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CBO: Federal Taxes Progressive Post-Pandemic, 2022

The Congressional Budget Office published updated 2022 estimates on household income distribution, including federal transfers and taxes. The Tax Foundation's analysis of this data shows the federal tax system remains progressive, with effective rates ranging from 1.4% for the bottom quintile to 23.2% for the top quintile and 31.5% for the top 1% of earners. Since 1979, the top 1% of households saw income after taxes and transfers rise 144%, while the lowest quintile doubled and middle quintiles grew roughly 65%.

Windfall Taxes on Oil and Gas Create Negative Consequences

The Tax Foundation published research analyzing the EU's 2022-2023 windfall profits taxes on fossil fuel companies. The EU temporarily imposed a 'solidarity contribution' on oil, gas, coal, and refining sectors, with rates ranging from 25 percent in the United Kingdom to 80 percent in Slovenia. Sixteen of 27 EU Member States applied the tax while seven adopted equivalent national measures. Revenue collected totaled €26.15 billion, slightly exceeding the €25 billion estimate.

2025 Reconciliation Law Tax Changes for Small Businesses

The Tax Foundation submitted testimony to the U.S. House Small Business Committee on April 15, 2026 analyzing how the 2025 reconciliation law affected small business taxation. The testimony addresses the permanency of Individual TCJA provisions including the 20 percent Section 199A qualified business income deduction, the preservation of the 37 percent top ordinary income tax rate, and the extension of 100 percent bonus depreciation. The Tax Foundation recommends further simplification of the tax code for small business owners.

California Wealth Tax May Tax Founders' Voting Interests

The Tax Foundation analyzes a proposed California wealth tax ballot initiative, examining whether the tax would be levied based on founders' voting interests in their companies rather than just their economic stake. The analysis focuses on ambiguity in the initiative's language regarding whether super-voting shares constitute publicly traded assets, which would determine their valuation treatment. The analysis concludes that the drafting creates genuine uncertainty about how the tax would apply to restricted control shares owned by corporate founders.

Top 1% Pays 26.3% vs Bottom 50% 3.7% of Federal Income Taxes, Tax Year 2023

The Tax Foundation analyzed IRS data for tax year 2023 showing 153.1 million tax returns filed with $15.2 trillion in adjusted gross income and $2.1 trillion in federal income taxes paid. The top 1% of taxpayers paid a 26.3% average income tax rate, while the bottom 50% paid a 3.7% average rate. The top 50% of taxpayers paid 96.7% of all federal individual income taxes.

Discriminatory Cross-Border Service Taxes Threaten US Exports

The Tax Foundation released a research paper analyzing three examples of discriminatory cross-border service taxation: a UN convention proposal, European digital services taxes targeting gross revenues, and the US base erosion and anti-abuse tax. The paper finds these instruments impose higher effective tax burdens on cross-border service provision compared to domestic activity, resulting in tax pyramiding, double taxation, and distorted production decisions. Implications: US services exporters face a growing patchwork of discriminatory taxes worldwide that undermine trade neutrality. As the world's largest services exporter, the US has a stronger interest in combating discriminatory services taxation than in pursuing tariffs. Exporters and policymakers should monitor evolving international tax frameworks and consider implications for cross-border service trade competitiveness.

American Compass Tariff Claims Break Down Under Scrutiny

The Tax Foundation published an analysis examining American Compass's 'Tariff Tally' evaluation of economic developments since the imposition of Trump's global tariff policy. The analysis finds that American Compass's theoretical framework contains flawed and inconsistent connections between tariffs, prices, manufacturing output, capital investment, and job creation. The research contends that American Compass presents a selective and asymmetric interpretation of economic data, crediting tariffs when indicators are positive while attributing poor results to other factors or timing.

Countries Improve Tax Systems Through National Reforms: Key Findings from 2025 Index

Tax Foundation analysis examines the 10-year trajectory of the International Tax Competitiveness Index (2016-2025), identifying Greece (+12), the United States (+10), and Hungary, Canada, and Mexico (+5 each) as the largest overall improvers. The paper argues that national legislative reforms—lower tax penalties on new investment, simpler rate structures, broader consumption taxes, and cleaner cross-border rules—delivered more reliable improvements than multilateral approaches such as the OECD BEPS project and Two-Pillar Solution.

Maine Millionaire Tax Would Harm Small Business Competitiveness

The Tax Foundation published analysis of Maine's proposed 9.15 percent top income tax rate on earnings above $1 million, which would raise $74 million annually from approximately 2,631 filers. The analysis warns that the two percentage point surtax on high earners would primarily affect pass-through small business owners, as 70 percent of Maine filers with over $1 million in adjusted gross income report pass-through business income.

