Excise Taxes

Internal Revenue Service (IRS)

A Gas Tax Holiday

The cost of gas is going up. To address this, policymakers have proposed suspending the gas tax. But could this actually make matters worse? We discuss why suspending the gas tax might be a mistake and what lawmakers could do to help with the rising costs of gas.

Federal Menthol Cigarette Ban May Cost Governments $6.6 Billion

The FDA’s expected announcement of a national ban on menthol-flavored cigarettes and cigars with a characterizing flavor would carry significant revenue implications for both the federal government and state governments, with likely limited benefits in smoking cessation.

User Fee

Federal Gas Tax Holiday? Suspending the Gas Tax Is a Mistake

If policymakers are looking to change the tax code to help fight inflation, they should pump the brakes on the federal gas tax holiday and instead consider structural reforms to raise the economy’s productive capacity in the long term.

10 Tax Reforms for Growth and Opportunity

By reducing the tax code’s current barriers to investment and saving and simplifying its complex rules, lawmakers would greatly enhance the ability of Americans to pursue new ideas, create more opportunities, and build financial security for themselves and their families.

Large Spread in Tax Treatment of Sports Betting Operators

Since 2018, 30 states and the District and Columbia have legalized and imposed taxes on sports betting. States that have yet to legalize, but which may do so, should pay attention to the impact of tax design in states that already have legal and taxed sports betting—specifically tax base design.

Massachusetts Flavored Tobacco Ban: No Impact on New England Sales

A recent JAMA Internal Medicine study on the impact of the Massachusetts flavored tobacco ban indicates that it has been a success. Unfortunately, it left out a very important piece of information: cross-border trade.

Indonesia Reform Simplifies Tobacco Taxes but More Work Remains

More than 300 billion cigarettes are sold each year in Indonesia—making it the world’s second-largest cigarette market to China. As such, it is important how Indonesia taxes tobacco products.

Four Issues with Proposal to Increase Tobacco and Vapor Taxes in Maine

Maine’s proposal to increase tobacco and vapor taxes has at least four major issues: flawed revenue allocation, risk of increased smuggling, regressivity, and violation of the harm reduction principle.

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.

Proposal to Raise Vapor Taxes in Washington State Gets Base and Rate Wrong

Lawmakers in Washington need not revisit their vapor tax. The current tax is levied at an appropriate level and it has the right tax base.

Poor Tax Design in Alaska Vapor Tax Proposal

A proposal to introduce a wholesale tax on vapor products in Alaska could make switching from combustible tobacco products very expensive for smokers.

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.

Why Washington State Can’t Claim Its Capital Gains Tax Is an Excise Tax

Permanent Build Back Better Act Would Likely Require Large Tax Increases on the Middle Class

Policymakers and taxpayers should understand the scope of tax changes necessary to fully pay for the large-scale social spending programs that would be initiated under the Build Back Better Act.

Cigarette Taxes and Cigarette Smuggling by State, 2019

Aligning Kentucky’s Tax Code for Growth

The Surprising Challenge of Too Much Tax Revenue—and Florida’s No-Gas-Tax Solution

Temporary tax relief measures, like refund checks or gas tax holidays, are not necessarily bad, and can be justified as ways to return excess revenues to taxpayers, but they often miss an opportunity to do better by taxpayers in the long run.

Norway’s New Budget Adds Unnecessary Complexity

Norway’s proposed reductions in income tax have the potential to increase disposable income for workers that can potentially raise consumption and contribute to economic growth. However, the increase of the wealth and indirect taxes is likely to step up the complexity of the tax system and create additional distortions.