The Tax Policy Blog

March 27, 2015

Yesterday we released an independent report (PDF) analyzing Nevada Governor Brian Sandoval’s proposed Business License Fee tax. The proposal replaces Nevada’s current $200-flat business license fee with a tiered gross receipts tax.

Governor Sandoval quickly...

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March 24, 2015

The current federal top marginal tax rate on long-term capital gains in the United States is a total of 23.8 percent (20 percent plus a 3.8 percent tax to fund the Affordable Care Act) for taxpayers with adjusted gross incomes of $200,000 ($250,000 married filing jointly) or more. In addition, states and some localities levy taxes on capital gains income, which range from zero percent in states with no individual income tax, such as Florida, Texas, South Dakota, and Wyoming, to 13.3 percent...

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March 24, 2015

Truly an issue at the heart of public finance, the current quandary of how to fund U.S. infrastructure spending has risen to new levels. Among a handful proposals circulating in Congress, John Delaney (D-MD)—in what he purports is “a natural deal”—has introduced H.R. 625, which would levy a retroactive tax on accumulated foreign earnings of U.S. multinationals, in order to fund an infrastructure bank and...

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March 20, 2015

After the IRS decision to allow gay and lesbian married couples to file joint federal tax returns, we noted that a number of states would have to provide guidance because they require two contradictory things: (1) if you file a joint federal return, you must file a joint state return, and (2) same-sex married couples cannot file jointly. Nearly all...

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March 19, 2015

Right now, Iowa’s income tax has nine different brackets, with rates ranging from 0.36 percent (in the first $1,539 of taxable income) to 8.98 percent (on all income above $69,255), and that’s not going away—but if some legislators get their way, taxpayers might have an alternative.

House Study Bill 215 revives a concept...

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March 19, 2015

According to Tax-News, Austria has announced a proposal to reform its income tax paired with adjustments to its property tax and value-added tax.

The income tax reforms would make their income tax system slightly more progressive. The bottom marginal tax rate (which is on income between $11,721 and $26,639) would drop from 36.5 percent to 25 percent. The top statutory...

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March 19, 2015

Someone mailed us their tax returns and documents today. We quickly sent it back to that individual, as we neither process tax returns nor assist individuals with tax planning or preparation. Tax documents contain a lot of private information and everyone should be very careful about to whom they send this information. Here's where to file your federal tax returns.

We are here for taxpayers but...

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March 18, 2015

A recent New York Times article by Josh Barro has questioned the Tax Foundation’s TAG model forecast of the economic gains to be expected for the Lee-Rubio tax reform plan. We show an eventual increase in the GDP of about 15 percent.  We assume this would occur over about a decade, during which the yearly growth rate would average about 1.45 percent over the...

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March 17, 2015

In a column on TheUpshot, Josh Barro claims that our analysis of the Rubio-Lee tax reform plan is “too aggressive” and that he spoke with ten public finance economists who agree. Much of his criticism hinges on a quote by Laurence Kotlikoff, who felt the need to clarify his quotes by commenting on the article that our model “may be closer to correct than [Barro’s]...

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March 16, 2015

Senators Marco Rubio (R-FL) and Mike Lee (R-UT) released their plan to reform the federal tax code last week. The proposal would overhaul both the individual and corporate tax codes, provide a significant boost to the economy, lift incomes across the board, and result in a $1.7 trillion...

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March 13, 2015

Massachusetts’ film tax credits ran an estimated $90 million in Fiscal Year 2015, but they could be on the chopping block if Governor Charlie Baker (R) and a diverse coalition of film incentive opponents prevail.

With so much money on the line, it’s unsurprising that proponents are fighting back. In one recent...

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March 13, 2015

This article originally appeared at realclearmarkets.

Senators Marco Rubio (R-FL) and Mike Lee (R-UT) have generated quite a buzz in Washington by proposing an ambitious tax reform plan that would replace our arcane individual and corporate income tax systems with a two-rate wage tax, a very generous child tax credit for families, and a business...

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March 11, 2015

As you prepare your 2014 taxes, you may notice that the 2014 personal exemptions and standard deductions are higher than for 2013 filings.  So are the dollar amounts that separate each tax rate bracket from the next highest. These amounts are adjusted upward each year for inflation, in a procedure called “tax indexing.” Tax indexing turns 30 this year.

Tax indexing was enacted in the Economic Recovery Tax Act of 1981, and took effect for tax years 1985 and beyond, following three...

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March 10, 2015

At a conference, the CEO of the Irish firm Ibec called for Ireland to lower its income tax rates to be closer in line with the rest of the developed world.

The high marginal income tax rates are “making it difficult for Irish businesses to attract and retain skilled workers. It also flies in the face of the shared aim of making Ireland a leading centre of design and innovation,” he said....

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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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