Taxes

Key Findings Starting in 2022 and continuing through 2026, businesses will face several tax changes scheduled as part of the Tax Cuts and Jobs Act (TCJA), including a switch to five-year amortization of R&D expenses, the gradual phaseout of 100 percent bonus depreciation, a tighter interest deduction limitation, and an increase in international tax rates.

The Tax Foundation’s recently released 2022 International Tax Competitiveness Index (ITCI), measures the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality. Over the years, our Index has helped many European countries like Austria, Greece, and the UK design tax reform proposals. As the Index continues to

Starting next year, 100 percent bonus depreciation for short-lived investment—originally enacted in the 2017 Tax Cuts and Jobs Act (TCJA)—will begin to phase down through the end of 2026. Making 100 percent bonus depreciation permanent would boost economic growth and American incomes in any economic environment, but this policy change would be especially valuable if

While changes to federal cannabis law are slow, changes at the state level are accelerating. Recreational cannabis is on the ballot in five states this November—Arkansas, Maryland, Missouri, North Dakota, and South Dakota—giving voters the ability to join 19 states that have already legalized recreational marijuana. Arkansas In Arkansas, Issue 4 would legalize the possession

Launch Our Interactive Tool Executive Summary The Tax Foundation’s State Business Tax Climate Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index is designed to show how well states structure

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You probably know that claiming income tax deductions reduces your taxable income. But did you know that not all deductions are created equal? Maybe you’ve heard the term “above the line” thrown around in tax conversations. Above-the-line deductions are actually adjustments to your taxable income — they are subtracted from your income before your adjusted

Nearly five years ago, the Tax Cuts and Jobs Act (TCJA) brought dramatic changes to U.S. tax policy. The federal corporate tax rate fell from 35 percent to 21 percent and other reforms improved the tax treatment of business investment, lowered taxes for individuals and families, and introduced a new system for taxing foreign profits.

Taxing university endowments has gained popularity recently, partly in response to the Biden administration’s forgiveness of student loan debt. Some view it as a means of holding universities accountable for the product they’re selling. Others view it as a tool to tamp down tuition rates or punish ideological opponents. But do these arguments hold water

When Coloradans go to the polls this November, they will be given the opportunity to permanently lower their income taxes—or to increase those tax burdens. Colorado Proposition 121 would reduce the state’s flat statutory income tax rate from 4.55 percent to 4.4 percent, effective retroactively for tax year 2022. Colorado Proposition FF, on the other hand,

The IRS will receive an extra $80 billion in funding over the next decade thanks to the Inflation Reduction Act. Understandably, this announcement has caused some apprehension among taxpayers. Does this new funding mean your risk of an audit will go up this tax season? Let’s look at the facts. We’ll also review how you

On a yearly basis the Internal Revenue Service (IRS) adjusts more than 60 tax provisions for inflation to prevent what is called “bracket creep.” Bracket creep occurs when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to