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Efforts to Improve Tax Treatment of Saving Gain Traction on Hill

Last week, the Senate Finance Committee approved the Enhancing American Retirement Now (EARN) Act, moving closer to a potential agreement to reform retirement savings this year. That is one of several proposals recently introduced—including the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (RISE & SHINE)—that would improve the […]

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The Impact of Individual Income Tax Changes on Economic Growth

Key Findings Research almost invariably shows a negative relationship between income tax rates and gross domestic product (GDP). The mobility of higher-skilled and higher income earners in an open economy works against the effort of progressive state and local tax systems to achieve long-term redistribution of income. The likelihood of an employed head of household […]

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Pro-Growth Tax Reforms Throughout the Republican Study Committee’s FY 2023 Budget

The Republican Study Committee (RSC) released its FY 2023 budget today, led by Budget and Spending Task Force Chair Rep. Kevin Hern (R-OK) and RSC Chairman Jim Banks (R-IN), and prescribes several pro-growth tax reforms that would simplify the tax code and encourage business investment. Among the most impactful reforms are permanence for the Tax […]

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Biden’s FY 2023 Budget Would Result in $4 Trillion of Gross Revenue Increases

This week, Treasury Secretary Janet Yellen will testify before the Senate Finance Committee and the House Ways and Means Committee on President Biden’s Fiscal Year 2023 Budget Proposals. Combined with the tax increases in the Build Back Better Act (BBBA), which the budget assumes becomes law, President Biden would raise revenues by $4 trillion on […]

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President Biden’s 61 Percent Tax on Wealth

As part of President Biden’s proposed budget for fiscal year 2023, the White House has once again endorsed a major tax increase on accumulated wealth, adding up to a 61 percent tax on wealth of high-earning taxpayers. Biden’s latest budget includes two major tax increases on accumulated wealth originally proposed in last year’s American Families […]

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Proposed Minimum Tax on Billionaire Capital Gains Takes Tax Code in Wrong Direction

This week, President Biden introduced a new tax proposal as part of the White House fiscal year 2023 budget to raise taxes on households with net wealth over $100 million. The proposal would require wealthy households to remit taxes on unrealized capital gains from assets such as stocks, bonds, or privately held companies. Biden’s proposal […]

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The Aftermath of Arizona’s Proposition 208 and the Potential for a Flat Tax

The saga of Proposition 208, Arizona’s income surtax, appears to have finally reached its conclusion but some structural uncertainly remains. The initiated state statute, which assessed a 3.5 percent surtax on income over $250,000 ($500,000 for joint filers), was approved by voters on Election Day 2020. But by the end of November, a lawsuit (Fann […]

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Iowa Enacts Sweeping Tax Reform

When Iowa Gov. Kim Reynolds (R) delivered the Republican response to the State of the Union Address on March 1, she touted a state tax reform package on which the ink was barely dry: “Today, I signed legislation that eliminates Iowa’s tax on retirement income and sets our tax rate at 3.9 percent. That’s less […]

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Georgia Income Tax Reform Would Improve Standing Among Neighbors, Country

This year’s state legislative sessions have been characterized by a focus on tax policy, with five states already enacting significant individual or corporate income tax reform. Lawmakers in Georgia aren’t interested in being left behind. While HB 1437 was previously a placeholder bill, the sponsors have now shared their plan to consolidate Georgia’s six individual […]

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Summary of the Latest Federal Income Tax Data, 2022 Update

The Internal Revenue Service (IRS) has released data on individual income taxes for tax year 2019, showing the number of taxpayers, adjusted gross income, income tax paid, and income tax shares by income percentiles.[1] The new data outlines the tax system under the second year of the Tax Cuts and Jobs Act (TCJA), the last […]