There’s Still Room for Responsible State Income Tax Relief in 2023 February 1, 2023 Forty-three states adopted tax relief in 2021 or 2022—often in both years—and of those, 21 cut state income tax rates. It’s been a remarkable trend, driven by robust state revenues and an increasingly competitive tax environment.
State Tax Policy as an Inflation Response January 26, 2023 At the end of 2022, prices were 14.6 percent higher than they were two years prior. That’s the fastest inflation rate over any two calendar years since the stagflation era of the late 1970s. State policymakers are understandably interested in bringing any tools at their disposal to bear on the problem. And many of them are reaching for tax policy solutions.
States Should Make Full Expensing Permanent to Help Curb Inflation November 29, 2022 In times of high inflation, states should consider adopting permanent full expensing because it boosts long-run productivity, economic output, and wages.
Do Unto Others: The Case for State Income Tax Reciprocity November 16, 2022 Remote and flexible work opportunities are here to stay, whether states like it or not. With enhanced opportunities to take their job with them wherever they please, more workers can factor tax burdens into their decision of where to live.
How High Are Taxes on Recreational Marijuana in Your State? November 8, 2022 Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 19 states have implemented legislation to legalize and tax recreational marijuana sales.
How Do Taxes Affect Interstate Migration? October 11, 2022 IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020) August 25, 2022 The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
Indiana Should Use Surplus to Expedite Rate Cuts, Index Exemptions for Inflation July 29, 2022 Expediting income tax rate reductions and indexing major income tax provisions for inflation are two of the most important tax policy changes policymakers could make to provide meaningful tax relief to Hoosiers both now and in the years to come.
2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation August 2, 2022 However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
New Jersey’s Proposed Menthol Ban Is All Pain and No Gain July 27, 2022 New Jersey lawmakers should be weary of flavor bans after seeing the results in Massachusetts.
Pennsylvania Cuts Corporate Net Income Tax Rate July 14, 2022 Policymakers from both parties in Harrisburg have proposed reducing Pennsylvania’s 9.99 percent corporate net income tax (CNIT) rate but could not agree on an approach—until now. With the enactment of HB 1342 lawmakers finally succeeded in cutting what had been the second highest state corporate tax rate in the nation.
State Tax Reform and Relief Enacted in 2022 July 13, 2022 Among the 46 states that held legislative sessions this year, structural state tax reform and temporary tax relief measures were recurring themes.
Idaho’s Tax Hiking Ballot Measure Is Riddled With Mistakes July 14, 2022 Idaho Ballot initiative would impose an incredibly high top marginal rate that would fall on many small businesses, not just high-income earners.
Oklahoma Becomes First State in Nation to Make Full Expensing Permanent July 6, 2022 Gov. Stitt signed into law a pro-growth bill that will set the state apart from its peers. Other states should look to follow Oklahoma’s example and make full expensing permanent to maintain their competitiveness in an increasingly mobile economy.
Vapor Taxes by State, 2022 July 5, 2022 If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
State Tax Changes Taking Effect July 1, 2022 June 28, 2022 Although the majority of state tax changes take effect at the start of the calendar year, some are implemented at the beginning of the fiscal year. Fourteen states have notable tax changes taking effect on July 1.
The Impact of Individual Income Tax Changes on Economic Growth June 14, 2022 Research almost invariably shows a negative relationship between income tax rates and gross domestic product (GDP). Cuts to marginal tax rates are highly correlated with decreases in the unemployment rate.
Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken May 24, 2022 The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?
States Inaugurate a Flat Tax Revolution November 14, 2022 In what is already a year of significant bipartisan focus on tax relief, 2022 is launching something of a flat tax revolution by reforming income taxes.
State Legislatures Take Up Tax Reform and Relief in 2022 March 29, 2022 After a whirlwind of cuts and reforms in 2021, it looks like 2022 might be an even bigger year for state tax codes. Republican and Democratic governors alike used their annual State of the State addresses to call for tax reform, and there is already serious momentum from state lawmakers nationwide to get the job done.
