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Individual Income and Payroll Taxes

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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
Wisconsin flat tax analysis of Wisconsin flat income tax proposal

A Flat Tax in Wisconsin Can Deliver Tax Relief for Everyone

With increases to the standard deduction, a flat tax could provide a net tax cut to taxpayers of all income levels, providing both short-term and long-term relief to taxpayers across the income spectrum. It would also simplify the tax code in ways that encourage greater investment and economic growth, particularly by ensuring that the marginal rate on small business investment is competitive with peer states.

4 min read
north carolina tax competitiveness North Carolina tax reform North Carolina business tax reform

2023 State Business Tax Climate Index

While there are many ways to show how much is collected in taxes by state governments, our Index is designed to show how well states structure their tax systems by focusing on the how more than the how much in recognition of the fact that there are better and worse ways to raise revenue.

129 min read
2023 tax brackets 2023 federal tax brackets 2023 federal income tax rates and brackets

2023 Tax Brackets

The IRS recently released the new inflation adjusted 2023 tax brackets and rates. Explore updated credits, deductions, and exemptions, including the standard deduction & personal exemption, Alternative Minimum Tax (AMT), Earned Income Tax Credit (EITC), Child Tax Credit (CTC), capital gains brackets, qualified business income deduction (199A), and the annual exclusion for gifts.

4 min read
International Rankings of Germany's Tax System. Learn more about Germany tax system.

International Tax Competitiveness Index 2022

While there are many factors that affect a country’s economic performance, taxes play an important role. A well-structured tax code is easy for taxpayers to comply with and can promote economic development while raising sufficient revenue for a government’s priorities.

41 min read
California tax increases, California tax ballot measure California Proposition 30 and California windfall profits tax proposal for California gas prices and tax on oil companies

California Can’t Give Up Tax Increases

California is no stranger to high taxes, and the state has enough going for it that its economy can withstand higher tax burdens than would be viable in other parts of the country. But there’s always a tipping point.

5 min read
Tax treatment of Social Security benefits remains a confusing matter for taxpayers Social Security cost of living adjustment Social Security tax

Tax Treatment of Social Security Benefits Remains a Confusing Matter for Taxpayers

The Social Security Administration (SSA) announced the cost-of-living adjustment for Social Security payments based on inflation over the previous year. This has brought renewed attention to how the tax code treats Social Security benefits, which can be a confusing subject for taxpayers.

3 min read
state tax inflation response like state tax rebates and tax holidays to combat inflation Federal tax collections inflation surging 2022

Inflation Is Surging, So Are Federal Tax Collections

Federal tax collections are approaching the highest levels in U.S. history set during World War II and again during the dot-com bubble in 2000. Meanwhile, federal spending in FY 2022 was over 25 percent of GDP—a level only exceeded during the height of the pandemic in 2020 and 2021, and during World War II.

3 min read
Taxes and interstate migration data from IRS and Census state migration trends show Americans moving to low-tax states

How Do Taxes Affect Interstate Migration?

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.

12 min read
Junk fees ban from the FTC Biden tax hike proposals live on Build Back Better Inflation Reduction Act Biden tax rates

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.

6 min read