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Digital Services Taxes in Europe, 2022

About half of all European OECD countries have either announced, proposed, or implemented a digital services tax.

Minimum Book Tax: Flawed Revenue Source, Penalizes Pro-Growth Cost Recovery

While exempting accelerated depreciation from the book minimum tax would reduce some of the economic harm of the tax, there remain many unresolved problems within the design and structure of the tax that make it a poorly chosen revenue option.

Reminder that Corporate Taxes Are the Most Economically Damaging Way to Raise Revenue

In the rush to pass the Inflation Reduction Act, which features an ill-conceived tax on the book income of U.S. corporations, it is worth reminding policymakers of a well-established finding in the economic literature.

It Would Be a Mistake to Resurrect Corporate Alternative Minimum Tax

The Inflation Reduction Act may be smaller than the proposed Build Back Better legislation from 2021, but both sets of legislation propose a reintroduced corporate alternative minimum tax (AMT). The 30-year experience with a corporate AMT shows it is not a good solution.

Australia’s Tax and Benefit System Might Deter Working Parents from Advancing in Their Careers

While the tax and benefit system can be successful in keeping low-income working households out of poverty and encouraging workforce participation, high marginal tax rates like the one observed in the case of this Australian working parent act as barriers to upward mobility.

How Does the Inflation Reduction Act Minimum Tax Compare to Global Minimum Tax?

Over the course of the last year, it has become clear that Democratic lawmakers want to change U.S. tax rules for large companies. However, as proposals have been debated in recent months, there are have been clear divides between U.S. proposals and the global minimum tax rules.

The Inflation Reduction Act, What to Know

The Inflation Reduction Act would raise taxes on corporations and top earners with the goal of funding a number of programs to reduce carbon emissions, address prescription drug costs, and spur the economy. Garrett Watson joins Jesse Solis to talk through what these tax changes would mean for the economy: Will they reduce inflation, and do they break the President’s pledge not to raise taxes on those earning less than $400,000?

2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation

However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.

Consumption Tax

3 Observations on the CBO Long-Term Budget Outlook

The latest CBO long-term budget outlook paints a troubling picture of fiscal irresponsibility. Rather than halt this rampant spending, Congress is actively adding programs that will exacerbate these long-term trends.