The Tax Policy Blog

February 05, 2016

In his upcoming budget, President Obama will propose adjusting the Cadillac Tax to account for geographic variations in health costs, according to an article published on Wednesday by two White House economists. The proposed changes would further weaken the ability of the Cadillac Tax to raise revenue and restrain healthcare costs, but they might be necessary to ensure the viability of the tax...

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February 04, 2016

Oregon State Senator Mark Hass (D), chair of the Oregon Senate Finance and Revenue committee, has released a new proposal to overhaul Oregon’s corporate income tax structure. Senator Hass’s proposal would repeal Oregon’s corporate income tax and replace it with a 0.39 percent gross receipts tax on in-state sales above $1 million. This proposal is misguided. Gross receipts taxes...

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February 04, 2016

The IRS recently released preliminary data for Tax Year 2014. The data shows that the U.S. income tax system remains very progressive, with high-income taxpayers paying a disproportionate share of the tax burden relative to their share of the nation’s income, while the majority of taxpayers pay a considerably smaller share relative to their share of total income.

Overall, nearly 149 million...

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February 03, 2016

How much can a household save in taxes by having an additional child? It’s a surprisingly difficult question to answer. The tax benefits from having an additional child depend on several factors: how much money a household makes, its filing status, and – most importantly – how many children are in the household already.

There are three major sections of the federal tax code that give benefits to households with children:

  1. The dependent exemption, which allows households to...
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February 02, 2016

Senator Bernie Sanders likes to bring up Denmark when explaining his policy positions. In one of the Democratic debates he said that America “should look to countries like Denmark, like Sweden, and Norway and learn from what they have accomplished for their working people.” For Sanders, these countries’ generous social safety nets are a model for the United States. But what about their tax systems?

In a...

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February 02, 2016

Last Thursday, the Senate Committee on Finance held a hearing to examine strategies to help American workers better prepare for retirement. The hearing focused on issues related to expanding access to and participation in tax-favored retirement savings plans. Chairman Orrin Hatch (R-UT) and ranking member Ron Wyden (D-OR) gave...

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February 02, 2016

Massachusetts legislators are now considering a ballot initiative proposal that would raise the current 5.1 percent state income tax to 9.1 percent for income over $1 million. The House Revenue Committee approved the proposal late last week and it now moves the full House.

The state constitution currently requires that income tax be a uniform...

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February 01, 2016

We have previously highlighted the economic benefits of bonus depreciation, or bonus expensing, using our Taxes and Growth (TAG) model. A new NBER paper strongly confirms our model’s assumptions, finding that bonus depreciation significantly increases...

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February 01, 2016

We recently released our analysis of Senator Bernie Sanders’s tax plan. We found that the plan would be a $13.6 trillion tax increase over the next decade. Compare this to Hillary’s $500 billion tax increase over the same period.

Bernie’s tax plan raises so much revenue by moving away...

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January 29, 2016

Legislation being considered with bipartisan support in the Ohio Senate would permanently extend the state’s tax holiday on back-to-school gear.

Senate Bill 264 would permanently eliminate sales taxes on the first Friday, Saturday and Sunday of each August on select back-to-school items,...

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January 29, 2016

Americans paid $129 billion more in income taxes in 2015 than they did in 2014, according to data released today by the IRS. While taxpayers’ incomes grew by 6.1 percent from the year before, their overall tax bill grew by 10.0 percent.

The new data is the public’s first look at the taxes that Americans paid last year on the income they earned in 2014. The table below shows some of the top-line statistics:

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January 29, 2016

Tax Analysts had an excellent story by Ajay Gupta a few days ago about the deft tax planning of David Bowie. The piece traces the story of Bowie’s success and consequent locale ch-changes to avoid some of the most inhospitable tax rates in particular parts of the world.

In 1976, David Bowie set up residency in Switzerland, as his...

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January 28, 2016

Voters in Iowa who plan on attending Monday’s Democratic caucuses will be making a choice between two very different tax policy visions from the leading candidates. This contrast is so stark that it can be expressed pretty simply with a visualization. I’ll first show you a graph that illustrates the differences between former Secretary of State Hillary Clinton and Vermont Senator Bernie Sanders. Then I’ll get to the background: how two candidates with many broad areas of agreement ended up...

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January 28, 2016

Today, the Tax Foundation released an analysis of Senator Bernie Sanders’s tax plan. In many ways, Sanders’s plan is the most ambitious plan proposed by any of the 2016 presidential candidates. It would increase federal taxes by $13.6 trillion on a static basis –...

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January 28, 2016

The Florida House of Representatives released its tax proposal yesterday, and it is worse than the mediocre plan released by Governor Rick Scott in November. The House plan includes several of the...

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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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