Marginal Income Tax Rates

Spain’s Tax Competitiveness Has Declined Since 2018

Under Spain’s current Social Democratic government, the country has fallen from 27th to 35th (out of 38 OECD countries) in the International Tax Competitiveness Index.

International Tax Competitiveness Index 2026

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.

Spain’s Transformation After a Decade of Fiscal Competition

The 2026 Regional Tax Competitiveness Index for Spain highlights a growing divergence between regions that have embraced tax reform and those whose tax systems have remained largely unchanged.

Colorado’s Election Day Choice on Income Taxes

On Election Day, Coloradans will get to decide on two competing measures on income taxes: an initiated statute that would cap income taxes at the current 4.4 percent rate; and a constitutional amendment that would authorize a graduated-rate individual and corporate income tax, paired with an initiated statute setting new rates, with a top rate of 8.4 percent.

Teachers Are Omitting a Big Part of Financial Literacy

Most Americans don’t understand how the tax code works. According to a poll conducted by TaxEDU, a majority of respondents do not have a basic understanding of common tax concepts.

What Does Moving Toward a More Competitive EU Tax System Mean?

As the geopolitical scene continues to change, policymakers in Europe should focus on lowering effective marginal tax rates to drive much-needed investment and long-term economic growth.

The French Budget: Moving from Public Debate to Principled Solutions

Focusing on competitiveness, neutrality, and efficient policies to raise revenue would go a long way in increasing economic growth and stabilizing public finances over the long term.

Overview and Analysis of the Impact of Marginal Taxes on High Incomes in the European Union

The recent push to increase taxes on the wealthy has gained significant traction across Europe. This report highlights the obstacles and complex interplay between tax policy and economic behavior, suggesting that simply raising tax rates on the wealthy might not yield the intended social benefits.

Portugal’s Personal Income Tax System: High Top Rate, Threshold, and Tax Credits

Portugal’s personal income tax system levies high tax rates on an unusually narrow set of high earners, striking a poor balance between earnings incentives and revenue contributions.

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April 2, 2024July 18, 2024

Does the Federal Tax Code Privilege the Rich?

The federal income tax drives the tax code’s progressivity. In 2021, taxpayers with higher incomes paid much higher average income tax rates than taxpayers with lower incomes.

Distributed Profits Tax

Spain’s Race to the Bottom in the International Tax Competitiveness Index

Since 2020, Spain has dropped from 26th to 34th on the International Tax Competitiveness due to multiple tax hikes, new taxes, and weak performances in all five index components.

Idaho to Consider Flat Income Tax in Special Session

As Idaho attempts to further solidify its position as a growth-oriented, taxpayer-friendly state this special session, other states should look to its example and pursue similar reforms.

Arkansas’s Rate Reduction Acceleration

Arkansas recently became the 13th state to authorize an individual income tax rate reduction this year. This round of tax cuts accelerated reforms enacted eight months ago.

Japan’s Tax and Benefit System for Working Parents Isn’t Working

The Japanese tax and benefit system comes with trade-offs that policymakers must keep in mind when planning to reform the tax policy.

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.

Health-care Premiums Could Deter Canadians’ Upward Mobility

Canadian workers could face up to two important marginal tax rate spikes and lose 60 percent of additional earnings to the provincial health-care premium.

Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession

Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.

Lithuanian Model Could Help French Workers’ Upward Mobility

Reshaping some of these policies to generate a smoother variation of marginal tax rates over different income levels would likely raise labor supply and encourage the upward mobility of workers and especially that of average-income workers.

Navigating the Complex Income Tax System in Italy

High marginal tax rates can act as barriers to upward mobility, discouraging people from advancing in their careers.