Sugar Taxes Back on the Menu
At least four states—Connecticut, Hawaii, New York, and Washington—are considering statewide excise taxes on sugary drinks this year.
4 min read
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Smoking High Excise Taxes on Vapor Products Could Be Coming to West Virginia
West Virginians would face extraordinarily high taxes on vapor products in state if Senate Bill 68 becomes law. The bill would increase taxes on liquid used in vapor products from 7.5 cents per milliliter (ml) to $1 per ml—an increase of over 1,300 percent.
3 min read
Reliance on Individual Income Tax Revenue in Europe
Denmark relies the most on revenue from individual income taxes, at 52.4 percent of total tax revenue, followed by Iceland and Ireland at 40.8 percent and 31.5 percent, respectively.
1 min read
Pandemic-Era Unemployment Compensations Could Generate $78 Billion in Income Tax Collections
Approximately $78 billion might be owed in federal and state income taxes on the unemployment compensation payments made since the pandemic began.
3 min read
Sources of U.S. Tax Revenue by Tax Type, 2021 Update
In the United States, individual income taxes (federal, state, and local) are the primary source of tax revenue, at 41.5 percent of total tax revenue. Social insurance taxes make up the second-largest share, at 24.9 percent, followed by consumption taxes, at 17.6 percent, and property taxes, at 12.1 percent.
4 min read
State Individual Income Tax Rates and Brackets, 2021
Individual income taxes are a major source of state government revenue, accounting for 37 percent of state tax collections in fiscal year (FY) 2017. Several states had notable individual income tax changes in 2020: Arizona, Arkansas, Massachusetts, Michigan, Minnesota, North Carolina, Ohio, Tennessee, Virginia, and Wisconsin.
22 min read
Marginal Tax Rates on Labor Income Under the Democratic House Ways and Means Child Tax Credit Proposal
The coronavirus relief legislation passed out of the House Ways and Means Committee would significantly expand the child tax credit for 2021, from its current $2,000 maximum to a fully refundable $3,600 for children 6 and under and $3,000 for children over 6.
4 min read
Marginal Tax Rates on Labor Income Under Sen. Mitt Romney’s Family Security Act
Sen. Mitt Romney’s Family Security Act would replace the Child Tax Credit with a monthly child allowance administered by the Social Security Administration, making the benefit more generous and accessible to low-income households without earned income.
4 min read
Join Us for a Free “State Tax Policy Boot Camp”
The Tax Foundation’s “State Tax Policy Boot Camp,” is ideal for anyone interested in gaining a better understanding of state taxation.
2 min read
Sources of Government Revenue in the OECD, 2021 Update
Developed countries have on average become more reliant on consumption taxes and less reliant on individual income taxes. These policy changes matter, considering that consumption-based taxes raise revenue with less distortionary effects than taxes on income.
16 min read
To What Extent Does Your State Rely on Individual Income Taxes?
Sources of state revenue have come under closer scrutiny in light of the impact of the coronavirus pandemic, as different tax types have differing volatility and economic impact—although even beyond these unique circumstances, it is important for policymakers to understand the trade-offs associated with different sources of tax revenue.
4 min read
House Ways and Means Committee Takes First Steps Toward Additional Coronavirus Relief Legislation
The House Ways and Means Committee measures would further extend the relief measures created by the CARES Act and the Consolidated Appropriations Act of 2021, and would go further by significantly expanding existing tax credits and making changes to the international tax system.
7 min read
Tax-A-Rama in Maryland
The potential override of Gov. Larry Hogan’s (R) veto of a digital advertising tax (HB732) looms large over the current legislative session in Maryland, though it is only one of many tax proposals under consideration in the state.
7 min read
Congressional Democrats Propose Expanding Child Tax Credit as Monthly Payment for Pandemic Relief
House Ways and Means Democrats recently released a proposal to expand the child tax credit for one year as part of President Biden’s larger $1.9 trillion economic relief package.
5 min read
State Sales Tax Breadth and Reliance, Fiscal Year 2020
By failing to keep pace with modern consumption patterns, sales taxes have become less neutral, less equitable, and less economically efficient over time.
16 min read
Sen. Romney’s Child Tax Reform Proposal Aims to Expand the Social Safety Net and Simplify Tax Credits
Sen. Mitt Romney (R-UT) recently proposed the Family Security Act, which features a new, more generous child allowance for families with children while reforming other sources of aid for low-income individuals.
5 min read
Florida and Missouri, the Last Wayfair Holdouts, Consider Remote Sales Tax Bills
Two states—Florida and Missouri—have held back on online sales taxes thus far following the landmark 2018 Supreme Court case, South Dakota v. Wayfair. Now, lawmakers in both states have filed bills to address the issue this session.
4 min read
For Meaningful Federal Aid to States, Why Not Reimburse Unemployment Compensation Payments?
Improving trust fund solvency and staving off costly business tax increases is a win-win proposition for federal and state governments alike.
4 min read
States Positioned for a Super Bowl Win with New Taxes on Sports Betting
Although this week’s Super Bowl festivities may be muted, states with legalized sports betting may have something to cheer: a tax revenue bump thanks to the accompanying excise taxes.
3 min read
The European Commission and the Taxation of the Digital Economy
The consultation on the EU’s digital levy provides an opportunity for policymakers and taxpayers to reflect on the underlying issues of digital taxation and potential consequences from a digital levy. Unless the EU digital levy is designed with an OECD agreement in mind, it is likely to cause more uncertainty in cross-border tax policy.
12 min read