The Tax Policy Blog

February 28, 2007

Senator Gordon Smith (R-OR) has suggested doubling the federal cigarette tax to help pay for expanding the State Children's Health Insurance Program.  S-CHIP pays for low-income children who are not covered by Medicaid. 

As far as we know, S-CHIP is not targeted at children who smoke or have smoking-related illnesses, so we are a...

Continue Reading...
February 27, 2007

As March 1st approaches, most of the country's governors have submitted their budget proposals to their respective legislatures. Here is a quick rundown of some of the notable tax proposals. Those hyperlinked have been blogged on recently.

Connecticut: Governor Rell proposed to raise the state's income tax on income over $10,000 from 5 percent to 5.5 percent and raise the cigarette tax.

...

Continue Reading...
February 23, 2007

North Carolina Governor Mike Easley announced yesterday that he wants to prevent small scheduled drops in his state's income and sales tax rates.

The small income tax cut from 8 percent to 7.75 percent is scheduled in law to take effect in 2008, and the scheduled drop in the state's sales tax rate from 4.25 percent to 4 percent is supposed to take effect on July 1, 2007. See article here.

...

Continue Reading...
February 22, 2007

The State of Oregon is seeking to fund a new children's health care program, and debate is ensuing over how to fund it. The leading proposal has unfortunately become a common theme across the country as lawmakers are seeking to impose a tax on a select group (smokers) so as to not lose the support of the political majority. From the Seattle Post:

Breaking ranks from many in the...

Continue Reading...
February 22, 2007

We've posted a new data set this afternoon with the complete history of AMT tax returns and liabilities from 1969 to 2005. Although it's not often reported in news stories on the AMT, the tax actually began as a 10 percent "minimum tax" in 1969, and wasn't fully replaced by the current "alternative minimum tax" until 1982. For a full legislative history of the tax, see the appendix at the end of our 2005 AMT backgrounder...

Continue Reading...
February 21, 2007

Florida lawmakers are proposing to cut property taxes and increase the sales tax, following the perilous precedent set in Idaho, New Jersey, and South Carolina last year.

House Speaker Marco Rubio unveiled the proposal, which calls for a special election later this year in which voters would be asked to eliminate all property taxes on...

Continue Reading...
February 20, 2007

Across the country, local governments and state legislatures are taking aim at the public's frustration over property taxes, promising tax reform that includes drastic cuts in property taxes. But in most cases, the government is not cutting the overall tax burden. Rather it is merely lowering property taxes and raising other taxes, like sales, income, or taxes on businesses which they view as an easier sell politically. Or in some cases, they seek to export their tax burden by...

Continue Reading...
February 20, 2007

Ask an economist the above question, and you'll get a simple answer: zero percent.  

That is, companies themselves are not individuals, so they can't actually feel the loss of economic welfare from taxes. As Prof. John Mikesell explains brilliantly in his recent study, companies are just legal conduits that channel taxes to individuals. So there's no such thing as "companies'" fair share of anything. Only individuals can have a fair or...

Continue Reading...
February 16, 2007

The House of Representatives is set to pass a bill that includes $1.8 billion in business tax incentives as part of a deal that would also increase the minimum wage. The argument is that the Congress must offset the burden of an increased minimum wage that businesses face. From Yahoo News:

The fate of a higher federal minimum wage for the lowest paid workers no longer depends on whether small...

Continue Reading...
February 12, 2007

 The Tax Foundation has recently published a number of charts and tables that may be helpful for lawmakers, staff and media.  The following tables represent the most recently available data. 

 Federal Individual Income Tax Burden
     Analysis | By County |...

Continue Reading...
February 09, 2007

If Governor Edward Rendell gets his way, consumers, investors and workers in the Keystone State will face a massive tax hike. From the Pittsburgh Post-Gazette:

"A controversial "gross profits tax" on oil companies was one of the centerpieces of Mr. Rendell's budget address yesterday, and the governor devoted a healthy portion of his annual speech to the issue of ExxonMobil's record profits over the last...

Continue Reading...
February 08, 2007

Lawmakers have proposed many tax plans in Michigan recently. Governor Granholm's new "Service Tax" is easily the worst.

Governor Granholm just released details on her proposed 2 percent sales tax on services to help plug the state's budget deficit, which experts say ranges from $800 million to $1.1 billion. Her plan would raise $1.47 billion in the next fiscal year by applying the 2...

Continue Reading...
February 08, 2007

An amusing tale of a man, a dream, and the burden of the federal individual income tax, courtesy of the good folks at CNN.com.

First the bad news, from a January 29th story, "Uncle Sam Spoils Dream Trip to Space": 

LOS ANGELES, California (AP) -- Brian Emmett's childhood fantasy came true when he won a free trip to outer space.

But the 31-year-old was crushed when he had to...

Continue Reading...
February 07, 2007

On the heels of Pennsylvania Governor Ed Rendell's massive tax hike proposal yesterday, Connecticut Governor Jodi Rell proposed a tax hike today that could cause equal economic harm.

Governor Rell wants to increase tax rate from 5 percent  to 5.5 percent on income over $10,000 and increase the cigarette tax from $1.51 to $2.00 per...

Continue Reading...
February 06, 2007

President Bush and the Office of Management and Budget released their fiscal year 2008 budget yesterday. Tax collections have been increasing much more rapidly than usual: 7.5% annually from 2002 to 2006. Therefore, the culprit in any deficit analysis is bound to be government spending, the rapid growth of which we've commented on elsewhere.

What we focus on here is the enormous size of...

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