Treasury Department Archive

TweetShareSharePin0 Shares The economic harms of the gross receipts tax (GRT) were well understood by the early 20th century. Not only is the tax inequitable, but it is also inefficient and distortionary. That is why most states abandoned GRTs in the early 1900s, as states developed the capacity to administer less harmful taxes. Unfortunately, some

TweetShareSharePin0 Shares A few weeks into their 2022 legislative sessions, the question in most state capitols across the country—from Connecticut to Utah—is not whether to cut taxes but how. The how is critical. As I explain in a new report, income tax rate cuts and refundable tax credits provide different benefits to different people. In

TweetShareSharePin0 Shares Amid record surpluses, Michigan lawmakers are looking to give relief to taxpayers and enhance the state’s competitive standing. Senate Bill 786, which recently reported from committee, would reduce both the corporate and individual income tax rates to 3.9 percent as of January 1, 2022. It would also create a tax credit of $500

TweetShareSharePin0 Shares House passes stopgap spending measure. The House passed the measure to keep the government open through March 11. The bill now goes to the Senate.  White House urges parents to file their 1040s quickly to collect child tax credits. There is roughly $193 billion waiting for families eligible for remaining expanded child tax

TweetShareSharePin0 Shares House Democrats want another stop-gap funding bill. This one would run through March 11 as talks continue on a measure to fund the government through the end of the fiscal year on September 30. Without another temporary extension, much of the federal government would shut down in less than two weeks. IRS: No

TweetShareSharePin0 Shares Most countries’ personal income taxes have a progressive structure, meaning that the tax rate paid by individuals increases as they earn higher wages. The highest income tax rate individuals pay differs significantly across European OECD countries—as shown in today’s map. The top statutory personal income tax rate applies to the share of income

TweetShareSharePin0 Shares The 2017 Tax Cuts and Jobs Act (TCJA) changed the way parts of the tax code are indexed for inflation. Instead of using the standard inflation measure, the CPI-U, it shifted to what’s known as chained CPI, or C-CPI-U. At the time, the Joint Committee on Taxation estimated this would raise federal revenue