Individual and Consumption Taxes

Survey Says Tax Confusion

All Americans are affected by the tax code—but do they understand the tax code?

Excise Duties on Electricity in Europe, 2024

EU Member States should seek to minimize the rate and broaden the base of electricity duties, consolidating their rates to the required minimum rate.

New National Tax Literacy Poll Highlights Need for Better Tax Education

Despite taxes playing a significant role in personal finances and being levied on a sizable portion of the U.S. population, most Americans are not just unhappy with the current tax code but also do not understand it.

Vermont Tax Proposals Would Leave the State and Vermonters Behind

With proposals to adopt the nation’s highest corporate income tax, second-highest individual income tax, and most aggressive treatment of foreign earnings, as well as to implement an unusually high tax on property transfers, Vermont lawmakers have no shortage of options for raising taxes dramatically.

Portugal’s Personal Income Tax System: High Top Rate, Threshold, and Tax Credits

Portugal’s personal income tax system levies high tax rates on an unusually narrow set of high earners, striking a poor balance between earnings incentives and revenue contributions.

Facts & Figures 2024: How Does Your State Compare?

Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

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April 2, 2024July 18, 2024

Does the Federal Tax Code Privilege the Rich?

The federal income tax drives the tax code’s progressivity. In 2021, taxpayers with higher incomes paid much higher average income tax rates than taxpayers with lower incomes.

State Tax Rates on Long-Term Capital Gains, 2024

Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole. As such, policymakers should consider how they can help mitigate—rather than add to—tax codes’ biases against saving and investment.  

Can States Afford Their Recent Tax Cuts?

With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?

Considering Tax Reform Options for 2025 (and Beyond)

Given that U.S. debt is roughly the size of our annual economic output, policymakers will face many tough fiscal choices in the coming years. The good news is there are policies that both support a larger economy and avoid adding to the debt.

Sources of US Tax Revenue by Tax Type, 2024 Update

Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.

Biden’s Budget Blueprint

In the context of the 2024 election year, what does President Biden’s 2025 budget proposal signify regarding his strategies and priorities as he seeks reelection? And how could these proposals shape the overall landscape of this election cycle?

Dividend Tax Rates in Europe, 2024

In many countries, corporate profits are subject to two layers of taxation: the corporate income tax at the entity level when the corporation earns income, and the dividend tax or capital gains tax at the individual level when that income is passed to its shareholders as either dividends or capital gains.

Economic Nexus Treatment by State, 2024

Reforming economic nexus thresholds would not only be better for businesses but for states as well. It is more cost-effective for states to focus on—and simplify—compliance for a reasonable number of sellers than to impose rules that have low compliance and are costly to administer. 

Sources of Government Revenue in the OECD, 2024 Update

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

A Chicago “Mansion Tax” Would Hurt Small Businesses, Customers, Employees, and Renters

The “Bring Chicago Home” ballot measure would make Chicago’s tax structure substantially less neutral by raising taxes on some property transfers while decreasing taxes on others.

Property and Transfer Tax: If It Moves, Stop Taxing It.

Portugal’s turnover tax on real property transfers places a serious drag on economic growth by making it harder for people to relocate for better jobs and living conditions while constraining investment into the development of housing and buildings.

The Shortcomings of Nebraska’s EPIC Option

Summary of the Latest Federal Income Tax Data, 2024 Update

The 2021 tax year was the fourth since the Tax Cuts and Jobs Act (TCJA) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction and child tax credit, and more.

Unpacking the Impact of TCJA, IRA, and CHIPS on the U.S. Economy

We’re examining the differences between the broad incentives provided by the Tax Cuts and Jobs Act and the targeted approach of the Inflation Reduction Act and the CHIPS and Science Act.