The Tax Policy Blog

April 28, 2016

Today, the Tax Foundation released our new research on Initiative Petition 28 in Oregon, entitled “Oregon Initiative Petition 28: The Threat to Oregon’s Tax Climate.” If adopted, Oregon would rank worst in the nation on corporate taxes.

Initiative Petition 28 (IP28) would establish a 2.5 percent gross receipts tax on C corporations with more than $25 million in sales. It would...

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April 28, 2016

Today is April 28, the anniversary of the “Dog Tax War”—Maoris announcing that they would resist New Zealand taxes.

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April 27, 2016

Today, Representative Vern Buchanan (R-FL), a member of the Ways and Means Committee, introduced a bill that would link the top marginal tax rate paid on pass-through business income to the corporate income tax rate. For example, the current corporate tax rate is 35 percent. This bill would cap the pass-through tax rate at 35 percent. Any reduction in the corporate income tax rate...

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April 27, 2016

Yesterday Senator Ron Wyden (D- OR), Ranking Member of the Senate Finance Committee, unveiled a new proposal to simplify the current cost recovery system. The proposal would alter the schedules businesses use to depreciate their assets.

Current Law

Today’s cost recovery rules originate from the Tax Reform Act of 1986, which created the Modified Accelerated Cost...

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April 27, 2016

Standard economic theory assumes that individuals understand the tax schedule they face and alter their work and savings behavior accordingly in response to tax changes. We have previously discussed how the Earned Income Tax Credit (EITC) for example may cause individuals to save less and reduce their number of hours worked,...

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April 27, 2016

Today is April 27, the 200th anniversary of Congress beginning to mess with the tax code, enacting a tariff law for protectionist purposes rather than just to raise revenue.

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April 26, 2016

Today is April 26, the day of the “Acela Primary” – voting in Connecticut, Delaware, Maryland, Pennsylvania, and Rhode Island.

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April 25, 2016

Today is April 25, the most perfect date of the year. I'm pleased to share interesting tax news we've come across today, although I'm posting it a little bit after lunch as we fly across the country (more on that tomorrow).

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April 23, 2016

It’s no secret that Hillary Clinton and Bernie Sanders have contrasting tax plans, but who knew their disagreements extended to soda taxes?

Philadelphia Mayor Jim Kenney (D) is advocating for a 3 cents per ounce (36 cents per can) tax on sugar-sweetened beverages to help fund universal pre-K, a proposal which...

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April 22, 2016

In what will certainly be talked about as one of the great tax reform packages of 2016, Tennessee policymakers have today agreed to repeal the state’s obscure tax on interest and dividends called the “Hall tax.”

From the Tennessean:

If Gov. Bill Haslam allows the bill to become law, the Hall tax rate...

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April 21, 2016

This post originally appeared as an op-ed on Forbes.
 
Tax day may be behind us, but Illinois residents could be working longer to pay their state taxes in future years under legislation unveiled by House Deputy Majority Leader Lou Lang (D)—a proposal that would see the top rate soar from 3.75 to 9.75%. Were the tax increase adopted,...

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April 20, 2016

Individual income taxes are the single largest source of state tax revenue in the United States, accounting for 36.5 percent of all state revenue in fiscal year 2013 despite the fact that nine states forego a tax on wage and salary income. Among states (and the District of Columbia) imposing an individual income tax on wage income, the tax accounts for an average of 43.4 percent of all state collections.

Income taxes tend to be less important to local governments overall, accounting...

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April 20, 2016

There has been a lot of talk recently about “greedy” corporations not paying “their fair share” of taxes. These claims have a lot of populist appeal, but they are really quite misguided if we think about it.

After all, corporations are owned by shareholders. And who are those shareholders? Why they tend to be large pension funds, such as those benefiting public employees, trade unions, and corporate pensioners, not to mention individual 401k plans and university endowments. Indeed,...

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April 18, 2016

This election season, nearly every presidential candidate has released a detailed plan on how they would change the tax code. Some of these plans are small and would have a limited impact on taxpayers and economy. Other plans are big and would drastically impact federal revenues, the economy, and taxpayers. Using our ...

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April 18, 2016

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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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