The United Kingdom Treasury's proposal to increase in the value-added tax (VAT) registration threshold would hold back small business growth, reduce the efficiency of the VAT system, and lead to a revenue shortfall.| Tax Foundation
The industry breakdown of the OBBBA corporate tax cuts shows firms in industries involved with tangible production, such as manufacturing, are the biggest winners, as measured by changes in tax liability.| Tax Foundation
If Canada doesn’t make full expensing provisions permanent, it will drop to 13th place in the capital cost recovery ranking, once provisions expire in 2028.| Tax Foundation
When the Kansas City and Los Angeles squads face off in São Paulo, the players will owe Brazil’s nonresident income tax on the share of income they earned there, while California will lose out on the nonresident income taxes that Chiefs players ordinarily would have remitted in what is nominally a Chargers home game.| Tax Foundation
California levies the highest tax on gasoline at 70.9 cents per gallon (cpg), followed by Illinois at 66.4 cpg and Washington at 59.0 cpg.| Tax Foundation
Sean Bray interviews Dr. Irma Mosquera Valderrama, Full Professor of Tax Governance at Leiden Law School (Leiden University) and EU Jean Monnet Chair Holder on EU Tax Governance about the EU tax mix.| Tax Foundation
Congress may have passed the One Big Beautiful Bill Act (OBBBA), but state lawmakers now face big choices. Most states link their tax codes to the federal system, meaning OBBBA’s provisions—good and bad—are about to ripple across state budgets.| Tax Foundation
Americans will spend almost 7.1 billion hours complying with IRS tax filing and reporting requirements in 2025. This is equal to 3.4 million full-time workers—almost the population of Los Angeles and nearly 38 times the workforce the IRS employed in FY 2024—doing nothing but tax return paperwork for a full year.| Tax Foundation
President Trump’s recent decision to replace the commissioner of the Bureau of Labor Statistics has the feeling of replacing the meteorologist and hoping you get better weather. But economic data affect government actions and could have surprising consequences. If nominee E.J. Antoni manipulates the statistics to make Mr. Trump look good, you could end up paying higher taxes.| Tax Foundation
Cigarette smokers in the European Union pay far more in excise taxes than they do for the cigarettes themselves. Our latest map illustrates the wide variance in cigarette excise taxes across EU Member States.| Tax Foundation
In a surprising tax code alteration that has frustrated Americans who enjoy gambling, a provision in the One Big Beautiful Bill Act limits gambling losses that can be used to offset gambling winnings to 90 percent of their value. This provision introduces a steep tax penalty for professional gamblers and certain casual bettors.| Tax Foundation
Neutral tax codes don't play favorites or try to influence personal or business decisions but stick to what they're best at - raising sufficient revenue through low rates and a broad base.| Tax Foundation
The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates.| Tax Foundation
A consumption tax is typically levied on the purchase of goods or services and is paid directly or indirectly by the consumer in the form of retail sales taxes, excise taxes, tariffs, value-added taxes (VAT), or an income tax where all savings is tax-deductible.| Tax Foundation
How does living abroad impact the taxes an American has to pay? Unlike most countries that tax based on residency, the US employs citizenship-based taxation, meaning Americans are taxed on their global income regardless of where they reside.| Tax Foundation
Explore United States tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Gross receipts taxes, by their very design, lack transparency. Our report explores the pros and cons of a turnover tax, also known as a gross receipts tax.| Tax Foundation
New IRS data shows the US federal income tax system continues to be progressive as high-income taxpayers pay the highest average income tax rates. Average tax rates for all income groups remain lower after the Tax Cuts and Jobs Act (TCJA).| Tax Foundation
The sales tax is the second-largest source of state tax revenue and an important source of local tax revenue, but decades of base erosion threaten the tax’s share of overall revenue and have prompted years of countervailing rate increases.| Tax Foundation
Explore Wisconsin tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Explore Washington tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Explore Tennessee tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Explore Louisiana tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Explore Florida tax data, including tax rates, collections, burdens, and more.| Tax Foundation
Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. Inflation is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power.| Tax Foundation
Gross income is the total pre-tax earnings from wages, tips, investments, interest, and other forms of income and is also referred to as “gross pay.”| Tax Foundation
