Even Within States, Tax Treatment Differs by Industry
States can enhance tax neutrality across industries by reforming tax structures that penalize certain business activity, leaning less on generous incentives, and focusing more on creating a tax code that provides for low and competitive burdens for all comers.
5 min read
Piling on the GILTI Verdicts
The Biden administration has proposed to significantly increase the tax burden on foreign income through a policy known as Global Intangible Low-Tax Income (GILTI). While the administration’s rhetoric focuses on doubling the tax rate on GILTI from 10.5 percent to 21 percent, this is less than half the story.
5 min read
New Research Suggests Estimates of Wealth Inequality Likely Overstated
New research from Federal Reserve Bank of Boston economists suggests wealth inequality has grown less than previously estimated and that shares of wealth held by top earners drops significantly when accounting for sources of lower- and middle-class wealth that are often overlooked.
2 min read
New Tax in Town? Federal Proposal to Deschedule and Tax Marijuana
Senate Majority Leader Chuck Schumer (D), Senate Finance Committee Chairman Ron Wyden (D), and Sen. Cory Booker (D) released their discussion draft—the Cannabis Administration and Opportunity Act—for federal descheduling of marijuana. While federal descheduling impacts all states, it does not deschedule marijuana in states which choose to keep their own ban.
6 min read
Insights from the UN World Investment Report for Global Tax Reform
The United Nations (UN) recently released its annual “World Investment Report,” which shows the dramatic fall in global foreign direct investment (FDI) caused by the COVID-19 crisis.
3 min read
Biden Plan’s Higher Taxation of Businesses Would Boost Collections to Highest in 40-Plus Years
President Biden’s tax proposals released as part of his fiscal year 2022 budget would collect about $2 trillion in new tax revenue from businesses over 10 years. This new revenue would bring income tax collections on businesses as a portion of GDP to its highest level on a sustained basis in over 40 years.
2 min read
Property and Sales Taxes Are a Major Driver of Corporations’ State and Local Tax Burdens
As policymakers consider ways to improve their tax structure to encourage business investment and promote economic growth, corporate income tax rate reductions are a crucial part of that conversation, but they shouldn’t be the only consideration.
6 min read
Unanswered Questions about Upcoming Advance Child Tax Credit Payments
Amidst the outstanding questions, potential confusion over how advanced child tax credit payments will affect tax refunds, and an incomplete portal to update taxpayer information, the IRS will begin sending payments to millions of households this month.
4 min read
Biden’s Tax Proposals Could Impact Small Businesses Over Time
The Biden administration has primarily focused on increasing taxes on top earners to generate revenue to fund its spending priorities. However, these proposals would hit many pass-through businesses and much of pass-through business income, including small businesses, family-owned businesses, and farms.
3 min read
Exploring How Remote Work Could Impact the Way Countries Tax Individuals
A question for policymakers to consider is how this new era of worker mobility will impact the fiscal landscape, and what changes must be made to address resulting revenue and compliance concerns.
6 min read