The Tax Policy Blog

April 18, 2014

One of the provisions under consideration in the tax extenders discussion is a reinstatement of 50 percent bonus expensing for equipment. This would strengthen investment spending and boost the sluggish recovery. It has done so in the past, most clearly in 2002 and 2003 when it helped to turn around a slump in investment and convert the “jobless recovery” into a mini-boom. The provision would do more to bolster the economy if it were made permanent, but half a loaf is better than none....

Continue Reading...
April 17, 2014

Tax revenue as a percent of GDP is one metric many use to gauge how much corporate income tax revenue the United States is raising. The advantage of this metric is that it controls for the size of the economy and gives people a readily available way to compare the United States to other countries.

When we look at this metric, the United States has low collections compared to other industrialized nations. The corporate tax raised revenue equal to 2 percent of GDP compared to the OECD...

Continue Reading...
April 17, 2014

The question is often asked: Do the rich pay their “fair share” in taxes? It’s never particularly clear what the rich currently pay, nor is it clear what share of taxes is fair for them to pay. A good place to start would be to determine exactly what high-income earners currently pay.

Estimates from Congress’s Joint Committee on Taxation and recently...

Continue Reading...
April 16, 2014

We recently outlined a bill introduced by Senator Patty Murray (D-WA), which would expand the EITC and pay for it in part by further limiting the deduction for executive compensation. The Senator believes that the ability for corporations to fully deduct...

Continue Reading...
April 16, 2014

Yesterday was Tax Day, and former Defense Secretary Donald Rumsfeld shared a letter he sent to the IRS with his Twitter followers. Rumsfeld said he did his best to fill out his taxes but says he's not sure he got it right, due to the complexity of the tax code:

The tax code...

Continue Reading...
April 16, 2014

Gov. Steve Beshear's problematic tax overhaul seems to have fizzled out, with the Legislature enacting a revenue bill with just a few small tax changes. The final plan that became law, HB 445, had many small components leading to only very slight tax changes in the aggregate. The plan...

Continue Reading...
April 15, 2014

The American Legislative Exchange Council today released their 7th annual Rich States, Poor States report, which ranks states in two metrics: historical performance based on economic indicators, and forecasted outlook based on policy variables. Here’s the top and bottom 10 breakdown this year:

...
Continue Reading...
April 15, 2014

An interesting and delightfully contrarian piece from this tax season was from Howard Gleckman at the Urban Institute: Does Anyone Care About a Simple Tax Code? Gleckman rightly points out that while tax code simplicity has long been a goal of reformers, it becomes less and less relevant to individuals, who no longer do those calculations themselves.

It’s a fair point. Computer...

Continue Reading...
April 15, 2014

UPDATE: The Star-Ledger has corrected the original piece.

Dear Editor:

I understand Tom Moran is compelled to attack our Tax Freedom Day report each year (“Tax Freedom Day? It’s bunk: Moran,” 4/...

Continue Reading...
April 15, 2014

The Progressive Policy Institute this week released a “Tax Complexity Index,” which provides a count of tax expenditures by state. The results are in line with what you might expect: state tax codes have a lot of deductions, credits, exclusions, rebates, and other goodies that make the code more complicated.

...

Continue Reading...
April 15, 2014

Where do federal government tax dollars come from? In 2013, the largest share of revenue came from individual income taxes and payroll taxes, accounting for $2.26 trillion in total. The smallest share came from estate and gift taxes at $19 billion.

...

Continue Reading...
April 15, 2014

Did you know that you can donate to the treasury voluntarily? The website pay.gov takes checking accounts, credit cards, and debit cards. You can also donate on your tax forms, which are due today.

Obviously, not many people choose to do this. It’s not reasonable to expect people to voluntarily part with money, even if they would prefer higher tax levels all around. The highest level of voluntary donations ever recorded was...

Continue Reading...
April 15, 2014

Tennessee lawmakers recently voted to repeal the state’s version of the so-called “jock tax.” The tax will be repealed effective immediately for NHL players, but will remain in effect for NBA players until June 1, 2016.

...

Continue Reading...
April 15, 2014

The tax code is huge and complex. But how huge and complex is it?

Andrew Grossman, the legislation counsel for the Joint Committee on Taxation that helps write tax laws, attacked us in Slate yesterday for saying that the tax code runs 70,000 pages, countering that it’s “only” 2,600 pages....

Continue Reading...
April 15, 2014

As tax day arrives, it’s worth considering how the federal government spends your tax dollars. The chart below presents the breakdown of federal spending in 2014 as estimated by the White House’s Office of Management and Budget (OMB).

In 2014, the largest budget item is spending on health, which takes up 27 percent of the $3.65 trillion in projected outlays. The next largest item is Social Security at 23 percent of the spending.

Defense spending comes in at 17 percent of...

Continue Reading...

Pages

Follow Us

About the Tax Policy Blog

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.

Monthly Archive

Privacy Policy