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Business Tax Expenditures, Credits, and Deductions

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What the EU Carbon Border Adjustment Mechanism Means for Europe and the United States EU CBAM or EU carbon border tax

What the EU’s Carbon Border Adjustment Mechanism Means for Europe and the United States

The Carbon Border Adjustment Mechanism (CBAM) is a key aspect of the EU’s broader Fit for 55 package which aims to cut 55 percent of net greenhouse gas (GHG) emissions in the EU by 2030. The growing number of competing climate policies between the EU and U.S., such as tax provisions in the Inflation Reduction Act, could present policymakers on both sides of the Atlantic an opportunity to work together.

5 min read
Stockholm Sweden Scandinavian tax systems to fund large social safety net and public service programs

Insights into the Tax Systems of Scandinavian Countries

Scandinavian countries are well known for their broad social safety net and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. So how do Scandinavian countries raise their tax revenues?

7 min read
IRS funding increase Inflation Reduction Act IRS strategic operating plan includes auditors

IRS Strategic Operating Plan Shows Promise, but Concerns Remain

While the IRS hopes to increase revenue collection and minimize additional burdens on taxpayers, uncertainty remains regarding its ability to deliver, particularly on the latter. Furthermore, some concerns about the original funding package are already surfacing, specifically around insufficient funding for taxpayer services.

6 min read
Tax Subsidies for R&D Expenditures in Europe including R&D tax incentives

Tax Subsidies for R&D Expenditures in Europe, 2023

Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offers R&D tax incentives.

3 min read
UK budget tax policies like UK tax reform options UK full expensing Spring Budget

Temporary Full Expensing Arrives in the UK

The UK’s adoption of full expensing is a welcome step that may generate short-run economic benefits. However, for the reform to have a meaningful effect on the UK’s international competitiveness and long-run economic performance, it must be made permanent—which the British government has said it hopes to do.

6 min read
Von der Leyen Biden EU IRA & Competitiveness | Tax FoundationPresident von der Leyen President Biden Can’t Fix European Competitiveness clean tech and Inflation reduction act subsidies

Dear President von der Leyen: President Biden Can’t Fix European Competitiveness

Focusing on the “threat” to European industry caused by the Inflation Reduction Act rather than internal tax system flaws puts the EU at risk of slower economic growth and possibly losing some of its important industrial base. It is also contrary to the EU’s geopolitical goals.

4 min read
West Virginia tax relief plan includes Governor Justice tax cut and West Virginia tax reform proposals

West Virginia Lawmakers Reach Deal on Tax Relief

In a day and age when businesses and individuals alike are increasingly mobile, West Virginians can be relieved that their state is getting off the sideline and into the action.

4 min read
Tennessee business tax reform and Tennessee sales tax holiday

Tennessee Looking Toward Pro-Growth Change in 2023

With other states upping their game to attract ever-more-mobile people and businesses, lawmakers and the governor are not content to leave Tennessee’s business taxes in their current, uncompetitive form.

7 min read
New Tax Expenditures Report Highlights Concerning Changes in Tax System

New Tax Expenditures Report Highlights Concerning Changes in Tax System

A new tax expenditures report by the Joint Committee on Taxation (JCT) reveals two problematic developments: 1) policymakers have increasingly relied on the tax code to deliver benefits to individuals, and 2) the broad, neutral tax treatment of investment has shifted to targeted subsidies for businesses.

4 min read
Tax filing Tax Season Stone's Throwe Photo

Frustration and Delays as the 2023 Tax Filing Season Begins

A combination of long-standing IRS operational deficiencies, the agency’s temporary closure due to the pandemic, and the now-expired pandemic relief produced a perfect recipe for a paper backlog.

4 min read