Explore our latest tax policy research, analysis, and commentary of the One Big Beautiful Bill Act (OBBB). Learn more from Tax Foundation's experts.| Tax Foundation
As the market share of electric vehicles (EVs) on the road grows, the gas tax’s ability to fund road projects and decrease traffic congestion erodes. Both federal and state real tax revenue per vehicle mile traveled has been on a steady decline for decades, creating a fiscal gap for road expenditures even as the demand for road infrastructure improvements has grown.| Tax Foundation
How do current federal individual income tax rates and brackets compare historically?| Tax Foundation
How have US federal capital gains tax rates and collections changed over time?| Tax Foundation
President Trump has recently floated the idea of imposing tariffs of up to 250 percent on pharmaceuticals, with the intention of shifting pharmaceutical production to the US. These tariffs would not only drive drug prices higher but could also lead to shortages and reduce long-run drug innovation.| Tax Foundation
We estimate the OBBBA will reduce federal taxes on average for individual taxpayers in every state. Across all individual tax filers throughout the US, the average tax cut per taxpayer will be over $3,700 in 2026.| Tax Foundation
While the One Big Beautiful Bill Act tries to buoy manufacturing, President Trump’s tariffs are an anvil dragging the sector down.| Tax Foundation
Trump’s 2025 tariffs will hit nearly three-quarters of US food imports, raising prices on products that are often difficult or impossible to produce domestically. Senator Hawley has proposed a rebate program to return some of the revenue to households—but would it actually help?| Tax Foundation
Fuel taxes continue to be a central policy consideration for European countries amid geopolitical conflicts, increased emphasis on environmental policy, and economic conditions experienced by average consumers.| Tax Foundation
Even if tobacco tax increases generate more revenue in the short run, the shrinking tax base guarantees long-run revenue declines.| Tax Foundation
They’re popular, highly visible, and marketed as tax relief—but research shows sales tax holidays are inefficient, create compliance headaches, and often miss the mark for the taxpayers they’re meant to help.| Tax Foundation
The OBBBA moved the US international tax system in the right direction on several fronts. However, some of the changes, while encouraging certain domestic activity and exports, may harm physical activity abroad that supports US competitiveness and domestic activity.| Tax Foundation
Growing cigarette tax levels and differentials have made cigarette smuggling both a national problem and a lucrative criminal enterprise.| Tax Foundation
Our Center for Federal Tax Policy promotes policies that lead to greater U.S. competitiveness, economic growth, and improved quality of life.| Tax Foundation
The Joint Committee on Taxation (JCT) is a nonpartisan congressional committee in the United States that assists both the House and Senate with tax legislation.| Tax Foundation
How have federal tax expenditures changed since passage of the Tax Cuts and Jobs Act? We compare 2017 and 2018 Joint Committee on Taxation estimates.| Tax Foundation
An S corporation is a business entity which elects to pass business income and losses through to its shareholders. The shareholders are then responsible for paying individual income taxes on this income.| Tax Foundation
The Tax Cuts and Jobs Act created a deduction for households with income from sole proprietorships, partnerships, and S corporations, which allows taxpayers to exclude up to 20 percent of their pass-through business income from federal income tax. For upper-income taxpayers, the deduction is subject to several limits.| Tax Foundation
Tax Foundation experts regularly testify before the US Congress, in US statehouses, and in government institutions throughout Europe.| Tax Foundation
The poor revenue performance of Philadelphia’s soda tax, 24 times the rate on beer, threatens the education programs it was intended to fund.| Tax Foundation
A property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment.| Tax Foundation
Nebraska has an opportunity to revise the property tax package enacted in 2024 to ensure that Nebraskans enjoy meaningful property tax relief.| Tax Foundation
With such an important change to Iowa’s property tax system, it’s important that lawmakers get the details right.| Tax Foundation
With property tax bills on the rise, homeowners are searching for answers—and some even want to abolish the tax altogether. In this episode, we break down why property taxes are increasing, common but flawed solutions, and why the property tax remains an economically efficient revenue source.| Tax Foundation
The mix of tax sources states choose can have important implications for both revenue stability and economic growth, and the many variations across states are indicative of the different ways states weigh competing policy goals.| Tax Foundation
Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.| Tax Foundation
