Debates over tax fairness and anti-avoidance rules have dominated European tax policy circles for over a decade. However, as geoeconomic pressures increase around the world, policymakers are looking for ways to boost European competitiveness and economic growth.
18 min read
Military action around the Strait of Hormuz has increased global oil prices. In response, policymakers around the world have put forward proposals targeting oil and gas producers who are seeing profits increase in the short run from the spike in prices.
5 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
Carryover provisions help businesses “smooth” their risk and income, making the tax code more neutral across investments and over time.
5 min read
Tax collections vary widely by state, making per capita collections figures—a measure of collections per person—especially useful, as they allow comparisons across differences in tax rates and bases, economic capacities, and policy decisions that impact the size and scope of government.
5 min read
The economic literature overwhelmingly finds that an income tax increase of this magnitude would negatively affect economic growth and opportunity in Rhode Island.
The carbon tax is often considered the ideal climate policy. However, existing carbon taxes do not match the ideal theoretical policy. More than two dozen carbon taxes exist in the world today, and they vary widely in terms of design.
61 min read
The Trump tariffs have not meaningfully altered the trade balance and amount to an average tax increase per US household of $700 in 2026.
55 min read
Currently, about half of all European OECD countries have either announced, proposed, or implemented a digital services tax. Because these taxes mainly impact US companies and are thus perceived as discriminatory, the US responded with retaliatory tariff threats.
5 min read
Testifying to Congress, United States Trade Representative Jamieson Greer argued that “President Trump’s trade policy is working.” The data present a different picture: President Trump’s trade agenda is actually holding back the economy.
This study simulates several large tax increases and consistently finds that even tax increases large enough to close the primary deficit in the near term will lose ground over time and fail to put the debt on a sustainable course.
41 min read
Most Americans don’t understand how the tax code works, and it’s costing them.
Shifting Germany’s tax mix away from labor to consumption remains a sound policy route to strengthen the country’s labor supply, but further eroding the VAT base with preferential rates for selected goods and services would counteract this goal by depleting the extra revenue for labor tax cuts while providing less-targeted relief for low-income households.
6 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.
California lawmakers are considering mandating worldwide combined reporting, bringing back a policy the state abandoned in the 1980s due to strong pushback from international trading partners and the federal government. The policy failed to work as intended then and doesn’t make any better sense now.
8 min read
To make the taxation of labor more efficient, policymakers should understand their country’s tax wedge and how their tax burden funds government services.
5 min read
Millions of Americans, along with significant amounts of income and economic activity, are moving from high-tax states to those with more competitive tax systems and lower overall costs of living.
8 min read
For many, the OBBBA made tax filing easier and put more money back into their pockets. But it didn’t improve the grade for overall tax complexity for the US. It may actually make the situation worse.
Windfall taxes, particularly those imposed on the oil and gas industry, often appear as a quick fix for governments seeking to raise revenue during periods of high commodity prices. However, while these taxes may offer short-term revenues, they can also trigger negative consequences that undermine their intended purpose.
21 min read
In 2022, incomes for the bottom 80 percent of earners were slightly lower after taxes and transfers compared to 2020 and 2021, driven by expiring pandemic-era policies.
6 min read