Corporate Income Taxes

Sources of U.S. Tax Revenue by Tax Type, 2022 Update

Compared to other industrialized countries, the United States relies more on individual income taxes and property taxes and less on consumption taxes.

Sources of Government Revenue in the OECD, 2022 Update

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

Massachusetts Should Reject Gross Receipts Taxes

Not only is the tax inequitable and inefficient, it also could be what drives businesses and remote workers into another state.

Rate Reductions Would Put Michigan in Top 10

Amid record surpluses, Michigan lawmakers are looking to give relief to taxpayers and enhance the state’s competitive standing.

States on the Move: Cutting Across Party Lines

After a whirlwind of cuts and reforms in 2021, it looks like 2022 might be an even bigger year for state tax codes. Republican and Democratic governors alike used their annual State of the State addresses to call for tax reform, and there is already serious momentum from state lawmakers nationwide to get the job done. We discuss why states are looking to make so many tax changes now and how these proposals might play out in statehouses.

OECD Pillar One

OECD Pillar Two (Global Minimum Tax)

Tennessee Should Build on Success and Improve Corporate Taxes

While Tennessee now boasts no individual income tax, there is still more work to be done for businesses—Tennessee is in a good position to get the job done.

State Corporate Income Tax Rates and Brackets, 2022

Forty-four states levy a corporate income tax. Rates range from 2.5 percent in North Carolina to 11.5 percent in New Jersey.

State Tax Changes Effective January 1, 2022

Twenty-one states and D.C. had significant tax changes take effect on January 1, including five states that cut individual income taxes and four states that saw corporate income tax rates decrease.

Americans Moved to Low-Tax States in 2021

The pandemic has accelerated changes in the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

A Holiday Tradition: Tax Extenders Slated to Expire at End of 2021

Tax extenders this year can be split into three rough groups: expiring parts of the Tax Cuts and Jobs Act (TCJA), expiring parts of various COVID-19 economic relief packages, and the Island of Misfit Extenders.

2022 State Business Tax Climate Index

While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.

Patching Spain’s Tax Code Won’t Attract Investors

Spain should follow the example of Madrid, the country’s most competitive region. A more efficient income tax system is a better objective than just focusing on incentives for foreigners to change their tax residence.

Arkansas’s Sustainable Tax Reform: A Gift That Will Keep On Giving

Faced not only with immediate surpluses but with the expectation of sustained revenue growth in coming years, Arkansas policymakers have chosen to return some of the additional revenue to taxpayers in the form of individual and corporate income tax rate reductions, with additional rate cuts if future revenues permit.

Book Minimum Tax versus Corporate Rate Increase: Pick Your Poison

While the book minimum tax is smaller in scale than the proposed original corporate rate increases, it would introduce more complexity, inefficiency, and problems at the industry- and sector-levels that a corporate rate increase would not. Neither option is an optimal way to raise new tax revenues.

Corporate Tax Rates around the World, 2021

A new report shows that corporate tax rates around the world continue to level off. “We aren’t seeing a race to the bottom, we’re seeing a race toward the middle,” said Sean Bray, global policy analyst at the Tax Foundation.

Aligning Kentucky’s Tax Code for Growth

Business Tax Collections Within Historical Norm After Accounting for Pass-through Business Taxes

When looking at the tax burden on businesses over time, it is important to provide a complete picture by accounting for the different types of businesses in the U.S. and the timing effects of the 2017 tax law. Doing so provides important context on existing tax burdens and for considering the impact of raising taxes on corporations and pass-through firms.

Red Flags Emerge in Build Back Better Book Minimum Tax, Interest Expense Limitation

The Build Back Better Act would raise taxes to pay for social spending programs. But the design of some of the tax increases may end up hurting private pensions, among other problems.