The Tax Policy Blog

April 24, 2015

At NPR’s Planet Money, Quoctrung Bui has put together an attractive and interesting data visualization on real income growth in the United States. As he describes it, there are two distinct eras for income growth since 1917:

In the first phase, known as the great compression, inequality fell. Incomes...

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April 24, 2015

We did it!

Today – April 24th – is the day Americans as a whole have worked long enough to pay off their tax bill for the year.

In 2015, American’s will pay $4.85 trillion in taxes of all kinds to federal, state, and local governments. This amounts to 31 percent of the nation’s income in 2015 and 114 days into the year.

Federal taxes account for $3.28 trillion of the tax bill,...

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April 22, 2015

This week’s map shows top corporate marginal tax rates in each state (full report on state corporate income tax rates: here). Corporate income taxes vary widely, with Iowa taxing corporate income at a top rate of 12.0 percent (though the state offers deductibility of federal taxes paid), followed by Pennsylvania (9.99 percent), Minnesota (9.8 percent), Alaska (9.4 percent), the District of...

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April 22, 2015

Double taxation and the heavy tax burden on corporate profits has created a couple of distortions in the U.S. economy. One such distortion is that corporations often prefer to choose debt financing rather than equity financing. This is because the current tax code treats debt financing more favorably than equity financing. Specifically, equity financing faces two layers of taxation...

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April 21, 2015

This post originally appeared as an op-ed on Forbes here.

Last week, Ohio House leadership introduced a substitute bill to Governor Kasich’s proposed budget that would make many notable improvements to the tax plan. This is good news, because the proposed tax plan that came from the Kasich administration was deeply in conflict with itself.

The...

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April 20, 2015

Imagine running a small business and being assessed a penalty by the IRS. Then imagine being told by the IRS that the only way to avoid the penalty is to commit a serious felony, laundering money. This Kafkaesque nightmare actually became reality for a Colorado marijuana dispensary called Allgreens when it tried to pay its federal payroll taxes.

Generally speaking, in the United States, cash is legal tender for all debts,...

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April 20, 2015

In states with legalized marijuana, legislatures have partially converted an almost completely untaxed black market industry into a taxed and regulated industry that helps fund schools, healthcare, law enforcement, research, substance abuse treatment, and other government expenses. However, this conversion is not total: states have elected to...

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April 16, 2015

Today, for the first time in ten years, the U.S. House of Representatives has voted to repeal the federal estate tax. The final vote on HR 1105 was 240-179, with 233 Republicans and 7 Democrats voting yea. The bill was introduced by Rep. Kevin Brady (R-TX) with original co-sponsors Rep. Sanford Bishop (D-GA) and Rep. Kristi Noem (R-SD), and grew to a co-sponsors list of 135.

This is good news. Our...

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April 15, 2015

Our good friend Remy has released a very funny new video to relieve the stress of Tax Day. Enjoy.

Of course, one of our favorite Remy videos is this oldie but goodie from 2008 on Tax Freedom Day. This year, Tax Freedom Day arrives on April 24th.  

...

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April 15, 2015

It’s tax day today. The federal government collected over $3 trillion in taxes in 2014, according to the Office of Management and Budget, with $1.4 trillion coming from individual income taxes and another $1 trillion from payroll taxes.

...

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April 15, 2015

Leading up to tax day there are a lot of news outlets who are releasing reports on different aspects of the U.S. tax code. A lot of them are very informative and worthwhile. However, a report on Tuesday from ABC News’ “The Big Number” gets a lot of details about the tax code wrong.

The report stated that 54 of the largest businesses in the United States have conducted some sort of...

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April 15, 2015

This week's tax map presents the highest individual income tax rates in each state for 2015 (full report on state income tax rates: here). Income taxes are a major, and often complicated, component of state revenues. Furthermore, unlike sales or excise taxes which individuals pay indirectly, income taxes are levied directly on individuals, meaning that income taxes are usually featured...

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April 14, 2015

Tax day is a day away and this time of year there are always questions about who pays how much in taxes.

A recent poll by Pew Research Center found that “the feeling that some wealthy people don’t pay their fair share,” bothered 79 percent of respondents some or a lot. Recent analysis by the Joint...

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April 14, 2015

Two years after new stormwater remediation taxes rained down on Marylanders, a deluge of legislators—184 of them across both chambers, with one opposed—voted to pull the plug on the state’s Rain Tax mandate, though not necessarily on the tax itself.

As late as mid-March, the fate of any proposal to scale back the rain tax was uncertain, with House Speaker Michael Busch (D) seen as a...

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April 14, 2015

Yesterday, Senator Marco Rubio (R-FL) announced his plans to run for the Presidency. One thing that sets him apart from the others that have announced so far is that he has a comparatively detailed tax plan that he released with Senator Mike Lee (R-UT). One of the advantages of that is we can really analyze the effects of what a Rubio tax plan would have on the economy and taxpayers.

His tax plan would make quite a few changes to the current code, but it’s easy to think of it as...

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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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