Evaluating U.S. Tax Reform Options & Trade-Offs

Wisconsin Losing Ground to Tax-Friendly Peers

While Wisconsin has long been one of the highest-tax states in the nation, that distinction is increasingly detrimental as businesses and individuals enjoy increased economic and geographic mobility.

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?

Oklahoma Should Prioritize Pro-Growth Relief, Not Gimmicky Rebate Checks

If Sooner State policymakers want to use a portion of their higher revenues to make the economy work better for all Oklahomans, they should consider repealing the franchise tax, trimming the income tax, or both—paired, if desired, with targeted aid to those in the greatest need—not writing a single round of gimmicky checks.

Delaying R&D Amortization Generates Short-Term Revenue but No Long-Term Economic Benefit

Starting this year, firms must amortize their research and development (R&D) expenses over five years rather than immediately deduct them from taxable income, a policy change designed to raise federal tax revenue in the short term.

Time for an Updated Impact Assessment of the Global Tax Deal

Treasury Secretary Janet Yellen offered estimates from the EU Tax Observatory as evidence that the Polish government would benefit from supporting the global tax deal. Unfortunately, evidence was, at best, out of date.

Europe Opened the Pandora Box of Reduced VAT Rates

With this new VAT directive, the EU has invited member states to adopt policies that create new complexities, are poorly targeted, and undermine an Own Resource.

Public and Private R&D Are Complements, Not Substitutes

U.S.-China Trade War Hurt American Industries and Workers

While the U.S. tariffs were intended to protect American industries, they have largely hurt the U.S. economy. Rather than pass on the tariffs to Chinese consumers, analysis shows that most U.S. firms simply bore the costs.

Evaluating Wyoming’s Business Tax Competitiveness

Wyoming’s low taxes are highly attractive, but policymakers are still hard at work helping the state achieve broader economic development goals.

The Aftermath of Arizona’s Proposition 208 and the Potential for a Flat Tax

Arizona now joins a growing cohort of states that are moving toward a flat income tax. Pending revenue triggers, the income tax rate will be reduced to 2.5 percent giving Arizona one of the lowest individual income tax rates in the country.