The Tax Foundation

Tax Foundation Offers a First Look at the Rangel Tax Reform Legislation

The Tax Foundation has begun dissecting Ways and Means Chairman Charlie Rangel's tax reform legislation, including his proposals for AMT repeal, a corporate income tax rate cut, and other changes.

Click here for a brief analysis of various components of the proposal.
Click here to read Congress Finally Considers Lower Corporate Tax Rate but Underestimates International Tax Competition.
Click here to read Rangel's "Mother of All Tax Reforms" Bill Overshadows Much Bigger Question: What to Do in 2011?
Click here for A State-by-State Estimate of Individual Income Tax Changes from Rangel's "Mother of All Reforms" Bill

New Study Highlights High U.S. Corporate Tax Burden, Calculates Cost by Congressional District

Communities across America are paying the price for the United States' high corporate income tax rate, according to a new study by the Tax Foundation. The study calculates and ranks the corporate tax burden borne by families in each congressional district and in over 300 metropolitan statistical areas.   

"Increasing global competition has continued to change the marketplace," said Tax Foundation president and study co-author Scott A. Hodge. "There is growing reason to believe that the corporate tax burden falls most heavily on workers and families.  Policymakers need to consider this carefully and should take steps to ensure that the U.S. is more competitive in the global marketplace."

Read the study, Personalizing the Corporate Income Tax. Read the news release.
Click here for the data by congressional district and metropolitan statistical area (MSA).

New Study: Gas Tax Varies Greatly Among the States, No Longer the Road-Building Fee It Once Was

Many motorists have expressed outrage recently at rising gas prices.  A new Tax Foundation study shows that drivers' ire should be aimed not only at oil and gas producers, but also at the uneven and increasingly unprincipled taxation of gas across the United States.

"Gas taxes were created as a fee to maintain and improve the nation's roads," said study author Jonathan Williams.  "Like many taxes, however, the gas tax has hardly remained true to its original purpose.  The federal government has continued to increase the gas tax over time, and it has shown an increasing willingness to spend those tax dollars on anything but new or better roads."

Read the full study. Read the news release. Click here for more on gas taxes.

Which States Are Best for Business? The 2008 State Business Tax Climate Index

The Tax Foundation has released its 2008 State Business Tax Climate Index.  The Index ranks how "business friendly" the 50 state tax systems are, providing a roadmap for state lawmakers concerned with keeping their states tax-competitive.

Keeping a state competitive in today's global market can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The Index measures how well a state's tax system encourages investment by maintaining a broad tax base and low rates.

"There's no question that states are competing with one another for companies, jobs, and people," said study co-author Curtis Dubay.  "Taxes matter to businesses, and the states with better business tax climates will reap the rewards."

Read the news release. Read the full study.

Federal Taxing and Spending Benefit Some States, Leave Others Paying Bill

Some states feast at the expense of others, according to the Tax Foundation's latest annual analysis of federal taxing and spending patterns.

Using newly released fiscal year 2005 spending data from the Census Bureau's annual Consolidated Federal Funds Report, the Tax Foundation compared the federal tax burden in each state with the amount of federal spending in each state. The result is a ranking of which states got the best deal in 2005 from Uncle Sam's tax and spending policies.

"All taxpayers know that the federal government uses tax and spending policy to redistribute money from citizens with high incomes to those who make little," said study author Curtis Dubay. "Citizens are less aware of geographically based income redistribution."

View the data here.   Read the news release.