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...
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- Moving Thanksgiving By a Week? And Taxes on Commercial Pr...
Moving Thanksgiving By a Week? And Taxes on Commercial Property
On behalf of the state policy team at the Tax Foundation, I want to wish you a happy Thanksgiving holiday! We're very thankful of the continuing praise and support we've gotten from you as we've worked to bring about simple, sensible tax policies at the state level.
In case you want a break from family conversation over turkey and stuffing, be sure to check out our new report on disproportionate property tax treatment of commercial and industrial property versus residential property. While residential property is the majority of U.S. property values, state and local governments collect 56 percent of their property taxes from commercial and industrial property, often through higher rates or assessment practices. These are taxes we all pay as consumers, workers, and shareholders, and can lead to residential property owners not paying the full cost of the public services they're demanding.
Abraham Lincoln once cautioned, "Let not him who is houseless pull down the house of another." By heavily taxing commercial and industrial property to benefit residential property, state and local governments are doing precisely that. A better approach would be property tax systems that tax all property alike.
I'll leave you with one last quotation, from Unknown: "A person doesn't know how much he has to be thankful for until he has to pay taxes on it." Have a great holiday!
P.S. - Thanksgiving was once moved by a week in the hopes of boosting retail sales. It failed to boost sales (instead just shifting them), just as sales tax holidays shift sales rather than boosting them. A Thanksgiving lesson for policymakers!
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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.