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Austria budget 2021 tax cuts and carbon levy

Austria’s Budget Comes with Tax Cuts and Carbon Levies

Austria should not shy from lowering the corporate income tax rate sooner or even implementing a more ambitious tax reform to improve its tax competitiveness and contribute to greater economic growth.

3 min read

Lawmakers Consider Untested and Complex Policies to Fund Reconciliation Bill

Congress is debating new ways to raise revenue that would make the tax code more complex and more difficult to administer. The new proposals—imposing an alternative minimum tax on corporate book income, applying an excise tax on stock buybacks, and, at one point this week, a tax on unrealized capital gains for billionaires—are unreliable and highly complex ways to raise revenue.

10 min read
Do tax increases reduce inflation. See higher taxes inflation policies and cause for inflation amid looming recession

Taxing Decisions, 2021: Minisode 2

President Biden and Congressional Democrats introduced a scaled-back proposal of their reconciliation package, with House leadership saying they hope to vote on this new trillion-dollar package ASAP. We talk through what made it into the deal, what was cut, and what the impact of these tax changes would be.

Reconciliation bill tax innovation

New Study Shows Tax Policy Has Strong Effects on Innovation

When examining how tax policy impacts the economy, researchers typically look at labor supply and investment responses. One other channel through which taxes impact the economy has been less studied: innovation.

3 min read
Lawmakers Could Pay for Reconciliation While Improving the Tax Code, pay for reconciliation tax proposal

Lawmakers Could Pay for Reconciliation While Improving the Tax Code

With corporate and individual rate hikes potentially out of the Build Back Better (BBB) reconciliation package, lawmakers are weighing alternative options to raise revenue. Rather than come up with untested proposals and complicated changes to the tax base, they should prioritize options that raise revenue while improving the structure of the tax code.

4 min read

Louisiana Voters Have Chance to Simplify Taxes and Lower Burdens

Passage of Louisiana Amendments 1 and 2, which are aimed at the sales tax and individual and corporate income taxes, respectively, would substantially simplify the Pelican State’s tax code and provide tax relief in both the short and long term.

8 min read
Israel income tax system, Taxes in Israel

Movers and Shakers in the International Tax Competitiveness Index

The Index provides lessons for policymakers when they are thinking of ways to remove distortions from their tax systems and remain competitive against their peers. The further up a country moves on the Index, the more likely it is to have broader tax bases, relatively lower rates, and policies that are less distortionary to individual or business decisions. Going the other way reveals a policy preference for narrow tax bases, special tax policy tools, and rules that make it difficult for compliance.

5 min read
Child Tax Credit debate Biden Democrats Child tax credit expansion, affect labor supply work requirement and incentive Manchin

What’s Going on with the Child Tax Credit Debate?

President Biden expanded and fundamentally changed the Child Tax Credit (CTC) for one year in the American Rescue Plan (ARP) passed in March 2021. Policymakers are now deciding the future of the expansion as part of the proposed reconciliation package, but a wide range of estimates for the effects of a permanent expansion is confusing the debate.

7 min read
American Rescue Plan state tax cuts, American Rescue Plan tax cuts State Unemployment Compensation Trust Funds, Elizabeth Warren wealth tax, Some tax hikes are more damaging than others, according to Congressional Budget Office (CBO) and new Tax Foundation economic modeling.

As Inflation Rises, So Will Tax Bills in Many States

Inflation is often called a hidden tax, but in many states it yields a far more literal tax increase as tax brackets fail to adjust for changes in consumer purchasing power.

5 min read