The Tax Policy Blog

April 14, 2014

In filing one’s taxes, it may be necessary to distinguish between breast implants that are merely “large,” and breast implants that are “extraordinarily large.”

The relevant ruling on this subject came in 1994 in a case known as Hess v. Commissioner. The plaintiff, a self-employed exotic dancer, had implants that expanded her bust size to the size 56FF. For tax purposes, she treated these as a deductible business...

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April 14, 2014

The largest drugstore chain in the U.S. is thinking of moving to Switzerland. That’s how bad our corporate tax is. The Financial Times has the story:

Walgreens has come under pressure from an influential group of its shareholders, who want the US pharmacy chain to consider...

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April 11, 2014

The costs of tax preparation help can vary, but unlike the taxes themselves, preparation costs don’t get any smaller for low-income people. At times, they can even get larger. The New York Times ran an article this week on unscrupulous tax preparers who exploit information asymmetries to grab large portions of people’s refunds. Some of them even...

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April 11, 2014

The OECD’s Taxing Wages 2014 publication finds that the “personal income tax has risen in 25 of the 34 OECD countries in the past three years,” with the United States being one of those countries.

Since 2005, the U.S. has seen its average tax burden on employment income increase from 29.8 percent to 31....

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April 11, 2014

Senate Finance Committee Member Pat Roberts (R-KS) has introduced a bill to repeal the excise tax on high-cost employer-sponsored health insurance plans.

Known as the “Cadillac Tax,” this Affordable Care Act provision levies a 40 percent marginal excise tax on high-cost employer sponsored health insurance plans starting in 2018. The purpose of this tax is reduce the generosity of employer sponsored...

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April 11, 2014

Alan Viard of the American Enterprise Institute and Eric Toder of the Tax Policy Center have a new paper that explores two ways to fundamentally overhaul our badly broken corporate income tax:

In this report, we describe the...

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April 11, 2014

American’s will spend 111 days working to pay off the combined $4.5 trillion federal, state, and local tax bill in 2014, according to the latest Tax Freedom Day report.

To offer some perspective on just how long 111 days really is, here are a...

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April 11, 2014

With two Illinois House Democrats having announced their opposition to House Speaker Michael Madigan’s (D) “millionaire tax” proposal, it doesn’t look like it will reach the 71 vote threshold to get on the ballot...

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April 10, 2014

Americans will pay $4.5 trillion in taxes in 2014 according to our new Tax Freedom Day report.

$4.5 trillion seems like a lot of money but when dealing in the billions and trillions it’s easy to lose any context of how much money that truly is. To put that number into perspective, here are some examples of what taxpayers could by with that $4.5 trillion (excluding tax, of course...

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April 09, 2014

This year, Americans will pay approximately $3 trillion to the federal government and an additional $1.5 trillion to state and local governments for a total tax bill of $4.5 trillion. This will take the nation 111 days to pay, or until April 21st.

However, the tax burden borne by residents of different states varies considerably from this national average. Due to the combination of different state tax policies coupled with a state’s average income and its interaction with...

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April 09, 2014

About this time every year, people in California who use tax preparation software remark that they were asked a confusing question about the Ottoman Empire. The reason for this question is to help with the following two sets of instructions from California’s Franchise Tax Board Publication 1001.

...

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April 09, 2014

It was curious to read the way Vox.com - a new media project designed to help people "understand the news" better - framed the debate on capital income taxation. Describing the arguments for low taxes on capital income, Vox's Matthew Yglesias wrote the following:

The other relates to economic growth. Lowering taxes on...

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April 07, 2014

Our annual Tax Freedom Day report finds that the nation’s Tax Freedom Day will come on April 21st this year, which is three days later than last year. The calendar measure represents how long Americans as a whole need to work in order to pay the nation’s tax burden.

The report estimates that Americans will pay about $4.5 trillion dollars in taxes of all kinds in 2014,...

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April 04, 2014

The Senate Finance Committee passed a tax extenders package that includes extensions of two years or longer on over 50 provisions totaling $85.3 billion.

The package contains provisions dealing with individuals and businesses, as well as many targeted at the renewable energy industry. Some of the largest include $15.4 billion for the research and development tax credit, $13....

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April 03, 2014

Missouri’s state Senate this week passed a $621 million tax cut including a 0.5 percentage point income tax reduction and a special carveout to deduct up to 25 percent of business income. We recently wrote about ...

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Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog 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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