The Tax Policy Blog

December 12, 2006

Apparently it’s the latter, according to the West Virginia Supreme Court Court of Appeals.

In the case of Tax Commissioner v. MBNA America Bank, the West Virginia Supreme Court of Appeals ruled that the state could force MBNA to pay corporate tax even though MBNA was a Delaware-based corporation with no property or employees in West Virginia. MBNA did have...

Continue Reading...
December 07, 2006

Everyone agrees that taxes affect economic behavior. But when the economic behavior in question is where companies locate and invest, conventional wisdom holds that taxes are far down on the list of factors that affect those economic decisions.

A common argument is that factors like proximity to roads and ports, an educated workforce, and natural resources are far more important to companies than differences in tax policy. If true, that would imply that lawmakers can safely...

Continue Reading...
December 07, 2006

As the saying goes, no victory is ever final.

This fall, the good people of California defeated Proposition 86, which would have increased cigarette taxes by an additional $2.50 per pack. Proponents of the tax hike said it would raise necessary funds for health care, as well as provide an incentive to stop smoking. Fifty-two percent of voters thought the citizens united against Joe Camel were the...

Continue Reading...
December 06, 2006

Governor Mitt Romney appears to be one of the early frontrunners for the GOP presidential nomination in 2008. Although it’s still early in the race, Governor Romney has begun to bring key advisors onto his team for an expected White House bid. Recently, Romney added some major economic muscle to his team. From the Washington Post:

“He...

Continue Reading...
December 05, 2006

Almost every tax policy has both good and bad features. But there are some tax policies that, on a net basis, are so poorly designed and so counter to the economic efficiency of the marketplace that they are indefensible from the standpoint of sound public policy. As we outline in our latest report, "Tax Pyramiding: The Economic Consequences of Gross Receipts Taxes," gross receipts taxes are among those indefensible tax policies.

The basic problem...

Continue Reading...
December 05, 2006

In a just released paper, “Changes in Low-Wage Labor Markets Between 1979 and 2005,” the Congressional Budget Office finds that since 1990, real hourly wage rates at the bottom of the distribution have increased substantially— slightly more than the typical wage rate. This finding flies in the face of those who have endlessly reiterated incorrectly that wages are not growing and are actually falling.

Further...

Continue Reading...
December 05, 2006

We've posted a new 15-minute interview with Mihir Desai, Associate Professor of Finance at Harvard Business School and Faculty Research Fellow at the National Bureau of Economic Research, as today's Tax Policy Podcast.

Desai discusses the effects of corporate taxation on business. Topics covered include foreign direct investment,...

Continue Reading...
December 05, 2006

A bar in Oslo, Norway won tax-exempt status for its dancers that perform stripteases because of the dance’s artistic merit.

Striptease, in the way it is practiced in this case, is a form of dance combined with acting which compares to other stage acts that are exempt from VAT in Norway, three...

Continue Reading...
December 04, 2006

Newly elected Tennessee Congressman Steve Cohen, the author of Tennessee’s lottery legislation, is pondering a possible solution to the national debt: a national lottery. From the Memphis Commercial Appeal:

Cohen, the prime mover behind the Tennessee State Lottery, says he's thinking about working on the national debt...

Continue Reading...
December 03, 2006

If you haven't already seen it, last week we released a new report detailing the rise in property tax burdens across the nation that accompanied the housing boom in recent years. Here are some of key findings from the study:

• Property taxes are highest in the Northeast, Texas, Illinois, and Wisconsin • New York and New Jersey dominate the list of high-tax...

Continue Reading...
November 30, 2006

A New York Times article that appeared on the front page of the business section on Tuesday cited new IRS data to make some technically accurate, yet highly misleading statements regarding incomes and taxes.

First, the article states, “The tax cuts contributed to a big decline in individual income tax receipts, which fell at a...

Continue Reading...
November 30, 2006

Yesterday Michigan Governor Jennifer Granholm released her proposal to replace the state’s Single Business Tax (SBT) which is set to expire on January 1, 2008.

Her plan follows six others released by Professor Gary Wolfram, State Representative Fulton Sheen, the Detroit Regional Chamber of Commerce...

Continue Reading...
November 28, 2006

Ohio’s Corporate Activities Tax (CAT) is raising revenue faster than anticipated:

The new state tax on gross receipts, known as the Commercial Activity Tax, is bringing in about 20 percent more money than expected, and those unanticipated millions will automatically prompt a review by lawmakers and the governor's tax commissioner next...

Continue Reading...
November 27, 2006

Reforming the alternative minimum tax will almost certainly be on the agenda in the new Congress. Republicans have long supported raising the AMT minimums and key Democrats, such as incoming House Ways and Means chairman Charles Rangel (D-NY), have voiced their intention of addressing the AMT.

Two articles today illustrate the effect of ignoring AMT reform and the hurdles the new Congress will have to overcome...

Continue Reading...
November 21, 2006

Back in September, we blogged about predictions that Japan and Germany would move to cut their corporate tax rates in 2007. Last week, according to an editorial in the Japan Times, Masaaki Honma--head of the Japanese Tax Commission--released some details about the proposed cuts.  From the article...

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