Tax
Recent Changes in Dividend Tax Rates in Europe
With the exception of Estonia and Latvia, all European countries covered in today’s map levy a dividend tax, with the top rates varying significantly. Greece levies a tax of only 5 percent on dividend income, while Ireland taxes dividends at 51 percent. Over the last three years, eight European OECD countries have made changes to their dividend…
Read MoreDoes Your State Have a Corporate Alternative Minimum Tax?
Just as several states have individual alternative minimum taxes (AMTs) that prevent households and pass-through businesses from claiming “too many” itemized deductions, some states levy corporate AMTs to prevent corporations from reducing their corporate income tax liability beyond a certain level. By requiring taxpayers to calculate their tax liability under two different systems, the federal AMT imposed…
Read MoreSeventh Time’s the Charm: New Jersey Passes Millionaires Tax
After six unsuccessful tries at passage, it appears the coronavirus crisis has tipped the scales in favor of Gov. Phil Murphy’s (D) millionaires tax. After reaching a deal with legislators earlier this month, Murphy included a tax increase on those making more than $1 million in his FY 2021 budget. The New Jersey legislature confirmed…
Read MoreColorado Voters to Decide Fate of Longstanding Property Tax Limit
One of the many policy questions Colorado voters will be tasked with deciding this November is whether to amend the state constitution to repeal the Gallagher Amendment, a provision within the Colorado constitution that, since 1982, has limited residential property to 45 percent of the statewide property tax base. Repealing the Gallagher Amendment would cause…
Read MoreA Carbon Tax to Make the TCJA’s Individual Provisions Permanent
Key Findings At the end of 2025, most individual income tax provisions of the Tax Cuts and Jobs Act (TCJA) will expire, increasing taxes on individuals. Making these provisions permanent is estimated to reduce federal tax revenues by $176 billion annually (in 2021 dollars). While making these provisions permanent would increase the long-run size of…
Read MoreVoters in Four States to Vote on Recreational Marijuana
Legalizing recreational marijuana is a hot topic in many states where the state budgets are in disarray because of the coronavirus pandemic and new revenue sources are being sought. Combined with a desire to decriminalize marijuana, the zeitgeist is ideal for legalization. This Election Day, voters in Arizona, Montana, New Jersey, and South Dakota will consider legalization and…
Read MoreCountries Eye Environmental Taxation
A recent report from the Organisation for Economic Co-operation and Development (OECD) on 2020 tax reforms reveals an increase in the number of environmentally-related tax policies when compared to 2019. Reforms were concentrated in a limited number of countries and their scope continued to be narrow. Gas taxes, carbon taxes, and taxes on electricity consumption…
Read MoreCOVID-19 Has Turned Much of What We Thought We Knew About City Finances Upside Down
For cities, the COVID-19 economy is turning many winners into losers. Before the global pandemic, economists and policymakers worried about the widening gap between cities…
Read MoreHow Much More Money Could The IRS Collect If Congress Gave Them More Money?
Would increasing the Internal Revenue Service’s funding for audits increase tax collections by more than the cost? Yes, if the funds are spent wisely. Would…
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