The Tax Policy Blog

March 04, 2015

Lately, we have seen good job growth numbers which has led to a reduction in the unemployment rate. At first glance, this is an encouraging sign for the economy. But when we have a closer look at data on business dynamics, it is clear that the overall economy has not come back to its full strength. Specifically, the economy is still not creating as many new firms as it did before the recession.

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March 04, 2015

In a new 580-page report, a government advisory panel calls for “bold actions” to “transform the food system” and bring about a fundamental shift in people’s diets and lifestyles. The 2015 Dietary Guidelines Advisory Committee advocates “a diet higher in plant-based foods, such as vegetables, fruits, whole grains, legumes, nuts, and seeds...

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March 03, 2015

A report of mine was quoted recently in the Wall Street Journal, and it drew a response from a concerned reader.

The “Notable & Quotable” of Feb. 23, which is from the Tax Foundation’s report “Sources of Personal Income,” correctly points out that middle-class...

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March 03, 2015

Since we released our report on sources of personal income in 2012, I’ve gotten a lot of questions and comments on pension and retirement income, specifically. This category of income is often weirdly overlooked or forgotten, so I’m glad to comment on it further.

One thing I wanted to underscore is just how much pensions and IRAs are a middle-class phenomenon in this country. I touched on this in my report when I...

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March 03, 2015

This morning, the U.S. Supreme Court ruled (PDF) for the taxpayers in Direct Marketing Association v. Brohl, a challenge to Colorado’s “Amazon tax.” That law requires Internet retailers to (1) notify their Colorado customers of the obligation to pay state taxes on their online purchases, with dates and total amounts, and (2) provide detailed information to the Colorado Department of Revenue on purchases made...

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March 03, 2015

The U.S. federal government funds infrastructure projects through the highway trust fund. This trust fund receives revenue from mainly the excise tax on gasoline, and uses the revenue to pay for transportation projects through grants to state and local governments.

The taxes and spending associated with the highway trust fund are based on the benefit principle of taxation, which states that what one pays to the government should be connected to the benefits one receives.

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March 02, 2015

The Center on Budget and Policy Priorities has been highlighting a significant issue lately: the importance of projected interest rates on our long-term fiscal outlook.

The future is uncertain in general, but in many ways this is especially true for the federal budget. For example, tax revenues and certain outlays, like refundable tax credits, are very sensitive to the business cycle. Interest rates are another big...

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February 27, 2015

If you haven’t been living under a rock for the last two days, you’ve probably noticed that the internet is losing its mind over the infamous dress that’s seen by some as black and blue and by others as white and gold.

This got us thinking: regardless of how you see the dress, how does your state tax code see it? Check out the map below for how your state treats the purchase of...

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February 27, 2015

Senate Budget Committee Chairman Mike Enzi (R-WY) and House Budget Committee Chairman Tom Price (R-GA) jointly named Dr. Keith Hall the new Director of the Congressional Budget Office, succeeding the outgoing director, Dr. Douglas Elmendorf.

Dr. Hall has served the federal government in a number of important posts including Chief Economist for the White House...

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February 27, 2015

Currently, federal, state, and local governments levy gas taxes in order to fund road construction and repair. The taxes and spending associated with roads is an example of the benefit principle of taxation. This principle states that the taxes one pays to the government should be connected to the benefits one receives.

This works really well for roads for a number of reasons. Charging people based on how much they utilize roads ensures that they are compensating the government for...

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February 27, 2015

Yesterday we published an overview and dynamic modeling results for a business tax proposal by Representative Devin Nunes (R-CA). This tax plan has been developing for several years now, largely without heavy media attention.

It has now reached the point where it should probably turn more heads.

Some tax plans, often those that receive the most attention, are mostly ideological...

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February 27, 2015

In filing my own taxes, the most difficult part to calculate has always been the Qualified Dividends and Capital Gain Tax worksheet. I often have to do it several times in order to make sure I did not mess it up. And I work for Tax Foundation! I have, in fact, even checked the programming of this worksheet for the Taxes and Growth model. And I still have to triple-check it every time!

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February 26, 2015

Nevada appreciates the razzle-dazzle.

After a week of meetings to promote our new book on Nevada tax reform, I was invited to address the annual dinner of the Nevada Taxpayers Association in Carson City yesterday. For a variety of fairly dull reasons, at the last minute I swapped out my planned talk with a talk about the book’s findings, which some in the crowd took to Twitter to say was itself...

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February 26, 2015

International tax reform done on a multilateral basis—also known as the OECD’s Base Erosion and Profit Shifting (BEPS) initiative—may have additional positive effects beyond, at least theoretically, better distributing tax revenue according to economic activity. A recent TPC/UCLA conference on international tax...

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February 26, 2015

Corporate tax rate cuts are good for economic growth, and they aren’t bad for government revenues, either.

In fact, eliminating the corporate income tax would actually increase annual federal revenue in the long run. This is due to two main factors:...

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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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