Leveling Up: The UK’s Super-Deduction and its Regional Divide
As part of the 2021 Budget, the UK introduced a 130 percent super-deduction for plant and equipment for the next two years, meaning that businesses can take a deduction amounting to 130 percent of the costs in the year the investment is made.
4 min read
Portland Small Business Owners Facing Weirdly High New Taxes—and It Could Get Worse
Newly implemented county and regional taxes yield state and local top marginal tax rates in excess of 26 percent for many Portland small businesses, and if all of President Biden’s tax proposals were adopted, those owners could face all-in marginal rates of more than 80 percent, far and away the highest in the country going back decades.
5 min read
Arcane Federal Tax on Sports Betting Is Too Much to Handle
Lawmakers would be well-advised to consider changes to the federal excise tax on sports betting if the industry is to be successful competing against the large illicit market for wagers.
3 min read
The Balancing Act of GILTI and FDII
The tax treatment of intangible assets has come into the spotlight recently with the Biden administration proposing to undo a policy adopted in 2017 to encourage intellectual property (IP) to be located in the U.S.
6 min read
14.8% Individual Income Tax and 16.1% Corporate Income Tax Coming To New York City?
Raising rates on those with the most flexibility to leave—or never to return—risks turning those fears into a self-fulfilling prophesy.
3 min read
ARPA’s Tax Cuts Limitation Is a Problem for More States Than You Think
Tax cut legislation is not just a red state phenomenon, and tax reductions come in many forms other than rate reductions. The American Rescue Plan Act’s state tax cuts limitation is a problem for more states than you think.
2 min read
Why Smoking and Vaping Tax Increases Should Not be Part of West Virginia’s Reform Proposals
In West Virginia, both Senate Republicans and Gov. Justice have offered proposals for reductions to the state’s income tax. In both of the proposals, excise taxes on tobacco and nicotine products are part of the pay-fors that are supposed to make up revenue lost due to lower income tax rates.
4 min read
U.S. Effective Corporate Tax Rate Is Right in Line With Its OECD Peers
Whether we use corporate tax collections as a portion of GDP, average effective tax rates, or marginal tax rates, each measure shows that the U.S. effective corporate tax burden is close to or above the average compared to its OECD peers. Raising corporate income taxes would put the U.S. at a competitive disadvantage, whether one looks at statutory tax rates or effective corporate tax rates.
4 min read
Combined Corporate Rates Would Exceed 30 Percent in Most States Under Biden’s Tax Plan
While the focus has been on the federal rate, it is important to include state tax rates when thinking about the total tax burden on corporate income.
3 min read
President Biden’s Infrastructure Plan Raises Taxes on U.S. Production
An increase in the federal corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to 32.34 percent, higher than every country in the OECD, the G7, and all our major trade partners and competitors including China.
6 min read