The Tax Policy Blog

February 27, 2015

If you haven’t been living under a rock for the last two days, you’ve probably noticed that the internet is losing its mind over the infamous dress that’s seen by some as black and blue and by others as white and gold.

This got us thinking: regardless of how you see the dress, how does your state tax code see it? Check out the map below for how your state treats the purchase of...

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February 27, 2015

Senate Budget Committee Chairman Mike Enzi (R-WY) and House Budget Committee Chairman (R-GA) jointly named Dr. Keith Hall the new Director of the Congressional Budget Office, succeeding the outgoing director, Dr. Douglas Elmendorf.

Dr. Hall has served the federal government in a number of important posts including Chief Economist for the White House Council of...

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February 27, 2015

Currently, federal, state, and local governments levy gas taxes in order to fund road construction and repair. The taxes and spending associated with roads is an example of the benefit principle of taxation. This principle states that the taxes one pays to the government should be connected to the benefits one receives.

This works really well for roads for a number of reasons. Charging people based on how much they utilize roads ensures that they are compensating the government for...

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February 27, 2015

Yesterday we published an overview and dynamic modeling results for a business tax proposal by Representative Devin Nunes (R-CA). This tax plan has been developing for several years now, largely without heavy media attention.

It has now reached the point where it should probably turn more heads.

Some tax plans, often those that receive the most attention, are mostly ideological...

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February 27, 2015

In filing my own taxes, the most difficult part to calculate has always been the Qualified Dividends and Capital Gain Tax worksheet. I often have to do it several times in order to make sure I did not mess it up. And I work for Tax Foundation! I have, in fact, even checked the programming of this worksheet for the Taxes and Growth model. And I still have to triple-check it every time!

...

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February 26, 2015

Nevada appreciates the razzle-dazzle.

After a week of meetings to promote our new book on Nevada tax reform, I was invited to address the annual dinner of the Nevada Taxpayers Association in Carson City yesterday. For a variety of fairly dull reasons, at the last minute I swapped out my planned talk with a talk about the book’s findings, which some in the crowd took to Twitter to say was itself...

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February 26, 2015

International tax reform done on a multilateral basis—also known as the OECD’s Base Erosion and Profit Shifting (BEPS) initiative—may have additional positive effects beyond, at least theoretically, better distributing tax revenue according to economic activity. A recent TPC/UCLA conference on international tax...

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February 26, 2015

Corporate tax rate cuts are good for economic growth, and they aren’t bad for government revenues, either.

In fact, eliminating the corporate income tax would actually increase annual federal revenue in the long run. This is due to two main factors:...

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February 26, 2015

Earlier this month there was a little argument between the Treasury Department and the Tax Policy Center. The argument was over a particular provision: the White House’s proposal to tax accrued (but unrealized) capital gains at death.

The Tax Policy Center’s analysis showed that this proposal would affect some middle-income families, and the White House insisted that it wouldn’t. The Tax Policy Center’s Len Burman rounds up the story well...

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February 25, 2015

Only a week after Wal-Mart Stores Inc. announced plans to raise their starting wages to $9 per hour this year and $10 per hour next year, the retail conglomerate that includes T.J. Maxx, Marshalls, and HomeGoods announced similar plans.

This is excellent news. This sort of business move is the most natural, and best, vector by which wages rise. In an...

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February 25, 2015

We’ve been covering a number of important issues in tax policy lately. My colleague William McBride has been covering the decline of the traditional American C corporation. He has found that the number of traditional C corporations in America, once at 2.6 million, has declined all the way to 1.6 million, and – if anything – the rate of that decline is increasing.

...

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February 25, 2015

This week, the Mileage-Based User Fee Alliance held their annual conference. I was invited to speak on the tax policy and the taxpayer perspective of mileage-based taxes, or sometimes referred to as vehicle miles traveled (VMT) taxes. This group is interested in how mileage-based taxes could help better fund transportation spending and how it can better “price” roads than the gas tax.

Mileage-taxes are levied on drivers based on the number of miles they drive. For example, a driver...

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February 24, 2015

Let’s not forget to remember that net fiscal incidence is the key measure to evaluate the distributive effect of government policy; that is, the total distribution of spending and taxes. The significance of net fiscal...

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February 24, 2015

The U.S. is a craft beer nation, and the 2,768 craft breweries in the U.S. are proof of it. Although we would like to believe that Americans love craft beer more than any other nation, our friends across the pond would disagree with us. European breweries are more than just old world brewers, steeped in tradition and bound by outdated purity laws. Craft breweries are on the rise in Europe, producing innovative...

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February 23, 2015

Regular readers of this blog know the main issues with tax increases on investment income, like the capital gains and dividend tax hikes proposed recently by the President. This tax increase would be consistent with a general Obama administration philosophy of taxing returns on financial capital.

We usually...

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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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