Eight State Tax Reforms for Mobility and Modernization January 5, 2022 States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
2022 State Business Tax Climate Index December 16, 2021 While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.
As Inflation Rises, So Will Tax Bills in Many States October 19, 2021 Inflation is often called a hidden tax, but in many states it yields a far more literal tax increase as tax brackets fail to adjust for changes in consumer purchasing power.
States Have $95 Billion to Restore their Unemployment Trust Funds—Why Aren’t They Using It? September 22, 2021 Given the restrictions on the use of federal relief funding, and the significantly higher tax burdens on employment that will result if trust funds are not replenished, applying federal aid to these trust funds should be an urgent priority.
States Respond to Strong Fiscal Health with Income Tax Reforms July 15, 2021 As states close their books for fiscal year 2021, many have much more revenue on hand than they anticipated last year. Eleven states have responded by reducing income tax rates and making related structural reforms as they strive to solidify a competitive advantage in an increasingly competitive national landscape.
Large Spread in Tax Treatment of Sports Betting Operators February 9, 2022 Since 2018, 30 states and the District and Columbia have legalized and imposed taxes on sports betting. States that have yet to legalize, but which may do so, should pay attention to the impact of tax design in states that already have legal and taxed sports betting—specifically tax base design.
States Consider Digital Taxes Amidst Conflicting Rationales May 10, 2021 Digital advertising, social media, and data tax proposals have been introduced in nine states following enactment of Maryland’s digital advertising tax, which has since been postponed a year due to administrative and legal challenges.
Location Matters 2021: The State Tax Costs of Doing Business May 5, 2021 A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
Excise Tax Application and Trends March 16, 2021 The excise tax family is growing. Over the last decade, several products have become subject to excise taxes or are in the process of becoming so. Given this development, it is more crucial than ever that lawmakers, businesses, and consumers understand the possibilities and, more importantly, limitations of excise tax application.
Facts and Figures 2021: How Does Your State Compare? March 10, 2021 Our updated 2021 edition of Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement” November 3, 2022
A Road Map to Recreational Marijuana Taxation June 9, 2020 As more states consider legalization of recreational marijuana, lawmakers should take note of the experiences of the states already allowing legal sales and consumption.
There’s Still Room for Responsible State Income Tax Relief in 2023 February 1, 2023 Forty-three states adopted tax relief in 2021 or 2022—often in both years—and of those, 21 cut state income tax rates. It’s been a remarkable trend, driven by robust state revenues and an increasingly competitive tax environment.
State Tax Policy as an Inflation Response January 26, 2023 At the end of 2022, prices were 14.6 percent higher than they were two years prior. That’s the fastest inflation rate over any two calendar years since the stagflation era of the late 1970s. State policymakers are understandably interested in bringing any tools at their disposal to bear on the problem. And many of them are reaching for tax policy solutions.
States Should Make Full Expensing Permanent to Help Curb Inflation November 29, 2022 In times of high inflation, states should consider adopting permanent full expensing because it boosts long-run productivity, economic output, and wages.
Do Unto Others: The Case for State Income Tax Reciprocity November 16, 2022 Remote and flexible work opportunities are here to stay, whether states like it or not. With enhanced opportunities to take their job with them wherever they please, more workers can factor tax burdens into their decision of where to live.
How High Are Taxes on Recreational Marijuana in Your State? November 8, 2022 Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 19 states have implemented legislation to legalize and tax recreational marijuana sales.
How Do Taxes Affect Interstate Migration? October 11, 2022 IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.
Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020) August 25, 2022 The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.
Indiana Should Use Surplus to Expedite Rate Cuts, Index Exemptions for Inflation July 29, 2022 Expediting income tax rate reductions and indexing major income tax provisions for inflation are two of the most important tax policy changes policymakers could make to provide meaningful tax relief to Hoosiers both now and in the years to come.
2022 Sales Tax Holidays: Bad Policy Any Year, But Especially in Response to High Inflation August 2, 2022 However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
New Jersey’s Proposed Menthol Ban Is All Pain and No Gain July 27, 2022 New Jersey lawmakers should be weary of flavor bans after seeing the results in Massachusetts.
Pennsylvania Cuts Corporate Net Income Tax Rate July 14, 2022 Policymakers from both parties in Harrisburg have proposed reducing Pennsylvania’s 9.99 percent corporate net income tax (CNIT) rate but could not agree on an approach—until now. With the enactment of HB 1342 lawmakers finally succeeded in cutting what had been the second highest state corporate tax rate in the nation.
