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
The Real Lesson of 70 Percent Tax Rates on Entrepreneurial Income
The fall and then rise of entrepreneurial income claimed on the wealthy’s 1040 tax returns clearly tracks the seeming decline of inequality from 1950 to 1980, followed by the sudden rise in inequality since 1986. The shifting composition of income claimed by the rich due to changes in tax laws explains this illusion.
12 min read
Unclear if Warren’s Wealth Tax Proposal is Constitutional
There is a chance that Senator Warren’s proposed wealth tax would be found unconstitutional, but opinions are mixed and the precedents go both ways.
2 min read
Sen. Warren’s Wealth Tax Is Problematic
Sen. Elizabeth Warren recently proposed a wealth tax on high-net-worth individuals, a type of tax that is poorly targeted, difficult to administer, and raises constitutional questions.
4 min read
How Much Revenue Would a 70% Top Tax Rate Raise? An Initial Analysis
Due to a narrow tax base and a decrease in capital gains realizations, Congresswoman Ocasio-Cortez’s plan to tax income above $10 million would not raise as much revenue as intended. See our 10-year revenue estimates.
9 min read
America Already Has a Progressive Tax System
Recent interest in raising the tax burden on high-income individuals glosses over the fact that the U.S. federal tax code is already progressive.
3 min read
New York Taxpayers Must Pay for Ill-Advised Lawsuit Seeking Tax Cuts for Wealthiest Residents
New York, New Jersey, and Connecticut are pursuing a questionable legal strategy to overturn the cap on a federal tax deduction that benefits the wealthy.
5 min read
High-Tax States are Inconsistent on the State and Local Tax Deduction
If the state and local tax deduction is necessary to prevent double taxation, why don’t states offer a deduction for federal and local taxes?
2 min read
Important Differences Between the House and Senate Tax Reform Bills Heading into Conference
The House and Senate have both passed legislation that would overhaul the federal tax code. Learn about the key differences between the two bills.
7 min read
Key Changes in Senate Tax Reform Bill Heading into the Vote-a-Rama
A brief summary of the most notable provisions of the Senate Tax Cuts and Jobs Act in the form in which it enters the “vote-a-rama.”
3 min read
Benefits of the House Tax Cuts and Jobs Act for the Lower-Middle Class
According to the Taxes and Growth model, the House Tax Cuts and Jobs Act should increase after-tax income by 4.5 percent for those in the second-lowest quintile, and by 4.6 percent for those in the middle quintile.
3 min read
Is the State and Local Tax Deduction in Place to Protect Against Double Taxation?
Repealing the state and local tax deduction will be an important part of pro-growth tax reform. Eliminating the deduction would free up $1.8 trillion to use for lowering rates across the board. Special interest groups will want you to think this deduction protects you against double taxation. Don’t fall for it.
2 min read