Taxes

Key Findings Property taxes are the primary source of tax collections at the local level, responsible for 72.2 percent of local tax revenue in fiscal year 2020 (the most recent year for which data are available). Once a significant driver of state budgets as well, their share of state collections has dropped to a mere

President Biden’s announcement of student loan debt forgiveness is already raising many questions. How much will it cost? Who will benefit the most? How will it contribute to inflation? Does the president even have the legal authority to implement this loan forgiveness? Here’s one more question to add to the mix: will states consider student

In response to high oil prices, Sen. Ron Wyden (D-OR) has proposed raising taxes on oil and gas companies in three ways. His “Taxing Big Oil Profiteers Act” would create an additional 21 percent tax on so-called excess profits earned over 10 percent of revenues of oil companies with annual revenues over $1 billion; levy

In a pattern that has become all too common in recent decades, the newly enacted Inflation Reduction Act (IRA) added yet another layer of tax complexity to an already complex and burdensome federal tax code. While the Inflation Reduction Act increased the Internal Revenue Service (IRS) budget by roughly $80 billion over 10 years, it

Tax Foundation has engaged constructively in the OECD Pillar One and Pillar Two process since it was launched in 2019. The consultation on the Progress Report on Pillar One provides another opportunity for that. However, at this point it is challenging to be constructive when the policy seems designed to fail. The Progress Report reveals

With passage of SB1 in the General Assembly’s third special session, Arkansas last week became the 13th state to authorize an individual income tax rate reduction this year. This round of Arkansas income tax cuts effectively accelerated reforms policymakers enacted eight months ago. The December 2021 changes set the state on course to lower its

Perhaps one of the most controversial pieces of the Inflation Reduction Act (IRA) is the expansion of the Internal Revenue Service (IRS). There is a compelling case for strengthening the enforcement of existing taxes, rather than creating new ones, as a way to raise revenue. The economic costs of enforcing existing taxes are likely lower than

The FDA’s proposal to ban flavored cigars would be a disruptive force in the cigar market and would carry significant revenue implications for many state governments. Flavored cigars make up between one-third and one-half of all cigar sales. We estimate that the aggregate effect of a ban on flavored cigar sales in the U.S. would

Imagine that a government provides subsidies to single parents that actually increase tax rates on additional work. This is the case for a Japanese single parent who earns a rough equivalent of US $39,981 and faces a 57 percent marginal tax rate. With just a small increase in pay of $599, she would face a

Today’s map zeroes in on states that have a “marriage penalty” in their individual income tax brackets. Under a graduated-rate income tax system, a taxpayer’s marginal income is subject to progressively higher tax rates. A marriage penalty or “marriage tax penalty” exists when a state’s income brackets for married taxpayers filing jointly are less than double the

In the past, NCAA rules prohibited college athletes from profiting from their name, image, and likeness (NIL). But in 2021, that changed. As a student-athlete, you now have the opportunity to earn NIL income, opening the door to exciting endorsement deals and profitable partnerships. Just remember — Uncle Sam wants his cut of these profits,

If you’re a college athlete profiting from your name, image, and likeness (NIL), your tax situation can be a complicated topic. Sometimes it’s hard to know where to start — that’s why we’ve put together a list of seven tips to help you prepare for your next tax season. 1. Get in touch with the