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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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Sen. Elizabeth Warren’s Wealth Tax Legislation Faces Administrative and Economic Challenges

The United States has never had a comprehensive wealth tax, and while some European countries have them, many more have repealed wealth taxes over the past several decades. That has not deterred Sen. Elizabeth Warren (D-MA) with Reps. Pramila Jayapal (D-WA) and Brendan Boyle (D-PA) from introducing legislation to create a tax on household net […]

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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 […]

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Washington State Floats a Wealth Tax Which Relies Almost Exclusively on Four People

What happens if you create a tax and its base is, for all intents and purposes, four people? If some Washington lawmakers had their way, we might find out. House Bill 1406 would impose a wealth tax exclusively on billionaires, accomplished by exempting the first $1 billion in household wealth. While most European countries have […]

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State Tax Changes Effective January 1, 2021

Table of Contents Key Findings Twenty-six states and the District of Columbia had notable tax changes take effect. Arkansas and Iowa reduced their corporate income tax rates and made other substantive changes to their corporate income tax base. Arizona and New Mexico increased their top marginal individual income tax rates by adding another bracket. Arkansas […]

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Wealth Taxes in Europe

Net wealth taxes are recurrent taxes on an individual’s wealth, net of debt. The concept of a net wealth tax is similar to a real property tax. But instead of only taxing real estate, it covers all wealth an individual owns. As today’s map shows, only three European countries covered levy a net wealth tax, […]

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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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Spain’s Recovery Budget Comes with Tax Hikes

Spanish taxpayers are facing several tax hikes in addition to the two major taxes—a financial transactions tax (FTT) and a digital services tax (DST)—approved by Spain’s upper house less than two weeks ago. The coalition government this week presented the 2021 budget which includes a 53 percent increase in non-financial public spending from last year, […]

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Higher Taxes Might Not Be the Solution for Canada and its Provinces

As Canadian provinces increased their spending due to Covid-19 measures ranging from 0.2 percent of GDP in New Brunswick up to 6.5 percent of GDP in Quebec, their budget deficits ballooned. The economic and health crisis comes at a difficult moment for Canadian provinces as their pre-pandemic budgets were already running deficits. In early February, […]

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Evidence Suggests that Tax Rates Influence Migration Decisions

Individuals respond to taxes by changing their behavior. Hence, when there are tax differences between countries, some might respond by moving to a lower-tax area. For higher-income individuals, the benefits of moving as a result of higher taxes are greater because they have more income or wealth at stake. In a recent article published by […]