Tax
Senate Direct Payment Design Would Create High Implicit Marginal Tax Rates
As part of congressional negotiations this week over President Biden’s $1.9 trillion coronavirus relief package, the Senate Democrats’ compromise of faster phaseout rates to be eligible for checks will create high marginal tax rates on taxpayers over a narrow range of income. This change makes the direct payments more targeted to those in need but…
Read MoreNew Hampshire Bill Aims to Reduce Tax Burden on Businesses
A year ago, it seemed possible that New Hampshire was headed toward a triggered tax increase. Instead, lawmakers may trim business tax rates and begin the phaseout of the state’s tax on interest and dividend income, which would take away the asterisk and make New Hampshire the ninth state to forgo an individual income tax…
Read MoreTestimony: Prioritizing Comprehensive Tax Modernization in Nebraska
Note: Below is our testimony to the Nebraska Revenue Committee presenting on findings from our recent report, Thirteen Priorities for Pro-Growth Tax Modernization in Nebraska. My name is Katherine Loughead, and I am a Senior Policy Analyst with the Tax Foundation, a nonprofit, nonpartisan tax policy research organization based in Washington, D.C. We do not take…
Read MoreCan GILTI and the GloBE be Harmonized in a Biden Administration?
Countries participating in the OECD Inclusive Framework’s negotiations on cross-border tax rules hope to reach an agreement by mid-2021. After negotiations stalled somewhat in 2020, there is hope that US Treasury Secretary Janet Yellen’s commitment to reaching an agreement will allow progress to be made this year. One piece in the negotiations is the proposal…
Read MoreTax Incentives for Digital Nomads and Remote Workers
Some of Spain’s most popular Youtubers were already residing in Andorra when Ruben Doblas’s public announcement that he plans to move his residency to Andorra triggered Spain’s tax agency to announce new tax avoidance measures to track individuals who plan to change their residency for tax purposes. Andorra’s tax system is still appealing to EU…
Read MoreLawmakers Reintroduce Bill to Protect Against Double Taxation of Financial Transactions
With several states entertaining proposals to tax the financial transactions of savers and investors who don’t even live in their states, some members of Congress see an interstate commerce question worthy of a federal response. Rep. Patrick McHenry (R-NC) and Rep. Bill Huizenga (R-MI) have reintroduced a bill, the Protecting Retirement Savers and Everyday Investors…
Read MoreState Aid in American Rescue Plan Act Is 116 Times States’ Revenue Losses
Preliminary data suggest that states closed out calendar year 2020 with only $1.7 billion less revenue than they generated in 2019 (a decline of less than 0.2 percent), not counting federal assistance, while municipal governments actually experienced substantial revenue growth due to rising property values. Yet the American Rescue Plan Act sets aside $350 billion…
Read MoreAn Investment Boost in the UK’s 2021 Budget
Today, the UK’s Chancellor of the Exchequer Rishi Sunak released the 2021 budget, and most important for near-term growth is the significant boost to capital allowances, which the Chancellor said will increase business investment by 10 percent. Many countries have strict limits on expense deductions for investment and the UK has been among the least…
Read MoreCombined State and Federal Corporate Income Tax Rates in 2021
Corporations in the United States pay federal corporate income taxes levied at a 21 percent rate. Many states also levy taxes on corporate income. Forty-four states and D.C. have corporate income taxes on the books, with top rates ranging from North Carolina’s single rate of 2.5 percent to a top marginal rate of 11.5 percent…
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