The Tax Policy Blog

April 10, 2014

Americans will pay $4.5 trillion in taxes in 2014 according to our new Tax Freedom Day report.

$4.5 trillion seems like a lot of money but when dealing in the billions and trillions it’s easy to lose any context of how much money that truly is. To put that number into perspective, here are some examples of what taxpayers could by with that $4.5 trillion (excluding tax, of course...

Continue Reading...
April 09, 2014

This year, Americans will pay approximately $3 trillion to the federal government and an additional $1.5 trillion to state and local governments for a total tax bill of $4.5 trillion. This will take the nation 111 days to pay, or until April 21st.

However, the tax burden borne by residents of different states varies considerably from this national average. Due to the combination of different state tax policies coupled with a state’s average income and its interaction with...

Continue Reading...
April 09, 2014

About this time every year, people in California who use tax preparation software remark that they were asked a confusing question about the Ottoman Empire. The reason for this question is to help with the following two sets of instructions from California’s Franchise Tax Board Publication 1001.

...

Continue Reading...
April 09, 2014

It was curious to read the way Vox.com - a new media project designed to help people "understand the news" better - framed the debate on capital income taxation. Describing the arguments for low taxes on capital income, Vox's Matthew Yglesias wrote the following:

The other relates to economic growth. Lowering taxes on...

Continue Reading...
April 07, 2014

Our annual Tax Freedom Day report finds that the nation’s Tax Freedom Day will come on April 21st this year, which is three days later than last year. The calendar measure represents how long Americans as a whole need to work in order to pay the nation’s tax burden.

The report estimates that Americans will pay about $4.5 trillion dollars in taxes of all kinds in 2014,...

Continue Reading...
April 04, 2014

The Senate Finance Committee passed a tax extenders package that includes extensions of two years or longer on over 50 provisions totaling $85.3 billion.

The package contains provisions dealing with individuals and businesses, as well as many targeted at the renewable energy industry. Some of the largest include $15.4 billion for the research and development tax credit, $13....

Continue Reading...
April 03, 2014

Missouri’s state Senate this week passed a $621 million tax cut including a 0.5 percentage point income tax reduction and a special carveout to deduct up to 25 percent of business income. We recently wrote about ...

Continue Reading...
April 03, 2014

Decrying its effects on the U.S. manufacturing industry, Susan Houseman writing for the Center on Budget and Policy Priorities’ “Full Employment” initiative has called for a reduction in the United States’ high corporate income tax rate:

“High U.S. statutory corporate income tax rates, which in the top bracket are 39 percent when federal and state taxes are combined, also...

Continue Reading...
April 02, 2014

Japan raised its sales tax from 5 percent to 8 percent effective yesterday, April 1st. The rate is set to increase, again, to 10 percent in October of 2015.

The last time the Japanese increased their sales tax rate in 1997 from 3 percent to 5 percent, the economy entered a deep recession.

On the heels of the tax increase, the Bank of Japan released...

Continue Reading...
April 02, 2014

Starting next week (the beginning of the 2014-2015 tax year), the United Kingdom’s personal allowance (equivalent to the United States’ personal exemption) will increase to £10,000 from £9,440.

According to the Economic Times, this is a substantial tax cut for many low-income UK taxpayers:

“The increases in the tax-free...

Continue Reading...
April 01, 2014

(All maps and other graphics may be published and reposted with credit to the Tax FoundationClick on the...

Continue Reading...
April 01, 2014

French economist Thomas Piketty has a new book out on inequality, in which he claims that capitalism tends naturally towards greater and greater concentrations of wealth. To address this, Piketty recommends progressive income tax rates of up to 80 percent and a global wealth tax of 2 percent. Here are some summary...

Continue Reading...
April 01, 2014

In a bipartisan vote yesterday, the U.S. Congress sent a bill to the President’s desk that would raise income taxes on Canadians to pay for the hundreds of billions of dollars of revenue shortfalls caused in the implementation of various popular, longstanding programs that experts agree are just totally unaffordable.

Senate Majority Leader Harry Reid (D) said in a statement, “I think we all agree that Americans are deserving of healthcare, education, public parks, and whatever else...

Continue Reading...
March 31, 2014

Following the release of our latest analysis on cigarette smuggling, New York Governor Andrew Cuomo (D) has announced a 13-agency task force convened to combat illicit cigarette trade. According to the latest data from the Mackinac Center for Public Policy, smuggled cigarettes represented...

Continue Reading...
March 31, 2014

As you go over your 1040 this year, you may wonder why the form has lines for alimony payments made and received. At first glance, this might seem like a puzzling intrusion into personal lives. Upon further examination, though, alimony is a sort of “gray area” in tax policy, and the current system handles the matter rather reasonably.

The issue deserves some examination, especially because Chairman Dave Camp’s tax reform proposal...

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 weblog 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

Privacy Policy