Individual Income and Payroll Taxes

Why Are the Individual Tax Cuts Expiring?

The TCJA improved the U.S. tax code, but the meandering voyage of its passing and the compromises made to get it into law show the challenges of the legislative process.

Taxocracy Tales with Scott Hodge

All taxes tell a story, and today we’ll explore how taxes influenced Bob Dylan’s decision to sell his music catalog, how the “chicken tax” reshaped the auto industry, and how the historic “tax on air and light” had profound effects on architecture and living conditions.

State Income Taxes and the 2024 NFL Draft Class

Here’s how much NFL players can expect to pay in state and local income taxes—to all relevant states—at multiple salary levels, by team.

Gross Income

Unstable Taxes and an Unpredictable Future

When the tax code is stable and predictable, individuals, families, and businesses can set goals for the future and make plans to achieve them.

Survey Says Tax Confusion

All Americans are affected by the tax code—but do they understand the tax code?

New National Tax Literacy Poll Highlights Need for Better Tax Education

Despite taxes playing a significant role in personal finances and being levied on a sizable portion of the U.S. population, most Americans are not just unhappy with the current tax code but also do not understand it.

Vermont Tax Proposals Would Leave the State and Vermonters Behind

With proposals to adopt the nation’s highest corporate income tax, second-highest individual income tax, and most aggressive treatment of foreign earnings, as well as to implement an unusually high tax on property transfers, Vermont lawmakers have no shortage of options for raising taxes dramatically.

Portugal’s Personal Income Tax System: High Top Rate, Threshold, and Tax Credits

Portugal’s personal income tax system levies high tax rates on an unusually narrow set of high earners, striking a poor balance between earnings incentives and revenue contributions.

Facts & Figures 2024: How Does Your State Compare?

Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

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Short Form

April 2, 2024July 18, 2024

Does the Federal Tax Code Privilege the Rich?

The federal income tax drives the tax code’s progressivity. In 2021, taxpayers with higher incomes paid much higher average income tax rates than taxpayers with lower incomes.

State Tax Rates on Long-Term Capital Gains, 2024

Savings and investment are critical activities, both for individuals’ and families’ financial security and for the health of the national economy as a whole. As such, policymakers should consider how they can help mitigate—rather than add to—tax codes’ biases against saving and investment.  

Can States Afford Their Recent Tax Cuts?

With state tax revenues receding from all-time highs, there’s been a great deal of handwringing about whether states can afford the tax cuts adopted over the past few years. Given that 27 states reduced the rate of a major tax between 2021 and 2023, is there reason for concern?

Considering Tax Reform Options for 2025 (and Beyond)

Given that U.S. debt is roughly the size of our annual economic output, policymakers will face many tough fiscal choices in the coming years. The good news is there are policies that both support a larger economy and avoid adding to the debt.

Sources of US Tax Revenue by Tax Type, 2024 Update

Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.

Biden’s Budget Blueprint

In the context of the 2024 election year, what does President Biden’s 2025 budget proposal signify regarding his strategies and priorities as he seeks reelection? And how could these proposals shape the overall landscape of this election cycle?

Sources of Government Revenue in the OECD, 2024 Update

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

The Shortcomings of Nebraska’s EPIC Option

Summary of the Latest Federal Income Tax Data, 2024 Update

The 2021 tax year was the fourth since the Tax Cuts and Jobs Act (TCJA) made many significant, but temporary, changes to the individual income tax code to lower tax rates, widen brackets, increase the standard deduction and child tax credit, and more.

Taxes and Migration: New Evidence from Academic Research

Do taxes affect individuals’ decisions regarding where to live and work? Can high taxes cause the outmigration of wealthy individuals?