Tax Foundation

1. How High Are State and Local Tax Collections in Your State?

   Today’s map shows total state and local tax collections per capita in each of the 50 states and the District of Columbia. The District of Columbia’s tax collections per capita ($10,576) are higher than in any state. Among states, tax collections per capita vary widely, from $3,141 per capita in Alabama to $9,182 per capita […]

2. The Economics of Stock Buybacks

   Key Findings The Tax Cuts and Jobs Act, by lowering the corporate tax rate from 35 percent to 21 percent, will cause two things to happen: a lower tax burden on old capital, leading to higher profits on existing investments; and a lower tax burden on new capital, incentivizing businesses to make new investments. Higher […]

3. Cost Recovery Treatment Short of Full Expensing Creates A Drag on Economic Growth

   The Tax Cuts and Jobs Act (TCJA) made significant progress in improving the cost recovery treatment of business investment by enacting 100 percent bonus depreciation. Full expensing, or the immediate write-off of all business investment, is a key driver of future economic growth, and can have a larger pro-growth effect per dollar of revenue forgone […]

4. A Comparison of the Tax Burden on Labor in the OECD, 2018

   Key Findings Average wage earners in the United States have their take-home pay lowered by three major taxes: the individual income tax, the payroll tax (both the employee and employer side), and the value-added tax (VAT). Although about half of the legal incidence of payroll taxes falls on employers, employees ultimately bear the burden through […]

5. The False Choice Between Investment and Buybacks

   One of the most persistent criticisms of the Tax Cuts and Jobs Act (TCJA) has involved the issue of stock buybacks. Instead of encouraging companies to reward their employees through increases in wages or investment, so the argument goes, the reduced corporate income tax rate has enabled them to enrich the wealthiest by buying back […]