The Tax Policy Blog

June 23, 2015

Recently the IRS released statistics about individuals who claim a deduction of over $500 for making noncash donations to charitable organizations. These donations – which can include clothing, household items, food, art, stock, or any other noncash property – accounted for 24.6% of all deductible charitable contributions in 2012.

For many individuals, noncash donations are a convenient way to contribute clothing or...

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June 23, 2015

Last week, Alaska Governor Bill Walker (I) signed legislation that will end subsidies for the state’s film industry.

Walker’s signature on the bill comes as little surprise, considering the Governor’s most recent budget proposal left no funds for the State’s film office. As a policy, film credits put Alaska in a tough spot; although the program remains popular, Walker could not justify...

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June 23, 2015

As an employee in the United States, it is understood that throughout the year, your employer will take a little bit of your income from your paycheck and remit it to the government as taxes. The amount your employer sends to the government depends on how high your income is, whether you are married, and how many dependents you have. This is called income tax withholding and has been part of the U.S. income tax system for many decades.

While the concept of income tax...

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June 23, 2015

Come 2017, Japan plans to increase its Value-added Tax (VAT) from 8 percent to 10 percent. This is part of the leading party’s plan to reduce Japan’s government debt and spur economic growth in the country. Given the country’s anemic economic growth in the past couple of decades, one would think that increasing taxes would be a poor choice for Japan. Many news...

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June 22, 2015

The Ohio budget negotiation is coming to a close, as the Senate has recently passed HB 64, which contains a variety of tax measures. The centerpiece of the tax package is a 6.3 percent across-the-board income tax cut, with a 100 percent deduction for the first $250,000 in income for pass-through businesses like LLCs, S-corporations, and sole proprietorships. Additional income above $250,000 is taxed at a flat 3 percent rate.

Other provisions of the package would (coverage via...

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June 22, 2015

Last week, Hillary Clinton proposed a new federal tax credit for companies that employ apprentices. The tax credit would amount to $1,500 a year per apprentice, and is aimed at encouraging businesses to increase training for workers of all ages. Clinton’s plan is modeled off of the ...

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June 22, 2015

The income tax is one of the more contentious areas in tax policy. The highest tax bracket, currently at 39.6 percent, has been subject to much debate. This is understandable, since it raises a substantial amount of tax revenue but also significantly disincentivizes individuals to work an extra hour. Moreover, the lowest income tax bracket is also often the focal point of discussion, in that it most affects individuals that are in the lowest income stratum of society.

We modeled...

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June 22, 2015

Switzerland’s Federal Council submitted a corporate tax reform plan to the Swiss Parliament earlier this month that focuses on abolishing preferential tax treatment of holding and management companies while increasing preferential treatment of research and development (R&D) and intellectual property activities, implementing rules for the disclosure of reserves, and reworking the capital tax structure....

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June 22, 2015

Last week, Senator Sheldon Whitehouse (D-RI) and Senator Brian Schatz (D-HI) introduced the American Opportunity Carbon Fee Act. According to the Senators, this bill aims to address concerns regarding climate change, while simultaneously improving economic performance.  Specifically, this bill will impose a tax on carbon dioxide emissions.  

This tax would be levied at $45/metric ton in 2016 and increase by 2% each year afterward. The tax is targeted at large emitters of greenhouse...

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June 22, 2015

The Wall Street Journal recently published an article on temporary tax laws, better known as tax extenders.

Tax extenders are a set of tax provisions that are only authorized for a year or two. When the provisions are near expiration, Congress decides whether to extend them or not, hence the name tax extender. Currently, all 50 or so tax extenders are expired for 2015, but Congress will likely...

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June 22, 2015

Thursday, the House voted to repeal the medical device tax, a 2.3 percent excise tax on the sales price of medical devices. Unlike previous pushes in the House that were strictly divided by party lines, the successful vote passed with bi-partisan support and now moves on to the Senate.

In terms of policy, the repeal would have a positive impact on consumers and the medical...

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June 22, 2015

This post originally appeared as an op-ed on Forbes here.

Wisconsin’s 2015-2017 budget has sparked disagreement within the legislature over a bevy of...

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June 22, 2015

This post originally appeared as an op-ed on Forbes here.

Last week, Oregon Senator Ron Wyden appealed to beer and wine lovers everywhere by introducing a bill to reform the taxation and regulation of alcoholic beverages. The “Craft Beverage Modernization and...

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June 22, 2015

Victoria Perry is Assistant Director in the Fiscal Affairs Department and Division Chief of the Tax Policy Division at the International Monetary Fund.

At the IMF since 1993, Ms. Perry has provided technical assistance in tax policy and revenue administration to more than 40 countries in Africa, Europe, and Asia. From 2002 to 2008, she served as Division Chief for Revenue Administration in the IMF’s Fiscal...

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June 22, 2015

Senator and Presidential hopeful Rand Paul (R-KY) recently released his tax reform plan. The plan eliminates most of the current tax code and replaces it with two taxes: a 14.5 percent tax on all individual income with a large standard deduction and personal exemption and a 14.5 percent VAT on a business’s profits and payroll. In total, this tax would cut federal revenues by about $300 billion a year or...

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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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