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Individual Income and Payroll Taxes

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Georgia Should Reinforce Its Tax Reform Intentions

By shifting to a flat income tax, Georgia has already made an important commitment to tax competitiveness. Although the state’s top rate threshold is already very low, a true single-rate income tax will help protect taxpayers from inflation-related tax increases and provide a buffer against rising tax rates in the future. To combine responsible rate reductions with these benefits, Georgia should create tax triggers that empower the state to keep pace with its competition.

3 min read
Tax filing Tax Season Stone's Throwe Photo

Frustration and Delays as the 2023 Tax Filing Season Begins

A combination of long-standing IRS operational deficiencies, the agency’s temporary closure due to the pandemic, and the now-expired pandemic relief produced a perfect recipe for a paper backlog.

4 min read
state wealth tax proposals state flat tax state income tax reform state tobacco taxes, state cigarette tax rates and cigarette taxes state tax incentives 2021 state revenue and 2021 state budget projections state tax reform covid and state tax cuts covid

Wealth Tax Proposals Are Back as States Take Aim at Investment

In a coordinated effort, lawmakers in seven states that collectively house about 60 percent of the nation’s wealth—California, Connecticut, Hawaii, Illinois, Maryland, New York, and Washington—are introducing wealth tax legislation on Thursday.

7 min read
The top 1 percent of taxpayers pay about 25 percent of all federal taxes US progressive tax code

CBO Analysis Finds Income Growth and Progressive Tax Code in 2019

Newly published data from the CBO indicates in 2019, before the onset of the pandemic, American incomes continued to rise as part of a broad economic expansion. It also shows that, contrary to common perceptions, the federal tax system is progressive.

4 min read
2022 State Population Change 2022 state migration trends. Americans moving to low-tax states united van lines u-haul census data

Americans Moved to Low-Tax States in 2022

The pandemic has accelerated changes to the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

5 min read
2023 State Tax Changes as of January 1, 2023, Comprehensive guide to 2020 tax changes and 2020 state tax changes

State Tax Changes Taking Effect January 1, 2023

Most of the 2023 state tax changes represent net tax reductions, the result of an unprecedented wave of rate reductions and other tax cuts in the past two years as states respond to burgeoning revenues, greater tax competition in an era of enhanced mobility, and the impact of high inflation on residents.

20 min read
Chile tax reform Chile income tax system, Taxes in chile

Chile’s Tax Reform Heads in the Wrong Direction

As Chile looks to the future, the accelerated deductions for capital investment costs should be extended and made permanent while unnecessary tax hikes on individuals and capital should be avoided. Policymakers should focus on growth-oriented tax policy that encourages investment, savings, and entrepreneurial activity, increasing Chile’s international tax competitiveness.

4 min read
UK tax plan Rishi Sunak tax plan

A Tale of Two Tax Plans in the United Kingdom

History is clear. Lowering budget deficits via spending restraint frees resources for additional private output and jobs. Lowering them by raising taxes on business investment and labor services makes it harder to dis-inflate without a recession.

7 min read
EU fiscal fairness economic fairness and tax fairness Testimony before the EU Parliament’s Subcommittee on Tax Matters Public hearing on “The impact of national tax reforms on the EU economy”

EU “Fiscal Fairness”

Europe is facing difficult times. Governments are balancing the need for more resources with the need to maintain peace and prosperity domestically. To properly strike this balance, EU policymakers must incorporate “Fiscal Fairness” into the debate.

2 min read
Do tax increases reduce inflation. See higher taxes inflation policies and cause for inflation amid looming recession

Prospects for Federal Tax and Budget Policy after the 2022 Midterms

Two weeks after the 2022 midterm elections, it’s becoming clearer where tax policy may be headed for the rest of the year and into 2023. In the short term, Congress must deal with tax extenders and expiring business tax provisions that may undermine the economy.

5 min read
Massachusetts budget tax proposal Governor Healey budget question 1 ballot measure Massachusetts millionaires tax or Massachusetts graduated income tax amendment MA

What to Expect in a Post-Flat Tax Massachusetts

On Election Day, a narrow majority of Massachusetts voters approved Question 1, also known as the Fair Share Amendment, which will transition the Commonwealth from a flat rate individual income tax to a graduated rate system.

7 min read
State reciprocity agreements including state income tax reciprocity agreements

Do Unto Others: The Case for State Income Tax Reciprocity

Remote and flexible work opportunities are here to stay, whether states like it or not. With enhanced opportunities to take their job with them wherever they please, more workers can factor tax burdens into their decision of where to live.

15 min read
Comparing income tax systems in Europe best and worst personal income taxes Europe 2022

Comparing Europe’s Tax Systems: Individual Taxes

France’s individual income tax system is the least competitive among OECD countries. France’s top marginal tax rate of 45.9 percent is applied at 14.7 times the average national income. Additionally, a 9.7 surtax is applied to those at the upper end of the income distribution. Capital gains and dividends are both taxed at comparably high top rates of 34 percent.

2 min read
TaxEDU glossary

Lesson Plan: Average vs. Marginal Tax Rates

In this lesson plan, students will know how average and marginal tax rates are calculated. Students will compare the two tax rates. Students will learn how marginal and average tax rates combine to impact the taxpayer and economy.

Latest IRS data of federal estate tax returns and federal real estate taxes

Putting a Face on America’s Estate Tax Returns

While supporters of the federal estate tax may be correct that only a fraction of estate tax returns eventually pays the estate tax, IRS data shows that it disproportionately impacts estates tied to successful privately owned businesses. Thus, it acts as a second or third layer of federal tax on these successful businesses over the owners’ lifetime.

9 min read