The Tax Policy Blog

November 28, 2016

As the holiday shopping season ramps up, some view Cyber Monday as a reminder that many online retailers are not required to collect sales taxes, as opposed to their brick-and-mortar counterparts. Traditional retailers feel they’re at a competitive disadvantage, and states argue that they’re losing billions of dollars in revenue. But we shouldn’t lose sight of the legal foundation for protecting online businesses and the costly administrative rules that states could impose on businesses...

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November 28, 2016

Today is November 28, the date in 2014 when the national debt passed the $18 trillion mark. Today it stands at $19.9 trillion.

Here are some interesting links I came across:

Soda Taxes Coming to a City Near You: San Francisco, Oakland, Philadelphia, and Cook County (Illinois) are among the seven jurisdictions that have recently imposed new special taxes on soda. Supporters say it’s...

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November 28, 2016

If you play the lottery, it pays to live in a state that foregoes an individual income tax, and I don’t just mean in the obvious way. Nine states do not impose a general income tax (two of these states tax interest and dividend income), and a further three states exempt lottery winnings. And, by pure happenstance, 84.7 percent of Powerball winnings since November 2015 have been in those twelve states.

That...

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November 23, 2016

The House GOP blueprint will likely be the starting point for the tax reform debate in 2017. As with most tax reform plans, it proposes to reform the current system of taxing U.S. multinationals’ foreign profits. Under current law, U.S. multinationals are taxed on their worldwide income up to 35 percent, but are allowed to defer the additional U.S. tax until they bring those profits back. The current system encourages companies to expatriate or “invert” and discourages them from bringing...

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November 22, 2016

Tax policy proposals can be the product of years of deliberation; other times, they crop up overnight. To be effective in our mission, we at the Tax Foundation have to remain vigilant through the months and even years of hearings and debate, while remaining nimble enough to spring into action when important issues arise.

That’s what happened in Illinois earlier this year. A bill was proposed to add three brackets to the Prairie State’s income tax and impose a top marginal rate of 11....

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November 18, 2016

Update: the surcharge on CEO pay has been adopted.

“Like most other lefties, I bought [Thomas Piketty's Capital in the Twenty-First Century], but haven’t read it all,” Portland City Commissioner Steve Novick told The Huffington Post. The book does make an...

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November 17, 2016

Today is November 17, the date in 1800 when the U.S. Congress first met in Washington, D.C.

Here are some interesting links I came across:

California Democrats Regain Assembly Supermajority: If Assembly Democrats stick together, they’ll no longer need the support of Republican members...

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November 17, 2016

India’s national government plans to implement a common Goods and Service Tax (GST) in April of 2017 in an attempt to harmonize the patchwork of indirect taxes levied by individual states. The GST counsel recently issued preliminary guidelines for the common GST, specifying rates and exemption for goods and services. The guidelines suggest a four-tiered rate structure of 5, 12, 18, and 28 percent along with exempt goods and services. Although economists argue the common GST is an...

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November 16, 2016

This has been an eventful year on federal tax issues at the Tax Foundation. From covering the presidential candidates’ tax plans to putting together some great resources to further the tax debate, we at the Tax Foundation are excited about the...

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November 16, 2016

The failure of Washington’s Initiative 732 wasn’t a surprise, as the carbon tax proposal created rifts in the usual alliances for such a proposal due to its revenue neutrality (with a possible revenue loss in the short term). Many proponents of carbon taxation favor such a tax as a source of new revenue, either...

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November 16, 2016

Today is November 16, the date in 2011 when the national debt passed the $15 trillion mark. Today it stands at $19.8 trillion.

Here are some interesting links I came across:

Reconciliation Repeated Around Town: D.C. folks are studying up on the...

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November 15, 2016

Today is November 15, the date in 1777 when the Articles of Confederation were approved by the Second Continental Congress and sent to the states for ratification. The Articles governed the United States from 1781 until 1788, when they were replaced by the U.S. Constitution. One major reason for the replacement was taxes:...

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November 14, 2016

Two years ago, Virginia officials posed for photographs with representatives of Lindenburg Industry, a Chinese-owned company with an ambitious plan to invest $113 million and employ 349 workers at an idled manufacturing plant in the town of Appomattox. The Virginia Economic Development Partnership (VEDP) boasted that...

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November 14, 2016

Today is November 14, the date in 1960 when the U.S. Supreme Court decided Knetsch v. United States, ruling that a tax deduction can be denied despite being technically legal if it involves a sham transaction lacking any economic substance.

In 1953, Karl Knetsch borrowed $4 million from an insurance company at a 3.5 percent rate to purchase the same company’s bonds that were paying a 2.5 percent rate...

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November 14, 2016

The implications of the presidential and congressional results are getting the most attention, but we’re tracking how the election changed the state landscape as well.

On ballot initiatives we have a full listing of results here, but these are the highlights:

  • Voters rejected experimental tax...
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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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