The Tax Policy Blog

August 15, 2016

Today is August 15, the date in 1971 of the “Nixon Shock,” when President Nixon announced (via a TV address on Sunday evening) a series of economic measures designed to tackle high unemployment, high inflation, and draining gold reserves. Nixon suspended convertibility of the dollar into gold, imposed wage and price controls, and a 10 percent tax on imports. A political success, the Nixon shock likely helped bring on the 1970s...

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August 12, 2016

I have a simple exercise for the reader. This shouldn’t be difficult to follow, nor should it require any kind of advanced education in economics, nor should it even require you to agree with me about a lot of basic axioms or assumptions of economics. It just requires you to think along with me. Are you ready? Here goes.

First:

I want you to think about the best possible revenue-neutral  tax reform that you can come up with. What I mean by revenue-neutral is that you...

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August 12, 2016

This week, both Donald Trump and Hillary Clinton gave speeches in Michigan outlining their respective economic policy platforms. Tax policy featured prominently in both speeches: Trump took the opportunity to announce revisions to his...

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August 12, 2016

Today is August 12, the 183rd anniversary of Chicago being organized as a town (it would become a city officially four years later). Chicago is often in the tax news, with the highest sales tax of a major U.S. city, a tax on bottled water, a hefty combined $6.16-per-pack...

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August 11, 2016

Last month, the National Bureau of Economic Research (NBER) released a paper presenting findings that research and development depreciation rates for capital in large, high-tech industries in the United States are generally greater than previously understood. Such a finding highlights the complexities and arbitrariness in depreciation schedules used by the Internal Revenue Service (IRS), with negative consequences for the economy....

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August 11, 2016

Fifteen years ago, the Tax Foundation was just seven people with a small but dedicated audience. Today, we have a team of 24 and are the go-to source on tax policy for millions of taxpayers, hundreds of state and federal legislators, most of the presidential candidates, and every major news outlet in the country.

There are, however, a few things that have remained consistent over the last 15 years. There is still hope that one day American tax policy will stop placing such a heavy...

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August 11, 2016

Last week, we published a map showing how far $100 would take you in different states. For example, in states with low costs of living, like Mississippi, $100 had the same sort of purchasing power that $115.34 would have in an average state.

But what about the differences in purchasing power within a single state? Do people in Houston have the same purchasing power as those in Dallas? And of course, how does...

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August 11, 2016

Today is August 11, which is #PresidentialJokeDay on Twitter. Worst one I saw: “Which rock group has four guys who don’t sing?” Mount Rushmore.

Here are some interesting links I came across:

Clinton to Attack Trump Tax Plan in Speech: The Democratic presidential nominee will say the Republican nominee’s plan hurts average Americans, and...

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August 10, 2016

On August 3, the upper house of India’s parliament approved a constitutional amendment, officially known as the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, proposing a new tax system called the goods and services tax (GST). The GST is a value-added tax (VAT) that will replace most of India’s indirect...

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August 10, 2016

Today is August 10, the date in 1821 when Missouri joined the United States. Missouri has ten income tax brackets despite the top rate of 6 percent kicking in at just $9,000 of income. While its state sales tax is just 4.225 percent, hefty local sales taxes push the average rate to 14th highest in the country, a medium tax burden relative to other states.

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August 09, 2016

Today is August 9, National Book Lovers’ Day. Buy some of our books at our online store!

Here are some interesting links I came across:

Donald Trump Revises His Tax Plan: Compared to his earlier plan, the top rate goes from 25 percent to 33 percent (and intermediate rates...

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August 08, 2016

Earlier today, Republican presidential candidate Donald Trump announced several major changes to his tax plan, originally released in September 2015. In a speech at the Detroit Economic Club, Trump called for a top individual tax rate of 33 percent, full expensing of capital...

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August 08, 2016

Today is August 8, the date in 1966 when the Beatles album Revolver was released in the United States (it came out in Britain three days earlier). This one is tax-related because the opening track of Revolver is Taxman, which George Harrison wrote after their new fame pushed them into the UK’s 95 percent tax bracket (“There's one...

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August 05, 2016

Today is August 5, the 107th anniversary of the U.S. corporate income tax being signed into law by President Taft. Northeastern Republicans favored high tariffs, while western and southern Republicans wanted to reduce tariffs and instead impose an income tax. The corporate tax (and a proposed amendment that became the 16th Amendment authorizing an income tax) was the political compromise. The tax ...

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August 04, 2016

On Monday, Sen. Chuck Schumer (D-NY) released a statement calling for the House of Representatives to pass a bill that would exempt Olympic athletes from paying the income tax on their prize money. He said, “Our Olympian and Paralympic athletes should be worried about breaking world records, not breaking the bank, when they earn a...

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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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