Safia Sayed

Sep 19, 2024 | taxpolicycenter.org | Janet Holtzblatt |Robert McClelland |Livia Mucciolo |Safia Sayed

The Inflation Reduction Act (IRA) of 2022 enacted an $80 billion 10-year investment in the Internal Revenue Service on top of the agency’s regular annual appropriations. Although Congress cut the IRA funding by over 25 percent the following year, the agency has maintained its commitment to the transformative IRS Inflation Reduction Act Strategic Operating Plan to bring the agency into the 21st century.

Sep 17, 2024 | taxpolicycenter.org | Lucy Dadayan |Robert McClelland |Livia Mucciolo |Safia Sayed

Total state government tax revenue collections rose 3.0 percent in nominal terms and 0.6 percent in real terms in the first quarter of 2024 relative to a year earlier Key tax revenue sources showed mixed performance. In the first quarter of 2024, personal income tax revenues declined by 1.4 percent in real terms compared to the previous year, while corporate income tax revenues rose by 2.4 percent.

Jun 28, 2024 | taxpolicycenter.org | Lucy Dadayan |Robert McClelland |Livia Mucciolo |Safia Sayed

State revenue forecasters face multifaceted challenges in projecting revenues, especially amid rapid and significant economic, demographic, and technological changes. This report provides an in-depth examination of the challenges and complexities involved in state revenue forecasting across different economic phases. It spans from the post–Great Recession expansion through the COVID-19 pandemic and subsequent recovery.

May 28, 2024 | taxpolicycenter.org | Lucy Dadayan |Robert McClelland |Livia Mucciolo |Safia Sayed

Total state government tax revenue collections rose by 4.5 percent in nominal terms and 1.8 percent in real terms in the fourth quarter of 2023 relative to a year earlier. Personal income tax revenues increased by 5.9 percent and corporate income tax revenues increased by 6.7 percent in real terms in the fourth quarter of 2023 compared relative to a year earlier.

May 10, 2024 | taxpolicycenter.org | Timothy Dowd |Robert McClelland |Livia Mucciolo |Safia Sayed

Understanding how capital gains realizations respond to changes in capital gains tax rates is critical for understanding the potential revenue effects of these changes. A frequently relied on estimate of this responsiveness, or elasticity, comes from Dowd, McClelland, and Muthitacharoen (2015). Using individual-level federal tax return data, they found a short-term (within the current year) tax elasticity of -1.2 and a long-term (beyond the current year) tax elasticity of -0.72.