Sales Taxes

Beer Taxes by State, 2023

Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.

The Wayfair Sales Tax Ruling, Five Years Later

It’s the 5th anniversary of the groundbreaking Wayfair Supreme Court decision–a ruling that marked a new era of sales tax collection and changed how we think about taxation in the digital age.

North Carolina’s Budget Should Prioritize Pro-Growth Structural Reforms

As fiscal year 2023 draws to a close, North Carolina’s House and Senate have each passed their own versions of the biennial budget for fiscal years 2024-25. While legislative leaders have generally agreed to overall spending levels, negotiations remain ongoing to resolve different approaches to tax policy.

State Tax Reform and Relief Trend Continues in 2023

Ranking Sales Taxes on the 2023 State Business Tax Climate Index

An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate.

The FairTax?

The FairTax, on paper, sounds simple. But when you pull back the curtains, this proposal leads to more questions than answers.

Do Consumption Taxes Do a Better Job of Taxing Criminals?

One of the arguments in favor of the FairTax is that it would do a better job of taxing the underground economy than the income tax it is intended to replace.

America’s Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions

The overall U.S. tax and transfer system is overwhelmingly progressive, and understanding the extent—and source—of that progressivity is essential for lawmakers considering the trade-offs associated with each tax policy decision.

Facts & Figures 2023: How Does Your State Compare?

Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.

New Mexico’s Omnibus Tax Bill

Adopting the sound tax reforms still pending in Santa Fe is an opportunity for New Mexico to keep up with the pack or risk falling further behind.

Kentucky Should Refrain from Expanding Its Taxation of Business Inputs

As final negotiations occur between the House and Senate, legislators should avoid adopting new policies that would jeopardize Kentucky’s business tax competitiveness.

Oklahoma Lawmakers’ Tax Reform Plan Would Put State in Top 10

The changes put forth in a new package of bills would represent significant pro-growth change for Oklahoma that would set the state up for success in an increasingly competitive tax landscape.

Analyzing the Kansas Senate’s Proposed Tax Changes

As Kansas legislators consider additional tax policy changes this legislative session, they should prioritize economic growth and a structurally sound tax code.

Sources of U.S. Tax Revenue by Tax Type, 2023

Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.

Cities Want to Tax Streaming Video Services, but They’re Not Sure Why

A growing number of cities, in red states like Arkansas and Texas, blue states like California and New Jersey, and purple states like Georgia and Nevada, have pursued streaming taxes in recent years.

Sources of Government Revenue in the OECD, 2023

Designing tax policy in a way that sustainably finances government activities while minimizing distortions is important for supporting a productive economy.

Tennessee Looking Toward Pro-Growth Change in 2023

With other states upping their game to attract ever-more-mobile people and businesses, lawmakers and the governor are not content to leave Tennessee’s business taxes in their current, uncompetitive form.

State and Local Sales Tax Rates, 2023

While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.

State Tax Policy as an Inflation Response

At the end of 2022, prices were 14.6 percent higher than they were two years prior. That’s the fastest inflation rate over any two calendar years since the stagflation era of the late 1970s. State policymakers are understandably interested in bringing any tools at their disposal to bear on the problem. And many of them are reaching for tax policy solutions.

Fair Tax FAQ

The FairTax is a proposal to replace all major sources of the federal government’s revenue—the individual income tax, corporate income tax, estate and gift taxes, and payroll tax—with a national sales tax and rebate, abolishing the IRS in the process.