Summary of the Latest Federal Income Tax Data, 2023 Update
The latest IRS data shows that the U.S. federal individual income tax continued to be progressive, borne primarily by the highest income earners.
43 min read
Featured Articles
What’s Missing from the Tax Burden Debate
When we discuss tax policy, the conversation inevitably turns to who pays, who should pay, and how much they should pay. Unfortunately, the tax burdens debate is often missing a key point: how income transfer programs—like Social Security or Medicaid—affect households’ tax burdens.
State and Local Tax Burdens, Calendar Year 2022
Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
24 min readAll Related Articles
Why Swiss Voters Should Be Skeptical of the Billionaire Tax
Switzerland’s proposed 50 percent billionaire estate tax promises negligible revenue, risks economic harm, and strips cantons of their autonomy and tax competition.
5 min read
Who Really Pays for European Welfare States?
Who really pays for European welfare states? Many assume the answer is obvious: high-income earners contribute while low-income earners benefit. However, that assumption is only partly true, and often misleading.
6 min read
Spain’s Tax Missteps Undermine Competitiveness
Spain’s central government could learn some valuable lessons from its regional governments and other European countries about sound tax policy.
7 min read
Excise Taxes Are Most Harmful to the Poor
Excise taxes are regressive, and other alternatives are frequently available to incentivize behavior change.
6 min read
Movers and Shakers in the 2026 State Tax Competitiveness Index
In the spirit of change and improvement, it’s worth looking back to see which states have truly embraced tax competitiveness since 2020, and which ones have lagged behind.
6 min read
2026 State Tax Competitiveness Index
The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
122 min read
Federal Tax System Remains Highly Progressive After the OBBBA
The 2017 Tax Cuts and Jobs Act (TCJA) simultaneously increased tax progressivity and decreased redistribution in the tax code. Our estimates suggest the OBBBA similarly combines a more progressive tax system with a lower degree of tax redistribution.
4 min read
International Tax Competitiveness Index 2025
While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.
93 min read
The State Flat Tax Revolution: Where Things Stand Today
The past four years have brought significant focus on state income tax reform and relief, and with that, something of a flat tax revolution.
11 min read
Fiscal Forum: Future of the EU Tax Mix with Dr. Miguel Correia
Sean Bray interviewed Professor of Tax Law at the Lisbon School of Law of the Catholic University of Portugal, Dr. Miguel Correia, about the future of the EU tax mix.
12 min read
2026 Tax Calculator: How the One Big Beautiful Bill Act’s Tax Changes Will Affect You
How will recent federal tax changes affect you?
4 min read
Blog
Short FormThe Progressivity of the US Tax Code
Since the inception of the modern federal individual income tax in 1913, the US tax code has generally become more progressive, not less. Will the recent tax changes made by the One Big Beautiful Bill Act (OBBBA) alter this?
4 min read
US Effective Tax Rates Remain Highly Progressive, Despite Some Economists’ Claims
Targeting wealth at the top through higher taxes has a certain appeal, but it also comes with a lot of drawbacks, including increased avoidance and reduced incentives to invest.
6 min read
One Big Beautiful Bill Act Makes the Individual Income Tax More Complex
While the OBBBA brings some stability by making many of the TCJA’s reforms permanent, it generally fails to reform the tax code’s accumulating complexity.
31 min read
Historical US Federal Individual Income Tax Rates & Brackets, 1862-2025
How do current federal individual income tax rates and brackets compare historically?
1 min read
Michigan’s Tax Gamble Could Risk Its Competitive Edge
Michigan voters may soon consider a dramatic change to the state’s income tax.
FAQ: The One Big Beautiful Bill, Explained
Our experts explain how this major tax legislation may affect you and how policymakers can better improve the tax code.
24 min read
The Good, the Bad, and the Ugly in the One Big Beautiful Bill Act
The One Big Beautiful Bill Act makes many of the individual tax cuts and reforms of the TCJA permanent. It improves upon the TCJA by making expensing for R&D and equipment permanent. However, for the most part, it does not include further structural reforms, and instead introduces many new, narrow tax breaks to the code, adding complexity and raising revenue costs.
7 min read
One Big Beautiful Bill Act Tax Policies: Details and Analysis
We estimate the One Big Beautiful Bill Act would increase long-run GDP by 1.2 percent and reduce federal tax revenue by $5 trillion over the next decade on a conventional basis.
11 min read
Budget Reconciliation: Tracking the 2025 Trump Tax Cuts
President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025.
18 min read