Individual Income and Payroll Taxes

Taxes and Interstate Migration: 2022 Update

IRS and Census data show that people and businesses favor states with low and structurally sound tax systems, which can impact the state’s economic growth and governmental coffers.

2022 Spanish Regional Tax Competitiveness Index

The 2022 Spanish Regional Tax Competitiveness Index allows policymakers and taxpayers to evaluate and measure how their regions’ tax systems compare.

Tax Hike Proposals Live on Despite Being Dropped in the Inflation Reduction Act

President Biden proposed a 7-point hike in the corporate tax rate to 28 percent, a new minimum book tax on corporate profits, and higher taxes on international activity. We estimated these proposals would reduce the size of the economy (GDP) by 1.6 percent over the long run and eliminate 542,000 jobs.

Tyreek Hill’s Tax Liability with Every NFL Franchise

When NFL star wide receiver Tyreek Hill weighed offers from the New York Jets and the Miami Dolphins, no doubt there was a lot on his mind. But one consideration towered over the rest, at least according to Hill himself: signing with the Jets “was very close to happening,” but “those state taxes man. I had to make a grown-up decision.”

Economic Implications of an Alaska Income Tax or Its Alternatives

Alaska policymakers are understandably concerned about the long-term viability of the state’s overwhelming reliance on the oil and gas industry for revenue, but the state’s unique economy and geography, and low population density make some of the “traditional” taxes less efficient than they might be elsewhere.

Focusing on Wealth Inequality Is Counterproductive

While there is more we can do to encourage lower- and middle-class households to save more and build wealth, a closer, more comprehensive look at the data and trends in other countries suggests that America’s wealth gap is not as alarming as some may think.

Impact of Italian Elections on National Tax Policy and EU Fiscal Policy

In the EU, Italy plays an important role in economic policy. If the EU wants to further develop own resources, it will need the backing of the Italian government—which seems unlikely at the moment.

Doing Tax Policy at the Ballot Is Not for the Faint of Heart

Some tax ballot initiatives will be straightforward, some will be complex, and—let’s be honest—some will be a drafting nightmare.

Massachusetts’ Graduated Income Tax Amendment Threatens the Commonwealth’s Economic Transformation

Massachusetts’ competitive tax advantage in New England is driven primarily by its competitive individual income tax rate and its sales and use tax structure. If the Commonwealth changes its tax code in ways that narrow the base or increase the rate, it cedes greater tax competitiveness to other states, regionally and nationally.

Audit

Ensuring Tax Rates Don’t Rise with Inflation

If ever there was a paycheck protection program, defending people from bracket creep may be the most important one ever designed.

Taxes and the UK’s new Prime Minister

In an already-challenging economic environment, new UK Prime Minister Liz Truss must get tax rates correct to avoid over-burdening a population and business sector facing immense uncertainty. Focusing only on rates while ignoring the base misses an opportunity for real, pro-growth reform.

Gift Tax

Inflation and Europe’s Personal Income Taxes

With continued concerns over inflation, individuals may be wondering how their tax bills will be impacted. Less than half of OECD countries in Europe automatically adjust income tax brackets for inflation every year.

Idaho to Consider Flat Income Tax in Special Session

As Idaho attempts to further solidify its position as a growth-oriented, taxpayer-friendly state this special session, other states should look to its example and pursue similar reforms.

New Mexico and the Question of Tax Competitiveness

Every change to a state’s tax system makes its business tax climate more or less competitive compared to other states and makes the state more or less attractive to business.

Missouri Should Consider Flat Income Tax in Special Session

As Missouri legislators head into a special session, they should consider making a pro-growth change that the state is already so close to achieving: creating a flat income tax.

Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections (FY 2020)

The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.

Arkansas’s Rate Reduction Acceleration

Arkansas recently became the 13th state to authorize an individual income tax rate reduction this year. This round of tax cuts accelerated reforms enacted eight months ago.

Japan’s Tax and Benefit System for Working Parents Isn’t Working

The Japanese tax and benefit system comes with trade-offs that policymakers must keep in mind when planning to reform the tax policy.