Categories
Uncategorized

The Bipartisan Infrastructure Plan Avoids Tax Increases, Undermines User-Pay Principle, and Misses Chance to Modernize Obsolete Programs

The Senate has begun deliberations over a bipartisan plan to provide $550 billion in new spending for a wide range of infrastructure projects, including roads, bridges, public transit, broadband, and the electrical grid. The good news is that lawmakers avoided raising taxes to cover the cost of the new spending and instead used some reasonable […]

Categories
Uncategorized

Wisconsin Legislature Considering Several Pro-Growth Tax Reforms

The Wisconsin Assembly and Senate this week are considering several tax reforms as part of the budget for the fiscal year (FY) 2022-23 biennium, which begins Thursday (July 1). Several were precipitated by the Wisconsin Legislative Fiscal Bureau’s (LFB) announcement earlier this month that the state is projected to end the current fiscal year, as […]

Categories
Uncategorized

Wisconsin’s Surplus Presents Opportunity for Down Payment on Future Economic Growth

As Wisconsin legislators work to finalize the state budget for the fiscal year (FY) 2022-23 biennium that begins July 1, the Wisconsin Legislative Fiscal Bureau (LFB) on Tuesday reported the state has substantially more revenue to work with than was anticipated when the LFB issued revenue projections earlier this year. Specifically, the LFB’s revised three-year […]

Categories
Uncategorized

Tax Foundation Webinar Recaps the Complexities of the 2021 Tax Filing Season

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! […]

Categories
Uncategorized

Location Matters 2021: The State Tax Costs of Doing Business

Note: A landmark comparison of corporate tax costs in all 50 states, Location Matters calculates and analyzes the tax burdens of eight model firms: a corporate headquarters, a research and development facility, a technology center, a data center, a shared services center, a distribution center, a capital-intensive manufacturer, and a labor-intensive manufacturer. Each firm is […]

Categories
Uncategorized

A Neutral Tax Code Counts Unemployment Compensation as Taxable Income

During the pandemic, implementation issues in some states resulted in underwithholding income tax due on enhanced unemployment benefits, and surprise tax bills, for many jobless workers. For instance, in California, when workers opted to withhold 10 percent of their unemployment compensation for taxes, that only applied to state benefits and not enhanced federal benefits. The […]

Categories
Uncategorized

U.S. COVID-19 Relief Provided More Than $60,000 in Benefits to Many Unemployed Families

With passage of the American Rescue Plan (ARP), much of the $6 trillion in relief over the past year was directed to the unemployed in unemployment insurance (UI) benefits and to low- and moderate-income households in stimulus payments and child tax credits (CTC). The unemployment insurance benefits paired existing state-level weekly aid with a federal […]

Categories
Uncategorized

The American Rescue Plan Act Greatly Expands Benefits through the Tax Code in 2021

American Rescue Plan Act of 2021 The United States has provided about $6 trillion in total economic relief to the American people during the coronavirus pandemic, including the $1.9 trillion that was approved when President Biden signed the American Rescue Plan (ARP) Act into law on Thursday, amounting to about 27 percent of gross domestic […]

Categories
Uncategorized

Pandemic-Era Unemployment Compensations Could Generate $78 Billion in Income Tax Collections

Since the start of last year, the federal and state governments have spent nearly $600 billion on unemployment compensation payments, compared to the prior level of about $30 billion a year. It’s a lot of money—and it’s taxable at the federal level and in many states. Through February 13th, the federal government has spent $441 […]

Categories
Uncategorized

Join Us for a Free “State Tax Policy Boot Camp”

We’re about to launch a free six-week course in state taxation, and we’d like you to join us. This coming Tuesday, February 16th, the Tax Foundation will kick off its “State Tax Policy Boot Camp,” designed with lawmakers and legislative staff in mind, but ideal for anyone interested in gaining a better understanding of state […]