The Japanese parliament has approved a 3.29 percent cut in the corporate tax rate from an effective rate of about 35 percent, according to Bloomberg. Prime Minister Shinzo Abe has previously announced plans to lower the...
- The Tax Policy Blog
- Major Party Conventions Partly Funded with Tax Dollars
Major Party Conventions Partly Funded with Tax Dollars
Don't Mess With Taxes reminds us that the major party conventions (the Democratic one in Denver this week and the Republican one in Minneapolis next week) are in part taxpayer funded, to the tune of $17 million each (but not a major share of the total cost, which is mostly underwritten by sponsors). The funds come from the Presidential Election Campaign Fund checkoff box on the 1040 form, which we looked at in this piece earlier this summer:
In both the primaries and general elections, the federal funds come from the tax payments of filers who voluntarily check off the box on their 1040. As noted above, the vast majority of filers do not check the box. When the PECF was first established in the 1970s, the participation rate hovered around 27 percent of filers. Since then, participation has been steadily declining [to around 12 percent today].
If PECF participation is broken down by adjusted gross income (AGI) an interesting trend emerges. As AGI increases, the percentage of returns electing to contribute to the PECF increases (see Table 1). In the lowest range, taxpayers with less than $10,000 in AGI, fewer than 10 percent checked the box in 2004. In the highest income group reported by the IRS, those with an AGI of $10 million or more, 23 percent contributed. This is still not especially high, but it is curious. Why the difference?
Subscribe to the Tax Foundation Newsletter
We will never sell or share your information with third parties.
Join the Tax Foundation's fight for sound tax policy Go
About the 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.