The Tax Policy Blog

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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August 04, 2016

Today is August 4, the date in 1967 when the Multistate Tax Compact took effect. The MTC’s originally stated goal was to make state tax systems simpler and more uniform with each other, with the driving motivation being to stop pending federal legislation to set standard threshold rules for state corporate and sales taxes. By all accounts, state taxes are much more complicated and disuniform today than they were in 1967, so the MTC now claims their purpose is merely to propose model...

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August 04, 2016

The ordinary income tax is biased; it hits saving and investment harder than consumption. The result is a much smaller capital stock and lower wages and employment. Workers and savers are better served by a tax system that treats saving and consumption evenhandedly. Tax-exempt bonds are one way to get to an unbiased tax system.

The income tax hits income used for consumption once, except for a few excise taxes. One can earn income, pay tax, and buy a television and watch a stream of...

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August 04, 2016

This map shows the real value of $100 in each state. Prices for the same goods are often much cheaper in states like Missouri or Ohio than they are in states like New York or California. As a result, the same amount of cash can buy you comparatively more in a low-price state than in a high-price state.

The Bureau of Economic Analysis has been measuring this phenomenon for two years now; it recently published...

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August 03, 2016

Today is August 3, the date in 1936 when Jesse Owens won the first of four gold medals at the Olympic Games in Berlin. Unlike today, there wasn’t much in the way of endorsement deals (certainly for African-Americans like Owens) and Owens eventually fell into debt, worked as a gas station attendant, and was fined $3,000 in 1966 for...

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August 02, 2016

In our previous post on payroll taxes, we began reviewing some of the most prominent taxes on your paystub: FICA and MEDFICA. We discussed what these payroll taxes, as they are commonly known, are and who exactly pays for them. In this post, we will cover the effectiveness of payroll taxes, as well as the controversy surrounding the distribution of the burden of these taxes across income groups.

...

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August 02, 2016

Today is August 2, the date in 1886 when Congress passed a tax on oleomargarine. Dairy farmers successfully lobbied Congress to impose a hefty tax on margarine, an oil-based yellow-colored imitation butter that proved to be quite popular with consumers due to being cheaper. Despite being obviously intended to discourage the purchase of one product to benefit a competitor,...

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August 01, 2016

Today is August 1, the date in 1876 when Colorado became the 38th state. Colorado has a single-rate 4.63 percent individual and corporate income tax, and a low 2.9 percent state sales tax (but high local sales taxes). It’s also the ...

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August 01, 2016

After nearly a decade of rock-bottom interest rates, the Commerce Department announced that second quarter GDP grew by a dismal 1.2 percent. This is the third consecutive quarter of sub-par economic growth, much of this the result of low business investment and productivity.

Since it is obvious that low interest rates are no longer having any effect on spurring stronger growth, lawmakers should look...

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July 29, 2016

On July 14th, the IRS held a public hearing for the debt-equity rule (section 385 of the IRS code) that the Treasury Department proposed last April. The hearing, which had as many as 16 speakers from various industries, was only a supplement to almost 30,000 comments that were submitted for this rule on the...

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July 29, 2016

Today is July 29, the first day of back-to-school sales tax holiday weekends in Mississippi and ...

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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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