The State Income Tax Divergence
Lawmakers in many states continue to pursue additional income tax relief, while their counterparts elsewhere pursue the opposite goal.
3 min read
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The Federal Payroll Tax: A Primer
With changes to payroll taxes likely to be part of a toolkit for reform, both policymakers and the public would benefit from understanding how the payroll tax works, who pays it, and its impact on the economy.
21 min read
When Taxing AI, Don’t Reinvent the Wheel
AI technology has a wide range of potential economic outcomes. It would be a mistake to tailor tax policy to the extreme end of that range. Still, policymakers shouldn’t do nothing: they should instead make tax reforms that are sound regardless of which AI scenario emerges.
7 min read
Two Virginia Income Tax Proposals Would Make the State Less Affordable
Should both HB 979 and HB 378 pass, Virginia would have the nation’s highest top marginal rate on investment income.
8 min read
Even After Exemptions, More than Half of Food Products Continue to Face Trump Tariffs
The Trump tariffs will likely raise the cost of food for Americans, particularly for liqueurs and spirits, baked goods, coffee, fish, and beer.
4 min read
Going Beyond the Headlines: Understanding Corporate Taxes
Every so often, you will see headlines highlighting large companies that pay little or no corporate income tax. While these stories may seem shocking, the reality is much more mundane.
Nonresident Income Tax Filing and Withholding Laws by State, 2026
One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
9 min read
The EU’s Questionable VAT Policy
The value-added tax (VAT) compliance gap—the additional VAT revenue that could be collected if all taxpayers, consumers, and businesses fully complied with VAT rules—continues to increase, reaching €128 billion in 2023.
8 min read
The Next Tax Reform Should Build on Sound Tax Policy and Simplify the Tax Code
The tax code is ripe for simplification, especially as complicated and targeted provisions expire in 2028.
4 min read
New CEA Report Dramatically Underestimates the Cost of Replacing State Income Taxes
While the CEA’s analysis of the benefits of reduced reliance on income taxes is sound, its revenue replacement estimates are not. The actual revenue replacement rate could be as high as 17.51 percent.
6 min read