The Tax Policy Blog

July 28, 2016

Today is July 28, Bill Bradley’s 73rd birthday. Bradley, a Hall of Fame basketball player, was U.S. Senator from New Jersey from 1979 to 1997. Senator Bradley was a lead champion of the 1986 federal tax reform. Happy birthday, Senator!

Here are some interesting links I came across:

  • Trump Says Tax Rate on Imports Not Set: “It would be 35 percent, it may be 10 percent, it may be five percent, it may...
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July 28, 2016

Last week, the Tax Foundation released an analysis that showed prices would increase in Oregon if Initiative Petition 28 (IP28) is adopted by voters in November. The Legislative...

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July 27, 2016

Last week, the Tax Foundation released a paper titled, “Reexamining the Tax Exemption of Municipal Bond Interest,” which argued that lawmakers should consider reforming the current tax treatment of municipal bond interest. Apparently, the municipal bond industry is less than thrilled with our report: yesterday, The Bond Buyer published...

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July 27, 2016

Today is July 27, the date in 1940 when Bugs Bunny debuted. The ‘wascially wabbit was spared by hunter Elmer Fudd in a 1942 cartoon when a telegram arrives informing Fudd of a $3 million inheritance on condition that he not harm any rabbits. Fudd lets Bugs go, but then learns that various taxes on the inheritance leave him with just $1.98. Happy birthday, Bugs!...

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July 26, 2016

Today is July 26, the date in 1788 when New York became the eleventh state. New York has some pretty high taxes (top individual income tax rate of 8.82 percent, average sales tax rate of 8.49 percent, and the highest state-local tax burden. However, as late as 1946 the state income tax was just 3.5 percent, the corporate tax was 4.5 percent, and there was no sales tax (until 1965). In 2014, the state ...

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July 26, 2016

If you enjoy our weekly tax maps, you’ll love our Monthly Map Club! Sign up below to receive a new map on state tax rates, collections, burdens and more in the mail every month...

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July 25, 2016

Chances are, if you were to pull out your latest pay stub, you would see two important lines among the list of taxes taken out of your wages: FICA and MEDFICA. If you were to do the math, these two lines, standing for Federal Insurance Contributions Act and Medicare Federal Insurance Contributions Act respectively, take up 7.65 percent of your wages.

However, when it comes to these payroll taxes, as they are commonly known, there is a lot more than meets the eye. In two separate blog...

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July 25, 2016

The United States places a relatively high burden on long-term capital gains income (gains on assets held for more than one year). The top federal tax rate is 20 percent. In addition, taxpayers with AGI over $200,000 ($250,000 married filing jointly) are subject to the 3.8 percent Net Investment Income Tax. Long-term capital gains are also subject to state and local income taxes. Combined,...

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July 22, 2016

Much is being made this political season over the stagnant incomes of middle-class workers and what can be done to improve their living standards. Solutions have ranged from more targeted tax cuts—such as “payroll tax cuts, family-friendly tax reform, wage subsidies or a larger earned-income tax credit”—to more government benefits, such as free college tuition and job training programs.

What’...

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July 22, 2016

Today is July 22, which would have been Senator William Roth’s 95th birthday. The Delaware Republican is best known for sponsoring legislation to create Roth individual retirement accounts (Roth IRAs), which allow after-tax savings to be placed in an account to be withdrawn tax-free in the future, subject to certain limitations. Roth was a Senator from 1971 to 2001, chairman...

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July 21, 2016

Today is July 21, which would have been author Ernest Hemingway’s 117th birthday. Hemingway said much on taxes, so much that his foundation has an entire article on his tax quotations. He once complained to his tax attorney that “[t]his time I have really wonderful stuff to write but now when I should be writing I am chasing receipts and writing letters like this” and said it was “...

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July 21, 2016

State and local governments rely on a variety of tax types to raise revenue, one of which is the excise tax. Like general sales taxes, excise taxes are paid on the purchase of an item. Unlike sales taxes, excise taxes are collected on specific types of transactions, not a wide range of general goods. Some of the most common excise taxes include...

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July 21, 2016

Over the past 30 years, many countries have moved away from "worldwide" tax systems that tax their domestic corporations’ worldwide profits. Instead, many countries have what is called a “territorial” tax system. A territorial tax system generally allows corporations to deduct or exclude the majority of dividends received from their foreign operations. Currently, 91 countries have a territorial tax system of some kind.

...

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July 20, 2016

Today is July 20, the date in 1940 when the first 3.7-mile segment of the United States’ first freeway opened for traffic in Los Angeles. Today, a quarter of all vehicle miles driven in the United States are on controlled-access interstate highways, although the sudden stop in driving growth about ten years ago has created enormous pressure on...

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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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