The Tax Policy Blog

August 21, 2008

Richard Rahn of the Cato Institute warned of the domestic and global impacts of America's corporate income tax in a Washington Times commentary this morning. Rahn cited the...

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August 20, 2008

I'll be appearing on Fox Business Network at 2:00 PM to talk about sales tax holidays. These one- or two-day breaks from sales taxes for specific items are increasingly popular; 16 states had or are having one this year. The holiday in D.C. is representative: school supplies, clothing, and shoes under $100 were temporarily exempt from the 5.75% sales tax from August 2 to 10.

Everyone seems to win with these holidays. Consumers save some...

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August 20, 2008

In a recent article on CNN.com, Career Builder provides information regarding the "dangers" of a larger paycheck. The article assumes a pay raise may place a worker in a higher marginal tax bracket, resulting in lower take-home pay. Have no fear; a pay raise will not result in lower net earnings.

From the CNN/Career Builder article:

Potential backfire No....

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August 20, 2008

In this Gazette story by Douglas Tallman, Maryland Delegate Kumar Barve and Maryland Tax Association President Herbert McMillan debate whether Maryland is a high-tax state:

A recent Tax Foundation study ranked Maryland fourth in the nation for its state-local tax burden. Ahead of Maryland were New York, New Jersey and Connecticut.

"Of the states ranked...

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August 19, 2008

The Mississippi Tax Study Commission will soon vote on recommendations for improving the state's tax system. The best tax system is one with low rates on a broad base, treating all taxpayers equally while minimizing economic distortions. When I testified before the Commission, I expressed the hope that it will work toward such a tax system, which would make Mississippi a more powerful economic performer.

Repealing corporate franchise and inventory taxes would attract more...

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August 19, 2008

When people hear the phrase "corporate taxes," they tend to tune out if they don't own a business, assuming that corporate taxes don't affect them. However, all Americans should be concerned about the impact of corporate taxes, not only on business owners but also on prices, shareholders, international competitiveness, and workers' wages.

Today the Tax Foundation launched its CompeteUSA campaign to raise the public's awareness of America's high business tax rates and how...

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August 19, 2008

In short, the answer is yes, according to Peter Ferrara writing in today's Wall Street Journal. Is Ferrara right? For the most part, yes.

Barack Obama is mainly using his tax plan to redistribute income via higher marginal rates on those at the top to finance lump-sum transfers for those at the bottom. It's just that these lump-sum transfers are administered by the IRS via a 1040 as...

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August 19, 2008

The Mississippi Tax Study Commission has released its draft report of recommendations. I react to the good and not-so-good in the report in this just-released report, Fiscal Fact No. 139: The Right Prescription for Mississippi.

Previous posts on Mississippi's tax study commission:

  • ...
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August 18, 2008

Florida's tax swap Amendment 5 is off the ballot, at least for now. Judge John Cooper ordered it removed after concluding that the ballot title was misleading and confusing. The initiative's proponents are now appealing the removal.

We discussed the swap proposal here:

The amendment calls for the Legislature to remove all...

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August 18, 2008

If this campaign has taught us much of anything, it's that tax policy is not Sen. McCain's area of expertise. That's hopefully why if elected he will rely on advisor Doug Holtz-Eakin regarding all things tax policy. His lack of knowledge on the topic was evident on Saturday night when asked to "define rich" by Pastor Rick Warren (a very good question yet one that a more confrontational interviewer should ask in order to follow-up/pin-down both Obama and McCain ). Here's what...

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August 18, 2008

In a new Tax Foundation Fiscal Fact, Robert Carroll, the Foundation's Vice President for Economic Policy, examines tax relief proposals from Sen. John McCain and Sen. Barack Obama. With the economy as one of the top issues among the American electorate this presidential election cycle, both candidates have been using the issues of health care, gas prices, and housing devaluation, among others, to preface their economic proposals. But Carroll explains that the candidates have...

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August 17, 2008

It's been a busy week on our blog! Here are some highlights:

  • Maine Policymakers Agree: Maine's Income Tax Too High: Earlier this week, Maine politicians reacted with surprising unanimity to the Tax Foundation's new State & Local Tax Burdens report. Governor John Baldacci (D) and Republican and Democratic leaders in the state legislature all acknowledged that Maine's personal income tax, with a rate that tops out at...
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August 17, 2008

New analysis of Barack Obama's tax plan by the Tax Policy Center puts a hard number on the extent in which Obama would shift the nation's tax burden on to the so-called rich. Obama has been very clear that he would increase taxes on couples earning more than $250,000 (and singles earning more than $200,000) while cutting taxes for all other households.

Obama's rhetoric gives the impression that middle-class taxpayers are paying a greater share of the tax burden than upper-income...

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August 15, 2008

We sometimes get asked which state is best for retirement, from a tax perspective. Answering such a question depends entirely on an individual's income and wealth, consumer habits, and how strongly they weigh taxes over other concerns (such as climate, proximity to family, etc.). So besides providing data about state tax rates, we usually recommend such questions be asked of investment and tax advisors.

That said,...

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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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