Summary of the Latest Federal Income Tax Data, Tax Year 2020
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
US Has Most Progressive Tax System in OECD, New Index Shows
A study from the Fraser Institute finds the US tax code is highly progressive relative to other OECD countries.
7 min read
Targeting High Earners is Misguided and Will Worsen States’ Fiscal Positions
Policies that increase the tax burden on high earners makes states less competitive, increase revenue volatility, discourage investment, and risk accelerating outmigration of talent and capital. Many top-earners are already leaving high-tax states for Florida, North Carolina, and other low-tax jurisdictions.
9 min read
The Risks the Wealth Tax Advocates Are Ignoring
Voters in California this fall will have to determine whether the state will institute a billionaire tax. Advocates of this proposal have been pushing for these kinds of money grabs for decades—and their arguments often run the same. The base is narrow, the lifespan is limited, the cause is sympathetic.
Mid-Year Movers and the California Wealth Tax
If approved by voters, the wealth tax will face a flurry of serious legal challenges—some to its overall constitutionality, and some regarding who can be taxed and to what degree if the tax survives broader legal scrutiny.
24 min read
State and Local Tax Collections Per Capita by State, 2026
Tax collections vary widely by state, making per capita collections figures—a measure of collections per person—especially useful, as they allow comparisons across differences in tax rates and bases, economic capacities, and policy decisions that impact the size and scope of government.
5 min read
Testimony: A High-Earner Surtax Would Hurt Rhode Island’s Small Businesses
The economic literature overwhelmingly finds that an income tax increase of this magnitude would negatively affect economic growth and opportunity in Rhode Island.
Minnesota Should Learn from Europe: Wealth Taxes Are a Failed Experiment
A new bill introduced in the Minnesota House seeks to tax non-real assets, imposing an annual tax of 1 percent on “taxable wealth” exceeding $10 million for individuals and trusts from tax year 2026 onward.
6 min read
The State Race for Wealth Taxes Will Fail. Just Ask Europe.
These debates are often framed in terms of fairness. Raise taxes on a few to provide benefits for most, the thinking goes. But in policy, the more important question should focus on mechanics: will this change achieve its stated goal?
Can Tax Reform Solve the Debt Problem—or Just Slow It?
This study simulates several large tax increases and consistently finds that even tax increases large enough to close the primary deficit in the near term will lose ground over time and fail to put the debt on a sustainable course.
41 min read
Testimony: Illinois “Millionaire’s Tax” Would Hurt Small Businesses, Exacerbate Outmigration
Illinois’ proposed Millionaire’s Tax would raise taxes on Illinois families and businesses in an economically damaging way, further harming the state’s competitiveness and reducing economic opportunity even for those Illinois residents who would not owe the tax directly.
Americans Are Moving to States with Lower Taxes and Sound Tax Structures
Millions of Americans, along with significant amounts of income and economic activity, are moving from high-tax states to those with more competitive tax systems and lower overall costs of living.
8 min read
After Pandemic Relief Ended, CBO Shows Federal Taxes Remained Progressive in 2022
In 2022, incomes for the bottom 80 percent of earners were slightly lower after taxes and transfers compared to 2020 and 2021, driven by expiring pandemic-era policies.
6 min read
Summary of the Latest Federal Income Tax Data, Tax Year 2023
New IRS data shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remain lower after the Tax Cuts and Jobs Act (TCJA).
6 min read
Yes, the California Wealth Tax Could Tax Voting Interests
The proposed California wealth tax could be levied on founders’ voting interests in their companies, despite the initiative’s drafters insisting otherwise.
6 min read
Ideas, Not Mandates: Lessons Learned from a Decade of International Tax Reform
The past decade’s record suggests that countries have reliable legislative methods to improve their tax systems through ordinary tax reforms.
22 min read
Maine’s Proposed Millionaire’s Tax Would Harm the State’s Economy
Maine’s proposed millionaire’s tax would bring Maine’s top income tax rate to 9.15 percent, dealing a blow to the state’s economic competitiveness.
5 min read
Remote Work and State Taxes: What You Need to Know
Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes.
Facts & Figures 2026: How Does Your State Compare?
Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
2 min read
Would California’s Wealth Tax Be Temporary?
Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
6 min read