Individual and Consumption Taxes

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Mississippi income tax repeal and Mississippi income tax eform, Mississippi sales tax changes, Mississippi eliminate income tax proposal. Mississippi income tax phase out Governor Tate Reeves
Research

Evaluating Mississippi’s Plan to Phase Out the Individual Income Tax

Mississippi has an opportunity to become the 10th state without an individual income tax and to do so with sales tax rates which, while certainly high, are in line with regional competitors. For such a momentous undertaking, however, policymakers should be equipped with reliable revenue projections and a detailed accounting of how much revenue is projected to come from each offsetting change. A change worth doing is worth doing right.

15 min read
2021 state estate tax, 2021 state inheritance tax, states with estate tax, states with inheritance tax, which states have an estate tax? Which states have an inheritance tax? Which states do not have an estate or inheritance tax?
Data

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. Twelve states and Washington, D.C. impose estate taxes and six impose inheritance taxes. Maryland is the only state to impose both. Most states have been moving away from estate or inheritance taxes or have raised their exemption levels, as estate taxes without the federal exemption hurt a state’s competitiveness.

3 min read
Research

Evaluating Proposals to Increase the Corporate Tax Rate and Levy a Minimum Tax on Corporate Book Income

President Biden and congressional policymakers have proposed several changes to the corporate income tax, including raising the rate from 21 percent to 28 percent and imposing a 15 percent minimum tax on the book income of large corporations, to raise revenue for new spending programs. Our new modeling analyzes the economic, revenue, and distributional impact of these proposals.

46 min read
UK taxes, UK tax reform 2021 UK tax reform British tax reform, 2021 UK budget
Blog

Brits to Prepare for Tax Reforms

Tax hikes or spending cuts implemented early in the year might undermine the desirable rapid recovery of the economy. The UK should focus on implementing tax reforms that have the potential to stimulate economic recovery by supporting business investment and employment while increasing its international tax competitiveness.

4 min read
PA tax increase, PA income tax proposal Governor Wolf Gov. Wolf PA income tax increase Pennsylvania tax increase proposal
Blog

A $6 Billion Tax Increase Proposal in Pennsylvania Would Yield the Nation’s Highest Combined Flat-Rate Income Taxes

Under the budget introduced by Gov. Tom Wolf, Pennsylvania’s flat personal income tax rate would increase by 46 percent, partially offset by an outsized increase in the poverty credit, which would see a family of four eligible for partial relief due to poverty until they reached $100,000 in taxable income—four times the poverty line.

6 min read
PPP state tax PPP loan forgiveness. State tax treatment of PPP loans. States tax forgiven PPP loans August 23 2021
Data

Which States Are Taxing Forgiven PPP Loans?

Congress chose to exempt forgiven Paycheck Protection Program (PPP) loans from federal income taxation. Many states, however, remain on track to tax them by either treating forgiven loans as taxable income, denying the deduction for expenses paid for using forgiven loans, or both.

7 min read
Soda tax soda taxes on sugary drinks sugar taxes soda tax
Blog

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
Reliance on individual income tax revenue in Europe 2019
Data
Europe

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
Individual Taxes Are the Most Important Tax Revenue Source for the United States Sources of Tax Revenue in the United States US tax revenue, governmetn revenue in the US, US federal tax revenue 2021
Data

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
2021 state income tax rates. 2021 state individual income tax rates. States with no income tax. 2021 top state marginal individual income tax rates
Data

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
Canada's Provinces Collect Almost the Same Amount of Revenue as Its Central Government Sources of OECD Tax Revenue by Level of Government, 2019, Sources of tax revenue in the OECD tax revenue
Data

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
State tax reliance, State income tax reliance. How much do states rely on income taxes? To what extent does your state rely on individual income taxes in 2021?
Data

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