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Details and Analysis of Democratic Presidential Nominee Joe Biden’s Tax Plan

October 2020 Update: Since our September analysis of the Biden plan, we have included the campaign proposal to expand the estate and gift tax by reducing the exemption amount to $3.5 million and increasing the top rate for the estate tax to 45 percent, which has impacted our economic, revenue, and distributional estimates. We have also […]

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Biden-Harris Proposals Can Raise Taxes on the Middle Class

Democratic presidential nominee Joe Biden and running mate Kamala Harris have said that, if elected, their administration would not raise taxes on anyone who makes less than $400,000 annually. We and other analysts from across the political spectrum concluded that the tax increases proposed by the Biden-Harris campaign, which include higher corporate and individual income […]

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Congressional Budget Office Releases 2017 Data on Household Income and Tax Burdens

Last week, the Congressional Budget Office (CBO) published an updated analysis of the distribution of American households’ income and tax burdens for 2017. The new CBO data reinforces existing trends in household income and tax burdens, showing that the federal tax system is progressive and incomes continued to rise in 2017 as part of the […]

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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 […]

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Seventh Time’s the Charm: New Jersey Passes Millionaires Tax

After six unsuccessful tries at passage, it appears the coronavirus crisis has tipped the scales in favor of Gov. Phil Murphy’s (D) millionaires tax. After reaching a deal with legislators earlier this month, Murphy included a tax increase on those making more than $1 million in his FY 2021 budget. The New Jersey legislature confirmed […]

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Placing Joe Biden’s Tax Increases in Historical Context

Supporters and critics of Democratic presidential nominee Joe Biden’s tax plan have made a variety of claims about the size of the tax proposals, ranging from “not big enough” to the “biggest tax increase in history.” Comparing his tax proposals—which include higher taxes on high-income earners and businesses paired with more generous provisions for households […]

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Contrary to Popular Belief, Value-Added Taxes Found to Be Slightly Progressive

Up until now value-added taxes (VAT) were considered to be highly regressive taxes. Numerous studies have found that VAT appears to be regressive when measured as a percentage of current income. Nevertheless, a recent OECD paper used household expenditures microdata from 27 OECD countries to reassess this often-made conclusion that VAT is regressive. Value-added taxes […]

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Brazil has the Opportunity to Implement a Simple Consumption Tax and Foster Tax Progressivity at the Same Time

On July 21 the Brazilian government sent to its Congress the first stage of its proposed tax reform. The proposal includes unifying two levies on consumption, the so-called PIS and COFIN taxes, into a 12% value-added tax (VAT). Brazil has one of the world’s most complex tax systems. According to the World Bank while a […]

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Peruvian “Solidarity Tax” Unlikely to Offset Deficit Spending

Due to the COVID-19 crisis, Peru has found itself with high levels of government spending that has resulted in a significant deficit. In order to offset costs, the government is considering a temporary wealth tax that has been termed the “Solidarity Tax.” However, while it is important that Peru find ways to offset its deficit […]