![JCT Pillar Two Revenue effects and federal revenue effects of Pillar Two global minimum tax revenue JCT House Ways and Means Committee function Renewing Investment in American Workers and Supply Chains Act to boost US competitiveness Federal tobacco tax proposal, Tobacco Tax Equity Act, would impose a federal excise tax on tobacco (including a federal cigarette excise tax)](https://taxfoundation.org/wp-content/uploads/2021/08/capitol_blue_sky_50-e1687455815800-300x200.jpeg)
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![JCT Pillar Two Revenue effects and federal revenue effects of Pillar Two global minimum tax revenue JCT House Ways and Means Committee function Renewing Investment in American Workers and Supply Chains Act to boost US competitiveness Federal tobacco tax proposal, Tobacco Tax Equity Act, would impose a federal excise tax on tobacco (including a federal cigarette excise tax)](https://taxfoundation.org/wp-content/uploads/2021/08/capitol_blue_sky_50-e1687455815800-300x200.jpeg)
![International Tax Reform Options, GILTI](https://taxfoundation.org/wp-content/uploads/2021/08/AdobeStock_103186140-e1628601497227-300x200.jpeg)
Options for Reforming the Taxation of U.S. Multinationals
The Biden administration’s international tax proposals would impose a 7.7 percent surtax on the foreign profits of U.S. multinationals, resulting in a net increase in profit shifting out of the U.S.
60 min read![IRS SALT IRS state and local deduction SALT guidance SALT cap workaround charitable deduction SALT workaround](https://taxfoundation.org/wp-content/uploads/2019/06/IRS-e1560289434398-300x200.jpeg)
Simplifying the Tax Code and Reducing the Tax Gap: What Can Be Achieved?
Reducing the tax gap is, on the margin, a good way to raise revenue, but is not without costs. Policymakers should consider compliance costs for law-abiding taxpayers as well as administrative costs for the IRS when evaluating measures to reduce the tax gap.
33 min read![2021 sales tax holidays by state and 2021 sales tax holiday data 2021 tax free weekends](https://taxfoundation.org/wp-content/uploads/2021/07/2021-sales-tax-holidays-01-01-e1626886925378-300x258.jpg)
Does Your State Have a Sales Tax Holiday?
Although state budgets may be in unusual places this year, sales tax holidays remain the same as they always have been—ineffective and inefficient.
3 min read![universal basic income ubi andrew yang, means-tested transfers](https://taxfoundation.org/wp-content/uploads/2019/10/money-dollar-funding-saving-finance-e1572277695559-300x166.jpg)
States Respond to Strong Fiscal Health with Income Tax Reforms
As states close their books for fiscal year 2021, many have much more revenue on hand than they anticipated last year. Eleven states have responded by reducing income tax rates and making related structural reforms as they strive to solidify a competitive advantage in an increasingly competitive national landscape.
29 min read![International tax rules, International Tax rules House Democrats' covid-19 relief proposal](https://taxfoundation.org/wp-content/uploads/2021/01/international-tax-trends-global-tax-e1615579465591-300x201.jpeg)
Anti-Base Erosion Provisions and Territorial Tax Systems in OECD Countries
From a policy perspective it is appropriate to combat base erosion and profit shifting, but policymakers need to keep in mind the need for simplicity to avoid increasing the compliance burden on taxpayers and administrative burdens on tax authorities.
68 min read![2022 state tax changes effective January 1, 2022 child tax credit changes and child tax credit reform options 2021 state tax changes July 1 2021 US business tax collections remained close to historical norm in 2018. US business tax revenue and taxes paid by pass-through firms](https://taxfoundation.org/wp-content/uploads/2021/04/Money-calendar-time-calculator-economy-business-tax-filing-e1618504666865-300x200.jpeg)
State Tax Changes Taking Effect July 1, 2021
Thirteen states have notable tax changes taking effect on July 1, 2021, which is the first day of fiscal year (FY) 2022 for every state except Alabama, Michigan, New York, and Texas. Individual and corporate income tax changes usually take effect at the beginning of the calendar year for the sake of maintaining policy consistency throughout the tax year, but sales and excise tax changes often correspond with the beginning of a fiscal year.
11 min read![Worldwide investment at risk as business tax reform critical to capital investment costs expire and phase out Child Tax Credit changes and Child Tax credit reform options States should follow federal lead in postponing tax day](https://taxfoundation.org/wp-content/uploads/2020/03/linkedin-In-Stream_Wide___time-clock-tax-filing-compliance-e1584991459818-300x158.jpg)
Net Operating Loss Policies in the OECD
During the COVID-19 pandemic, several OECD countries temporarily expanded their NOL carrybacks and carryforwards to provide relief to illiquid but otherwise solvent businesses. These policies should be made permanent and, where necessary, expanded.
21 min read![State taxation of GILTI, Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases](https://taxfoundation.org/wp-content/uploads/2021/05/President_of_the_United_States_Joe_Biden_2021-300x200.jpg)
Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases
State taxation of GILTI is unconventional and economically uncompetitive and will become even more so if the federal government adopts a more aggressive approach to taxing GILTI, as outlined in the American Jobs Plan Act.
32 min read![expensing infrastructure Who bears the burden of corporate taxes? Learn more about who bears the burden of the corporate income tax (who actually pays corporate taxes) and the corporate tax burden](https://taxfoundation.org/wp-content/uploads/2021/05/corporate-business-factory-manufacturing-worker-e1622215177577-300x200.jpeg)
A Comparison of the Tax Burden on Labor in the OECD, 2021
Governments often justify higher tax burdens with more extensive public services. However, the cost of these services can be more than half of an average worker’s salary.