Montana’s 2025 legislative session has seen a flurry of property tax reform proposals, a response to the surge in property valuations in the state. Unfortunately, hasty decision-making can result in suboptimal policy outcomes.| Tax Foundation
This legislative session, local taxes are a major topic of debate in Indiana. Although the state’s property tax system is already nationally competitive, dramatic increases in assessed values have created discontent in recent years.| Tax Foundation
Our Center for State Tax Policy promotes policies that lead to higher economic growth and improved quality of life for taxpayers in US states| Tax Foundation
Though high schools will continue to teach the next generation about civics, English, and math, one critical topic remains missing from many classrooms: taxes.| Tax Foundation
As US businesses and consumers face higher costs of goods due to the Trump tariffs, Senator Hawley (R-MO) has introduced legislation to rebate tariff revenue to provide financial relief. The proposal takes a similar approach to the stimulus checks issued during the COVID-19 pandemic.| Tax Foundation
The One Big Beautiful Bill Act (OBBBA) significantly alters the Inflation Reduction Act (IRA) green energy subsidies.| Tax Foundation
For Congress, work on the One Big Beautiful Bill Act is done. But in state capitols, the work has not yet begun. Many of the tax changes in the federal reconciliation act flow through to state tax codes—automatically in some states, and subject to an update in states’ Internal Revenue Code conformity date in others.| Tax Foundation
Michigan voters may soon consider a dramatic change to the state’s income tax.| Tax Foundation
Although sometimes overlooked in discussions about corporate taxation, capital allowances play an important role in a country’s corporate tax base and can impact investment decisions—with far-reaching economic consequences.| Tax Foundation
Our experts explain how this major tax legislation may affect you and how policymakers can better improve the tax code.| Tax Foundation
Oklahoma can continue to enhance its competitiveness by pursuing a variety of reforms to the corporate and individual income tax, but it should avoid policies that would negatively impact the economy, like enacting a wholesale elimination of the property tax.| Tax Foundation
Augusta National Golf Club is famous for more than green jackets and pimento cheese sandwiches—legend has it that it’s the impetus for one of the tax code’s many exemptions.| Tax Foundation
Explore Georgia tax data, including tax rates, collections, burdens, and more.| Tax Foundation
If the federal government really wanted to make saving more accessible for taxpayers, it would swap the proposal for Trump Accounts to replace the complicated mess of savings accounts currently available with universal savings accounts.| Tax Foundation
A user fee is a charge imposed by the government for the primary purpose of covering the cost of providing a service, directly raising funds from the people who benefit from the particular public good or service being provided. A user fee is not a tax, though some taxes may be labeled as user fees or closely resemble them.| Tax Foundation
A Pigouvian tax, named after 1920 British economist Arthur C. Pigou, is a tax on a market transaction that creates a negative externality, or an additional cost, borne by individuals not directly involved in the transaction.| Tax Foundation
An externality, in economics terms, is a side effect or consequence of an activity that is not reflected in the cost of that activity, and not primarily borne by those directly involved in said activity. Externalities can be caused by either production or consumption of a good or service and can be positive or negative.| Tax Foundation
Different taxes have different economic effects, so policymakers should always consider how tax revenue is raised and not just how much is raised.| Tax Foundation
Americans will spend more than 7.9 billion hours complying with IRS tax filing and reporting requirements in 2024. This is equal to 3.8 million full-time workers doing nothing but tax return paperwork—roughly equal to the population of Los Angeles.| Tax Foundation
Summer has arrived, and states are beginning to implement policy changes that were enacted during this year’s legislative session (or that have delayed effective dates or are being phased in over time).| Tax Foundation
A refundable tax credit can be used to generate a federal tax refund larger than the amount of tax paid throughout the year. In other words, a refundable tax credit creates the possibility of a negative federal tax liability. An example of a refundable tax credit is the Earned Income Tax Credit.| Tax Foundation
The federal child tax credit (CTC) is a partially refundable credit that allows low- and moderate-income families to reduce their tax liability dollar-for-dollar by up to $2,000 for each qualifying child.| Tax Foundation
TaxEDU is your one-stop resource for tax education, understanding, and discussion. Explore our glossary, videos, primers, and lesson plans.| Tax Foundation
