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Individual Income and Payroll Taxes

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What’s Missing from the Tax Burden Debate

When we discuss tax policy, the conversation inevitably turns to who pays, who should pay, and how much they should pay. Unfortunately, the tax burdens debate is often missing a key point: how income transfer programs—like Social Security or Medicaid—affect households’ tax burdens.

US Tax Burden on Labor 2023 US Income Tax Burden and US Payroll Tax Burden

The U.S. Tax Burden on Labor, 2023

Although the U.S. has a progressive tax system and a relatively low tax burden compared to the OECD average, average-wage workers still pay more than 30 percent of their wages in taxes.

4 min read
Taxes spending us debt deficits tax cuts and jobs act 2017 tax law bush tax cuts

Testimony: Taxes, Spending, and Addressing the U.S. Debt Crisis

A better-designed tax system should be a goal of any fiscal consolidation package. That said, our simulations suggest that even substantially higher tax increases are insufficient to curtail long-run debt-to-GDP growth.

New wealth taxes in Europe 2023 European countries with a new wealth tax

Wealth Taxes in Europe, 2023

Instead of reforming and hiking the wealth tax, perhaps policymakers should consider whether the tax is serving its intended objectives, and, if not, consider repealing the tax altogether.

4 min read
Wisconsin flat tax analysis of Wisconsin flat income tax proposal

Testimony: Considerations for Improving Wisconsin’s Tax Structure and Competitiveness

If Wisconsin policymakers return some of the projected continued revenue growth to taxpayers in a structurally sound and pro-growth manner, those tax cuts will benefit businesses and individuals throughout the state, leading to more innovation, more job and wage growth, more economic opportunities, and more vibrant communities.

Minnesota income tax reform bill

Minnesota’s Omnibus Tax Bill Would Undermine the State Economy

As policymakers in St. Paul finalize this year’s tax bill, they should avoid policies that incentivize the diversion or relocation of capital. Importantly, states do not institute tax policy in a vacuum. The evidence from states’ experiences and the academic literature supports the conclusion that tax competitiveness matters not just to businesses but to human flourishing.

15 min read
EU tax revenue stability amid global financial crisis European public debt crisis and Eurozone recession tax policy

Tax Policy and Economic Downturns in Europe

While some temporary policies can help in a crisis, policymakers should focus their efforts on sustainable policies that support growth and the resilience of businesses (and government coffers) over the long term.

6 min read
Stockholm Sweden Scandinavian tax systems to fund large social safety net and public service programs

Insights into the Tax Systems of Scandinavian Countries

Scandinavian countries are well known for their broad social safety net and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. So how do Scandinavian countries raise their tax revenues?

7 min read
Michigan income tax cut may be temporary due to recent opinion by Michigan attorney general tax opinion

Is Michigan’s Tax Cut Temporary or Permanent?

Michiganders will pay a lower individual income tax rate next year thanks to high general fund revenues, but these savings may be short-lived following an opinion released by the state’s attorney general.

7 min read
IRS funding increase Inflation Reduction Act IRS strategic operating plan includes auditors

IRS Strategic Operating Plan Shows Promise, but Concerns Remain

While the IRS hopes to increase revenue collection and minimize additional burdens on taxpayers, uncertainty remains regarding its ability to deliver, particularly on the latter. Furthermore, some concerns about the original funding package are already surfacing, specifically around insufficient funding for taxpayer services.

6 min read
Portugal inflation tax policies include Portugal VAT exemption for value added tax goods and services

VAT Carveouts in Portugal

The Portuguese government has introduced plans to exempt “essential” food items from its value-added tax (VAT) in response to the recent inflation spike. While this may sound like a reasonable measure on the surface, it comes with numerous unintended consequences that compromise its effectiveness.

4 min read
2023 spain tax reform and spain tax policy including Spain wealth tax and Spain windfall tax policies

Spain Is Doubling Down on Poor Tax Policy

Spain should follow the examples of Italy and the UK and enact tax reforms that have the potential to stimulate economic activity by supporting private investment while increasing its international tax competitiveness.

7 min read
2023 Missouri tax reform proposals and Missouri income tax reform including corporate income tax rate reductions

Missouri Tax Package Would Set State Up for Success

Accelerating its current individual income tax triggers and setting up the corporate income tax for eventual elimination would increase Missouri’s attractiveness among states at a time when businesses are increasingly mobile and tax competition matters more than ever.

4 min read
Global excise tax trends and global excise tax applications data and research on excise taxes

Global Excise Tax Application and Trends

When designed well, excise taxes discourage the consumption of products that create external harm and generate revenue for funding services that ameliorate social costs. The effectiveness of excise tax policy depends on the appropriate selection of the tax base and tax rate, as well as the efficient use of revenues.

83 min read