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Vapor Taxes by State, 2022

Today’s map looks at the design of excise taxes for vaping and tobacco alternatives, which is important in the pursuit of harm reduction from smoking. Higher vapor taxes on products such as E-cigarettes could encourage vapors to go back to smoking cigarettes and will discourage cigarette smokers from switching to vaping products.  Since vaping entered […]

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Marginal Tax Rates and Economic Opportunity

Note: This analysis was published in conjunction with the Archbridge Institute. Below is an excerpt of the full analysis. Click the link above to access the full report in PDF format. Key Findings The marginal tax wedge is relevant for understanding how workers might benefit (or not) from an increase in pay once taxes enter […]

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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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State Tax Changes Taking Effect July 1, 2022

Although the majority of 2022 state tax changes take effect at the start of the calendar year, some are implemented at the beginning of the fiscal year. Individual and corporate income tax changes usually take effect at the beginning of the calendar year to maintain policy consistency throughout the tax year, but sales and excise […]

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Tax Burden on Labor in Europe

Governments with higher taxes generally tout that they provide more services as an explanation, and while that is often true, the cost of these services can be more than half of an average worker’s salary, and for most, at least a third of their salary. Individual income taxes, payroll taxes, and consumption taxes like value-added […]

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The U.S. Tax Burden on Labor

The Biden administration has put forward significant plans for changing tax policy, including tax changes that would impact workers. While the administration is trying to narrowly target tax hikes to individuals who earn more than $400,000 and provide tax relief to families, it is helpful to understand what the tax burden looks like for workers outside of […]

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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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The Legacy of Harvard Economist Dale Jorgenson

Noted economist Dale W. Jorgenson, the Samuel W. Morris University Professor at Harvard University, passed away on June 8. He was 89. Dr. Jorgenson’s insights and analytical approach have enormously improved the understanding by the economics community of the effect of taxation on capital formation. He developed the concept of the cost of capital, the […]

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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 […]