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
Comparing Wealth Taxation and Income Taxes
A low wealth tax rate is equivalent to a high-rate income tax. The interaction between wealth taxes and the existing income taxes must be considered when analyzing a wealth tax plan.
6 min read
Reviewing the Deadweight Loss Effects of High Tax Rates
Deadweight loss effects demonstrate why policymakers should pursue a more efficient tax code to achieve distributional objectives, rather than pursuing high tax rates that create disproportionately high economic costs.
4 min read
Booker’s Plan to Eliminate Step-up in Basis and Expand the Estate Tax
Removing step-up in basis would encourage taxpayers to realize capital gains and it would plug a hole in the current income tax, while increasing federal revenue. Combined, however, with the estate tax, this would result in a significant tax burden on certain saving by requiring both the appreciation in and total value of transferred property to be taxed at death
2 min read
Senator Sanders Proposes a Tax on “Extreme” Wealth
Bernie Sanders recently became the second major Democratic presidential candidate to propose a wealth tax.
2 min read
Improper Payments and EITC Reform
2 min read
A Preliminary Look at 2018 Tax Data
Initial 2018 IRS tax return data shows that the TCJA expanded the use of several credits and deductions, made the standard deduction more favorable than itemizing, reduced tax refunds, and lowered taxes for most Americans.
4 min read
Senator Van Hollen Introduces Proposal to Raise Taxes on High-Income Households
Van Hollen’s proposals add to the long list of Democratic Party tax proposals that attempt to both raise additional revenue from corporations and high-income households and make the tax code more progressive and “equitable.”
3 min read
A Property Tax is a Wealth Tax, but…
Warren’s comparison between the property tax and her proposed wealth tax makes a good sales pitch. However, there are important differences between the taxes. By no means is the property tax in many jurisdictions perfect, but it is generally better structured than a wealth tax.
4 min read