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American Rescue Plan state tax cuts Treasury clarification Biden international tax team, US treasury biden international tax appointees, Assistant Secretary in the Office of Tax Policy, Tax Policy as Deputy Assistant Secretary for Multilateral Tax, Kimberly Clausing, Rebecca Kysar and Itai Grinberg.
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Personnel Is Policy: Biden International Tax Team Edition

This week, the Treasury Department added several new appointees as staffing continues following President Biden’s inauguration. Among them were three scholars of international tax policy: economist Kimberly Clausing and law professors Rebecca Kysar and Itai Grinberg. These three will be influential in developing the administration’s approach to changing U.S. tax rules for multinational corporations and negotiating international tax policy changes at the Organisation for Economic Co-operation and Development (OECD).

4 min read
EU tax research The European Commission and the Taxation of the Digital Economy EU digital levy
Research
Europe

The European Commission and the Taxation of the Digital Economy

The consultation on the EU’s digital levy provides an opportunity for policymakers and taxpayers to reflect on the underlying issues of digital taxation and potential consequences from a digital levy. Unless the EU digital levy is designed with an OECD agreement in mind, it is likely to cause more uncertainty in cross-border tax policy.

12 min read
2021 state corporate income tax rates and brackets. 2021 state corporate tax rates. What are the state corporate tax rates for 2021? Which state has the lowest corporate tax rate? Lowest state corporate tax rate
Data

State Corporate Income Tax Rates and Brackets, 2021

North Carolina’s 2.5 percent corporate tax rate is the lowest in the country, followed by Missouri (4 percent) and North Dakota (4.31 percent). Seven other states impose top rates at or below 5 percent: Florida (4.458 percent), Colorado (4.55 percent), Arizona (4.9 percent), Utah (4.95 percent), and Kentucky, Mississippi, and South Carolina (5 percent).

7 min read
Nebraska income tax reform and Nebraska tax relief pro-growth tax modernization in nebraska Nebraska Tax Modernization A Key to Economic Recovery and Growth in Nebraska
Research

Thirteen Priorities for Pro-Growth Tax Modernization in Nebraska

We identify 13 of the highest tax reform priorities Nebraska policymakers should consider in their effort to create a more growth-friendly tax code. We also offer a sample comprehensive tax reform plan to show one way policymakers could begin tackling these objectives over the next couple legislative sessions, with further progress to be made in the years ahead.

8 min read
VAT revenues declined in 2020. VAT rates and VAT revenues amid the coronavirus pandemic. VAT covid analysis
Blog

Value-added Taxes in the Pandemic

Many governments have chosen to use VAT as a tool to provide tax relief for consumption in various sectors throughout the pandemic, but in the long term, VAT should not be used as a tool for relief.

3 min read
Small Town Main Street Small Business, Wisconsin ppp loans taxes
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Wisconsin’s PPP Loan Recipients Face Hundreds of Millions in Surprise Taxes

Unless the legislature acts, businesses that have received PPP loans and related federal assistance will face $457 million in state taxes through 2024—with more than half of those taxes coming due this spring—despite Wisconsin being on track to see continued general fund revenue growth even amid the pandemic.

4 min read
Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. Actionable VAT Policy Gap in Europe
Data
Europe

Actionable VAT Policy Gap in Europe, 2021

Value-added taxes (VAT) make up approximately one-fifth of total tax revenues in Europe. However, European countries differ significantly in how efficiently they raise VAT revenues. One way to measure a country’s VAT efficiency is the VAT Gap.

4 min read
Tax Cuts and Jobs Act offshoring OECD BEPS project, OECD consultation document, OECD multinationals, Consumption tax policies in OECD countries, Consumption taxes in OECD countries
Research

Consumption Tax Policies in OECD Countries

Despite the potential of consumption taxes as a neutral and efficient source of tax revenues, many governments have implemented policies that are unduly complex and have poorly designed tax bases that exclude many goods or services from taxation, or tax them at reduced rates.