Recreational Marijuana Taxes Across US States, 2026

The Tax Foundation published its 2026 analysis of recreational marijuana excise tax rates across US states that have legalized cannabis. The report catalogs state-by-state tax structures including weight-based taxes (e.g., Alaska's $50/oz. mature flowers), ad valorem taxes (e.g., Arizona's 16% on retail sales), and THC-content-based taxes (e.g., Connecticut's $0.00625 per mg THC in plants). Tax structures vary significantly, with some states using hybrid approaches combining multiple tax bases.

Gas tax holidays are counterproductive, research shows

Gas tax holidays are counterproductive, research shows

Smaller corporate tax bills reflect proper investment treatment, not new loopholes

Tax Foundation op-ed explains that smaller corporate tax bills under the One Big Beautiful Bill Act (OBBBA) reflect proper investment treatment through permanent 100% bonus depreciation and R&D expensing, not new tax loopholes. The analysis argues these provisions correct a major flaw in the tax code by allowing businesses to deduct investment costs immediately.

EU VAT Gap €773.5B, Quadruple EU Budget

The Tax Foundation published analysis finding that the EU's VAT actionable policy gap—the additional revenue that could be collected by eliminating reduced rates and certain exemptions—reached €773.5 billion in 2024. This represents six times the compliance gap and is quadruple the EU's annual budget. The analysis breaks down how 27.1% of potential VAT revenue is lost through reduced rates (12 percentage points) and exemptions (15 percentage points).

OBBBA makes investment expensing permanent, boosting economic growth

The Tax Foundation analyzed the One Big Beautiful Bill Act's expansion of investment expensing provisions, including permanent bonus depreciation for equipment, permanent Section 179 small business expensing, and a new temporary Section 168(n) for manufacturing structures. The analysis found these provisions reduce the after-tax cost of investment by approximately 3.8% for corporations subject to the 21% tax rate.

EU Cigarette Excise Tax Analysis - Ireland Highest at €10.71

The Tax Foundation published its annual analysis of EU cigarette excise taxes as of January 1, 2026. Ireland levies the highest excise duty at €10.71 ($12.58) per 20-cigarette pack, followed by France (€8.09) and the Netherlands (€7.77). Bulgaria has the lowest rate at €2.03. EU minimum rates require €1.80 excise per pack and at least 60% of weighted average retail price, but all Member States exceed these minimums.

Analysis of Trump Tariffs One Year After Liberation Day

The Tax Foundation published a podcast analysis examining the outcomes of the Trump administration's 'reciprocal' tariffs announced on April 2, 2025 (Liberation Day) one year later. The analysis evaluates whether the promised investment boom, revenue generation, debt reduction, and lower prices materialized. This is informational research content, not a regulatory action.

2026 State Tax Data Compares All 50 States Across 40+ Measures

The Tax Foundation released its annual Facts & Figures 2026 publication comparing all 50 states across 40+ tax measures including rates, collections, and burdens. The handbook, distributed to state legislators and governors since 1941, provides an interactive web tool and downloadable PDF for comparing state tax data. This is the latest edition of a long-standing reference resource for taxpayers, policymakers, and researchers analyzing state tax competitiveness.

Georgia Income Tax Cut and Property Tax Reform Analysis

Tax Foundation published analysis of Georgia's HB 1116 and SB 476, which propose a reduction of the state income tax rate to 4.99%, raising the standard deduction to $50,000-$100,000, and implementing a 3% property tax levy limit. The analysis questions the policy approach, arguing that property tax elimination would reduce tax code efficiency and that full income tax elimination could harm the economy by taxing business inputs.

Most US States Underfund Highways with Road Tax Revenues

Tax Foundation released research analyzing state highway funding sources for FY 2023. Only Maryland (92.2%) and New Jersey fully cover highway spending through road use taxes, while the remaining 48 states and D.C. rely on general fund transfers. Alaska has the lowest coverage at 17.4%, followed by North Dakota at 26.8%. The analysis examines how gas tax revenues erode due to inflation and electric vehicle adoption.

Liberation Day Tariffs: President Trump Tariffs & Trade Policy

Liberation Day Tariffs: President Trump Tariffs & Trade Policy

National Debt Interest to Consume 1 in 4 Tax Dollars by 2036

A Tax Foundation analysis projects that by 2036, interest payments on the national debt will consume one in four federal tax dollars. This analysis highlights the growing fiscal challenge posed by the national debt and its impact on federal spending priorities.

