Vermont Lawmakers Consider Harmful Taxes on the Wealthy
Vermont lawmakers are considering the adoption of two new taxes on high earners, which proponents have branded “wealth taxes.”
4 min read
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The Wealth Tax Discussion Is Back
Given that wealth taxes collect little revenue and have the potential to disincentivize entrepreneurship and investment, perhaps European countries should repeal them rather than implement one across the continent.
4 min read
America’s Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions
The overall U.S. tax and transfer system is overwhelmingly progressive, and understanding the extent—and source—of that progressivity is essential for lawmakers considering the trade-offs associated with each tax policy decision.
23 min read
Wealth Tax Proposals Are Back as States Take Aim at Investment
In a coordinated effort, lawmakers in seven states that collectively house about 60 percent of the nation’s wealth—California, Connecticut, Hawaii, Illinois, Maryland, New York, and Washington—are introducing wealth tax legislation on Thursday.
7 min read
Proposed Minimum Tax on Billionaire Capital Gains Takes Tax Code in Wrong Direction
Biden’s proposal would impose a complicated never been tried before tax, adding new compliance and administrative challenges for an already overburdened IRS while weakening the U.S. economy by raising the tax burden on U.S. saving and entrepreneurship.
6 min read
Pandemic Highlights the Need for Better Tax Policy for Entrepreneurs and Small Businesses
As Congress works to provide another round of emergency economic relief, it is a good time to step back and consider how tax policy affects entrepreneurs and small businesses.
3 min read
Taxing Times: One Virginia Brewer's Experience During COVID-19
We sat down with the owners of Black Narrows Brewing Company, a family-owned craft brewery situated in a small island-town on Virginia’s scenic Eastern Shore, to discuss the challenges they face as a small business during COVID-19 and what they would like to see legislators do to reduce short- and long-term barriers for entrepreneurs.
Tax Policy After Coronavirus: Clearing a Path to Economic Recovery
Governments at all levels must work to remove the tax policy barriers that stand in the way of economic recovery and long-term prosperity following the COVID-19 crisis. Our new guide outlines several comprehensive options that policymakers can take at the federal and state levels.
26 min read
Proponents of Wealth Taxation Must Consider its Impact on Innovation
Instead of raising revenue from a narrow tax base through high tax rates, policymakers should identify options to raise revenue efficiently through broad-based taxes consistent with sound tax policy.
4 min read
New Study Finds that High Tax Rates Lower the Chance of Business Survival
America’s tax code distorts the economic decision-making of firms, such as the favorable treatment of debt financing over equity. This study adds to this argument while providing motivation for policymakers to focus on how reforms to tax policy can increase American entrepreneurship.
2 min read
Tax Policy and Entrepreneurship: A Framework for Analysis
A key element of America’s dynamism problem is a drop in entrepreneurship. Removing tax barriers for entrepreneurs would improve America’s dynamism while making America’s tax code more neutral, efficient, and simple for all taxpayers.
25 min read
A High Tax Rate on Star Inventors Lowers Total Innovation
Findings from a new study suggest that while a policy agenda to revive innovation must include an assortment of changes – including greater access to mentorship – tax policy matters too.
2 min read
The Real Lesson of 70 Percent Tax Rates on Entrepreneurial Income
The fall and then rise of entrepreneurial income claimed on the wealthy’s 1040 tax returns clearly tracks the seeming decline of inequality from 1950 to 1980, followed by the sudden rise in inequality since 1986. The shifting composition of income claimed by the rich due to changes in tax laws explains this illusion.
12 min read
Unequal Tax Treatment Is Contributing to Rising Debt Levels for Entrepreneurs
A recent paper discusses two main trends related to U.S. entrepreneurs: the decrease in the number of entrepreneurs and the increase in their borrowing. Entrepreneurs have increased their debt holdings relative to their assets over the past three decades.
3 min read
New Federal Reserve Paper: State Corporate Taxes Hurt Entrepreneurship
For every 1 percentage point increase in a state’s corporate tax rate, employment in start-up firms declines 3.7 percent, according to a recent Federal Reserve study.
2 min read
Testimony: The Startup Slump: Can Tax Reform Help Revive American Entrepreneurship?
Tax reform should aim to get the tax code out of the way of entrepreneurship by making it simpler, less burdensome, and eliminating its anti-growth biases.
16 min read