Individual Tax Compliance and Complexity

Traveling for the Holidays? States Would Like the Gift of Taxes

In most states, you don’t have to visit for long before you start accruing tax liability.

Comparing Europe’s Tax Systems: Consumption Taxes

According to the 2021 International Tax Competitiveness Index, Switzerland has the best-structured consumption tax among OECD countries while Poland has the worst-structured consumption tax code.

Comparing Europe’s Tax Systems: Individual Taxes

France’s individual income tax system is the least competitive of all OECD countries. It takes French businesses on average 80 hours annually to comply with the income tax.

Tax Reciprocity Agreement

Norway’s New Budget Adds Unnecessary Complexity

Norway’s proposed reductions in income tax have the potential to increase disposable income for workers that can potentially raise consumption and contribute to economic growth. However, the increase of the wealth and indirect taxes is likely to step up the complexity of the tax system and create additional distortions.

Despite Slip in International Tax Competitiveness Index, Germany Retains Top G7 Rank

More often than not, by looking at Germany’s tax code as an example, G7 countries can improve the stability of their revenues and the lives of those they represent.

Pro-Growth Tax Reform for Oklahoma

Our new study identifies a number of deficiencies in Oklahoma’s tax code and outlines possible solutions for reform that would create a more neutral tax code and encourage long-term growth in the state.

Tracking 2021 Election Results: State Tax Ballot Measures

Through 10 ballot measures across four states—Colorado, Louisiana, Texas, and Washington—voters will decide significant questions of state tax policy.

The Rich Are Not Monolithic and Taxing Their Wealth Invites Tax Collection Volatility

Congressional Democrats are reported to be weighing a special tax on the assets of billionaires to raise revenues to pay for their Build Back Better spending plan. There are two fundamental challenges to such a plan.

Movers and Shakers in the International Tax Competitiveness Index

The Index provides lessons for policymakers when they are thinking of ways to remove distortions from their tax systems and remain competitive against their peers. The further up a country moves on the Index, the more likely it is to have broader tax bases, relatively lower rates, and policies that are less distortionary to individual or business decisions. Going the other way reveals a policy preference for narrow tax bases, special tax policy tools, and rules that make it difficult for compliance.

Mark-to-Market (MTM)

Proposal for Reporting Requirements for Financial Institutions Misses the Mark

Reducing the tax gap is a good idea, but the reporting requirements for financial institutions could be better-targeted at the problem at hand.

Tax Gap

Wyden’s Financial Services Tax Proposals Would Put “Mark-to-Market” to the Test

Mark-to-market is not simple to implement, as it involves new administrative and compliance challenges for taxpayers. Mark-to-market levies tax on phantom income, requiring some taxpayers to engage in some degree of liquidation, ultimately suppressing incentives to save and invest. The limited tax revenues that could result from these proposals are not worth the risk.

Don’t Add More Temporary Tax Policies in Budget Reconciliation

Temporary policy creates uncertainty for taxpayers and scheduling more expirations will add to the already-expiring provisions under the Tax Cuts and Jobs Act (TCJA) of 2017.

5 Things to Consider in the Tax Gap Discussion

Increasing tax compliance is a major part of the Biden administration proposal to raise revenue for physical and social infrastructure. Reducing the tax gap—the difference between taxes owed and taxes paid—is a good way to raise revenue, but it doesn’t come without trade-offs, and it’s important to go about it in the right way.

Considering Trade-offs to Improving Tax Collections

Recent Biden administration proposals rely heavily on revenue from better IRS tax collections to fund spending initiatives. The American Families Plan uses several avenues to reduce the tax gap (or the difference between taxes paid and taxes owed), from increasing the IRS’s tax enforcement budget to improving information technology and expanding reporting requirements.

Does Your State Have an Individual Alternative Minimum Tax (AMT)?

The original goal of AMTs—to prevent deductions from eliminating income tax liability altogether—can be accomplished best by simplifying the existing tax structure, not by creating an alternative tax which adds complexity and lacks transparency and neutrality.

Striking Right Balance for Cryptocurrency Reporting Requirements in Bipartisan Infrastructure Package

While it makes sense to ensure cryptocurrency transactions are treated similarly to other financial assets, the nature of these requirements as written are potentially unworkable.

Return-Free Filing: A Better Fit for a Better Tax Code

Return-free filing could reduce compliance costs for many taxpayers, but would only be as good as the system it is administrating.