The Tax Policy Blog

July 22, 2015

Earlier this week I gave a talk on the economic benefits of fundamental tax reform. I’ve included a link to the slides that accompanied my remarks at the July 20th event. Here are some key points:

  1. The income tax falls more heavily on income used for saving than on income used for consumption.
  2. It is important for people to use retirement...
Continue Reading...
July 22, 2015

Yesterday, the Senate Committee on Finance met to consider a bill that would renew over 50 recently expired provisions of the tax code, commonly known as tax extenders. By a 23-3 vote, the committee approved the measure, which would extend these tax provisions until the end of 2016,...

Continue Reading...
July 21, 2015

Recently, Republican Presidential hopeful Jeb Bush claimed that it only takes 5 minutes to file taxes in Estonia. This claim was confirmed by a number of reporters and tax authorities in Estonia.

For those of us that do our taxes by hand, this sounds like a dream. Depending on your situation, filing your taxes can take a significant amount of time...

Continue Reading...
July 21, 2015

With Chicago set to impose the highest combined sales tax rate of any major city as of January 2016, many people want to know how their city ranks. Last week, I set out a list of the 15 cities with the top sales tax rates, but many of these cities are on the small side: Birmingham and Mobile, for instance. Not until Seattle, with the seventh-highest rate among American cities, does one encounter...

Continue Reading...
July 16, 2015

On Friday, Gov. Rick Snyder (R-MI) signed HB 4122 into law, officially ending Michigan’s film Incentives program effective October 1, 2016. The program, known as the Michigan Film and Digital Media Incentive, partially reimburses (up to 25 percent) eligible production companies for certain expenditures incurred while producing digital media and film projects within the state. According the...

Continue Reading...
July 16, 2015

When Cook County, Illinois adopted a one percentage point county sales tax increase yesterday, its county seat -- Chicago -- vaulted to the top of a dubious list: major cities with the highest sales tax. Including state, county, city, and public transit sales tax impositions, Chicago's combined sales tax will return to its former high of 10.25 percent as of January...

Continue Reading...
July 14, 2015

Today, Jason Fichtner and Adam Michel at the Mercatus Center released a paper on the research and development tax credit. The R&D tax credit is one of the larger components of the federal “tax extenders,” a host of credits and deductions that are temporarily reinstated each year, ...

Continue Reading...
July 14, 2015

Last week, we published a map showing how far $100 would take you in different states. For example, in states with low costs of living, like Mississippi, $100 had the same sort of purchasing power that $115.74 would have in an average state.

But what about the differences in purchasing power within a single state? Do people in Austin have the same purchasing power as those in Dallas? And of course, how does...

Continue Reading...
July 14, 2015

The Greek Prime Minister, Alexis Tsipras, agreed to a bailout deal over the weekend. As with previous proposals, the deal included a mixture of spending cuts and tax reforms, but the latest deal shows that the Eurogroup understands the elements that underpin economic growth. Unlike previous proposals, the tax reform component of the deal called for “...

Continue Reading...
July 14, 2015

Yesterday we wrote about a proposal from Representative Tom Rice (R-SC) that would raise the gas tax by 10 cents and adjust it for inflation going forward in order to close Highway Trust Fund’s ongoing deficits. The plan would also not raise taxes on net by offering a $133 per-person income tax credit. Although it is a reasonable way to fix the Trust Fund’s shortfall, it faces political difficulties....

Continue Reading...
July 14, 2015

Last year, the Tax Foundation published a primer on the Marketplace Fairness Act (MFA). In the year since, there have been new MFA-related bills introduced in Congress and more litigation over states’ nexus laws, but the status quo remains unchanged. In light of Prime Day tomorrow, here is an update on MFA.

Designed to allow states to overcome...

Continue Reading...
July 13, 2015

If you live in Chicago and stream movies and TV on Netflix, expect your Netflix bill to be 81 cents higher beginning this fall. In June, the Chicago Department of Finance issued two rulings which extend two existing taxes to the subscription costs of streaming and cloud-based services. The Amusement Tax was extended to include amusements that are...

Continue Reading...
July 13, 2015

At the end of this month, the Highway Trust Fund, the mechanism by which the federal government provides states and localities with transportation funding, will run out of money. If this happens the trust fund will no longer be able to cover its obligations. With the trust fund facing a cumulative $168 billion shortfall over the next 10 years, lawmakers are looking for ways to keep the trust fund from going broke.

Last week, Representative Tom Rice (R-SC)...

Continue Reading...
July 09, 2015

This week, the Senate Finance Committee’s International Tax Reform Working Group released their final report. Over the last few months, this bipartisan working group has been analyzing different aspects of international tax reform while taking comment from the public. The International Tax Reform group was tasked with finding a bipartisan framework for reforming the taxation and regulation of overseas income, especially the income of multinational corporations. The co-chairs of this working...

Continue Reading...
July 09, 2015

Multinational corporations, intergovernmental organizations, and academics know that high levels of corporate taxation serve as a disincentive for foreign direct investment (FDI). Companies shift resources toward countries that provide the most...

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