US Has Most Progressive Tax System in OECD, New Index Shows
A study from the Fraser Institute finds the US tax code is highly progressive relative to other OECD countries.
7 min read
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Testimony: A High-Earner Surtax Would Hurt Rhode Island’s Small Businesses
The economic literature overwhelmingly finds that an income tax increase of this magnitude would negatively affect economic growth and opportunity in Rhode Island.
Testimony: Illinois “Millionaire’s Tax” Would Hurt Small Businesses, Exacerbate Outmigration
Illinois’ proposed Millionaire’s Tax would raise taxes on Illinois families and businesses in an economically damaging way, further harming the state’s competitiveness and reducing economic opportunity even for those Illinois residents who would not owe the tax directly.
Maine’s Proposed Millionaire’s Tax Would Harm the State’s Economy
Maine’s proposed millionaire’s tax would bring Maine’s top income tax rate to 9.15 percent, dealing a blow to the state’s economic competitiveness.
5 min read
Ohio Expensing Conformity Will Boost Innovation and Competitiveness
Ohio’s SB 9 will boost economic growth by conforming Ohio’s tax code to the domestic research and experimentation (R&E) immediate cost recovery provision in the One Big Beautiful Bill Act.
8 min read
Tax Treatment of the Pass-Through Business Sector: A Primer
The pass-through business sector—including partnerships, S corporations, and sole proprietorships—employs most of the private-sector workforce in the US and accounts for about half of US business income.
34 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
A 9.25 Percent Top Income Tax Rate Would Drive Jobs, Investment, and Economic Opportunity Out of Michigan
Michigan’s proposed 5 percent income surtax on high earners, yielding a top marginal rate of 9.25 percent, is also a tax on the small businesses that employ nearly 2 million Michiganders.
25 min read
Tax Refunds and the One Big Beautiful Bill Act
When taxpayers file their 2025 tax returns in 2026, many will see larger refunds than in recent years. That’s due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $129 billion.
4 min read
Sources of Personal Income, Tax Year 2022
As policymakers consider reforms to the individual income tax, understanding the types of income that make up the individual income tax base can help them understand the trade-offs of different changes to the tax system.
8 min read
2026 Tax Brackets
Explore the IRS inflation-adjusted 2026 tax brackets, for which taxpayers will file tax returns in early 2027.
5 min read
2025 Tax Brackets
Explore the IRS inflation-adjusted 2025 tax brackets, for which taxpayers will file tax returns in early 2026.
4 min read
2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You
How will recent federal tax changes affect you?
4 min read
One Big Beautiful Bill Act Makes the Individual Income Tax More Complex
While the OBBBA brings some stability by making many of the TCJA’s reforms permanent, it generally fails to reform the tax code’s accumulating complexity.
31 min read
Tax Complexity Now Costs the US Economy over $536 Billion Annually
Americans will spend almost 7.1 billion hours complying with IRS tax filing and reporting requirements in 2025. This is equal to 3.4 million full-time workers—almost the population of Los Angeles and nearly 38 times the workforce the IRS employed in FY 2024—doing nothing but tax return paperwork for a full year.
9 min read
The OBBBA Gets Expensing Right. States Should Follow Suit.
However states choose to respond to other tax provisions of the One Big Beautiful Bill Act, they should conform to the pro-growth provisions, which represent a marked improvement in the corporate tax code.
12 min read
The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act
The One Big Beautiful Bill Act makes many of the individual tax cuts and reforms of the TCJA permanent. It improves upon the TCJA by making expensing for R&D and equipment permanent. However, for the most part, it does not include further structural reforms, and instead introduces many new, narrow tax breaks to the code, adding complexity and raising revenue costs.
7 min read
Senate Softens Blow for Pass-Throughs Using Current SALT Workarounds
The Senate’s version of the OBBB restores the benefit of avoiding the SALT deduction cap with PTETs for all pass-through businesses, while placing new limits on the extent of the workarounds.
6 min read
Rhode Island Should Not Imitate Massachusetts’ Tax Mistakes
Rhode Island lawmakers are debating raising the state’s top income tax rate. Though billed as a tax hike on high earners, the consequences would manifest across the state’s entire economy—creating a risk that Rhode Island will tax its way into uncompetitiveness.
How Does the House-Passed Tax Bill Change the Section 199A Pass-Through Deduction?
Rather than permanently expanding a complicated, nonneutral tax break, Congress should prioritize permanence for the most neutral and pro-growth policies like bonus depreciation and R&D expensing.
6 min read