OECD Report: Tax Revenue as a Percent of GDP in Latin American and Caribbean Countries Is below the OECD Average
Taxes on goods and services were on average the greatest source of tax revenue for Latin American and Caribbean countries
5 min read
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Louisiana Aims at Comprehensive Tax Reform
While many of the tax proposals work in tandem, some conflicts continue to exist. If lawmakers were able to repeal federal deductibility, reduce income tax rates, finish the job on inventory taxation, and phase out the capital stock tax, this would represent a marked improvement in the state’s tax climate, eliminating several of the most uncompetitive features of the current code.
6 min read
Effects of Proposed International Tax Changes on U.S. Multinationals
The international corporate tax changes in President Biden’s tax plan would increase tax rates on domestic income more than on foreign income, resulting in a net increase in profit shifting out of the US, according to our Multinational Tax Model.
33 min read
Providing Full Cost Recovery for Investment and Lowering Taxes on Firms Are Best Options for Boosting Growth
As policymakers consider tax options to boost the U.S. economy’s long-run economic growth, they should consider reforms that would increase growth the most while minimizing forgone tax revenue.
4 min read
Excluding GILTI and Reducing the Corporate Tax Rate Would Improve Nebraska’s Economic Competitiveness
Excluding Global Intangible Low-Taxed Income (GILTI) from taxation and reducing the state’s top marginal corporate rate would improve the state’s economic competitiveness and are among the top income tax modernization priorities Nebraska policymakers ought to consider.
4 min read
Comparing the Trade-offs of Carbon Taxes and Corporate Income Taxes
President Biden’s choice to fund new spending programs with increased corporate taxes comes with trade-offs for American output and incomes.
3 min read
Corporate Investment Outweighs Federal Revenue Losses Since TCJA
The Biden administration has argued for raising the corporate tax rate to offset the drop in federal corporate revenues following the Tax Cuts and Jobs Act (TCJA) of 2017, claiming it did not lead to more corporate investment as advertised. Although corporate revenues did drop following this tax reform, the ensuing increase in corporate investment far exceeds these revenue losses.
1 min read
Raising the Corporate Rate to 28 Percent Reduces GDP by $720 Billion Over Ten Years
The Options guide presents the economic effects we estimate would occur in the long term, or 20 to 30 years from now, but we can also use our model to show the cumulative effects of the policy change—providing more context, for instance, about how the effects of a higher corporate income tax rate compound over time, which we estimate would reduce GDP by a cumulative $720 billion over the next 10 years.
4 min read
More Tax Hikes Than Investment Projects?
Tax hikes implemented in the near term might undermine Spain’s economic recovery. Spain should focus on implementing tax reforms that have the potential to stimulate economic recovery by supporting private investment and employment while increasing its internal and international tax competitiveness.
5 min read
Common Tax Questions, Answered
Get answers to some of the tax policy questions we hear most often from taxpayers, businesses, and journalists. Learn everything from the basics of who pays taxes and the difference between credits and deductions, to how taxes impact the economy and what constitutes sound tax policy. Discover additional resources to explore each question and topic in more depth.
Case Study: Cutting Corporate Taxes
The corporate income tax is levied by federal and state governments on business profits. State-level corporate income tax rates vary across the country. Learn about the effects of reduction and elimination of corporate income taxes and the economic result by comparing examples from North Carolina and Ohio
How High Are State and Local Tax Collections in Your State?
Although Tax Day has been pushed back this year, mid-April is still a good occasion to take a look at tax collections in the United States. Because differing state populations can make overall comparisons difficult, today’s state tax map shows state and local tax collections per capita in each of the 50 states and the District of Columbia.
2 min read
Denying Deductions for Pharma Ads Is Bad Tax Policy
The “End Taxpayer Subsidies for Drug Ads Act” would prohibit companies from deducting the costs of prescription drug advertisements directed at the public. However, the bill’s title is a misnomer: the deduction is not a tax subsidy.
2 min read
IMF Tax Proposals: Shrink Inequality or Sink Post-Pandemic Recovery?
To help countries face the pandemic-related financing needs while reducing inequality, the International Monetary Fund (IMF) has released a series of policy recommendations based on a temporary COVID-19 tax, levied on high incomes or wealth.
4 min read
Biden’s Tax Plan Would Restore U.S. Exceptionalism—But Not in a Good Way
No other country has tried to enforce some of the policies that the Biden administration is proposing. Embarking on such uncharted course would set the U.S. apart from global tax policy norms and best practices and could harm American competitiveness.
4 min read
Corporate Income Tax Rates in Europe, 2021
On average, European OECD countries currently levy a corporate income tax rate of 21.7 percent. This is below the worldwide average which, measured across 177 jurisdictions, was 23.9 percent in 2020.
2 min read
14.8% Individual Income Tax and 16.1% Corporate Income Tax Coming To New York City?
Raising rates on those with the most flexibility to leave—or never to return—risks turning those fears into a self-fulfilling prophesy.
3 min read
U.S. Effective Corporate Tax Rate Is Right in Line With Its OECD Peers
Whether we use corporate tax collections as a portion of GDP, average effective tax rates, or marginal tax rates, each measure shows that the U.S. effective corporate tax burden is close to or above the average compared to its OECD peers. Raising corporate income taxes would put the U.S. at a competitive disadvantage, whether one looks at statutory tax rates or effective corporate tax rates.
4 min read
Combined Corporate Rates Would Exceed 30 Percent in Most States Under Biden’s Tax Plan
While the focus has been on the federal rate, it is important to include state tax rates when thinking about the total tax burden on corporate income.
3 min read
President Biden’s Infrastructure Plan Raises Taxes on U.S. Production
An increase in the federal corporate tax rate to 28 percent would raise the U.S. federal-state combined tax rate to 32.34 percent, higher than every country in the OECD, the G7, and all our major trade partners and competitors including China.
6 min read