The Tax Policy Blog

April 07, 2015

The U.S. House of Representatives is expected to vote next week on a bill that would eliminate the estate tax.

Currently, the United States has the fourth highest estate or inheritance tax rate in the OECD at 40 percent—nearly three times the OECD simple average of 15 percent. Despite its...

Continue Reading...
April 03, 2015

You’re waiting to be seated at a Las Vegas restaurant and wondering if you’ll be able to be able to hear the live jazz performance from your table. Perhaps you should also be asking yourself whether you’re going to be paying the live entertainment tax for that privilege. That might seem like a simple question; in reality, it’s anything but.

Nevada imposes a live entertainment tax (LET) on admissions charges and food,...

Continue Reading...
April 02, 2015

Last month, Michigan House lawmakers passed HB 4122, a bill that would put an end to the state’s film incentive program effective October 1, 2015. The program, known as the Michigan Film and Digital Media Incentive, partially reimburses (up to 25%) eligible...

Continue Reading...
April 02, 2015

Texas policymakers have a lot to be proud of, but the state’s poorly structured gross receipts-style “Margin” Tax is not one of those things. The business tax (which is called the Franchise Tax in statutes) is unique in that it has four base calculations, two rates depending on business industry, and a host of credits for certain firms, but not others. In January, we released a report delving into the merits...

Continue Reading...
April 02, 2015

This week’s tax map takes a look at how long it takes each state to reach Tax Freedom Day® in 2015.

Tax...

Continue Reading...
April 02, 2015

The U.S. is known for having a pretty complex tax code. The individual income tax code alone has several provisions that interact with one another and impact how much taxes people pay at all income levels. Provisions that phase-in and phase-out create spikes in peoples’ marginal tax rates. If the tax code is advertising a 10 percent marginal tax rate on your next dollar, but takes away a little bit of your Earned Income Tax Credit, what you are really paying is higher than 10 percent. This...

Continue Reading...
April 02, 2015

In 2015, America will pay $3.3 trillion in taxes to the federal government and an additional $1.5 trillion to state and local government. America’s total tax bill of $4.8 trillion is about 31 percent of the nation’s total income.

This is a significant amount and is more than America will spend on food, clothing, and housing combined.

No doubt that the taxes we pay go towards services that government provides, but it is important to understand how much those services cost the...

Continue Reading...
April 01, 2015

The Japanese parliament has approved a 3.29 percent cut in the corporate tax rate from an effective rate of about 35 percent, according to Bloomberg. Prime Minister Shinzo Abe has previously announced plans to lower the tax rate to under 30 percent over the next five years...

Continue Reading...
April 01, 2015

Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep.” This is the phenomenon by which people are pushed into higher income tax brackets or have reduced value from credits or deductions due to inflation instead of an actual increase in real income.

...
Continue Reading...
April 01, 2015
Researchers at Oxford’s Bodleian Library have uncovered ancient parchments detailing a tax code which scholars are characterizing as "overwhelmingly byzantine."
 
"When you look at a system like this, all you can do is marvel that it survived as long as it did," observed Dr. Alp Arslan. "You look for equitable, broad-based systems, but this parchment tells a story of carve-outs and exemptions, sowing the seeds of its ultimate collapse." Among the peculiarities...
Continue Reading...
April 01, 2015

On Monday the Premier of the State Council of the People’s Republic of China announced that the Chinese tax code lacked the complexity of an advanced industrialized nation. He has started a campaign with the title “Complicate China” to promote the advantages of a modern Western tax code.

...

Continue Reading...
March 31, 2015

Nevada's Senate Revenue & Economic Development Committee voted 4-3 this afternoon to approve S.B. 252, the Governor's proposed BLF gross receipts tax. The tax would impose a sliding tax scale of 67 revenue ranges for each of 27 industry categories, a complex tax structure resulting in punitive taxes for some and very high marginal tax rates (up to 13 million percent)....

Continue Reading...
March 27, 2015

Yesterday we released an independent report (PDF) analyzing Nevada Governor Brian Sandoval’s proposed Business License Fee tax. The proposal replaces Nevada’s current $200-flat business license fee with a tiered gross receipts tax.

Governor Sandoval quickly...

Continue Reading...
March 24, 2015

The current federal top marginal tax rate on long-term capital gains in the United States is a total of 23.8 percent (20 percent plus a 3.8 percent tax to fund the Affordable Care Act) for taxpayers with adjusted gross incomes of $200,000 ($250,000 married filing jointly) or more. In addition, states and some localities levy taxes on capital gains income, which range from zero percent in states with no individual income tax, such as Florida, Texas, South Dakota, and Wyoming, to 13.3 percent...

Continue Reading...

Pages

Follow Us

About the Tax Policy Blog

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.

Monthly Archive