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.
29 min read
Maine has blueberry taxes. Alabama has mosquito taxes. Each state and county has its tax quirks. But when state and local governments want to raise revenues, there are four key taxes they turn to.
There are a number of sources of state and local tax collections each with important implications for revenue stability and economic growth. Which taxes does your state and/or locality rely on most?
22 min read
NYC’s congestion tolling has reduced congestion, raised money for the MTA, and sped up vehicles in the city. Its success has inspired proposals for congestion tolling in other major US cities, like Los Angeles and Washington, DC.
4 min read
As the alcohol industry innovates with newer products like high alcohol content beer or ready-to-drink cocktails, the efficacy of a categorical system continues to break down.
Voters beware: lower property taxes may sound good, but they come with significant trade-offs.
While a proposal to phase down property taxes on the primary residences of Florida homeowners may grab headlines, it risks severely undermining the competitiveness of Florida’s overall tax structure and leaving the state worse off.
7 min read
Policies that increase the tax burden on high earners makes states less competitive, increase revenue volatility, discourage investment, and risk accelerating outmigration of talent and capital. Many top-earners are already leaving high-tax states for Florida, North Carolina, and other low-tax jurisdictions.
9 min read
Voters in California this fall will have to determine whether the state will institute a billionaire tax. Advocates of this proposal have been pushing for these kinds of money grabs for decades—and their arguments often run the same. The base is narrow, the lifespan is limited, the cause is sympathetic.
If approved by voters, the wealth tax will face a flurry of serious legal challenges—some to its overall constitutionality, and some regarding who can be taxed and to what degree if the tax survives broader legal scrutiny.
24 min read
Alcohol taxes in Illinois have been broken for decades, and the state is now considering a “fix” that moves policy in the wrong direction.
6 min read
During a recent special session called by Gov. Sarah Huckabee Sanders (R), Arkansas policymakers cut the state’s top individual and corporate income tax rates, continuing Arkansas’s years-long tax reform streak and making the Razorback State one of five states to cut income taxes so far in 2026.
5 min read
A new bill introduced in the Minnesota House seeks to tax non-real assets, imposing an annual tax of 1 percent on “taxable wealth” exceeding $10 million for individuals and trusts from tax year 2026 onward.
6 min read
A pair of bills introduced in the Minnesota House—HF 3954 (overtime) and HF 3955 (tips)—would further erode the state’s tax climate by exempting certain overtime pay and tip income from Minnesota’s income tax.
5 min read
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.
The proposed increase of Vermont’s top income tax rate would have negative effects on the state’s economy and competitiveness.
New York City’s proposed “pied-à-terre” tax surcharge on second homes valued at over $5 million would impose higher costs for residents, reduce investment, and dim economic prospects.
The proposed California wealth tax could be levied on founders’ voting interests in their companies, despite the initiative’s drafters insisting otherwise.
6 min read
The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only two states raise enough revenue to fully cover their highway spending.
5 min read
When evaluating property tax reform options in North Carolina, only changes that restore balance—without distorting investment or shifting costs unfairly—will ensure the state’s local tax system supports, rather than hinders, continued prosperity.
8 min read
Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
6 min read
While well-intentioned, Kansas’ assessment limit like the one in SCR 1616 would create wide gaps between a property’s assessed value and its market value, distorting the real estate market and disadvantaging those purchasing newer properties.
8 min read
Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
9 min read