In 2022, incomes for the bottom 80 percent of earners were slightly lower after taxes and transfers compared to 2020 and 2021, driven by expiring pandemic-era policies.
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The total amount refunded as of the sixth week of reporting is running ahead of the past filing season by nearly $23 billion at $202.6 billion compared to $179.5 billion, while the average refund is up 10.9 percent at $3,571.
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New IRS data shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remain lower after the Tax Cuts and Jobs Act (TCJA).
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The proposed California wealth tax could be levied on founders’ voting interests in their companies, despite the initiative’s drafters insisting otherwise.
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The past decade’s record suggests that countries have reliable legislative methods to improve their tax systems through ordinary tax reforms.
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Maine’s proposed millionaire’s tax would bring Maine’s top income tax rate to 9.15 percent, dealing a blow to the state’s economic competitiveness.
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Should you have to file a tax return in a state where you babysat for one hour? In 22 states, the answer is technically yes.
While it may feel good to receive a tax refund, it does not represent your tax burden—the tax liability you actually owe to the government.
One year later, the evidence shows the tariffs were not reciprocal, did not generate the promised investment boom, raised less revenue than projected, and contributed to higher prices.
It’s for good reason that Georgia wants to eliminate the income tax and rein in property taxes. However, the changes Georgia would need to make to accomplish these goals would work against its overall competitiveness.
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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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As the policy debate for the next presidential election begins to take shape, both sides need to be honest about their plans for addressing the actual challenges our country faces.
The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only two states raise enough revenue to fully cover their highway spending.
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By 2036, more than one out of every four dollars raised in total government revenue will go to pay interest on the debt.
Proponents of a California wealth tax ballot initiative insist that the proposed wealth tax is temporary: a one-time 5 percent tax that can be paid upfront or over five years with deferral charges. Others are skeptical that the wealth tax would be allowed to expire.
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Senators Chris Van Hollen (D-MD) and Cory Booker (D-NJ) have each introduced proposals aimed at cutting taxes for lower- and middle-income taxpayers and raising them on high-income taxpayers.
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Under HB26-1221, Colorado would make two changes that raise additional revenue by taxing income that doesn’t actually exist. The proposed changes to the state’s alternative minimum tax and net operating loss provisions are designed to overstate income, leading to double taxation and distorting taxpayer behavior.
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Short FormIf you’ve filed your taxes already, you may have noticed a larger refund this year. That’s due to changes Congress made with the One Big Beautiful Bill Act (OBBBA) last year that retroactively cut taxes for 2025.
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Structural reforms such as broadening tax bases, improving cost recovery, and shifting toward less distortive taxes can improve competitiveness without necessarily reducing revenue.
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Senator Bernie Sanders introduced a proposed 5 percent annual wealth tax on billionaires to fund direct payments to Americans and expand social welfare programs.
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