Individual Tax Compliance and Complexity

Doing Tax Policy at the Ballot Is Not for the Faint of Heart

Some tax ballot initiatives will be straightforward, some will be complex, and—let’s be honest—some will be a drafting nightmare.

Massachusetts’ Graduated Income Tax Amendment Threatens the Commonwealth’s Economic Transformation

Massachusetts’ competitive tax advantage in New England is driven primarily by its competitive individual income tax rate and its sales and use tax structure. If the Commonwealth changes its tax code in ways that narrow the base or increase the rate, it cedes greater tax competitiveness to other states, regionally and nationally.

Audit

States That Might Tax Student Loan Debt Cancellation

Will states consider student loan forgiveness a taxable event? In some states, the answer could be yes.

Idaho to Consider Flat Income Tax in Special Session

As Idaho attempts to further solidify its position as a growth-oriented, taxpayer-friendly state this special session, other states should look to its example and pursue similar reforms.

Missouri Should Consider Flat Income Tax in Special Session

As Missouri legislators head into a special session, they should consider making a pro-growth change that the state is already so close to achieving: creating a flat income tax.

IRS Is Raising More with Less, But New Funding Misses the Mark

The Inflation Reduction Act focused more on enforcement and hiring more auditors rather than programs that make it easier for taxpayers to comply with the code and the IRS to administer it.

The Tax Compliance Costs of IRS Regulations

In a pattern that has become all too common in recent decades, the newly enacted Inflation Reduction Act (IRA) added yet another layer of complexity to an already complex and burdensome federal tax code.

Soda Tax

IRS Funding and Technology

The Internal Revenue Service (IRS) finds itself under fire often. Outdated technology, millions of unanswered calls, and cafeterias full of paper returns—it’s clear that America’s tax collector needs improvement. Jesse is joined by Courtney Kay-Decker and Jared Ballew, chair and vice chair (respectively) of the Electronic Tax Administration Advisory Committee (ETAAC). They discuss ETAAC’s annual report that lays out what the IRS is doing right, and what it’s doing wrong, as the agency continues to see its duties grow.

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act

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.

Japan’s Tax and Benefit System for Working Parents Isn’t Working

The Japanese tax and benefit system comes with trade-offs that policymakers must keep in mind when planning to reform the tax policy.

Australia’s Tax and Benefit System Might Deter Working Parents from Advancing in Their Careers

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.

Indiana Should Use Surplus to Expedite Rate Cuts, Index Exemptions for Inflation

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.

Health-care Premiums Could Deter Canadians’ Upward Mobility

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.

Push for Higher Taxes Is Misguided During a Time of Inflation and Looming Recession

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.

Technology and Taxes

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.

Lithuanian Model Could Help French Workers’ Upward Mobility

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.

Idaho’s Tax Hiking Ballot Measure Is Riddled With Mistakes

Idaho Ballot initiative would impose an incredibly high top marginal rate that would fall on many small businesses, not just high-income earners.

Navigating the Complex Income Tax System in Italy

High marginal tax rates can act as barriers to upward mobility, discouraging people from advancing in their careers.