The Tax Policy Blog

January 29, 2015

This afternoon, Nevada Governor Brian Sandoval proposed restructuring the state's existing $200 annual Business License Fee into a quarterly graduated tax that is calculated based on a business's total revenue and industry. In the proposal, there are 30 possible industry classifications and 67 possible options for each (based on total revenue), amounting to 2,010 possible rates. 

Below are details provided by the Governor's Office:...

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January 29, 2015

As President Obama prepares to roll out another tax increase proposal targeting capital gains and dividends, it’s instructive to look at what happened the last time he did that. Fortunately, the IRS just released preliminary data on tax year 2013, the year the top tax rate on capital gains and dividends went from 15 percent to 23.8 percent. The fiscal cliff deal raised the top rate to 20 percent and the...

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January 28, 2015

The Obama Administration yesterday backed down from its plan to tax the earnings on 529 savings accounts, a kind of saving account for higher education under section 529 of the tax code. At Bloomberg, Richard Rubin and Mike Dorning report: "A White House official, speaking on condition of anonymity, said the issue had become a distraction from the president’s...

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January 27, 2015

For this week's tax map, we're continuing our series on pass-through businesses. For the first map of the series, check out our map from last week

Sole proprietorships, S corporations, limited liability companies (LLCs), and partnerships are also known as pass-through businesses. These entities are called pass-throughs, because the profits of these firms are passed...

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January 26, 2015

The Congressional Budget Office (CBO) has released its 2015 to 2025 Budget and Economic Outlook. In this yearly publication, the CBO examines current laws (taxes and spending) and projects the outlook for the federal government’s budget for the next 10 years.

One of the topline projections the CBO makes is the budget deficit. This measures the difference between federal government spending and federal tax revenues (a higher deficit...

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January 26, 2015

Cut the individual income tax and raise the gas tax—that was South Carolina Governor Nikki Haley’s message in her 2015 State of the State address.

Though there aren’t a lot of details yet, it’s no surprise that South Carolina’s income tax rate is a competitive disadvantage for the state. South Carolina’s top rate of 7 percent is 12th highest in the nation, but also the highest among its...

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January 23, 2015

As part of his new tax plan, the president has proposed ending the “step-up” in tax basis for inherited assets, and, furthermore, requiring the capital gains tax to be paid at death rather than when an heir later sells the assets. There would be an exception for surviving spouses, with no tax due until the death of the second spouse, and an exemption for the first $200,000 of gains for a couple.

...

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January 23, 2015

It looks like I wasn’t the only one unhappy with the president’s economic proposals in the State of the Union. In a New York Times op-ed this week, Glenn Hubbard, too, voiced his disappointment:

“Our unwillingness to confront mounting inefficiencies in the nation’s tax code and growing...

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January 23, 2015

Last week, IRS Commissioner John Koskinen said at a news conference that the IRS may need to use furloughs in order to handle its budget issues. A well-functioning revenue service is necessary for an effective government, so it is worthwhile to consider the facts of the situation, and what they mean.

Congress indeed cut the IRS budget by $346 million...

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January 22, 2015

The President’s latest proposal to raise taxes on capital gains and dividends, which follows two rounds of tax increases in Obamacare and the fiscal cliff deal, raises serious concerns about the impact on investment. That’s because corporations rely to a large extent on shareholders to finance investment. That’s in fact the essence of the corporate form!

And when...

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January 22, 2015

This week's tax map comes from a report we released this morning and takes a look at the amount of private sector employment that comes from pass-through businesses.

Sole proprietorships, S corporations, limited liability companies (LLCs), and partnerships are also known as pass-through businesses. These entities...

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January 22, 2015

South Dakota Governor Dennis Daugaard has proposed a budget that includes annual motor fuel tax increases, joining a number of recent states that have increased or indexed their gas taxes.

Gas taxes align with the benefit...

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January 22, 2015

In his 2015 State of the Union address, President Obama laid out his vision for how to help the middle-class, dubbing it middle-class economics. His plan includes tax increases of $320 billion to pay for around $200 billion in new or expanded tax credits. Unfortunately, his policy prescriptions would continue years of slow economic growth and...

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January 21, 2015

President Obama is proposing tax increases on the capital income of upper income taxpayers and higher taxes on heirs to fund tax reductions for middle income families and college students. The biggest tax increase on the list involves a higher top tax rate for capital gains and dividends.  The Treasury estimates that the entire package of tax increases will raise $320 billion over ten years. The revenue will be used in part to pay for some $200 billion in middle income tax breaks.

...

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January 21, 2015

Last night during the State of the Union address, the president spoke briefly about taxes:

“Let’s close the loopholes that lead to inequality by allowing the top one percent to avoid paying taxes on their accumulated wealth. We can use that money to help more families pay for childcare and send their kids to college. We need a tax code that truly...

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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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