Privacy concerns are a primary driver of opposition to vehicle miles traveled (VMT) tax systems, but VMT taxes do not need to invade drivers’ privacy to efficiently fund the roads.
6 min read
The Maryland Tax Court has struck down the state’s digital advertising tax and ordered that refunds be paid to taxpayers for five and a half years’ worth of collections under the unconstitutional tax.
5 min read
In June, the Dominican Republic rushed through a package of tax legislation in seven days. International examples demonstrate that consultation, transparency, and clarity are key factors for successful tax reform.
5 min read
As the market share of electric vehicles (EVs) on the road grows, the gas tax’s ability to fund road projects and decrease traffic congestion erodes. Both federal and state real tax revenue per vehicle mile traveled has been on a steady decline for decades, creating a fiscal gap for road expenditures even as the demand for road infrastructure improvements has grown.
6 min read
US policymakers have put forward two new tax proposals to address concerns about how artificial intelligence (AI) will impact land, energy, and the workforce.
7 min read
If Canada doesn’t make these provisions permanent, it will drop to 12th place in the capital cost recovery ranking once provisions expire in 2034.
5 min read
Poland taxes its individual business owners through alternative regimes and a series of thresholds, several of them sharp notches that imply significant tax costs for businesses crossing them.
11 min read
The California Billionaire Tax Act (Proposition 40), which imposes a one-time 5 percent tax on billionaires’ net worth, is vulnerable to numerous constitutional challenges, any of which could invalidate the tax in whole or in part.
28 min read
Some taxes have more powerful economic effects than others, and that’s a lesson policymakers should absorb as they work to craft a tax code that encourages growth and raises sustainable revenue.
8 min read
Though they are often framed as affecting only the richest households, the economic effects of wealth taxes extend much further by reducing capital formation, discouraging entrepreneurship, curtailing wage and employment growth, and ultimately weakening the overall economy.
Wealth taxes not only collect little revenue and create legal uncertainty, but an OECD report argues that they can also disincentivize entrepreneurship, harming innovation and long-term growth.
5 min read
The highest state tax on cigarettes is levied by New York at $5.35 per pack of 20. The next highest tax jurisdiction is the District of Columbia at $5.07 per pack of cigarettes, followed closely by Maryland at $5.00 per pack, Rhode Island at $4.50 per pack, and Connecticut at $4.35 per pack.
6 min read
The economic damage from a chaotic tariff regime can outweigh the revenue itself, and unlike the tariffs, it cannot be refunded.
4 min read
The California Billionaire Tax Act’s residency provisions are exceptionally vulnerable to legal challenge. Even if the tax passes and survives challenges to its broader constitutionality, billionaires who leave California sometime in 2026 have good reason to believe they can escape some or all of the tax.
If voters approve Amendment 5 on the primary election ballot this August, Missouri policymakers must pass legislation to gradually phase out the state’s income tax while choosing how to pay for this goal.
The OBBBA made substantial improvements to cost recovery, but more opportunities remain for policymakers looking to improve the investment climate in the US.
48 min read
The EU Tax Omnibus proposal would create an EU-wide minimum standard for full expensing, but it confines that standard to qualifying tangible assets used in research and development (R&D) rather than to broader asset classes.
16 min read
Rather than adopt temporary policies that phase out and expire, policymakers should focus their efforts on long-term reforms to support investment.
7 min read
The Trump tariffs have not meaningfully altered the trade balance and amount to an average tax increase per US household of $900 in 2026.
57 min read
The Tax Foundation uses and maintains a General Equilibrium Model, known as our Taxes and Growth (TAG) Model to simulate the effects of government tax and spending policies on the economy and on government revenues and budgets.
9 min read