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Individual Income and Payroll Taxes

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New Hampshire Business Profits Tax, New Hampshire Business Enterprise Tax, New Hampshire business tax cut, New Hampshire House Bill 10, New Hampshire Income Tax

New Hampshire Bill Aims to Reduce Tax Burden on Businesses

A year ago, it seemed possible that New Hampshire was headed toward a triggered tax increase. Instead, lawmakers may trim business tax rates and begin the phaseout of the state’s tax on interest and dividend income, which would take away the asterisk and make New Hampshire the ninth state to forgo an individual income tax altogether.

4 min read
Remote work tax revenue implications digital nomad visas, digital nomads, tax incentives for remote workers. Deutsche Bank tax work-from-home tax Deutsche Bank privilege tax on remote work

Tax Incentives for Digital Nomads and Remote Workers

Policy changes to attract foreigners are not without benefits, but governments should carefully weigh the costs of the tax incentives against opportunities to implement broader tax reforms. A more efficient income tax system is a better objective than just focusing on incentives for foreigners to change their tax residence.

4 min read
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

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
PA tax increase, PA income tax proposal Governor Wolf Gov. Wolf PA income tax increase Pennsylvania tax increase proposal

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

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
Reliance on individual income tax revenue in Europe 2019

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

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

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

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?

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
Maryland digital advertising tax litigation internet tax, Maryland digital ad tax, Maryland tax increases and Maryland tax proposals 2021

Tax-A-Rama in Maryland

The potential override of Gov. Larry Hogan’s (R) veto of a digital advertising tax (HB732) looms large over the current legislative session in Maryland, though it is only one of many tax proposals under consideration in the state.

7 min read