The Tax Policy Blog

August 29, 2014

Inversions have been in the news consistently this summer as multiple companies have looked for legal paths away from the U.S. corporate tax system. Burger King became the latest corporation to add to the list after they announced their planned moved to Canada. The reason: Our corporate tax system is out of date.

The average corporate tax rate across the 34 member Organization for...

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August 28, 2014

Matt Yglesias at Vox today argues that migration out of “blue states” is caused by high housing prices, not taxes, and high housing prices are essentially a function of bad zoning laws in “blue” cities....

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August 27, 2014

Canada is apparently becoming an attractive place to do business. This week Burger King announced plans to move its headquarters to Canada, via a merger with Tim Hortons. Other U.S. companies that have recently moved or announced plans to move to Canada include Bausch and Lomb,...

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August 26, 2014

Burger King’s announcement that it will move its headquarters to Canada has put the spotlight on Canada’s tax system. Just what are the tax benefits of doing business in Canada versus the U.S.?

First, Canada has a much lower corporate tax rate: 15 percent at the federal level plus another 11 percent on average from provincial corporate taxes. Compare that to the U.S....

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August 26, 2014

The Center on Budget and Policy Priorities’ Michael Mazerov has a blog post out today covering the same Upshot blog migration tool we covered recently. Mazerov points out that states with no income tax appear to have done a...

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August 26, 2014

In his recent newsletter, John Mauldin suggests that economic growth is the most important issue for economists. I quote him here at length (emphasis added):

"What to do about economic growth is perhaps the single most important question of our time, as the demographics of the developed world are shifting in such a way is that we will simply not have enough money for us all to be able to retire in the style to...

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August 25, 2014

In today’s New York Times, Paul Krugman has an op-ed on migration. This has been a popular topic for various New York Times writers recently, with the Upshot blog producing one of the...

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August 22, 2014

In a recent interview with Harvard Business Review, Harvard Business School’s Mihir Desai and Bill George gave some great insight on inversions, who really pays the corporate tax, profit shifting, and corporate tax reform.

Below are a few selections from the interview, but...

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August 21, 2014

Dan Mitchell’s article today in the Wall Street Journal about why we need marginal tax rate cuts rather than child tax credits has elicited a response from Jim Pethokoukis of AEI:

From 1987 through 1992 — after the much ballyhooed 1986 tax reform — the top...

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August 21, 2014

Dan Mitchell from the Cato Institute recently wrote about the debate over increasing the child tax credit or lowering marginal tax rates. He says lower marginal tax rates would have a bigger impact on the incentive to work and could lead to a better economy in the long run. From the Wall Street Journal:

"Now let's look...

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August 21, 2014

The Treasury Inspector General for Tax Administration released a report this week on significant challenges with enforcing the Affordable Care Act’s Medical Device Tax.

The medical device tax is a 2.3 percent excise tax on the sale price of qualifying medical devices. Generally, taxable medical devices are things like pacemakers and defibrillators. The tax explicitly exempts things like eye glasses,...

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August 20, 2014

We recently published a map showing how far $100 would take you in different states. For example, in states with low costs of living, like Arkansas, $100 had the same sort of purchasing power that $115 would have in an average state.

We got a lot of requests – particularly from upstate New Yorkers - for a map of purchasing power that separates out cities from non-metropolitan areas. Fortunately, that data is...

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August 20, 2014

Ed Kleinbard, a law professor at the University of Southern California, has a new...

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August 20, 2014

It is well known that the United States has the highest corporate income tax rate among the 34 industrialized nations of the Organization for Economic Cooperation and Development (OECD). However, it is less well known how the United States stacks up against all of the countries and other tax jurisdictions throughout the world.

This map shows the top marginal corporate income tax rates for 163 countries and tax jurisdictions.

...

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August 20, 2014

The United States, Chile, and Hungary are the only three OECD countries that have not cut their corporate tax rate since 2000. Hungary and Chile, who had the two lowest rates in the OECD in 2000, have both increased their rates to 19 and 20 percent, respectively.

Germany has cut its rate the most in this timeframe, going from 52 percent in 2000 to 30.2 percent in 2014. Canada, Ireland, Poland, and the U.K., among other, have also made large cuts to their corporate tax rate. In all,...

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Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog 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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