Under HB26-1221, Colorado would make two changes that raise additional revenue by taxing income that doesn’t actually exist. The proposed changes to the state’s alternative minimum tax and net operating loss provisions are designed to overstate income, leading to double taxation and distorting taxpayer behavior.
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The total amount refunded as of the first week of reporting is running ahead of past filing season at $19.95 billion, while the average refund is up 10.9 percent at $2,290.
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The tariffs now in effect threaten to offset much of the GDP growth from the tax cuts, while falling short of paying for them.
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The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.
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Last Friday, the Supreme Court struck down President Trump’s IEEPA tariffs in a landmark 6-3 decision.
Notably, the OBBBA makes permanent the individual tax changes first put in place by the TCJA, which avoids a tax hike on an estimated 62 percent of tax filers in 2026.
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The pass-through business sector—including partnerships, S corporations, and sole proprietorships—employs most of the private-sector workforce in the US and accounts for about half of US business income.
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The increased senior deduction with the phaseout would deliver a larger tax cut to lower-middle- and middle-income taxpayers compared to exempting all Social Security benefits from income taxation and would not weaken the trust funds as much. But given the temporary nature of the policy, it would increase the deficit-impact of the reconciliation bills without boosting long-run economic growth.
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Michigan’s tax code remains too complex, and taxpayers should be asking for a system that bends toward simplicity, not the other way around.
State lawmakers around the country have begun their legislative sessions, and many are considering tax reform. This piece highlights some of the areas on which they are likely to focus.
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Our analysis of the major tax provisions included in the OBBBA finds it will increase long-run GDP by 0.7 percent. The major tax provisions will reduce federal tax revenue by nearly $5.2 trillion between 2025 and 2034, on a conventional basis.
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Denmark (55.9 percent), France (55.4 percent), and Austria (55 percent) levy the highest top personal income tax rates in Europe.
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Although New York’s 2027 budget proposal avoids tax increases on income, sales, and property taxes, it is full of policy proposals that threaten the long-run integrity of the state’s finances and harm New York taxpayers.
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One area of the tax code in which extreme complexity and low compliance go hand-in-hand—and where reform is desperately needed—is in states’ nonresident individual income tax filing and withholding laws.
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The tax code is ripe for simplification, especially as complicated and targeted provisions expire in 2028.
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Economic policy in 2025 came with historic highs but also disappointing lows.
Over the long run, OBBBA’s permanent extension of lower marginal tax rates on work, saving, and investment lays a solid foundation for stronger economic growth.
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Though politically popular, “no tax on tips and overtime” is a short-sighted gimmick that risks derailing West Virginia’s path to prosperity.
When taxpayers file their 2025 tax returns in 2026, many will see larger refunds than in recent years. That’s due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $129 billion.
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Scandinavian countries are well known for their broad social safety nets and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of government spending naturally require high levels of taxation. So, how do these countries raise their tax revenues?
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