Taxes

Key Findings New alternative nicotine products offer less harmful methods of consuming nicotine. Switching consumption from combustible cigarettes to the products saves lives. To incentivize switching, safer nicotine products should receive a preferential tax rate compared to combustible cigarettes. Despite conclusive scientific evidence, many Americans believe nicotine is a carcinogen when it is not. Tax

At least eight Republican presidential hopefuls will take the stage Wednesday night in the first presidential primary debate of the 2024 election cycle—and the future of the U.S. tax code should be one topic that takes center stage. The next occupant of the White House will have to address several critical tax policy issues, from

Earlier this year, House Republicans introduced the American Families and Jobs Act, a package of three new tax bills. One of these bills, the Small Business Jobs Act, would expand Section 179 expensing for small businesses—increasing the maximum eligible amount of investment and the point at which the benefit phases out. Improving the tax treatment

On 7 August, the Italian government surprisingly announced a new windfall profits tax on the banking sector, causing a loss of about €9.2 billion in market value for affected firms. For context, that is more than three times the amount of revenue expected to be collected by the tax. However, shares started to slowly recover

The college sports world is undergoing a major realignment as universities jockey to join athletic conferences with the richest TV deals. Moving from one athletic conference to another can mean millions in additional revenue sharing from lucrative broadcasting contracts and other revenue streams, all tax-free. Unlike professional sports teams that must pay income taxes on

Canada is planning to join the club of countries that, in the past 3 years, introduced a digital services tax (DST) despite U.S. opposition and concerns expressed by Canadian businesses. The country first announced plans for a digital services tax in the 2021 budget, before putting it on pause to see how the OECD global tax

It is difficult to coordinate an international agreement on tax policy. Just ask the Organisation for Economic Co-operation and Development (OECD) how smoothly things have gone with the global tax deal. While implementation of the global minimum tax (Pillar Two) is moving forward in dozens of countries, there is much less tangible success when it

This is part of our educational blog series, “The Short Form,” to simplify tax issues and explore the world through the lens of tax policy. Learn more about taxes with TaxEDU. Economists typically frame the impact of fiscal, monetary, and tax policies by talking about three main economic indicators: GDP, jobs, and wages. It’s easy to

Key Findings In tax year 2020, taxpayers claimed more than 159 million tax credits on their individual income tax returns worth a total of more than $277 billion. That was an increase of $35.3 billion from tax year 2019, largely due to an influx of pandemic relief administered through the tax code in 2020. Taxpayers

Key Findings One year after the enactment of the Inflation Reduction Act (IRA), the law’s complicated tax increases on large corporations, particularly the minimum tax on book income, have resulted in extraordinary implementation challenges and taxpayer confusion, with many questions left unresolved. Payments for both the minimum tax and the stock buyback tax are currently

Debate on how to reform the Child Tax Credit (CTC) is heating up as lawmakers offer competing ideas. The credit was most recently boosted temporarily in 2021 under President Biden’s American Rescue Plan Act (ARPA), and just a few years prior, Republicans gave it their own temporary boost under their 2017 tax reform package, the

A bill introduced in the Massachusetts House, (H. 74) would expand funding for community media programming by imposing a new tax on the gross revenues of digital streaming service providers. The sentiment is understandable, but the proposed solution leaves much to be desired. Municipally operated local access television channels, the no-frills stations residents can use

Latest Updates Updated to reflect recent developments. Originally published. See Full Timeline Starting on September 1st, federal student loan payments will resume after a three-and-a-half-year pause on payments and accrued interest following the onset of the COVID-19 pandemic. The resumption comes three months after the U.S. Supreme Court struck down President Biden’s student loan debt

Note: Remarks prepared for a congressional event, “Unraveling China’s Impact: Exploring Taxation, Illicit Trade, and the Nicotine Market in the United States,” on July 25, 2023. Taxation plays a key role in driving illicit trade. People respond to incentives, and sizable price markups for legal cigarettes create incentives for tax avoidance. Tax avoidance can take

This is part of our educational blog series, “The Short Form,” to simplify tax issues and explore the world through the lens of tax policy. Learn more about taxes with TaxEDU. It’s no “Cruel Summer” this year if you’re a Swiftie. Taylor Swift’s Eras Tour could be the highest-grossing tour ever by the time its 131

Transcript We may not like it, but we need taxes to raise revenue for all sorts of things that we depend on. But not all taxes are created equal. There are 3 main types of taxes: taxes on what you earn, what you buy, and what you own. Every type of tax impacts the economy,

Montana is renowned for its vast natural beauty and outdoor recreation, but the state also boasts a competitive tax climate, ranking fifth in our 2023 State Business Tax Climate Index. Like many other states, its coffers are overflowing, and lawmakers have rightly prioritized tax reform to share the strong revenue position with those calling the

Patent box regimes (also referred to as intellectual property [IP] regimes) provide lower effective tax rates on income derived from IP. Most commonly, eligible types of IP are patents and software copyrights. Depending on the patent box regime, income derived from IP can include royalties, licensing fees, gains on the sale of IP, sales of

This is part of our educational blog series, “The Short Form,” to simplify tax issues and explore the world through the lens of tax policy. Learn more about taxes with TaxEDU. The global tax deal is going mainstream. As Politico puts it, “the technical rules that were once solely the province of tax wonks in D.C. and Paris

Latest Updates Originally published on June 12, 2023, this analysis was updated on July 25th to include additional examples and details on itemizers. See Full Timeline House Republicans have proposed three new tax bills packaged as the American Families and Jobs Act that would temporarily extend certain business provisions from the Tax Cuts and Jobs