Exempting overtime would unnecessarily complicate the tax code, increase compliance and administrative costs, and reduce neutrality by favoring certain work arrangements over others.| Tax Foundation
In each of its main research areas, the Tax Foundation produces timely and high-quality data, research, and analysis that influence the tax debate toward policies that are simple, transparent, neutral, and stable. Meet Our Experts Our experts are continuously analyzing the day’s most relevant tax policy topics and are relied upon routinely for presentations, […]| Tax Foundation
Stay informed with quick and accessible analysis of today's top tax policy topics with the #1 tax blog from the Tax Foundation.| Tax Foundation
We estimate the One Big Beautiful Bill Act would increase long-run GDP by 1.2 percent and reduce federal tax revenue by $5 trillion over the next decade on a conventional basis.| Tax Foundation
Sean Bray interviews Dr. Stefanie Geringer, postdoctoral researcher at the University of Vienna and Masaryk University Brno.| Tax Foundation
The agreement represents a major change for tax competition, and many countries will be rethinking their tax policies for multinationals. If there is no agreement on changes to Pillar Two or digital services taxes, retaliatory American tariffs could be on the horizon.| Tax Foundation
Rhode Island's recent tax bills seek to raise the state's top income tax rate, rather than focus on competitiveness with other nearby states.| Tax Foundation
The House "One Big Beautiful Bill" includes a new 3.5 percent tax on remittances, or non-commercial transfers of money that people in the US send to people abroad.| Tax Foundation
Our preliminary analysis finds the tax provisions increase long-run GDP by 0.8 percent and reduce federal tax revenue by $4.0 trillion from 2025 through 2034 on a conventional basis before added interest costs.| Tax Foundation
Policymakers have passed legislation to extend many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) alongside dozens of new tax provisions.| Tax Foundation
The principles of sound tax policy should serve as touchstones for policymakers everywhere. See Tax Foundation principles.| Tax Foundation
A gross receipts tax is applied to a company’s gross sales, without deductions for a firm’s business expenses, like costs of goods sold and compensation. Unlike a sales tax, a gross receipts tax is assessed on businesses and apply to business-to-business transactions in addition to final consumer purchases, leading to tax pyramiding.| Tax Foundation
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.| Tax Foundation
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).| Tax Foundation
Gov. Pillen is searching for tax burden relief. But his plan, which reportedly involves a two-tiered sales tax and the state’s assumption of most school funding responsibility, would have profound implications that even those most convinced of the urgency of property tax relief may find unworkable and unpalatable.| Tax Foundation
The Internal Revenue Service (IRS) is part of the U.S. Department of the Treasury and is responsible for enforcing and administering federal tax laws, processing tax returns, performing audits, and offering assistance for American taxpayers.| Tax Foundation
The home mortgage interest deduction currently allows itemizing homeowners to deduct mortgage interest paid on up to $750,000 worth of principal.| Tax Foundation
The state and local tax (SALT) deduction permits taxpayers who itemize when filing federal taxes to deduct certain taxes paid to state and local governments. The Tax Cuts and Jobs Act capped it at $10,000 per year, consisting of property taxes plus state income or sales taxes, but not both.| Tax Foundation
The Tax Cuts and Jobs Act increased the standard deduction and reduced the value of certain itemized deductions. How many taxpayers now itemize in 2019?| Tax Foundation
While tariffs are often presented as tools to enhance US competitiveness, a long history of evidence and recent experience shows they lead to increased costs for consumers and unprotected producers and harmful retaliation, which outweighs the benefits afforded to protected industries.| Tax Foundation
Estimating the economic effects of different types of taxes informs policymakers about the trade-offs of raising revenue in a given way.| Tax Foundation
The economic literature overwhelmingly suggests that an income tax increase of this magnitude would negatively affect economic growth and opportunity in Rhode Island.| Tax Foundation
Lawmakers can constrain the growth of property taxes without creating new problems. But the details matter.| Tax Foundation
Policymakers can and should address taxpayers’ legitimate grievances about out-of-control property tax bills, but they should do so without upending a system of taxation that is more efficient, fair, and pro-growth, and better suited to municipal finance, than any of the alternatives.| Tax Foundation
A soda tax is an excise tax on sugary drinks. Most soda taxes apply a flat rate per ounce of a sugar-sweetened beverage.| Tax Foundation
