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How Would Biden’s Tax Plan Change the Competitiveness of the U.S. Tax Code?

Our International Tax Competitiveness Index has been used to compare the tax systems of OECD countries since 2014. At the beginning of that period, the United States ranked 28th out of 36 countries in the Index. Following the 2017 U.S. tax reform, the rank improved dramatically to 20th, and the U.S. now ranks 21st. The […]

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Arizona Proposition 208 Threatens Arizona’s Status as a Destination for Interstate Migration

Next month, Arizona voters will decide whether to create a new fifth income tax bracket that would raise the top rate from 4.5 percent to 8 percent. Proposition 208 would create an additional 3.5 percent tax on income above $250,000 ($500,000 for joint filers) to generate additional revenue for education. The tax would be levied […]

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International Tax Competitiveness Index 2020

Launch Interactive Tool Note: Each year we review and improve the methodology of the Index. For that reason, prior editions are not comparable to the results in this 2020 edition. All data and methodological notes are accessible in our GitHub repository. Introduction The structure of a country’s tax code is an important determinant of its economic […]

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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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Twelve Things to Know About the “Fair Tax for Illinois”

Note: This report was originally published on March 11, 2019, based on the information in Governor J.B. Pritzker’s “Fair Tax for Illinois” presentation, delivered on March 7, 2019. The report has been updated to reflect the rates as adopted in Public Act 101-0008, which will take effect if a constitutional amendment is approved by voters on […]

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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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Colorado Proposition 116: Will Voters Reduce the State Income Tax Rate?

This Election Day, Colorado voters will weigh in on Proposition 116, the Decrease Income Tax Rate from 4.63% to 4.55% Initiative. It would permanently reduce the state’s flat income tax rate from 4.63 to 4.55 percent and be retroactive to January 1, 2020, meaning taxpayers would benefit from the relief starting this year. It is […]

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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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A Carbon Tax to Make the TCJA’s Individual Provisions Permanent

Key Findings At the end of 2025, most individual income tax provisions of the Tax Cuts and Jobs Act (TCJA) will expire, increasing taxes on individuals. Making these provisions permanent is estimated to reduce federal tax revenues by $176 billion annually (in 2021 dollars). While making these provisions permanent would increase the long-run size of […]

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Recent Changes in Top Personal Income Tax Rates in Europe

In 2018, revenue from personal income taxes made up 23.9 percent of total tax revenue across OECD countries. Countries tax labor income in various ways through payroll taxes, personal income taxes, and, in some cases, surtaxes. From 2017 to 2020, ten European countries in the OECD changed their top personal income tax rates. Of these ten countries, six cut their […]