Tax
Double Taxation of Corporate Income in the United States and the OECD
Key Findings The Tax Cuts and Jobs Act lowered the top integrated tax rate on corporate income distributed as dividends from 56.33 percent in 2017 to 47.47 percent in 2020; the OECD average is 41.6 percent. Joe Biden’s proposal to increase the corporate income tax rate and to tax long-term capital gains and qualified dividends at…
Read MoreWhere Did Americans Move in 2020?
States compete with each other in a variety of ways, including in attracting (and retaining) residents. Sustained periods of inbound migration lead to (and reflect) greater economic output and growth. Prolonged periods of net outbound migration, however, can strain state coffers, contributing to revenue declines as economic activity and tax revenue follow individuals out of…
Read MoreSeveral States Considering Legal Recreational Marijuana
With most states experiencing reduced tax revenues due to the coronavirus pandemic, several are contemplating whether recreational marijuana legalization and taxation may be one avenue to raise new revenue. While states that have already legalized do raise meaningful revenue, lawmakers should remember that establishment of legal markets takes time. In Connecticut, Delaware, Maryland, Minnesota, New…
Read MoreHow Expensing for Capital Investment Can Accelerate the Transition to a Cleaner Economy
Key Findings Introduction Climate Change and Energy Consumption Cost Recovery and Expensing, Explained Energy Tax Policy in the United States Energy Efficiency and Climate Change Increased Capital Stock Turnover Retrofitting Accelerating the Shift Towards Clean Energy Housing Investment, Density, and Sprawl A Word on Policy Neutrality Expensing Is a Great Complement for Green Policies Conclusion…
Read MoreThe Drawbacks of State Taxes on Financial Transactions
Key Findings Introduction Tax Elements General Design Considerations — Taxing Data Processing — Taxing Financial Transactions — Taxing Traders Conclusion Key Findings: A financial transaction tax (FTT) would raise transaction costs, which would result in a lower trading volume, lower liquidity, potentially increased volatility, and lower price of assets. Lower volume limits revenue potential, lower…
Read More2021 VAT Rates in Europe
More than 140 countries worldwide—including all European countries—levy a Value-Added Tax (VAT) on goods and services. As today’s tax map shows, although harmonized to some extent by the European Union (EU), EU member states’ VAT rates vary across countries. The VAT is a consumption tax assessed on the value added in each production stage of…
Read MoreWhat Will A Narrow Democratic Congress Mean For Joe Biden’s Tax Agenda?
With improbable Democratic wins in both Georgia Senate runoff elections, President-elect Joe Biden has an opportunity to govern with a congressional majority—though one that will…
Read MoreDigital Tax Collection Triggers New U.S. Tariffs on France
Today, the United States puts into effect new 25 percent tariffs on $1.3 billion in French products. This comes as a response to France commencing collection of its digital services tax (DST) at the end of 2020. The tariffs will target several French cosmetics, handbags, and assorted soaps. Finance Minister Bruno Le Maire has said that…
Read MoreState and Local Sales Tax Rates, 2021
Table of Contents Key Findings Introduction Combined State and Local Sales Tax Rates (Map) State Sales Tax Rates Local Sales Tax Rates State & Local Sales Tax Rates (Table) The Role of Competition in Setting Sales Tax Rates Sales Tax Bases: The Other Half of the Equation Methodology Conclusion Key Findings Forty-five states and the…
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