The Tax Policy Blog

August 26, 2016

Today is August 26, the date in 1842 when Congress changed the federal fiscal year start from January 1 to July 1, to give Congress time to deliberate and pass a budget. Congress frequently missed the deadline, so in 1976, the federal fiscal year was changed to October 1. Congress still misses the date a lot. About two-thirds of private companies stick with January 1 for their fiscal year start date....

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August 25, 2016

Today is August 25, the 100th birthday of the National Park Service. The Service manages 59 national parks and 354 other sites, areas, and monuments. The NPS spends about $3 billion per year, raising about $500 million of it from fees, donations, and other private sources (including an $80 annual pass to all national parks). The NPS also has...

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August 24, 2016

Today is August 24, the date in 1814 when British troops during the War of 1812 pushed aside American militia at Bladensburg, Md., marched into Washington, D.C., and set fire to government buildings including the Treasury. They also burned the Capitol, the White House, the Library of Congress, and the War Building, leaving the Patent Office intact so as to not...

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August 23, 2016

Earlier today, Hillary Clinton’s presidential campaign released a small business policy plan, which includes several proposals aimed at simplifying tax filing for small businesses.

So far, during the campaign, Clinton’s tax proposals...

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August 23, 2016

Today is August 23, the date in 1775 when King George III declared the American colonies to be in rebellion, rejecting the Olive Branch Petition proffered by American moderates. The Proclamation of Rebellion led directly to the Second Continental Congress’s decision to adopt a Declaration of Independence, listing charges against the King which included oppressive and illegal taxes.

Here are some interesting links I...

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August 22, 2016

Most countries tax some form of corporate income. However, the rates differ around the world, ranging from 0% in Bermuda to 55% in United Arab Emirates. The rest of the world, of course, falls somewhere in between. The GDP-weighted worldwide average is just under 30 percent. With most countries falling under the average, the United States faces strong competition for business investment.

...

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August 22, 2016

Today is August 22, the date in 1902 when President Theodore Roosevelt became the first U.S. president to ride in an automobile. In 1919, states began imposing excise taxes on gasoline and today it remains a key revenue source (if troubled, due to better fuel efficiency and reduced driving).

Here are some interesting links I came...

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August 19, 2016

Today is August 19, which is evidently National Soft Ice Cream Day. I fondly remember getting soft serve with my grandparents and after every dorm meal in college, but it also pops up over and over in state tax decisions. Why? Most states choose to exempt groceries from their sales tax but seek to continue to apply the tax to non-“necessity” food like prepared food or candy, and drawing that line has proven harder than one might expect....

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August 18, 2016

There’s a lot of misinformation about tax policy floating around online. Usually, the Tax Foundation can’t take the time to correct every erroneous claim about federal taxes that we run across on the internet. But it’s a slow August day, Congress is out of session, and I just came across an article on AlterNet titled, “Monarchy in America? One...

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August 18, 2016

Today is August 18, the date in 1988 when George H.W. Bush said “Read my lips: no new taxes” to the Republican National Convention when accepting the presidential nomination. The pledge got a lot of attention, and even more in 1990 when Bush decided to agree to significant tax increases as part of a budget deal. The subsequent loss of...

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August 17, 2016

Many politicians have called for raising tax rates on top earners to combat income inequality. Both Sen. Bernie Sanders (I-VT) and Democratic presidential nominee Hillary Clinton have in particular expressed concerns about executive compensation, repeating a commonly cited...

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August 17, 2016

Today is August 17, Davy Crockett’s 230th birthday. Before he moved to Texas, Crockett was a congressman representing Tennessee, and there’s a story of him opposing an appropriation of relief money and instead proposing that each member of Congress contribute a week’s pay for the effort (and none do). The bill and Crockett’s opposition are true, though the details are...

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August 16, 2016

Corporate tax avoidance has become a serious area of focus for the OECD. In 2013, the organization started the Base Erosion and Profit Shifting (BEPS) initiative, advising countries to adopt policies to prevent shifting of pre-tax corporate income to low-tax jurisdictions.  Most countries have had regulations to prevent earnings stripping for decades, but it has only become a pressing policy issue in recent years.

There are many...

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August 16, 2016

The tax reform proposal recently released by the House Republicans would be strongly pro-growth and greatly reduce income tax biases against saving and investment. The only major provision that would be inconsistent with a purely neutral tax is the elimination of the deductibility of business interest as a partial “pay-for.” (Please see the Tax Foundation analysis of the proposal at: http...

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August 16, 2016

Today is August 16, the date in 1954 when a complete overhaul of the Internal Revenue Code was adopted. A number of loopholes were tackled and ambiguous sections made clearer. Pushed by congressional leaders, the revision occurred after two years of hearings, testimony, and public comments. President Eisenhower made it a key element of his 1954 State of the Union address, and most of the reorganization remains with us today...

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Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.

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