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
New IRS data shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remain lower after the Tax Cuts and Jobs Act (TCJA).
6 min read
Policymakers should broaden and make permanent full expensing for additional asset classes and pursue structural reforms that reduce distortions in how businesses are taxed. A more consistent and predictable policy environment, paired with targeted improvements to loss treatment, R&D incentives, and compliance burdens, would give small business owners greater confidence to invest, hire, and grow.
The US, as the world’s largest services exporter, has a stronger interest in combating discriminatory services taxation than in pursuing tariffs.
44 min read
The evidence overall paints a far different picture than American Compass presents, and a consistent theoretical framework undercuts its assertions of how tariffs should be expected to impact the economy moving forward.
25 min read
The past decade’s record suggests that countries have reliable legislative methods to improve their tax systems through ordinary tax reforms.
22 min read
Maine’s proposed millionaire’s tax would bring Maine’s top income tax rate to 9.15 percent, dealing a blow to the state’s economic competitiveness.
5 min read
Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes.
Smaller corporate tax bills after the OBBBA are not evidence of new giveaways or loopholes. They are evidence the tax code is finally treating investment the way it should.
The OBBBA significantly boosted economic prospects by improving the treatment of investment. By making key expensing provisions permanent, the OBBBA created better conditions for long-term growth. However, there’s still work to be done, and the OBBBA provided a blueprint for policymakers to follow.
4 min read