Individual and Consumption Taxes

IRS Report Shows Closing the Tax Gap Would Not Close the Deficit

The latest tax gap report from the IRS has generated much media attention—and much misunderstanding.

2023 European Tax Policy Scorecard

The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.

The State Business Tax Climate Index Is Your Guide to Economic “Wins Above Replacement”

2024 State Business Tax Climate Index

In recognition of the fact that there are better and worse ways to raise revenue, our Index focuses on how state tax revenue is raised, not how much. The rankings, therefore, reflect how well states structure their tax systems.

Pennsylvania Cigarette Minimum Markups Will Cost the State $47 Million per Year

Minimum markup policies tend to be wildly unpopular among both taxpayers and policymakers. Lawmakers should carefully evaluate whether minimum markup laws are policies that improve the well-being of their constituents.

Testimony: Considerations for Improving Indiana’s Tax Structure and Competitiveness

Indiana’s tax code is structured in a relatively sound and economically efficient manner overall, but additional improvements should be considered to make the state even more economically competitive.

Testimony: A Property Tax Assessment Limit Would Do More Harm Than Good in Kansas

Instead of adopting a highly distortive property tax assessment limit, policymakers should consider how similar goals could be met through other means.

International Tax Competitiveness Index 2023

While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.

Most Successful Fiscal Consolidations Do Not Rely Solely on Tax Hikes

If tax increases are included in a package, international experience points toward raising consumption taxes, rationalizing tax expenditures, and broadening the tax base—not hiking income taxes.

Real Property Taxes in Europe

High property taxes levied not only on land but also on buildings and structures can discourage investment in infrastructure, which businesses would have to pay additional tax on.

Federal Deficit Grew to $2 Trillion in FY 2023

Outside of the pandemic years, this year’s federal deficit is the highest in U.S. history. While tax revenue has increased about 28 percent since the pre-pandemic year 2019, spending has increased about 46 percent. Annual deficits are headed towards $3 trillion over the next few years.

How Taxing Consumption Would Improve Long-Term Opportunity and Well-Being for Families and Children

Income taxes impose steeper economic costs, and often steeper administrative and compliance costs, than consumption taxes. Moving to a consumption tax would end the tax bias against saving and investment and provide an opportunity to greatly simplify anti-poverty programs embedded in the tax code.

Nikki Haley’s Plan to Eliminate the Federal Gas Tax Would Be a Mistake

At the most recent Republican primary debate, former governor and United Nations ambassador Nikki Haley (R-SC) proposed eliminating the federal gas tax to lower fuel prices for consumers.

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.

Nonprofits are Financially Healthy and Doing Big Business

Can an organization rightfully be called a “nonprofit” if it almost always makes money? And what if most of that organization’s income comes from “business income,” should it legitimately be considered a “charity”?

The Future of Arkansas Tax Reform: Next Steps on the Road Map to Competitiveness

Responsible pro-growth reforms to Arkansas’s tax code can help ensure that the Natural State is indeed a Land of Opportunity.

2023 Spanish Regional Tax Competitiveness Index

The 2023 Spanish Regional Tax Competitiveness Index allows policymakers and taxpayers to evaluate and measure how their regions’ tax systems compare.

It Pays to Keep It Simple

Simplicity in the tax code means taxes should be easy for taxpayers to pay and easy for governments to administer and collect.

Cigarette Taxes in Europe

Tax Trends in European Countries

In recent years, European countries have undertaken a series of tax reforms designed to maintain tax revenue levels while protecting households and businesses from high inflation.