North Carolina Property Tax Reform Analysis

The Tax Foundation analyzes North Carolina's property tax system, arguing that levy limits protect taxpayers from rapidly rising property valuations. The analysis suggests reforms should preserve the property tax base while addressing recent pressures on homeowners.

Tax Policy to Lower Housing Costs by Expensing Residential Structures

The Tax Foundation proposes that policymakers consider expensing for residential structures as a federal tax policy to address housing supply shortages. This policy would allow developers to immediately deduct the cost of building new housing, contrasting with current law which requires deductions over 27.5 years.

Congress Must Authorize Section 122 Tariffs Under Trade Act

This analysis from the Tax Foundation argues that Congress must authorize tariffs imposed under Section 122 of the Trade Act, following a Supreme Court ruling. The article suggests that if Congress does not vote to approve these tariffs, they will expire after 150 days, potentially leading to a refreshing debate on trade policy.

Dividend Tax Rates in Europe

The Tax Foundation's analysis of dividend tax rates in 35 European countries for 2025 shows Ireland with the highest top rate at 51%, followed by Denmark at 42% and the UK at 39.35%. Estonia, Latvia, and Malta are noted as not levying dividend taxes.

California Wealth Tax Analysis: Temporary or Permanent?

The Tax Foundation analyzes a proposed California wealth tax ballot initiative, questioning its stated temporary nature. The analysis suggests that proponents believe it will become a permanent fixture, potentially influencing decisions of high-net-worth individuals to leave the state. The initiative aims to fund healthcare expenditures but has roots in prior permanent wealth tax proposals.

Louisiana Proposes Centralized Sales Tax Collection

Louisiana is considering two bills, HB620 and HB658, that would centralize sales tax collection at the state level. This change aims to reduce compliance costs for businesses, particularly remote sellers, by simplifying tax base determination and administration. The proposal requires a constitutional amendment.

Kansas Property Tax Reform Analysis: SCR 1616 and HB 2745

The Tax Foundation analyzes Kansas legislative proposals SCR 1616 and HB 2745, which aim to reform property taxes through assessment and levy limits. The analysis suggests SCR 1616's assessment limit could distort the real estate market, while HB 2745's levy limit is more neutral but has notable exemptions.

State Property Tax Analysis and Data

The Tax Foundation has released data and analysis on state property taxes, highlighting New Jersey's highest rate. Property taxes are identified as the primary funding source for local governments in the US, crucial for services like schools and public safety.

Analysis of Van Hollen and Booker Tax Cut Plans

The Tax Foundation analyzed tax cut plans introduced by Senators Van Hollen and Booker. Both plans aim to cut taxes for lower- and middle-income taxpayers while raising them for high-income taxpayers and corporations, potentially reducing GDP and increasing the deficit.

Trump Tariffs Impact on US Households and Trade

A Tax Foundation analysis estimates that new tariffs imposed under Section 122 will increase taxes per US household by $600 in 2026. This follows a Supreme Court ruling that limited the scope of previous tariffs imposed under IEEPA, reducing the average applied tariff rate.

New Mexico SB 151 Decouples from Full Expensing

New Mexico SB 151, passed by the legislature, decouples the state from federal full expensing provisions for machinery and equipment, and includes foreign earnings in the corporate tax base. This change is expected to negatively impact the state's corporate tax environment.

Delaware Proposes Cigarette and Vapor Tax Increases

Delaware's Governor has proposed significant increases to cigarette, vapor, and other tobacco product taxes. The cigarette tax would rise by over 70%, and vapor product taxes would double, aiming to generate an estimated $18.9 million in new state revenue.

Tax Foundation Experts Analyze AI Taxation Impact on Labor Markets

The Tax Foundation released a podcast episode discussing the potential impacts of taxing artificial intelligence on labor markets. Experts analyze current data, critique proposed policies, and suggest alternative reforms like worker retraining deductions.

Colorado Tax Proposal on Phantom Income

Colorado's HB26-1221 proposes changes to the state's alternative minimum tax and net operating loss provisions. The Tax Foundation argues these changes would overstate income, leading to double taxation and distorting taxpayer behavior.

Europe Capital Gains Tax Rates 2026

This analysis details the top marginal capital gains tax rates for individuals across European countries in 2026. It highlights Denmark as having the highest rate at 42.0% and Romania (not explicitly listed but implied by context) as having the lowest. The data provides a comparative overview for investors and financial professionals.