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Facts and Figures 2021: How Does Your State Compare?

Was this page helpful to you? Thank You! The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work? Contribute to the Tax Foundation Share This Article! Let us know how we can better serve you! […]

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New Hampshire Bill Aims to Reduce Tax Burden on Businesses

A year ago, it seemed possible that New Hampshire was headed toward a triggered tax increase. Instead, lawmakers may trim business tax rates and begin the phaseout of the state’s tax on interest and dividend income, which would take away the asterisk and make New Hampshire the ninth state to forgo an individual income tax […]

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Insights into the Tax Systems of Scandinavian Countries

Scandinavian countries are well-known for their broad social safety net and their public funding of services such as universal health care, higher education, parental leave, and child and elderly care. High levels of public spending naturally require high levels of taxation. In 2019, Denmark’s tax-to-GDP ratio was at 46.3 percent, Norway’s at 39.9 percent, and Sweden’s at […]

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Changes to the Tax Base Matter When Evaluating the Impact of Tax Reforms

In December, scholars David Hope and Julian Limberg released a study with the London School of Economics (LSE) examining the economic effects of reducing tax rates for high-income individuals and corporations. The paper illustrates how overlooking an important element of the tax system—the structure of the tax base—can lead to an incomplete understanding of how […]

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Sources of Government Revenue in the OECD

Table of Contents Key Findings In 2019, OECD countries raised on average one-third of their tax revenue through consumption taxes such as the Value-added Tax (VAT), making consumption taxes the most important revenue source. Social insurance taxes and individual income taxes were the second and third most important sources of tax revenue in the OECD, […]

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What the GameStop Saga Can Teach Us About Mark-to-Market Taxation of Capital Gains

Imagine a mark-to-market capital gains tax, like the one proposed in New York, generating liability in a GameStop-style situation where retail investors have shares that have soared in value by orders of magnitude, get taxed on those gains, and then hold on too long and sell as the stock crashes back to earth. Whether you […]

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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. […]

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2020 Spanish Regional Tax Competitiveness Index

Note: Below is an excerpt of the 2020 Spanish Regional Tax Competitiveness Index (RTCI), a recent report published in collaboration with Fundación para el Avance de la Libertad. The RTCI for Spain is designed to analyze how well regions structure their tax systems, allows policymakers, businesses, and taxpayers to evaluate and measure how their regions’ tax systems […]

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Taxes and New York’s Fiscal Crisis: Evaluating Revenue Proposals to Close the State’s Budget Gap

Executive Summary At first glance, New York faces projected budget shortfalls as arresting as the New York City skyline, and to meet the challenge, some have proposed taxes that would rival that skyline for staggering height. The challenge confronting policymakers is real, though perhaps not as dire as once feared. Its intensity depends on the […]

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A Preliminary Look at 2019 Tax Data for Individuals

The IRS has released tax data covering the first 30 weeks of the tax season, providing a glimpse of how individual taxpayers fared in 2019, the second tax year under the Tax Cuts and Jobs Act (TCJA). The preliminary data provides aggregate information by income group on a range of topics, including sources of income […]