The Tax Policy Blog

October 31, 2014

Next week, Nevada voters will cast their ballots and decide whether or not Nevada will institute a margin tax. The tax is a modified gross receipts tax (a type of tax only five other states have) and is modeled after the Texas margin tax. Last March, I explained two big reasons why the Texas margin tax is the poster...

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October 31, 2014

The National Association of Enrolled Agents recently released a warning that the Affordable Care Act Marketplace may complicate tax returns. The NAEA is an organization of tax professionals that are specially licensed through the Department of Treasury and can represent individuals directly to the IRS. According to the group, insurance...

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October 31, 2014

A new paper by French economists Emmanual Saez and Gabriel Zucman discusses a new technique for using tax returns to estimate top wealth shares. They find that wealth inequality has been increasing such that the top 1 percent now control about 40 percent of all household wealth, as the chart below illustrates.

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October 29, 2014

Tens of thousands of Hungarians rallied to protest a proposal to create a tax on internet usage in Hungary. In response to the first protest on Sunday, the Hungarian government limited its proposal.

The original proposal would create a tax on internet usage of 150 forints per...

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October 29, 2014

In the past three decades, the importance of “pass-through” businesses has grown substantially. The combined net income of sole proprietors, LLCs, Partnerships, and S corporations has increased fivefold and now accounts for more than 50 percent of all business income. C corporations now earn less than half of all business income.

Another way to look at how pass-through businesses have increased in importance is their role as employers. Not only do they account for more than 50...

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October 28, 2014

Next Tuesday, Nevada voters will decide whether or not to give the go-ahead to the margin tax—an economically damaging tax that falls in the gross receipts tax family. Gross receipts taxes (GRTs) only exist in a handful of states across the country (and even that’s too many).

Gross receipts taxes are complex business taxes that are imposed at a low rate but on a wide...

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October 28, 2014

Last month, while Treasury was rolling out new rules to clamp down on corporate inversions, the Chair of the President’s Council of Economic Advisors, Jason Furman, gave a speech at NYU titled Business Tax Reform and Economic Growth. Furman acknowledged that the U.S. corporate tax rate, at 39 percent, is the highest in the developed world. However, he then argued that “more...

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October 28, 2014

I wanted to make sure you saw our new State Business Tax Climate Index, released today.

The Index enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare. While there are many ways to show how much is collected in taxes by state governments, the Index uses over 100 variables in...

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October 28, 2014

This morning we released our 2015 State Business Tax Climate Index, which enables business leaders, government policymakers, and taxpayers to gauge how their states' tax systems compare.

While there are many ways to show how much is collected in taxes by state governments, the...

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October 27, 2014

Inequality is a popular topic these days. President Obama has called it a “defining challenge of our time.” A French economist, Thomas Piketty, wrote a book on the topic that became a best seller. Despite all the discussion, there still...

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October 27, 2014

The Internet Tax Freedom Act (ITFA), the moratorium on taxing internet access, was recently extended to December 11, 2014, from its initial expiration date of November 1, 2014. However, a number of important questions are left unanswered by lawmakers regarding its future.

Internet access and the internet economy...

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October 24, 2014

A new paper on wealth inequality from economists Emmanuel Saez and Gabriel Zucman – who have written frequently on the subject – was released earlier this month. This paper is far better than previous attempts to measure inequality. It includes...

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October 23, 2014

According to 2011 Census data, there are approximately 27 million businesses in the United States. Of these 27 million businesses, 90 percent of them are what are called “pass-through” businesses.

In regard to taxes, the most distinct feature of a pass-through business is that its income is taxed once on the owners’ individual tax returns. Contrast this with c corporations, which pay their taxes directly at the entity level through the corporate income tax then again at the...

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October 22, 2014

Michigan’s Senate approved a bill yesterday to extend the state’s film tax credit program, which was limited and reduced in 2011 and set to expire in 2017. It’s now up to the House to decide whether to proceed. From Mlive:

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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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