pass-throughs Archive
State Reciprocity Agreements: Income Taxes
November 16, 2022
No Comments
TweetShareSharePin0 Shares Before the pandemic, an estimated 5.8 million Americans worked outside their state of residence, while about 8.9 million people worked from home. By 2021, over 27.6 million Americans were working almost exclusively from home, while the number of workers commuting across state lines dipped to 4.5 million. Though the pandemic’s short-run effect was
Biden Tax Hike Proposals Live on After the Inflation Reduction Act
October 10, 2022
No Comments
TweetShareSharePin0 Shares Over the past two years, policymakers and taxpayers have grappled with proposals to increase taxes as ideas introduced in the 2020 presidential campaign were transformed into legislation. This effort culminated in August with the enactment of the Inflation Reduction Act. While many of the tax increases considered over the last two years were
Massachusetts Graduated Income Tax Amendment: Details & Analysis
September 13, 2022
No Comments
TweetShareSharePin0 Shares Key Findings Massachusetts’ tax advantage in New England is primarily driven by its competitive individual income tax rate and its sales and use tax structure. The graduated income tax amendment would be paid by many small businesses, in addition to wealthy individuals. The proposed surtax is likely to have negative economic effects that
Does Your State Have a Marriage Penalty?
August 16, 2022
No Comments
TweetShareSharePin0 Shares Today’s map zeroes in on states that have a “marriage penalty” in their individual income tax brackets. Under a graduated-rate income tax system, a taxpayer’s marginal income is subject to progressively higher tax rates. A marriage penalty or “marriage tax penalty” exists when a state’s income brackets for married taxpayers filing jointly are less than
Push for Higher Taxes is Misguided Amid Inflation, Looming Recession
July 26, 2022
No Comments
TweetShareSharePin0 Shares Efforts to raise taxes on corporations and high-income earners recently hit a brick wall when U.S. Senator Joe Manchin (D-WV) once again expressed concerns about inflation and a potential recession. That would seem to be the end of the story, as there is no reason to think inflation will be going away anytime
PA Corporate Tax Cut: Details & Analysis
July 14, 2022
No Comments
TweetShareSharePin0 Shares Over the past decade, policymakers from both parties in Harrisburg have proposed reducing Pennsylvania’s 9.99 percent corporate net income tax (CNIT) rate but could not agree on an approach—until now. With enactment of HB 1342 as part of the 2022-2023 state budget, lawmakers finally succeeded in cutting what had been the second highest
Idaho Income Tax Ballot Measure
July 14, 2022
No Comments
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
2022 State Income Tax Rankings
March 15, 2022
No Comments
TweetShareSharePin0 Shares This week’s map examines states’ rankings on the individual income tax component of our 2022 State Business Tax Climate Index. The individual income tax is important to businesses because states tax sole proprietorships, partnerships, and in most cases limited liability companies (LLCs) and S corporations under the individual income tax code. However, even traditional C
House Democrats Pass-Through Business Tax
September 17, 2021
No Comments
TweetShareSharePin0 Shares Under the House Democrats’ reconciliation plan, the top tax rate on pass-through business income would exceed 50 percent in most states. Pass-through businesses, such as sole proprietorships, S corporations, and partnerships, make up a majority of businesses and majority of private sector employment in the United States. The owners of these firms pay individual income tax on income derived
