Tax
To What Extent Does Your State Rely on Individual Income Taxes?
Sources of state revenue have come in for closer scrutiny in light of the impact of the coronavirus outbreak, as different tax types have differing volatility and economic impact—although even beyond these unique circumstances, it is important for policymakers to understand the trade-offs associated with different sources of tax revenue. This week’s map looks at…
Read MoreUnder the HEROES Act, State Budgets Could Soar as the Economy Suffers
The HEROES Act, proposed by House Democrats as a next round of fiscal relief during the coronavirus outbreak, contains about $1.08 trillion in aid to states and localities. That would bring the pandemic total to $1.63 trillion—an amount so large that it might overwhelm their ability to spend it and could reward fiscal irresponsibility. With…
Read MoreHow the HEROES Act Would Allocate State and Local Aid
The HEROES Act, introduced Tuesday by House Democrats, provides more than $1 trillion to state and local governments, including $915 billion in flexible aid—which can be spent for any purpose, including to backfill revenue losses—in installments over the next year. In broad strokes, these coronavirus relief funds are four tranches for allocation purposes: by jurisdiction…
Read MoreThree Ways Congress Should Design COVID-19 Relief for State and Local Governments
Congress is headed toward a fourth COVID-19 relief package – and arguably the first one directly addressing state and local governments’ pandemic-induced fiscal crisis …
Read MoreBy Overturning the ACA, The Supreme Court Would Cut Taxes Substantially For High-Income Households
Last week, President Trump said the Administration will urge the US Supreme Court to overturn the entire 2010 Affordable Care Act. While the High Court…
Read MoreA Comparison of the Tax Burden on Labor in the OECD
Key Findings Average wage earners in the OECD have their take-home pay lowered by three major taxes: individual income, payroll (both employee and employer side), and value-added (VAT) and sales taxes. Before accounting for VAT and sales tax, the average tax burden a single average wage earner faced in the OECD was 36 percent of…
Read MoreCapital Gains Cuts Won’t Cure the Covid-19 Economy
Back in 1991, Saturday Night Live spoofed politicians who see capital gains tax cuts as a panacea. In one sketch, after being frozen for eons,…
Read MoreCalifornia the Latest to Propose Higher Vapor Taxes
When Governor Gavin Newsom (D) submits his revised budget proposal on Thursday, it will include a vapor tax increase. California currently taxes vapor products at 59.27 percent of wholesale value, but the proposal would impose an additional tax at a rate of $2 for each 40 milligrams of nicotine in the product. The tax would…
Read MoreDesigning a State and Local Government Relief Package
Key Findings The COVID-19 pandemic and the attendant economic contraction will wreak havoc on state and local tax revenues, with projections of a 15-20 percent decline in state revenues. Lawmakers and governmental associations have called for between $300 billion and $1 trillion in state and local aid. As much as $535 billion of the nearly…
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