State Tax Reform and Relief Enacted in 2022 July 13, 2022 Among the 46 states that held legislative sessions this year, structural state tax reform and temporary tax relief measures were recurring themes.
Idaho’s Tax Hiking Ballot Measure Is Riddled With Mistakes July 14, 2022 Idaho Ballot initiative would impose an incredibly high top marginal rate that would fall on many small businesses, not just high-income earners.
Oklahoma Becomes First State in Nation to Make Full Expensing Permanent July 6, 2022 Gov. Stitt signed into law a pro-growth bill that will set the state apart from its peers. Other states should look to follow Oklahoma’s example and make full expensing permanent to maintain their competitiveness in an increasingly mobile economy.
Vapor Taxes by State, 2022 July 5, 2022 If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
State Tax Changes Taking Effect July 1, 2022 June 28, 2022 Although the majority of state tax changes take effect at the start of the calendar year, some are implemented at the beginning of the fiscal year. Fourteen states have notable tax changes taking effect on July 1.
The Impact of Individual Income Tax Changes on Economic Growth June 14, 2022 Research almost invariably shows a negative relationship between income tax rates and gross domestic product (GDP). Cuts to marginal tax rates are highly correlated with decreases in the unemployment rate.
Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken May 24, 2022 The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?
States Inaugurate a Flat Tax Revolution November 14, 2022 In what is already a year of significant bipartisan focus on tax relief, 2022 is launching something of a flat tax revolution by reforming income taxes.
State Legislatures Take Up Tax Reform and Relief in 2022 March 29, 2022 After a whirlwind of cuts and reforms in 2021, it looks like 2022 might be an even bigger year for state tax codes. Republican and Democratic governors alike used their annual State of the State addresses to call for tax reform, and there is already serious momentum from state lawmakers nationwide to get the job done.
Eight State Tax Reforms for Mobility and Modernization January 5, 2022 States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
2022 State Business Tax Climate Index December 16, 2021 While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.
As Inflation Rises, So Will Tax Bills in Many States October 19, 2021 Inflation is often called a hidden tax, but in many states it yields a far more literal tax increase as tax brackets fail to adjust for changes in consumer purchasing power.
States Have $95 Billion to Restore their Unemployment Trust Funds—Why Aren’t They Using It? September 22, 2021 Given the restrictions on the use of federal relief funding, and the significantly higher tax burdens on employment that will result if trust funds are not replenished, applying federal aid to these trust funds should be an urgent priority.
States Respond to Strong Fiscal Health with Income Tax Reforms July 15, 2021 As states close their books for fiscal year 2021, many have much more revenue on hand than they anticipated last year. Eleven states have responded by reducing income tax rates and making related structural reforms as they strive to solidify a competitive advantage in an increasingly competitive national landscape.
Large Spread in Tax Treatment of Sports Betting Operators February 9, 2022 Since 2018, 30 states and the District and Columbia have legalized and imposed taxes on sports betting. States that have yet to legalize, but which may do so, should pay attention to the impact of tax design in states that already have legal and taxed sports betting—specifically tax base design.
States Consider Digital Taxes Amidst Conflicting Rationales May 10, 2021 Digital advertising, social media, and data tax proposals have been introduced in nine states following enactment of Maryland’s digital advertising tax, which has since been postponed a year due to administrative and legal challenges.
Location Matters 2021: The State Tax Costs of Doing Business May 5, 2021 A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
Excise Tax Application and Trends March 16, 2021 The excise tax family is growing. Over the last decade, several products have become subject to excise taxes or are in the process of becoming so. Given this development, it is more crucial than ever that lawmakers, businesses, and consumers understand the possibilities and, more importantly, limitations of excise tax application.
Facts and Figures 2021: How Does Your State Compare? March 10, 2021 Our updated 2021 edition of Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement” November 3, 2022
A Road Map to Recreational Marijuana Taxation June 9, 2020 As more states consider legalization of recreational marijuana, lawmakers should take note of the experiences of the states already allowing legal sales and consumption.
