The Tax Policy Blog

March 04, 2009

Director of State Projects Joseph Henchman, author of Tax Foundation Special Report No. 164, "State Budget Shortfalls Present a Tax Reform Opportunity," appeared on CNN's Lou Dobbs Tonight on Monday, March 2, to talk about the increasing trend of states using punitive taxes on politically unpopular behavior as a source of revenue.

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March 04, 2009

On the heels of President Barack Obama's recent release of his fiscal year 2010 budget, Congressman Paul Ryan (R-WI 1st District), ranking Republican on the House Budget Committee, is pushing for major reform in the areas of tax, monetary and entitlement policy, criticizing the new administration's budget as having the practical effect of taxing "work, savings, investment, capital and risk-taking far more than we are today" and "hurting our chances...

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March 03, 2009

Among the provisions inserted into last month's stimulus bill is one amending Section 132(f) of the Internal Revenue Code with respect to "qualified transportation fringe":

In the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar...

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March 03, 2009

The Texas Rangers once famously signed shortstop Alex Rodriguez to a 10-year contract for $250 million—$25 million per year—breaking every baseball salary record. At first there was euphoria in Texas that they would have such a great player, but that didn't last long. Even though Rodriguez played great ball, he ended up being bad for the team. He just wasn't worth that much.

State and local governments are now doing something similar. As unemployment rises, they are upping their bids...

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March 02, 2009

Steven Malanga correctly notes that California's budget problems are quite different than those faced by other states, and suggests that bankruptcy might not be a horrible solution:

While many states are grappling with budget problems, none are nearly as large as California’s relative to its size--$41 billion in a state of 37 million, or $1,108 per...

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March 02, 2009

Jonathan Slemrod takes a closer look at some of the trends in the proposed budget released by President Obama:

To start, the budget relies on tax hikes on those making more than $250,000 to fund the $3.55 trillion in spending. By rolling raising rates on income, investment, and itemized deductions starting in 2011, the President is aiming to erase one of the few legacies of the Bush...

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March 02, 2009

In this morning's Washington Post column "The Re-Distributor," E.J. Dionne declares that "The central issue in American politics now is whether the country should reverse a three-decade-long trend of rising inequality in incomes and wealth."

As justification for Obama's redistributionalist policies, Dionne cites OMB Director Peter Orszag as saying it is time for the rich "to...

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March 02, 2009

Today, the Tax Foundation started running a 30 second television ad and a 60 second radio ad in the Washington, D.C. market to educate Americans about the burden that American families bear from the corporate income tax.

The Tax Foundation will run the ads on six different cable television stations (News Channel 8, CNN, Headline News, MSNBC, CNBC and Fox News) and three different radio stations (WTOP, WMAL and 1580 Big Talk) in the Washington, D.C. market for the next two weeks (...

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March 02, 2009

Tonight, Tax Foundation Director of State Projects Joseph Henchman will be appearing on a segment about state tax increases on CNN's Lou Dobbs Tonight. The show airs at 7PM Eastern/4PM Pacific, and repeats several times in the evening and next day.

Here are Tax Foundation reports relating to the subject:

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February 27, 2009

We applauded Wisconsin Governor Jim Doyle (D) a few days ago for proposing elimination of the state's film tax credit. We noted:

Bribing companies to bring economic activity to your state means one of two things. Either they were going to come anyway and you're just wasting tax dollars for no benefit, or they weren't because something about your state isn't attractive to business. Picking a handful of...

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February 26, 2009

The White House released its proposed Fiscal Year 2010 budget this morning. Take a look at the budget on the Office of Management and Budget website.  (View the summary tables PDF here.)

The Office of Management and Budget estimates that FY 2009 (the current fiscal year) will involve $2.19 trillion in revenues and $3.94 trillion in outlays, with a...

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February 26, 2009

55% of foreclosures and 87% of housing value losses are occurring in four states: California, Florida, Nevada, and Arizona, according to a new study out of the University of Virginia. The national foreclosure rate is about 0.79%.

Those four states may have a...

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February 26, 2009

Finally, we see some honesty on the AMT patch. Today Obama released his fiscal year 2010 budget. We would like to note that he has included an AMT patch in the baseline budget estimates through 2019, at a cost of $576 billion over 10 years. On the surface this may not sound remarkable, but it is a significant break from the last...

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February 26, 2009

You knew it was coming. It didn't take them long. The National Association of Realtors is ready to take on Pres. Obama's tax proposal that would limit the mortgage interest deduction, just as it helped defeat Pres. Bush's tax panel's recommendation to limit MID.

If Obama wants to stick to his campaign promise to not let special interests run Washington, he should reject the lobbying blist that NAR is promising over the next 24 hours....

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February 25, 2009

Governor David Paterson's proposed New York state budget includes a new $10 fee for filing taxes on paper:

State budget officials believe the paper filing fee could generate $6.8 million during the next fiscal year.[...]

In 2008, 41 percent of state income tax filings were received in paper form — and could therefore be...

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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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