The Inflation Reduction Act increases the IRS’s budget by roughly $80 billion over 10 years. The money is broken into four main categories—enforcement, operations support, business system modernization, and taxpayer services—as well as a few other small items such as an exploratory study on the potential of a free-file system.
6 min read
The Japanese tax and benefit system comes with trade-offs that policymakers must keep in mind when planning to reform the tax policy.
7 min read
While the tax and benefit system can be successful in keeping low-income working households out of poverty and encouraging workforce participation, high marginal tax rates like the one observed in the case of this Australian working parent act as barriers to upward mobility.
6 min read
Expediting income tax rate reductions and indexing major income tax provisions for inflation are two of the most important tax policy changes policymakers could make to provide meaningful tax relief to Hoosiers both now and in the years to come.
4 min read
Canadian workers could face up to two important marginal tax rate spikes and lose 60 percent of additional earnings to the provincial health-care premium.
4 min read
Some 40 years ago, the U.S. dealt with high inflation and slow economic growth. Then as now, the solution is a long-term focus on stronger economic growth and sustainable federal budgets.
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From policy to filing, from accounting to compliance: technology is truly shaping the future of taxes. We chat with Ben Alarie, CEO of Blue J, about how companies are utilizing technology to comply with the tax code and how policymakers can use technology to advance tax laws that support an ever-evolving economy.
Reshaping some of these policies to generate a smoother variation of marginal tax rates over different income levels would likely raise labor supply and encourage the upward mobility of workers and especially that of average-income workers.
5 min read
Idaho Ballot initiative would impose an incredibly high top marginal rate that would fall on many small businesses, not just high-income earners.
7 min read
High marginal tax rates can act as barriers to upward mobility, discouraging people from advancing in their careers.
5 min read
Research has shown that spikes in tax rates can act as barriers to upward mobility. High marginal tax rates might directly influence the decisions workers make about accepting a raise, working additional hours, or whether they might remain on government benefits.
8 min read
The proposals share a common goal of improving incentives for households to save during a time when inflation is impacting their finances.
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As policymakers on both sides of the Atlantic debate the way forward on carbon border adjustment mechanisms, it is important to keep principles of good tax policy in mind.
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The United States needs to grow its way out of inflation and set the economy up for continued growth—the tax code provides tools for policymakers to do just that.
3 min read
Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices–especially for low-income workers and families. One idea that caught on quickly: sales tax relief on groceries. The idea had its merits, but Tax Foundation research shows that it may have missed the mark.
Efforts to improve the taxpayer experience should focus on the IRS’s operations and include structural improvements to the tax code.
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As the deadline for tax filing nears, the IRS faces scrutiny for its backlog of returns, inaccessible taxpayer service, and delays in issuing certain refunds.
5 min read
Lawmakers can be proud of the steps that they have taken toward a better tax code but should consider revisiting the design of the bill’s tax triggers in order to better accomplish their goal of responsible improvement.
6 min read
Biden’s proposal would impose a complicated never been tried before tax, adding new compliance and administrative challenges for an already overburdened IRS while weakening the U.S. economy by raising the tax burden on U.S. saving and entrepreneurship.
6 min read
After a whirlwind of cuts and reforms in 2021, it looks like 2022 might be an even bigger year for state tax codes. Republican and Democratic governors alike used their annual State of the State addresses to call for tax reform, and there is already serious momentum from state lawmakers nationwide to get the job done.
3 min read