The Tax Policy Blog

December 05, 2016

As the tax reform debate begins to heat up, businesses and investors are beginning to pay closer attention to the House GOP Tax Reform Blueprint, a tax plan released last June by Speaker Paul Ryan and House Ways and Means Chairman Kevin Brady. The Blueprint is designed to encourage business investment and generate...

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December 05, 2016

With 2017 just around the corner and state policymakers beginning work on next year’s legislation in earnest, it’s worth pausing to review recent trends in state taxation to glean hints of what to expect in the year to come. Here are a few trends we’ve been seeing in recent years:

  • Reduced Taxation of Capital. States have been slowly but steadily eliminating or reducing reliance on tangible personal property taxes (generally levied on business property like...
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December 02, 2016

The OECD released their Revenue Statistics publication for 2015 this week, revealing the total tax revenue as a percent of GDP of the OECD countries has risen by 10 bases points. The increased tax revenue was driven by an increase in income tax collected in the largest OECD economies. Both Mexico and Turkey increased their tax revenues as a percent of GDP by more...

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December 02, 2016

Each year, the Tax Foundation honors state legislators, executives, and other individuals with its Outstanding Achievement in State Tax Reform award. As the name suggests, the honoree's accomplishments must be (1) outstanding, (2) an achievement (not merely a proposal) during 2016, and (3) ...

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December 01, 2016

The news of the day is that President-Elect Donald Trump and Vice President-Elect and Indiana Governor Mike Pence have together secured a deal to keep a Carrier furnace plant in Indiana. The plant will retain 1,000 jobs that the company was planning to move to Mexico. Some thoughts that are important for media and taxpayers to consider:

1.       ...

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December 01, 2016

In 30 days, over a million people will crowd into Times Square to watch the ball drop. Families across the country will sing Auld Lang Syne and toast to the new year. And, amidst the celebration and revelry of New Year’s Eve, 36 minor tax provisions are set to expire from the U.S. tax code.

The 36 tax provisions that are set to expire – known as “tax extenders” – are a hodgepodge of minor tax breaks for...

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December 01, 2016

Today is December 1, the date in 1867 when the U.S. Supreme Court decided Crandall v. Nevada, ruling that states cannot impose a tax on leaving the state. Nevada had imposed a $1 exit tax on all people leaving the state by railroad, stagecoach, or other vehicle. Crandall, who ran a stagecoach company, refused to collect the tax from his passengers, arguing it was void under the Constitution. The Supreme Court of...

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November 30, 2016

Today is November 30, Mark Twain’s birthday. He once said, “The only difference between a tax man and a taxidermist is the taxidermist leaves the skin.”

Here are some interesting links I came across:

Trump Picks Mnuchin for Treasury Secretary: The banker and film producer was Trump’s campaign finance chairman. He told CNBC tax reform...

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November 30, 2016

Yesterday was Giving Tuesday, but the giving season has just begun. If you love our blog, we hope you’ll consider making a special year-end gift to support the Tax Foundation's work in 2017.

As 2016 comes to a close, we're taking a look back at what has been our most exciting year to date! At the national level, the tax reform debate is in full swing with the prospects of tax reform growing in 2017. Our...

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November 29, 2016

Today is November 29, the date in 1977 when the U.S. Supreme Court decided Commissioner v. Kowalski, which held that taxable income includes cash payments replacing a previous employer-provided direct benefit.

Robert Kowalski was a New Jersey state trooper who did not report as income on his tax return $1,371.09 in meal allowances he had received. In 1949, New Jersey began providing state troopers...

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November 29, 2016

D.C. Council Chairman Phil Mendelson (D) yesterday released his compromise paid leave proposal, after developing it over the past several months. Key elements:

  • A 0.62 percent payroll tax on all employers in the District (except the federal and D.C. governments), beginning in 2019....
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November 28, 2016

As the holiday shopping season ramps up, some view Cyber Monday as a reminder that many online retailers are not required to collect sales taxes, as opposed to their brick-and-mortar counterparts. Traditional retailers feel they’re at a competitive disadvantage, and states argue that they’re losing billions of dollars in revenue. But we shouldn’t lose sight of the legal foundation for protecting online businesses and the costly administrative rules that states could impose on businesses...

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November 28, 2016

Today is November 28, the date in 2014 when the national debt passed the $18 trillion mark. Today it stands at $19.9 trillion.

Here are some interesting links I came across:

Soda Taxes Coming to a City Near You: San Francisco, Oakland, Philadelphia, and Cook County (Illinois) are among the seven jurisdictions that have recently imposed new special taxes on soda. Supporters say it’s...

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November 28, 2016

If you play the lottery, it pays to live in a state that foregoes an individual income tax, and I don’t just mean in the obvious way. Nine states do not impose a general income tax (two of these states tax interest and dividend income), and a further three states exempt lottery winnings. And, by pure happenstance, 84.7 percent of Powerball winnings since November 2015 have been in those twelve states.

That...

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November 23, 2016

The House GOP blueprint will likely be the starting point for the tax reform debate in 2017. As with most tax reform plans, it proposes to reform the current system of taxing U.S. multinationals’ foreign profits. Under current law, U.S. multinationals are taxed on their worldwide income up to 35 percent, but are allowed to defer the additional U.S. tax until they bring those profits back. The current system encourages companies to expatriate or “invert” and discourages them from bringing...

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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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