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How Would Biden’s Tax Plan Change the Competitiveness of the U.S. Tax Code?

Our International Tax Competitiveness Index has been used to compare the tax systems of OECD countries since 2014. At the beginning of that period, the United States ranked 28th out of 36 countries in the Index. Following the 2017 U.S. tax reform, the rank improved dramatically to 20th, and the U.S. now ranks 21st. The […]

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Role of the 2017 Tax Reform in the Nascent U.S. Economic Recovery

While there is still plenty of work to be done to get unemployed Americans back to work, the U.S. economy as a whole is now recovering strongly from the pandemic-induced economic downturn, outperforming forecasts from earlier in the year and outperforming most other developed countries. The Atlanta Federal Reserve’s “nowcast” indicates that the U.S. economy […]

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Reviewing the Commitment to American GROWTH Act

Last week, Congressman Kevin Brady (R-TX) and U.S. House Minority Leader Kevin McCarthy (R-CA) introduced H.R. 11, the Commitment to American GROWTH Act, outlining an alternative to Democratic presidential nominee Joe Biden’s tax vision. The proposal would address upcoming expirations of the 2017 Tax Cuts and Jobs Act (TCJA) and create or expand other tax […]

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International Tax Competitiveness Index 2020

Launch Interactive Tool Note: Each year we review and improve the methodology of the Index. For that reason, prior editions are not comparable to the results in this 2020 edition. All data and methodological notes are accessible in our GitHub repository. Introduction The structure of a country’s tax code is an important determinant of its economic […]

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Pillars, Blueprints, an Impact Assessment, and Construction Delays

Monday, the OECD released blueprints for proposals on changing international tax rules alongside an impact assessment based on the overall design of the proposals. While the blueprints cover proposals both for changing where large multinationals owe corporate tax and designing a global minimum tax, there are still many unanswered questions. The OECD has been working […]

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Carbon Taxes in Europe

In recent years, several countries have taken measures to reduce carbon emissions using environmental regulations, emissions trading systems (ETS), and carbon taxes. In 1990, Finland was the world’s first country to introduce a carbon tax. Since then, 16 European countries have followed, implementing carbon taxes that range from less than €1 per metric ton of […]

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Spanish Taxpayers to Be Hit by Two Major Taxes in 2021

Spain’s upper house passed two major tax bills today: the financial transaction tax (FTT) and the digital service tax (DST).  Both taxes will go into effect in January 2021, three months after their publication in the Spanish Official Gazette. The FTT is a 0.2 percent tax on the purchase of shares of Spanish companies with […]

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Does Your State Have a Throwback or Throwout Rule?

This week’s state tax map looks at throwback and throwout rules in states’ corporate tax codes. These rules may not be widely understood, but they have a notable impact on business location and investment decisions and reduce economic efficiency for the states which impose such rules. Over the long run, these rules reduce competitiveness while yielding very […]

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Twelve Things to Know About the “Fair Tax for Illinois”

Note: This report was originally published on March 11, 2019, based on the information in Governor J.B. Pritzker’s “Fair Tax for Illinois” presentation, delivered on March 7, 2019. The report has been updated to reflect the rates as adopted in Public Act 101-0008, which will take effect if a constitutional amendment is approved by voters on […]

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State and Local Tax Ballot Measures to Watch on Election Day 2020

Featured Ballot Measures Arizona Proposition 207 Arizona Proposition 207 would legalize recreational marijuana and tax retail sales at 16 percent of retail price. Arizona forecasts roughly $166 million in excise tax revenue when the market has matured, and this revenue would be allocated to community colleges, police departments, fire departments, transportation funding, and a new Justice […]