Tax
Latest CBO Report on Incomes and Taxes Shows that the Federal Fiscal System is Very Progressive
Key Findings Joe Biden has proposed an ambitious agenda that would make the federal fiscal system more progressive, and the huge budget deficits caused by the numerous COVID-19 relief packages could heighten the call for more tax revenues. What is needed are benchmark facts to guide these debates. A recent study by the Congressional Budget…
Read MoreConsumption Tax Policies in OECD Countries
Key Findings Introduction Consumption Taxes in Brief Consumption Tax Revenues in OECD Countries Value-added Tax Sales Taxes Excise Taxes Excise Tax Trends Conclusion Appendix (See PDF) Key Findings Consumption taxes are a significant source of revenue for governments across the world, making up 32.3 percent of tax revenues in OECD countries in 2019. Despite the…
Read MoreWho Benefits from the State and Local Tax Deduction?
As President Joe Biden and policymakers in Congress consider changes in tax policy over the coming year, the fate of the $10,000 state and local tax (SALT) deduction cap will be an ongoing part of the policy debate. Senate Majority Leader Chuck Schumer (D-NY) has expressed interest in repealing the SALT cap, which was originally…
Read MoreUsing Carbon Tax Revenue to Grow the Economy
The Biden administration has made climate change one of the core challenges it plans to address over the next four years. One climate policy lawmakers have debated—and will likely continue to do—is a carbon tax. At the same time, the new Administration will have to tackle the severe, and likely continuing, economic fallout of the…
Read More5 Observations on Janet Yellen’s Recent Confirmation Testimony
In her recent confirmation hearing, economist Janet Yellen, President Biden’s choice for Treasury Secretary, sought to reassure markets that the new administration would not raise corporate taxes until the economy improves. At the same time, however, she sent a troubling signal that when they do push for higher corporate tax rates, they would do so…
Read MoreNew York Governor Proposes THC-based Tax on Recreational Marijuana
In his fiscal year 2022 budget proposal unveiled this week, New York Gov. Andrew Cuomo includes an excise tax on what could be legalized recreational marijuana. New York is looking to join neighboring New Jersey, where voters approved a ballot measure to legalize recreational marijuana last November. Gov. Cuomo expects the tax revenue to eventually…
Read MoreA Tax Credit to Fix Capitalism
Capitalism produces a dizzying array of products and, in the process, generates an enormous amount of wealth. But capitalism creates a problem in that the…
Read MoreTax Subsidies for R&D Expenditures in Europe
Many countries incentivize business investment in research and development (R&D), intending to foster innovation. A common approach is to provide direct government funding for R&D activity. However, a significant number of jurisdictions also offer R&D tax incentives. These generally take two forms, namely patent boxes—taxing income derived from intellectual property at a rate below the statutory…
Read MoreThe Delicate Deficit Dance That May Define Biden’s Presidency
It was fascinating to watch Treasury-secretary designate Janet Yellen and several Republican members of the Senate Finance Committee dance their delicate deficit dance at Yellen’s…
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