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Comparing Europe’s Tax Systems: Corporate Taxes

According to the corporate tax component of the 2023 International Tax Competitiveness Index, Latvia and Estonia have the best corporate tax systems in the OECD.

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October 27, 2023September 3, 2024

Do People Really Move Because of Taxes?

What do The Rolling Stones, NFL star Tyreek Hill, and Maryland millionaires have in common? They all moved because of taxes.

Californians Still Smoking Menthol after Ban: Evidence from a Discarded Pack Audit

It’s been almost a year since California banned the sale of all flavored tobacco products, and the big question is: did it work?

Changing Tax Policy Landscape Will Worsen U.S. Competitiveness

Policymakers on Capitol Hill should prioritize permanent pro-growth policy in the coming years as the economy struggles with inflation and the recovery from the pandemic.

IRS Report Shows Closing the Tax Gap Would Not Close the Deficit

The latest tax gap report from the IRS has generated much media attention—and much misunderstanding.

European Tax Policy Scorecard: Capital Cost Recovery under BEFIT versus Current Member State Policies

A harmonized EU tax base is a project in the making. Policymakers have a chance to put the Union on a path for increased investment and economic growth by focusing on the details of capital cost recovery.

2023 European Tax Policy Scorecard

The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

2024 State Business Tax Climate Index

In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.

Pennsylvania Cigarette Minimum Markups Will Cost the State $47 Million per Year

Minimum markup policies tend to be wildly unpopular among both taxpayers and policymakers. Lawmakers should carefully evaluate whether minimum markup laws are policies that improve the well-being of their constituents.

Testimony: Considerations for Improving Indiana’s Tax Structure and Competitiveness

Indiana’s tax code is structured in a relatively sound and economically efficient manner overall, but additional improvements should be considered to make the state even more economically competitive.

CCCTB vs. BEFIT: How Have the Proposals Changed?

If the EU is going to harmonize its tax base, it should do so in a way that increases the efficiency and competitiveness of tax policy for the EU as a whole, and not just seek out the lowest common denominator.

Testimony: A Property Tax Assessment Limit Would Do More Harm Than Good in Kansas

Instead of adopting a highly distortive property tax assessment limit, policymakers should consider how similar goals could be met through other means.

International Tax Competitiveness Index 2023

While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.

Five Takeaways from the New Pillar One Documents

The OECD recently released a trove of new documents on a draft multilateral tax treaty. The U.S. Treasury has opened a 60-day consultation period for the proposal and is requesting public review and input.

Most Successful Fiscal Consolidations Do Not Rely Solely on Tax Hikes

If tax increases are included in a package, international experience points toward raising consumption taxes, rationalizing tax expenditures, and broadening the tax base—not hiking income taxes.

Real Property Taxes in Europe, 2023

High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.

Anti-Avoidance Policies in a Pillar Two World

The global minimum tax agreement known as Pillar Two is intended to curb profit shifting. However, OECD countries already have a variety of mechanisms in place that seek to prevent base erosion and profit shifting by multinational corporations.

Federal Deficit Grew to $2 Trillion in FY 2023

Outside of the pandemic years, this year’s federal deficit is the highest in U.S. history. While tax revenue has increased about 28 percent since the pre-pandemic year 2019, spending has increased about 46 percent. Annual deficits are headed towards $3 trillion over the next few years.

How Taxing Consumption Would Improve Long-Term Opportunity and Well-Being for Families and Children

Income taxes impose steeper economic costs, and often steeper administrative and compliance costs, than consumption taxes. Moving to a consumption tax would end the tax bias against saving and investment and provide an opportunity to greatly simplify anti-poverty programs embedded in the tax code.