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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
Research

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
Data

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
Denmark has the highest average tax burden on capital income in Europe Taxing Capital Income Comparative Study
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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
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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
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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
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.
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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.
Data

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
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Europe

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
Mississippi income tax repeal and Mississippi income tax eform, Mississippi sales tax changes, Mississippi eliminate income tax proposal. Mississippi income tax phase out Governor Tate Reeves
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Evaluating Mississippi’s Plan to Phase Out the Individual Income Tax

Mississippi has an opportunity to become the 10th state without an individual income tax and to do so with sales tax rates which, while certainly high, are in line with regional competitors. For such a momentous undertaking, however, policymakers should be equipped with reliable revenue projections and a detailed accounting of how much revenue is projected to come from each offsetting change. A change worth doing is worth doing right.

15 min read
Research

Evaluating Proposals to Increase the Corporate Tax Rate and Levy a Minimum Tax on Corporate Book Income

President Biden and congressional policymakers have proposed several changes to the corporate income tax, including raising the rate from 21 percent to 28 percent and imposing a 15 percent minimum tax on the book income of large corporations, to raise revenue for new spending programs. Our new modeling analyzes the economic, revenue, and distributional impact of these proposals.

46 min read
Carbon Border Adjustment Mechanism EU CBAM carbon price carbon tariffs US global minimum tax US tax incentives Build Back Better tax rate on gilti Global Intangible Low Tax Income (GILTI) Global intangible low-taxed income US cross-border tax reform and GILTI Global Intangible Low Tax Income. Foreign tax credits
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U.S. Cross-border Tax Reform and the Cautionary Tale of GILTI

The Biden campaign and Senate Democrats identified changes to GILTI that would increase the taxes U.S. companies pay on their foreign earnings. Rather than tacking on changes to a system that is currently neither fully territorial nor worldwide, policymakers should evaluate the structure of the current system with a goal of it becoming more, not less, coherent.

51 min read
Maryland sales tax hike on businesses proposed by state lawmakers
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Maryland’s Digital Advertising Tax Is Unworkably Vague

In addition to its economic impact on Maryland businesses and the likelihood of serious legal challenges, Maryland’s proposed digital advertising tax is incredibly vague on vital definitions, creating uncertainty about where revenue is sourced and when it is subject to the tax.

17 min read
EU tax research The European Commission and the Taxation of the Digital Economy EU digital levy
Research
Europe

The European Commission and the Taxation of the Digital Economy

The consultation on the EU’s digital levy provides an opportunity for policymakers and taxpayers to reflect on the underlying issues of digital taxation and potential consequences from a digital levy. Unless the EU digital levy is designed with an OECD agreement in mind, it is likely to cause more uncertainty in cross-border tax policy.

12 min read