Evaluating Washington’s Proposed Millionaires’ Tax
Washington lawmakers are holding their first hearing on long-anticipated legislation that would create a new 9.9 percent tax on income over $1 million.
6 min read
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The Federal Payroll Tax: A Primer
With changes to payroll taxes likely to be part of a toolkit for reform, both policymakers and the public would benefit from understanding how the payroll tax works, who pays it, and its impact on the economy.
21 min read
When Taxing AI, Don’t Reinvent the Wheel
AI technology has a wide range of potential economic outcomes. It would be a mistake to tailor tax policy to the extreme end of that range. Still, policymakers shouldn’t do nothing: they should instead make tax reforms that are sound regardless of which AI scenario emerges.
7 min read
Two Virginia Income Tax Proposals Would Make the State Less Affordable
Should both HB 979 and HB 378 pass, Virginia would have the nation’s highest top marginal rate on investment income.
8 min read
Even After Exemptions, More than Half of Food Products Continue to Face Trump Tariffs
The Trump tariffs will likely raise the cost of food for Americans, particularly for liqueurs and spirits, baked goods, coffee, fish, and beer.
4 min read
Nonresident Income Tax Filing and Withholding Laws by State, 2026
One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
9 min read
The EU’s Questionable VAT Policy
The value-added tax (VAT) compliance gap—the additional VAT revenue that could be collected if all taxpayers, consumers, and businesses fully complied with VAT rules—continues to increase, reaching €128 billion in 2023.
8 min read
The Next Tax Reform Should Build on Sound Tax Policy and Simplify the Tax Code
The tax code is ripe for simplification, especially as complicated and targeted provisions expire in 2028.
4 min read
Recommendations to the European Commission: A Framework for Tax Simplification
A focus on sustained growth, meaningful metrics, and institutional capabilities that keep simplification a focus in future regulatory efforts should underpin the decluttering agenda.
8 min read
VAT Rates in Europe, 2026
More than 175 countries worldwide—including all major European countries—levy a value-added tax (VAT) on goods and services. EU Member States’ VAT rates vary across countries, though they’re somewhat harmonized by the EU.
5 min read
Yes, You’re Getting a Bigger Tax Refund. But That’s Not the Whole Story.
Economic policy in 2025 came with historic highs but also disappointing lows.
Expanded Sports Betting Legalization Would Generate Billions in Tax Revenue
If all 50 states established legal, open, statewide sports gaming markets, a 10 percent GGR tax would generate an additional $1.6 billion per year in tax revenue.
21 min read
Will the OBBBA Tax Cuts Grow the US Economy?
Over the long run, OBBBA’s permanent extension of lower marginal tax rates on work, saving, and investment lays a solid foundation for stronger economic growth.
6 min read
A 9.25 Percent Top Income Tax Rate Would Drive Jobs, Investment, and Economic Opportunity Out of Michigan
Michigan’s proposed 5 percent income surtax on high earners, yielding a top marginal rate of 9.25 percent, is also a tax on the small businesses that employ nearly 2 million Michiganders.
25 min read
North Carolina Does Not Need Higher Local Taxes
As a result of state-level reforms, the expansion of the sales tax base, and rising property valuations, North Carolina’s local governments have seen remarkable revenue growth in recent years.
13 min read
Weak Capital Allowances and Worldwide Taxation Are Stunting Chile’s Economic Growth
Corporate tax reform can strengthen Chile’s economic growth at a minimal revenue cost by reinstating full expensing and adopting a territorial tax system to align its cross-border rules with the international standard.
5 min read
The Weird Ways Taxes Impact Behavior
What do beards, chickens, and windows have in common? Surprisingly, taxes.
The Proposed California Wealth Tax Is Far Higher than 5 Percent
The 2026 Billionaire Tax Act, a California ballot initiative, would ostensibly impose a one-time tax of 5 percent on the net worth of the state’s billionaires. Due, however, to aggressive design choices and possible drafting errors, the actual rate on taxpayers’ net worth could be dramatically higher.
18 min read
Proposed Washington Income Tax Would Yield a Top Rate of More Than 18 Percent
A proposed “millionaire’s tax” in Washington State would yield the highest combined state and local top rate in the country.
6 min read
Sources of Personal Income, Tax Year 2022
As policymakers consider reforms to the individual income tax, understanding the types of income that make up the individual income tax base can help them understand the trade-offs of different changes to the tax system.
8 min read