The Tax Policy Blog

September 15, 2016

Introduction

Today in New York, presidential candidate Donald J. Trump released a tax reform plan. The plan would reform the individual income tax code by lowering marginal tax rates on wage, investment, and business income. Furthermore, it would broaden the individual income tax base. The plan would also lower the corporate income tax rate to 15 percent and modify the corporate income tax base....

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September 14, 2016

The MPAA is up early this morning with a news release and short (~1,200 word) piece attempting to refute two studies by Professor Michael Thom ...

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September 14, 2016

Today is September 14, the date in 1959 when Public Law 86-272 was enacted. This law limits state tax power so that sending traveling salespeople into a state doesn’t subject a company to the state’s corporate income tax. The law was intended to preserve the status quo while Congress studied a...

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September 13, 2016

On August 30th the EC announced that two of Apple’s tax agreements with Ireland violated the...

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September 13, 2016

It is no secret that the corporate income tax is one of the most complex taxes that states levy. It requires apportioning profits across several states and allocating expenses across multiple years, and usually involves more state department of revenue personnel to administer than any other state tax.

In Louisiana, they have even more complexity than most states, though, because they have a highly unusual provision which allows corporations to deduct the cost of their federal taxes...

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September 13, 2016

Today is September 13, International Chocolate Day due to the birth on this date of Milton S. Hershey. Chocolate and taxes have quite a history: the first tax on it was levied by King Louis XIV of France in 1692, with Prussia following in 1704 and England in 1726; Britain reversed course...

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September 12, 2016

Today is September 12, the date in 1848 when Switzerland was reorganized from a loose confederation into a federal state, following a month-long civil war. The new central government would have some key powers but cantons would preserve most local decision-making and the legislature was divided (similar to the U.S.) into an upper house, with each canton...

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September 09, 2016

Today is September 9, the 100th anniversary of the federal estate tax taking effect. Currently 40 percent for estates above a threshold of $5.45 million, the tax’s rates and exemption levels have changed almost continuously since it was first enacted. It produces...

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September 08, 2016

Japan has been struggling with weak economic growth for decades, and political leaders are preparing for a fresh round of fiscal stimulus. Previous attempts to increase economic growth through spending stimulus have not produced the sustainable growth promised by the government. As an alternative, Japan could attempt growth-promoting tax reform, such as reduced tax rates on business...

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September 08, 2016

Today is September 8, the date in 1933 when the Washington Supreme Court ruled that a graduated state income tax violated the state’s constitution. Citing a state constitutional provision expansively defining property as everything and a separate constitutional provision requiring uniformity in taxing property, the Court concluded that an income tax applying different rates to different income levels violated uniformity and thus could not be sustained. The dissent argued that the equating...

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September 08, 2016

Since 1941, the Tax Foundation has honored public figures for their efforts to advance sound tax policy. Previous recipients of Tax Foundation awards have included: Presidents Dwight Eisenhower and George W. Bush; George Shultz; William Simon; Paul Volcker; Senator Daniel Patrick Moynihan; Senator Robert Kerrey; Congressman Bill Archer; Senator John Breaux; Senator Connie Mack; Eric...

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September 07, 2016

Conversations involving the property tax tend to focus on residential property and individual payers, but businesses also pay property taxes. In fact, it’s the largest tax paid by businesses on the state level. In addition to taxes on the value of buildings and land, businesses also can pay property taxes on their...

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September 07, 2016

Over at Vox, Alvin Chang has written an article titled, “This simple cartoon shows how US taxpayers help make rich bankers even richer.” While cartoons about tax policy are always appreciated, the article contains several factual errors and misleading claims about how CEOs are taxed in America.

The article begins by making an incorrect claim: that the federal government does not tax...

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September 07, 2016

Today is September 7, the date in 2012 when the national debt passed the $16 trillion mark. Today it stands at $19.5 trillion.

Here are some interesting links I came across:

Puerto Rico Defaults on Another Bond: Puerto Rico’s Government Development Bank, which the island loaded up with debt as it ran out of money,...

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September 06, 2016

It has been more than 30 years since the last major overhaul of the U.S. federal tax code – the Tax Reform Act of 1986 – and many lawmakers are getting restless. Over the past few years, several members of Congress have drafted original proposals for reforming the U.S. tax code, ranging from six-page white papers to 980-page bills.

These plans reflect a widespread, bipartisan consensus that the U.S. tax system is overly complex, inefficient, and uncompetitive. While none of the...

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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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