Academic studies show that higher corporate tax rates depress worker wages and lead to fewer jobs. An Organisation for Co-operation and Development (OECD) study has found that the corporate tax is the least efficient and most harmful way for governments to raise revenue.
Under HB26-1221, Colorado would make two changes that raise additional revenue by taxing income that doesn’t actually exist. The proposed changes to the state’s alternative minimum tax and net operating loss provisions are designed to overstate income, leading to double taxation and distorting taxpayer behavior.
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AI is everywhere, and now it’s in the tax policy debate.
New Mexico’s SB 151 decouples from the OBBBA’s full expensing provision, making the state’s tax climate less competitive.
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Structural reforms such as broadening tax bases, improving cost recovery, and shifting toward less distortive taxes can improve competitiveness without necessarily reducing revenue.
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Ohio’s SB 9 will boost economic growth by conforming Ohio’s tax code to the domestic research and experimentation (R&E) immediate cost recovery provision in the One Big Beautiful Bill Act.
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What is a border adjustment? Is it a new idea? How would it work in practice?
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The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.
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Last Friday, the Supreme Court struck down President Trump’s IEEPA tariffs in a landmark 6-3 decision.
Poland is proposing to broaden and raise its digital services tax (DST) from 1.5 percent to 3 percent. Because DSTs tax revenues, not profits, a company with a 10 percent profit margin would face a 30 percent effective tax rate on digital services provided in Poland.
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Near-term corporate tax payments may fall, and financial statement data may appear unusual, but over time, revenues will stabilize, book-tax gaps will fade, and the US tax code will incentivize domestic investment.
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Formulary apportionment, global tax harmonization, and broad tax increases on services all face design, implementation, and economic barriers. When designing tax systems, policymakers should focus on doing the basic things well and avoid harmful policies that could stunt growth.
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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.
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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.
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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.
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Some European countries have raised their statutory corporate rates over the past year, including Estonia, Lithuania, and Slovakia.
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Scandinavian countries are well known for their broad social safety nets and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of government spending naturally require high levels of taxation. So, how do these countries raise their tax revenues?
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As European countries have undertaken a series of tax reforms designed for budgetary stability, policymakers should focus on consumption taxes by making them more neutral and efficient.
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Data centers face high tax burdens and are particularly substantial contributors to local coffers, but poor tax structure can drive these operations to other locations and deprive local governments of a major revenue stream.
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Forty-three states will ring in 2026 with notable tax changes. Eight states will see reduced individual income tax rates in the new year while four states will see reduced corporate income tax rates.
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