40 min read
Carbon tax revenue to grow economy, Using carbon tax revenue to address post-Covid economic recovery, carbon tax economic recovery
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Using Carbon Tax Revenue to Grow the Economy

The economy and climate change are two challenges the Biden administration has identified as priorities. One way to address both issues at the same time is to enact a carbon tax to discourage carbon emissions, and to use the resulting carbon tax revenue to lower—or in the case of the TCJA’s individual provisions, avoid increases of—other, more distortive, types of taxes. This would not only address the challenges of climate change but also support the economy.

3 min read
Janet Yellen Treasury Secretary, Janet Yellen Treasury testimony confirmation testimony and hearing
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5 Observations on Janet Yellen’s Recent Confirmation Testimony

In her recent confirmation hearing, economist Janet Yellen, President Biden’s choice for Treasury Secretary, sought to reassure markets that the new administration would not raise corporate taxes until the economy improves. At the same time, however, she sent a troubling signal that when they do push for higher corporate tax rates, they would do so in coordination with other countries so that the U.S. doesn’t lose its competitive edge.

5 min read
R&D tax incentives, Research and development tax incentives, R&D tax subsidies and R&D tax subsidy policies in Europe
Data
Europe

Tax Subsidies for R&D Expenditures in Europe, 2021

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 offer R&D tax incentives.

4 min read
How much does your state rely on property taxes? Compare 2021 state property taxes and 2021 property taxes by state. State property tax reliance map. Revenue through property taxes
Data

To What Extent Does Your State Rely on Property Taxes?

New Hampshire and Alaska rely most heavily on property taxes. Neither have individual income taxes, and in New Hampshire, significant government authority often vested in state government is devolved to the local level, where services are overwhelmingly funded by property taxes.

4 min read
controlled foreign corporation rules
Blog

Day 2 of OECD Consultation on International Tax Reform Blueprints

The OECD consultation is in the context of the Inclusive Framework on Base Erosion and Profit Shifting which is made up of delegates from more than 135 countries and is focused on policies that reduce opportunities for tax avoidance by multinational companies. The current proposals being considered would change both where and how much companies pay in corporate taxes.

4 min read
Tax Cuts and Jobs Act offshoring OECD BEPS project, OECD consultation document, OECD multinationals, Consumption tax policies in OECD countries, Consumption taxes in OECD countries
Blog

Day 1 of OECD Consultation on International Tax Reform Blueprints

The first session was focused on Pillar 1 of the OECD proposal. The pieces in Pillar 1 would change tax rules so that companies would be paying more taxes in countries based on the location of customers. This approach would move more tax revenues into so-called “market countries.”

3 min read
Integrated Tax Rates on Corporate Income in Europe, Top Integrated Tax Rates on Corporate Income Distributed as Dividends in European OECD Countries, 2020
Data
Europe

Integrated Tax Rates on Corporate Income in Europe, 2021

The integrated tax rate on corporate income reflects both the corporate income tax and the dividends or capital gains tax—the total tax levied on corporate income. For dividends, Ireland’s top integrated tax rate was highest among European OECD countries, followed by France and Denmark

4 min read
How Corporate Income is Taxed Twice Double Taxation of Corporate Income in the United States and the OECD savings and investment OECD capital gains tax retirement accounts stock
Research

Double Taxation of Corporate Income in the United States and the OECD

Biden’s proposal to increase the corporate income tax rate and to tax long-term capital gains and qualified dividends at ordinary income tax rates would increase the top integrated tax rate above pre-TCJA levels, making it the highest in the OECD and undercutting American economic competitiveness.

17 min read
Where did Americans move in 2020? 2020 state migration data, 2020 moving study, state-by-state migration trends, state migration trends, state migration data
Data

Where Did Americans Move in 2020?

States compete with each other in a variety of ways, including in attracting (and retaining) residents. Sustained periods of inbound migration lead to (and reflect) greater economic output and growth. Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue declines as economic activity and tax revenue follow individuals out of state.

4 min read
Schumer marijuana bill recreational marijuana tax revenue by state
Blog

Several States Considering Legal Recreational Marijuana

With most states experiencing reduced tax revenues due to the coronavirus pandemic, several are contemplating whether recreational marijuana legalization and taxation may be one avenue to raise new revenue. While states that have already legalized do raise meaningful revenue, lawmakers should remember that establishment of legal markets takes time.

5 min read