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Business Tax Collections Within Historical Norm After Accounting for Pass-through Business Taxes

A common argument for raising the corporate income tax rate is that collections as a share of gross domestic product (GDP) fell after the rate was reduced to 21 percent as part of the Tax Cuts and Jobs Act (TCJA) in 2017. But that argument is incomplete, as the U.S. also has a large pass-through […]

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How High Are State and Local Tax Collections in Your State?

Although Tax Day has been pushed back this year, mid-April is still a good occasion to take a look at tax collections in the United States. Because differing state populations can make overall comparisons difficult, today’s state tax map shows state and local tax collections per capita in each of the 50 states and the […]

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Testimony: Convenience Rules and Remote Work in Arkansas

The following is written testimony on Arkansas Senate Bill 484, submitted to the Arkansas Senate Committee on Revenue and Taxation. Chair Sample, Vice-Chair Dismang, and Members of the Committee: I regret that it is not possible to appear before you today as you consider Senate Bill 484, but in lieu of that, as you consider […]

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IMF Tax Proposals: Shrink Inequality or Sink Post-Pandemic Recovery?

Countries face twin economic challenges with the COVID-19 pandemic: maintain fiscal support to businesses that have been affected by the pandemic and prepare for an uneven and uncertain economic recovery, and work towards budgetary stability and reduce the risks associated with growing public debt. However, moving too fast towards budgetary stability either through tax hikes […]

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Portland Small Business Owners Facing Weirdly High New Taxes—and It Could Get Worse

Newly implemented county and regional taxes yield state and local top marginal tax rates in excess of 26 percent for many Portland small businesses, and if all of President Biden’s tax proposals were adopted, those owners could face all-in marginal rates of more than 80 percent, far and away the highest in the country going […]

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14.8% Individual Income Tax and 16.1% Corporate Income Tax Coming To New York City?

Ten months into New York’s just-ended fiscal year (most recent data), state tax revenue was actually up year-over-year. By a miniscule amount—it’s probably best to see FY 2021 revenue as essentially flat—but up nonetheless, it’s a curious backdrop for a proposal to raise both individual and corporate income taxes. If a tentative budget agreement goes […]

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Evaluating West Virginia Income Tax Repeal Plans

Table of Contents Executive Summary Income tax repeal is on the agenda in West Virginia, with Governor Jim Justice (R) and Republicans in both the House and Senate releasing plans for dramatically lowering or eliminating the state’s individual income tax. Despite their shared aims, these plans represent vastly different approaches. They are not even aligned […]

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Congressional Budget Office and Tax Foundation Modeling Show That Some Tax Hikes Are More Damaging Than Others

A recent working paper by economists at the Congressional Budget Office (CBO) shows that not all taxes are created equal—progressive taxes on labor income and taxes on capital income would have a negative impact on the economy, capital investment, and jobs, especially when compared to flatter taxes on labor income. Policymakers should consider these results […]

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Testimony: Senate Budget Committee Hearing on the Progressivity of the U.S. Tax Code

Table of Contents Chairman Sanders, Ranking Member Graham, and members of the Committee. Thank you for the opportunity to testify before you today. There is no objective standard for what defines “fair share”; it is a purely subjective concept. But there are facts, which are objective, and the facts suggest that the U.S. tax and […]

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How the CARES Act Shifted the Composition of Tax Expenditures Towards Individuals

In November 2020, the Joint Committee on Taxation (JCT) released its annual report on expenditures in the tax code, showing a total of almost $1.8 trillion in 2020, up from $1.5 trillion in 2018. Much of that roughly $1.8 trillion was due to tax relief provided by the CARES Act—and reflect the policy choice to […]