Taxes

The Tax Cuts and Jobs Act (TCJA) introduced several new rules for taxing the foreign profits of U.S. multinationals, including rules related to Global Intangible Low Tax Income (GILTI) that result in a minimum tax on foreign profits. Both the Biden campaign and some Democratic members of Congress have recommended changes to GILTI, but before

Table of Contents Key Points: In 2019, excise taxes accounted for less than 3 percent of total federal tax collections while state excise taxes on tobacco, alcohol, and motor fuel accounted for about 7 percent of total state tax revenue Taxes levied on a transaction or good that creates a negative externality or additional costs

With the $1.9 trillion American Rescue Act package signed into law, lawmakers are looking for the next issue to tackle. As the Biden administration turns toward infrastructure, Sen. Ron Wyden (D-OR) has suggested including reforms to the way the tax code subsidizes energy production in such a package. Wyden introduced the Clean Energy for America

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American Rescue Plan Act of 2021 The United States has provided about $6 trillion in total economic relief to the American people during the coronavirus pandemic, including the $1.9 trillion that was approved when President Biden signed the American Rescue Plan (ARP) Act into law on Thursday, amounting to about 27 percent of gross domestic

Today’s map looks at which states levy a gross receipts tax, which is often considered one of the most economically damaging taxes. Moving away from state gross receipts taxes would represent a pro-growth change to make the tax code friendlier to businesses and consumers alike, which is especially necessary in the wake of the coronavirus pandemic. Gross

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Senate amendments to the American Rescue Plan Act prohibit using any of the $350 billion in State and Local Fiscal Recovery Funds to cut taxes, but many are concerned that states which accept the funds could be prohibited from implementing tax cuts between now and 2024—an astonishing level of federal interference in states’ fiscal affairs.

Third Stimulus Payment Approved – What You Need To Know It’s official: the third round of COVID-19 financial aid is on the way. As part of the American Rescue Plan, the stimulus checks (also called “economic impact payments”) are aimed at providing another round of financial relief for individuals and families. The American Rescue Plan

The Biden administration has signaled its openness to raising the corporate tax rate, potentially by phasing in an increase over several years. While phasing in a tax increase, as opposed to hiking immediately, may seem like a reasonable middle ground, it would be the worst of both worlds because it provides old investment with a

For the fourth year in a row, a comprehensive infrastructure funding reform bill has been introduced in Kentucky, with the centerpiece being a gas tax increase of 8.6 cents per gallon (cpg). Like many states, Kentucky faces a backlog of road maintenance and construction projects, and existing transportation taxes and user fees are failing to

Today’s map highlights the extent to which European OECD countries rely on consumption tax revenue. Consumption taxes are on goods and services. All European countries levy consumption taxes in the form of Value-added Taxes (VAT), excise taxes, and other taxes on goods and services. In 2019 (most recent data available), consumption taxes were the largest

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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

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

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 a position on legislation, but I appreciate the chance to share some informational points with you today. First, I’d like to commend this committee

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

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

The United States has never had a comprehensive wealth tax, and while some European countries have them, many more have repealed wealth taxes over the past several decades. That has not deterred Sen. Elizabeth Warren (D-MA) with Reps. Pramila Jayapal (D-WA) and Brendan Boyle (D-PA) from introducing legislation to create a tax on household net

Table of Contents Key Findings Mississippi House Bill 1439 would phase out the state’s individual income tax by making the personal exemption more generous over time, funded by increases to sales and excise tax rates and the dedication of future revenue growth to the tax’s elimination. The legislation also phases in a reduction of the