Categories
Uncategorized

Latest CBO Report on Incomes and Taxes Shows that the Federal Fiscal System is Very Progressive

Key Findings Joe Biden has proposed an ambitious agenda that would make the federal fiscal system more progressive, and the huge budget deficits caused by the numerous COVID-19 relief packages could heighten the call for more tax revenues. What is needed are benchmark facts to guide these debates. A recent study by the Congressional Budget […]

Categories
Uncategorized

Who Benefits from the State and Local Tax Deduction?

As President Joe Biden and policymakers in Congress consider changes in tax policy over the coming year, the fate of the $10,000 state and local tax (SALT) deduction cap will be an ongoing part of the policy debate. Senate Majority Leader Chuck Schumer (D-NY) has expressed interest in repealing the SALT cap, which was originally […]

Categories
Uncategorized

New York Governor Proposes THC-based Tax on Recreational Marijuana

In his fiscal year 2022 budget proposal unveiled this week, New York Gov. Andrew Cuomo includes an excise tax on what could be legalized recreational marijuana. New York is looking to join neighboring New Jersey, where voters approved a ballot measure to legalize recreational marijuana last November. Gov. Cuomo expects the tax revenue to eventually […]

Categories
Uncategorized

Massachusetts Flavored Tobacco Ban Has Severe Impact on Tax Revenue

Since June 1, 2020, Massachusetts has banned the sale of flavored tobacco products, including menthol cigarettes. When signing the ban into law, Gov. Charlie Baker (R) argued that the ban, which is the broadest in the country, was enacted to limit youth uptake of nicotine products. While youth uptake is a very real concern which deserves the […]

Categories
Uncategorized

To What Extent Does Your State Rely on Property Taxes?

Property taxes represent a major source of revenue for states and the largest source of tax revenue for localities. In fiscal year 2018, the most recent data available, property taxes were such a significant source of local revenue that they accounted for 71.7 percent of local tax collections nationwide and 31.1 percent of total U.S. […]

Categories
Uncategorized

President-elect Biden Outlines Plan for Additional Coronavirus-Related Relief and Stimulus

In releasing details of his coronavirus relief plan Thursday evening, President-elect Joe Biden envisions a two-part response to the pandemic and economic crisis. The first aspect builds on previous rounds of relief enacted in 2020, and would provide larger payments to individuals, expanded relief for households and small businesses, funding for vaccine distribution, and aid […]

Categories
Uncategorized

What to Expect During the 2021 Tax Season

In the next few weeks, the Internal Revenue Service (IRS) will begin accepting federal tax returns for the 2020 tax year. The coronavirus pandemic and multiple pandemic-related relief packages passed last year will make the tax season unique for taxpayers and for the IRS. Congress introduced several tax policy changes in 2020 that will impact […]

Categories
Uncategorized

The Drawbacks of State Taxes on Financial Transactions

Key Findings: A financial transaction tax (FTT) would raise transaction costs, which would result in a lower trading volume, lower liquidity, potentially increased volatility, and lower price of assets. Lower volume limits revenue potential, lower liquidity harms traders’ ability to buy and sell shares at the best price level, and increased volatility can increase risks. […]

Categories
Uncategorized

State and Local Sales Tax Rates, 2021

Table of Contents Key Findings Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest average combined state and local sales tax rates are Tennessee (9.55 percent), Louisiana (9.52 […]

Categories
Uncategorized

State Tax Changes Effective January 1, 2021

Table of Contents Key Findings Twenty-six states and the District of Columbia had notable tax changes take effect. Arkansas and Iowa reduced their corporate income tax rates and made other substantive changes to their corporate income tax base. Arizona and New Mexico increased their top marginal individual income tax rates by adding another bracket. Arkansas […]