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State and Local Sales Tax Rates, Midyear 2021
The highest average combined state and local sales tax rates are in Louisiana (9.55 percent), Tennessee (9.547 percent), Arkansas (9.48 percent), Washington (9.29 percent), and Alabama (9.22 percent).
12 min read
Property and Sales Taxes Are a Major Driver of Corporations’ State and Local Tax Burdens
As policymakers consider ways to improve their tax structure to encourage business investment and promote economic growth, corporate income tax rate reductions are a crucial part of that conversation, but they shouldn’t be the only consideration.
6 min read
Unanswered Questions about Upcoming Advance Child Tax Credit Payments
Amidst the outstanding questions, potential confusion over how advanced child tax credit payments will affect tax refunds, and an incomplete portal to update taxpayer information, the IRS will begin sending payments to millions of households this month.
4 min read
How High Are Property Taxes in Your State?
Because property taxes are tied to housing values, it makes sense that the actual dollar amounts of property taxes tend to be higher in places with higher housing prices. This map takes housing value into account to give a broader perspective for property tax comparison.
3 min read
Biden’s Tax Proposals Could Impact Small Businesses Over Time
The Biden administration has primarily focused on increasing taxes on top earners to generate revenue to fund its spending priorities. However, these proposals would hit many pass-through businesses and much of pass-through business income, including small businesses, family-owned businesses, and farms.
3 min read
Exploring How Remote Work Could Impact the Way Countries Tax Individuals
A question for policymakers to consider is how this new era of worker mobility will impact the fiscal landscape, and what changes must be made to address resulting revenue and compliance concerns.
6 min read
Biden’s Top Marginal Capital Gains Tax Rate Would Be Highest in OECD
President Biden’s proposal to tax capital gains at higher, ordinary income tax rates would lead the U.S. to have the highest top marginal tax rate on capital gains in the OECD.
2 min read
What’s in Arizona’s Tax Reform Package?
After weeks of deliberations, Arizona Gov. Doug Ducey signed into law a budget for fiscal year (FY) 2022 that reduces the state’s individual income tax rates and consolidates brackets, a plan that will help restore Arizona’s reputation as a low-tax alternative to California.
7 min read
Illuminating Independence Day Taxes
4 min read
Beer Taxes by State, 2021
2021 state beer excise tax rates vary widely: as low as $0.02 per gallon in Wyoming and as high as $1.29 per gallon in Tennessee. Missouri and Wisconsin tie for second lowest at $0.06 per gallon, and Alaska is second highest with its $1.07 per gallon tax.
3 min read
Ohio Lawmakers Agree on Income Tax Cuts and Remote Work Tax Relief
A rosy revenue outlook has allowed Ohio to join eight other states in providing tax relief this legislative session. The Ohio legislature agreed on a two-year budget, which includes individual income tax cuts.
4 min read
The Impact of the Biden Administration’s Tax Proposals by State and Congressional District
The redistribution of income from the Biden administration’s tax proposals would involve many winners and losers, not only across different types of taxpayers but also geographically across the country. Launch our new interactive map to see average tax changes by state and congressional district over the budget window from 2022 to 2031.
8 min read
Wisconsin Legislature Considering Several Pro-Growth Tax Reforms
Reducing the second-highest individual income tax rate, repealing the TPP tax, and freezing UI tax rates are three valuable reforms that would help promote a smooth economic recovery in Wisconsin while setting the state up for robust economic growth for years to come.
6 min read
State Tax Changes Taking Effect July 1, 2021
Thirteen states have notable tax changes taking effect on July 1, 2021, which is the first day of fiscal year (FY) 2022 for every state except Alabama, Michigan, New York, and Texas. Individual and corporate income tax changes usually take effect at the beginning of the calendar year for the sake of maintaining policy consistency throughout the tax year, but sales and excise tax changes often correspond with the beginning of a fiscal year.
11 min read
How the Tax Code Handles Inflation (and How It Doesn’t)
While parts of the U.S. tax code can handle inflation, full expensing of capital investment would be a major improvement along these lines.
5 min read
Trade-offs of Expanding Individual Tax Credits While Repealing SALT Deduction
Expanding the generosity of tax credits for lower-income individuals can help make the tax code more progressive, but it also reduces federal revenue. Pairing a credit expansion with a tax offset may sustain federal revenue but can also hamper economic growth.
3 min read
How High Are Wine Taxes in Your State?
States tend to tax wine at a higher rate than beer but at a lower rate than distilled spirits due to wine’s mid-range alcohol content. You’ll find the highest wine excise taxes in Kentucky at $3.23 per gallon, far above Alaska’s second-place $2.50 per gallon. Those states are followed by Florida ($2.25), Iowa ($1.75), and Alabama and New Mexico (tied at $1.70).
2 min read
New Hampshire Closes in on Tax Cuts to Enhance State’s Competitive Advantage
New Hampshire lawmakers are scheduled to take up a budget conference report which contains several tax reforms negotiated by both chambers that would ultimately make New Hampshire the ninth state to impose no tax on individual income. These reforms floated at the beginning of the 2021 session found their way into HB 2, including rate reductions in the Business Profits Tax (BPT) and Business Enterprise Tax (BET) and a phaseout of the interest and dividends tax.
4 min read