Committee measures would further extend the relief measures created by the CARES Act and the Consolidated Appropriations Act of 2021, and would go further by significantly expanding existing tax credits and making changes to the international tax system.
7 min read
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
Congressional Democrats Propose Expanding Child Tax Credit as Monthly Payment for Pandemic Relief
House Ways and Means Democrats recently released a proposal to expand the child tax credit for one year as part of President Biden’s larger $1.9 trillion economic relief package.
5 min read
Sen. Romney’s Child Tax Reform Proposal Aims to Expand the Social Safety Net and Simplify Tax Credits
Sen. Mitt Romney (R-UT) recently proposed the Family Security Act, which features a new, more generous child allowance for families with children while reforming other sources of aid for low-income individuals.
5 min read
Florida and Missouri, the Last Wayfair Holdouts, Consider Remote Sales Tax Bills
Two states—Florida and Missouri—have held back on online sales taxes thus far following the landmark 2018 Supreme Court case, South Dakota v. Wayfair. Now, lawmakers in both states have filed bills to address the issue this session.
4 min read
For Meaningful Federal Aid to States, Why Not Reimburse Unemployment Compensation Payments?
Improving trust fund solvency and staving off costly business tax increases is a win-win proposition for federal and state governments alike.
4 min read
States Positioned for a Super Bowl Win with New Taxes on Sports Betting
Although this week’s Super Bowl festivities may be muted, states with legalized sports betting may have something to cheer: a tax revenue bump thanks to the accompanying excise taxes.
3 min read
Personnel Is Policy: Biden International Tax Team Edition
This week, the Treasury Department added several new appointees as staffing continues following President Biden’s inauguration. Among them were three scholars of international tax policy: economist Kimberly Clausing and law professors Rebecca Kysar and Itai Grinberg. These three will be influential in developing the administration’s approach to changing U.S. tax rules for multinational corporations and negotiating international tax policy changes at the Organisation for Economic Co-operation and Development (OECD).
4 min read
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
Washington State Lawmakers Considering New Bans and Higher Taxes on Nicotine Products
Washington state lawmakers have proposed a bill that would make it the second state to ban all flavored tobacco and the first to impose a nicotine cap on vapor products, and would increase taxes on vapor to among the highest in the nation.
5 min read
Value-added Taxes in the Pandemic
Many governments have chosen to use VAT as a tool to provide tax relief for consumption in various sectors throughout the pandemic, but in the long term, VAT should not be used as a tool for relief.
3 min read
Wisconsin’s PPP Loan Recipients Face Hundreds of Millions in Surprise Taxes
Unless the legislature acts, businesses that have received PPP loans and related federal assistance will face $457 million in state taxes through 2024—with more than half of those taxes coming due this spring—despite Wisconsin being on track to see continued general fund revenue growth even amid the pandemic.
4 min read