Individual Income and Payroll Taxes

Adjusted Gross Income (AGI)

Marginal Tax Rate

Taxable Income

Revenue Gains in Asian and Pacific Countries Likely Offset by COVID-19

Because of the COVID-19 pandemic and the associated economic crisis, countries in the Asia-Pacific region will see a differentiated impact on their capacity of mobilizing domestic revenue depending on the structure of their economy. According to the OECD report, those economies that rely mostly on natural resources, tourism, and trade taxes are especially vulnerable.

Tax Options to Promote Short-Term Recovery and Long-Term Economic Growth in Wisconsin

From a revenue standpoint, Wisconsin was better off than many states going into this crisis, but the policy decisions—including tax policy decisions—state policymakers make in the months ahead will have far-reaching implications for how quickly jobs and wages are restored in Wisconsin.

Sources of Personal Income, Tax Year 2017

Reviewing the sources of personal income shows that the personal income tax is largely a tax on labor, primarily because our personal income is mostly derived from labor. However, varied sources of capital income also play a role in American incomes.

Hungarian COVID-19 Response: Surtax for Banks and Retail

Hungary is the only EU state to have actually implemented COVID-19 tax hikes.

Marginal Tax Rates for Pass-through Businesses by State

State Forecasts Indicate $121 Billion 2-Year Tax Revenue Losses Compared to FY 2019

Revised state revenue forecasts show a significant decline in projected revenues for both the recently concluded FY 2020 and current FY 2021, though the picture they paint is considerably less dire than many feared a few months ago.

Non-Profit Files Lawsuit over Withholding Requirements in Ohio

As work increasingly takes place in home offices, states will have to grapple with the revenue implications, and may find it necessary to adopt policies to better compete with outlying areas. Taxing people in places in which they no longer work, however, will not be the solution.

Peruvian “Solidarity Tax” Unlikely to Offset Deficit Spending

While it is important that Peru find ways to offset its deficit spending, a temporary wealth tax may introduce more problems than it solves.

When Marriage Doesn’t Pay: Analysis and Options for Addressing Marriage and Second-Earner Penalties

In many cases, when two single workers combine their incomes and file jointly, the progressive tax system penalizes the secondary earner by subjecting their wages to a higher marginal tax rate.

Global Tax Relief Efforts Vary in Scope and Time Frame in Response to COVID-19

Countries around the world have implemented and continue to implement emergency tax measures to support their economies during the coronavirus (COVID-19) crisis.

D.C. Council to Consider Tax Hike Despite Balanced Budget

Despite a balanced budget and and revenue shortfalls arising from the coronavirus crisis, the D.C. Council will consider proposals to raise income taxes to fund newly proposed spending projects.

In Some States, 2020 Estimated Tax Payments Are Due Before 2019 Tax Returns

To prevent confusion and to ensure taxpayers receive the full benefit of the extended federal deadline, states should consider extending first- and second-quarter estimated tax payment due dates to July 15 or later.

Tax Relief for Families in Europe

Most countries provide tax relief to families with children—typically through targeted tax breaks that lower income taxes. While all European OECD countries provide tax relief for families, its extent varies substantially across countries.

HEROES Act Dependent Expansions Come with Major Drawbacks

The HEROES Act adds to the confusion and instability already inherent in the tax code with multiple expiring provisions and reduced filing guidelines.

HEROES Act Temporarily Increases Dependent Credit Generosity

The HEROES Act would make notable expansions to all three dependent-related credits, increasing maximum credit amounts, refundability, and income eligibility phaseouts. Practically, this means that certain filers could expect to receive a larger refund for each additional hour of work, eligible dependent, and dependent care expenses if the bill became law.

To What Extent Does Your State Rely on Individual Income Taxes?

While the current crisis has caused consumption to drop dramatically, it is generally true that income taxes are more volatile than consumption taxes in an economic downturn and income taxes tend to be more harmful to economic growth than consumption taxes and property taxes.

A Comparison of the Tax Burden on Labor in the OECD, 2020

A higher tax burden on labor often leads to lower employment rates and wages. That’s important for policymakers to remember as they look for ways to help their economies recover from coronavirus-induced shutdowns. If their goal is to encourage employment, policies that lower the tax burden on labor could prove a powerful tool.