Although prohibited under federal law, 20 states allow and levy some type of excise tax on recreational cannabis purchases. But different states use different taxes—percentage-of-price...
The state and local tax (SALT) deduction previously was one of the largest federal tax expenditures, with an estimated revenue cost of $100.9 billion in...
State and local governments issue bonds to pay for large, expensive, and long-lived capital projects, such as roads, bridges, airports, schools, hospitals, water treatment facilities,...
The federal government directly transferred $988 billion to state governments and $133 billion to local governments in 2021. These funds accounted for 18 percent of...
Background Most TELs emerged during the “tax revolt” of the late 1970s or the economic recession of the early 1990s. Although many of the best-known...
Employer-Sponsored Plans There are two primary types of employer-sponsored plans. Defined-benefit plans generally distribute funds regularly to retired employees according to formulas that reflect employees’...
Tax expenditures are revenue losses attributable to special exclusions, exemptions, deductions, credits, and other provisions in the tax code. The Congressional Joint Committee on Taxation...
Defined benefit plans promise to pay a pre-determined benefit at retirement, usually determined by an employee’s salary and years of service with the firm. Employers...
Tax-deferred defined contribution plans include the familiar 401(k) plans, similar 403(b) plans for nonprofit employees, 457(b) plans for state and local government employees, and the...
Nearly 65 million taxpayers own individual retirement accounts (IRAs), which include traditional IRAs, Roth IRAs, Simplified Employee Pensions (SEP IRAs), and Savings Incentive Match Plans...
The United States taxes the profits of US resident C-corporations (named after the relevant subchapter of the Internal Revenue Code) at 21 percent. Taxable corporate...
Most US businesses are taxed as pass-through (or flow-through) entities that, unlike C-corporations, are not subject to the corporate income tax or any other entity-level...
Income earned by C-corporations (named after the relevant subchapter of the Internal Revenue Code) is subject to the corporate income tax at a 21 percent...
Excise taxes create a wedge between the price the final consumer pays and what the producer receives. An excise can raise the total price (inclusive...
Causes of Marriage Bonuses and Penalties Marriage penalties and bonuses occur because income taxes for married couples generally are based on the combined income of...
The federal government provides roughly $96.7 billion per year in tax subsidies that encourage non-fossil fuels (figure 1). The largest include tax credits for energy...