Sources of Government Revenue

Tax

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

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.

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.

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.

Sources of Personal Income, Tax Year 2019

Reviewing reported income helps to understand the composition of the federal government’s revenue base and how Americans earn their taxable income. The individual income tax, the federal government’s largest source of revenue, is largely a tax on labor.

Tax Reform Options to Improve Wisconsin’s Competitiveness

Given the state’s strong budget surplus and projected continued revenue growth, Wisconsin is in a prime position to enact pro-growth reforms to improve the state’s competitive standing for decades to come.

The U.S. Tax Burden on Labor, 2022

Although the U.S. has a progressive tax system and a relatively low tax burden compared to the OECD average, average-wage workers still pay nearly 30 percent of their wages in taxes.

Pondering Property Taxes

Property taxes are highly unpopular and can get extremely confusing. But when done right, they can be quite good. We talk through what a well structured property tax should look like, which states have good property tax structures in place and which ones don’t, and how these taxes impact a state’s competitiveness in an increasingly mobile economy.

Comments on Tobacco Product Standard for Menthol in Cigarettes

Tax Foundation comments on the state tax and revenue implications of the proposed tobacco product standard for menthol in cigarettes.

FDA Menthol Ban Would Boost Smuggling, Reduce Revenues, with Few Health Benefits

Learn more about the FDA’s proposal to ban the sale of menthol cigarettes and flavored cigars. Including its effect on revenue & public health measures.

Federal Corporate Tax Revenue and All Federal Tax Collections Headed for Another Record High

Total tax collections are currently running 25 percent higher than last year, and if that pattern holds, total federal tax collections will reach over $5 trillion in FY 2022—a new all-time high.

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Sources of U.S. Tax Revenue by Tax Type, 2022 Update

Compared to other industrialized countries, the United States relies more on individual income taxes and property taxes and less on consumption taxes.

Sources of Government Revenue in the OECD, 2022 Update

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

Massachusetts Should Reject Gross Receipts Taxes

Not only is the tax inequitable and inefficient, it also could be what drives businesses and remote workers into another state.

The Surprising Challenge of Too Much Tax Revenue—and Florida’s No-Gas-Tax Solution

Temporary tax relief measures, like refund checks or gas tax holidays, are not necessarily bad, and can be justified as ways to return excess revenues to taxpayers, but they often miss an opportunity to do better by taxpayers in the long run.

Ohio’s CAT Is Out of the Bag

Coming out of the pandemic, the state of Ohio is estimating significant tax revenue growth, and some lawmakers are looking to take advantage and repeal the Commercial Activity Tax (CAT), one of only a few gross receipts taxes still levied in the country.

Mississippians Would Benefit from Sustainable Income Tax Reduction

Mississippi lawmakers should deliver tax relief in 2022, but they need not take an all-or-nothing approach. There are many ways to improve the state’s tax code, even if full income tax repeal doesn’t remain on the table.

Economy Loses More than Revenue Gains in the House Build Back Better Act

Due to the House Build Back Better tax plan’s economically costly and inefficient tax increases, our analysis finds that long-run GDP would drop by a little over $1 for every $1 in new tax revenue.

The Rich Are Not Monolithic and Taxing Their Wealth Invites Tax Collection Volatility

Congressional Democrats are reported to be weighing a special tax on the assets of billionaires to raise revenues to pay for their Build Back Better spending plan. There are two fundamental challenges to such a plan.