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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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Federal Corporate Tax Revenue and All Federal Tax Collections Headed for Another Record High

After corporate tax revenue came in at a record high of $372 billion in fiscal year 2021, we have been eagerly awaiting the forecast for fiscal year 2022, which the Congressional Budget Office (CBO) normally publishes in January but now plans for the week of May 23rd. The White House has included a forecast in […]

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Sources of U.S. Tax Revenue by Tax Type

Policy and economic differences among OECD countries have created variances in how they raise tax revenue, with the United States deviating substantially from the OECD average on some sources of revenue. Different taxes create different economic impacts, so policymakers should always consider how tax revenue is raised and not just how much is raised. This […]

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Sources of Government Revenue in the OECD, 2022

Developed countries raise tax revenue through a mix of individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes. The mix of tax policies can influence how distortionary or neutral a tax system is. Taxes on income can create more economic harm than taxes on consumption and property. […]

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Massachusetts Should Reject Gross Receipts Taxes

The economic harms of the gross receipts tax (GRT) were well understood by the early 20th century. Not only is the tax inequitable, but it is also inefficient and distortionary. That is why most states abandoned GRTs in the early 1900s, as states developed the capacity to administer less harmful taxes. Unfortunately, some policymakers in […]

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The Surprising Challenge of Too Much Tax Revenue—and Florida’s No-Gas-Tax Solution

Florida Governor Ron DeSantis (R) knows how to make a splash, and his proposal to suspend the state’s gas tax—temporarily, but without a specific end date—will only burnish that reputation. Citing rising prices at the pump and the state’s substantial revenue surplus, the governor is calling upon the legislature to take the state’s gas tax […]

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Ohio’s CAT Is Out of the Bag

Coming out of the pandemic, the state of Ohio is estimating significant tax revenue growth, and a group of Ohio lawmakers is looking to take advantage and repeal the Commercial Activity Tax (CAT). Ohio’s CAT, implemented in 2005 as part of tax reform that lowered and consolidated business taxes, is one of only a few […]

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Mississippians Would Benefit from Sustainable Income Tax Reduction

Thanks to increased tax revenues from higher consumer spending, sustained economic growth, and both the primary and secondary effects of federal COVID-19 relief programs, many states are flush with cash, and a significant number have used at least some of their surplus to provide tax relief. Many Mississippi lawmakers would like to join them. As […]

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The Rich Are Not Monolithic and Taxing Their Wealth Invites Tax Collection Volatility

Congressional Democrats are reported to be weighing a special tax on the assets of billionaires to raise revenues to pay for their Build Back Better spending plan. There are two fundamental challenges to such a plan. First, the incomes and wealth of such individuals are anything but stable; they rise and fall with the economy […]

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Corporate Tax Revenue Hit an All-Time High in 2021

The Congressional Budget Office (CBO) now estimates that the federal government received $370 billion in corporate tax revenue over the past year (fiscal year 2021), matching the record high level from 2007. This is a 75 percent increase over the previous year’s total, reflecting a rebound in corporate profits and the broader economy. This year’s […]