21 min read![Denmark has the highest average tax burden on capital income in Europe Taxing Capital Income Comparative Study](https://taxfoundation.org/wp-content/uploads/2021/05/Denmark-has-the-highest-average-tax-burden-on-capital-income-in-Europe-Taxing-Capital-Income-Comparative-Study-300x290.png)
Taxing Capital – An International Comparison
The taxation of capital—at both the individual and the corporate level—is much debated and affects economic growth by lowering the incentives to save and invest.
6 min read![State digital taxes and state digital tax proposals, digital advertising tax proposals](https://taxfoundation.org/wp-content/uploads/2021/05/State-digital-taxes-and-state-digital-tax-proposals-300x200.jpg)
States Consider Digital Taxes Amidst Conflicting Rationales
Digital advertising, social media, and data tax proposals have been introduced in nine states following enactment of Maryland’s digital advertising tax, which has since been postponed a year due to administrative and legal challenges.
14 min read![2022 state tax resource center offers leading 2022 state tax resources and 2022 state tax policy resources](https://taxfoundation.org/wp-content/uploads/2021/02/state-map-us-map-3-300x169.jpg)
Location Matters 2021: The State Tax Costs of Doing Business
A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.
8 min read![Biden international tax proposals. profit shifting](https://taxfoundation.org/wp-content/uploads/2021/04/Biden-Twitter-4-300x169.jpeg)
Effects of Proposed International Tax Changes on U.S. Multinationals
The international corporate tax changes in President Biden’s tax plan would increase tax rates on domestic income more than on foreign income, resulting in a net increase in profit shifting out of the US, according to our Multinational Tax Model.
33 min read![Modernizing Rental Car and Peer-to-Peer Car Sharing Taxes for a Post-Pandemic Future](https://taxfoundation.org/wp-content/uploads/2021/04/Rental-Car-Taxes-and-Car-Sharing-Taxes-e1619031738989-300x200.jpeg)
Modernizing Rental Car and Peer-to-Peer Car Sharing Taxes for a Post-Pandemic Future
The economic evidence shows that travelers and tourists are sensitive to price changes for rental cars and adjust their behavior to avoid the tax, harming state economies and the travel sector right as the industry is trying to recover from the effects of the coronavirus pandemic.
30 min read![R&D tax credit, Research and development tax credit, R&D amortization, federal research and development tax treatment, Reviewing the Federal Tax Treatment of Research & Development Expenses](https://taxfoundation.org/wp-content/uploads/2021/04/RD-tax1-300x200.jpg)
Reviewing the Federal Tax Treatment of Research & Development Expenses
Simplifying the R&D credit, making it more accessible for smaller firms, and ensuring full cost recovery for R&D expenses by canceling the upcoming R&D amortization are three things policymakers should consider when trying to improve the tax code for R&D.
40 min read![State conformity to federal pandemic relief, state tax conformity to federal COVID-19 relief legislation (CARES Act, American Rescue Plan), including Paycheck Protection Program (PPP) loans and unemployment compensation tax exclusion.](https://taxfoundation.org/wp-content/uploads/2021/03/State-conformity-to-federal-pandemic-relief-state-tax-conformity-to-federal-COVID-19-relief-legislation-CARES-Act-American-Rescue-Plan-including-Paycheck-Protection-Program-300x262.png)
State Conformity to Federal Pandemic-Related Tax Provisions in CARES and ARPA
With so many federal changes occurring in such a short amount of time—including some federal provisions changing more than once and a major change to the treatment of UC income occurring in the middle of tax filing season—state legislators have faced the challenge of responding to these changes quickly in order to provide certainty to taxpayers.
24 min read![depreciation Capital allowances and capital cost recovery across OECD countries, 2021. Learn more about capital allowance and capital recovery.](https://taxfoundation.org/wp-content/uploads/2020/04/factory-business-worker-manufacturing-e1586276659107-300x200.jpeg)
Capital Cost Recovery across the OECD, 2021
The ongoing pandemic has once again highlighted the importance of investment. To address the economic fallout of the pandemic, several OECD countries have temporarily accelerated depreciation schedules for various assets.
31 min read![UK tax reform, 2021 budget UK 2021 budget, UK corporate tax reform, UK corporation tax rate](https://taxfoundation.org/wp-content/uploads/2020/10/uk-london-united-kingdom-300x200.jpg)
Marginal Effective Tax Rates and the 2021 UK Budget
The 2021 UK budget introduces a two-year super-deduction of 130 percent for plant and equipment and a delayed corporate tax rate increase from 19 percent to 25 percent in 2023. These policies have differential impacts on marginal effective tax rates for different assets, implying investment incentives will not be uniform.
15 min read![American Rescue Plan state tax cuts Treasury clarification Biden international tax team, US treasury biden international tax appointees, Assistant Secretary in the Office of Tax Policy, Tax Policy as Deputy Assistant Secretary for Multilateral Tax, Kimberly Clausing, Rebecca Kysar and Itai Grinberg.](https://taxfoundation.org/wp-content/uploads/2020/05/US-Treasury-e1589467669268-300x200.jpeg)
Four Questions Treasury Must Answer About the State Tax Cut Prohibition in the American Rescue Plan Act
The American Rescue Plan Act’s restriction on states’ Fiscal Recovery Funds being used to directly or indirectly offset a net tax cut is vague and raises difficult questions of interpretation and application. A broad interpretation of this prohibition may be unconstitutional.
19 min read