Individual Tax Compliance and Complexity Archive
Australia Social Security Tax and Benefit System
August 3, 2022
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TweetShareSharePin0 Shares Imagine that a government provides subsidies to single parents that actually increase tax rates on additional work. This is the case for an Australian single parent who earns less than the average wage. With an increase in pay of just AUD 983 more, he would face a 652 percent marginal tax rate. Therefore,
Indiana Income Tax Rate Reduction & Indiana Budget Surplus Projections
July 29, 2022
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TweetShareSharePin0 Shares With the Indiana General Assembly gaveled in this week for a special session called by Gov. Eric Holcomb (R), one of the issues is how to allocate portions of the $6.1 billion budget surplus for the fiscal year that ended June 30. The House, Senate, and governor agree that some of the extra
Canada Health-care Premiums & Upward Mobility
July 28, 2022
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TweetShareSharePin0 Shares Imagine a worker who gets a raise and ends up paying in tax more than 50 percent of that raise. This is the case for a Canadian worker who earns CAD 48,124. With an increase in pay of CAD 822, he would face a 59 percent marginal tax rate. This Canadian worker will
France Social Security, Taxes, & French Workers’ Upward Mobility
July 21, 2022
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TweetShareSharePin0 Shares Imagine a worker who gets a raise and ends up paying in tax the same amount as their raise. This is the case for a French worker who earns EUR 46,767. With an increase in pay of EUR 3,376, he would face a 93 percent marginal tax rate. This French worker will end
Student Loan Forgiveness Tax Treatment Creates Confusion
July 20, 2022
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TweetShareSharePin0 Shares Student debt forgiveness has been at the forefront of recent federal policy discussions, with President Biden exploring using executive action to cancel up to $10,000 in student loan debt per borrower. Under current law, the tax code handles debt forgiveness differently depending on the borrower’s repayment plan—canceling student loan debt would have new,
Idaho Income Tax Ballot Measure
July 14, 2022
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TweetShareSharePin0 Shares A pending tax ballot measure in Idaho may take the prize for gaffe-riddled drafting. Proponents had a straightforward goal: to create a new top marginal individual income tax rate of 10.925 percent on high earners. That is dubious enough, as it would create the highest rate between New York and California. But through a
Navigating Complex Income Taxes in Italy
July 14, 2022
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TweetShareSharePin0 Shares Imagine a worker who gets a raise and ends up paying more in tax than their raise. This is the case for an Italian worker who earns just above the average wage. With an increase in pay of just EUR 448, he would face a 116 percent marginal tax rate. Therefore, despite the
Marginal Tax Rates and Economic Opportunity
June 30, 2022
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TweetShareSharePin0 Shares Note: This analysis was published in conjunction with the Archbridge Institute. Below is an excerpt of the full analysis. Click the link above to access the full report in PDF format. Key Findings The marginal tax wedge is relevant for understanding how workers might benefit (or not) from an increase in pay once
Emergency Savings Accounts & Tax Treatment of Retirement Savings
June 30, 2022
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TweetShareSharePin0 Shares Last week, the Senate Finance Committee approved the Enhancing American Retirement Now (EARN) Act, moving closer to a potential agreement to reform retirement savings this year. That is one of several proposals recently introduced—including the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (RISE & SHINE)—that would
Carbon Border Adjustment Mechanism (CBAM): Carbon Price & Tariffs
June 27, 2022
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TweetShareSharePin0 Shares After an unpredictable legislative journey, the European Union has entered the final stage of negotiations on the world’s first carbon border adjustment mechanism (CBAM). It would appear that some in the United States Congress are paying attention. On June 8th, the European Parliament rejected a proposal to reform the EU’s Emissions Trading System
