Business Consumption Taxes

What the EU Gets Wrong About “Tax Fairness” and How Principled Tax Policy Can Help

A more principled EU tax system will increase economic growth across the economy and provide the government with stable finances for spending priorities.

Impact of Italian Elections on National Tax Policy and EU Fiscal Policy

In the EU, Italy plays an important role in economic policy. If the EU wants to further develop own resources, it will need the backing of the Italian government—which seems unlikely at the moment.

The Sticks: Inflation Reduction Act’s Energy-Related Tax Increases

The Inflation Reduction Act primarily uses carrots, not sticks, to incentivize reductions in carbon emissions. It creates or expands tax credits for various low- or no-emission technologies, rather than imposing a generalized penalty for emissions, such as a carbon tax.

Taxes and the UK’s new Prime Minister

In an already-challenging economic environment, new UK Prime Minister Liz Truss must get tax rates correct to avoid over-burdening a population and business sector facing immense uncertainty. Focusing only on rates while ignoring the base misses an opportunity for real, pro-growth reform.

New Mexico and the Question of Tax Competitiveness

Every change to a state’s tax system makes its business tax climate more or less competitive compared to other states and makes the state more or less attractive to business.

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.

Europe Opened the Pandora Box of Reduced VAT Rates

With this new VAT directive, the EU has invited member states to adopt policies that create new complexities, are poorly targeted, and undermine an Own Resource.

Personal Income Tax Adjusts for Inflation, But It Could Do Better

In times of inflation, a review of the tax code shows that some provisions are automatically indexed, or adjusted, to match inflation, while others are not. And that creates unfair burdens for taxpayers. But it’s not always as simple as just “adjusting for inflation.”

Biden’s Trade Agenda Should End the Trade War and Promote Free Trade

The Biden administration should lift the Trump administration’s tariffs, as they have failed in their objective to bring better trading practices and instead brought about significant damage to U.S. businesses and workers.

Facts & Figures 2022: How Does Your State Compare?

Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

Among Many Tax Hikes a Couple of Tax Reforms From Which Spain Could Actually Benefit

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.

VAT Rates in Europe, 2022

The VAT is a consumption tax assessed on the value added in each production stage of a good or service. Every business along the value chain receives a tax credit for the VAT already paid. The end consumer does not, making it a tax on final consumption.

Comparing Europe’s Tax Systems: Property Taxes

According to the 2021 International Tax Competitiveness Index, Switzerland has the best-structured consumption tax among OECD countries while Poland has the worst-structured consumption tax code.

2022 State Business Tax Climate Index

While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.

Permanent Build Back Better Act Would Likely Require Large Tax Increases on the Middle Class

Policymakers and taxpayers should understand the scope of tax changes necessary to fully pay for the large-scale social spending programs that would be initiated under the Build Back Better Act.

Comparing Europe’s Tax Systems: Consumption Taxes

According to the 2021 International Tax Competitiveness Index, Switzerland has the best-structured consumption tax among OECD countries while Poland has the worst-structured consumption tax code.

How Would House Dems’ Tax Plan Change Competitiveness of U.S. Tax Code?

The legislation put forward by Democratic members of the House of Representatives would reverse many of the 2017 reforms while increasing burdens on businesses and workers.

Movers and Shakers in the International Tax Competitiveness Index

The Index provides lessons for policymakers when they are thinking of ways to remove distortions from their tax systems and remain competitive against their peers. The further up a country moves on the Index, the more likely it is to have broader tax bases, relatively lower rates, and policies that are less distortionary to individual or business decisions. Going the other way reveals a policy preference for narrow tax bases, special tax policy tools, and rules that make it difficult for compliance.