Individual and Consumption Taxes

The U.S. Tax Burden on Labor, 2022

Although the U.S. has a progressive tax system and a relatively low tax burden compared to the OECD average, average-wage workers still pay nearly 30 percent of their wages in taxes.

Carbon Taxes and the Future of Green Tax Reform

Our new analysis reviews the basic structure of carbon taxes, how they compare to the existing set of climate policies, and how they could fit into various pro-growth tax reform packages.

Does Your State Have an Estate or Inheritance Tax?

In addition to the federal estate tax, with a top rate of 40 percent, some states levy an additional estate or inheritance tax.

The Impact of Individual Income Tax Changes on Economic Growth

Research almost invariably shows a negative relationship between income tax rates and gross domestic product (GDP). Cuts to marginal tax rates are highly correlated with decreases in the unemployment rate.

Carbon Taxes in Europe, 2022

In recent years, several countries have taken measures to reduce carbon emissions, including instituting environmental regulations, emissions trading systems, and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax.

The Legacy of Harvard Economist Dale Jorgenson

Dr. Jorgenson’s work has been instrumental in convincing many in the tax policy community to take seriously the need to factor in the economic effects of taxation on capital formation, productivity, wages, and employment in forecasting the welfare and federal budget consequences of changes in tax policy.

Pro-Growth Tax Reforms Throughout the Republican Study Committee’s FY 2023 Budget

The United States needs to grow its way out of inflation and set the economy up for continued growth—the tax code provides tools for policymakers to do just that.

Clean Up on the Grocery Tax Aisle

Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices–especially for low-income workers and families. One idea that caught on quickly: sales tax relief on groceries. The idea had its merits, but Tax Foundation research shows that it may have missed the mark.

Biden’s FY 2023 Budget Would Result in $4 Trillion of Gross Revenue Increases

President Biden’s budget proposes several new tax increases on high-income individuals and businesses, which combined with the Build Back Better plan would give the U.S. the highest top tax rates on individual and corporate income in the developed world.

Gross Receipts Taxes by State, 2022

Eliminating state gross receipts taxes would be a pro-growth change to make the tax code better for businesses and consumers. How does your state compare?

3 Takeaways from the New Congressional Budget Office Outlook

The CBO projections show policymakers’ top priority over the next five years will need to be cleaning up our country’s fiscal situation while maintaining a pro-growth and competitive tax code.

Wisconsin Losing Ground to Tax-Friendly Peers

While Wisconsin has long been one of the highest-tax states in the nation, that distinction is increasingly detrimental as businesses and individuals enjoy increased economic and geographic mobility.

Cigarette Taxes in Europe

Ireland and France levy the highest excise duties on cigarettes in the EU, at €8.85 ($10.47) and €6.88 ($8.13) per 20-cigarette pack, respectively.

Pondering Property Taxes

Property taxes are highly unpopular and can get extremely confusing. But when done right, they can be quite good. We talk through what a well structured property tax should look like, which states have good property tax structures in place and which ones don’t, and how these taxes impact a state’s competitiveness in an increasingly mobile economy.

Two Dozen States Show Why the Kansas Critique of Income Tax Cuts Is Mistaken

The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?

Ranking Sales Taxes on the 2022 State Business Tax Climate Index

An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate.

Oklahoma Should Prioritize Pro-Growth Relief, Not Gimmicky Rebate Checks

If Sooner State policymakers want to use a portion of their higher revenues to make the economy work better for all Oklahomans, they should consider repealing the franchise tax, trimming the income tax, or both—paired, if desired, with targeted aid to those in the greatest need—not writing a single round of gimmicky checks.

Graduated Rate Income Tax

Flat Tax

Comments on Tobacco Product Standard for Menthol in Cigarettes

Tax Foundation comments on the state tax and revenue implications of the proposed tobacco product standard for menthol in cigarettes.