The Tax Policy Blog

December 15, 2006

There has been much talk lately of Pigouvian taxes, or taxes imposed on certain goods to counteract or prevent the damage to society caused by production or consumption of those goods. Pigouvian taxes are frequently advocated as a solution to environmental problems.

An example is the PlasTax, a tax imposed on plastic bags to reduce consumption and thereby...

Continue Reading...
December 14, 2006

In South Carolina, Governor Mark Sanford is putting forth a plan to raise cigarette taxes while lowering the state income tax. From the Charleston Post and Courier:

Gov. Mark Sanford on Wednesday proposed increasing South Carolina's cigarette tax from 7 cents to 37 cents per...

Continue Reading...
December 14, 2006

According to the latest “Fiscal Survey of States" report released by the National Association of State Budget Officers (NASBO) and National Governors Association (NGA), 2006 was an exceptional year for state treasuries. From State Tax Today:

“Continued strong revenue growth has allowed states to...

Continue Reading...
December 13, 2006

Two former communications directors at OMB, one for Bush II and one for Clinton, argued for bi-partisan tax code reform this week in the Baltimore Sun.

Noam Neusner and Lawrence J. Haas said the time is ripe for a consensus that would lower federal income tax rates and broaden the tax base.

...

Continue Reading...
December 13, 2006

Fresh off his solid re-election in November, Governor Ted Kulongoski of Oregon has already called for massive new government spending – higher taxes also are on the Governor’s agenda.  From State Tax Today:

“Even with a rosy revenue outlook, Kulongoski wants to raise taxes on cigarettes, corporations, and auto insurance by...

Continue Reading...
December 12, 2006

A commission formed by Texas governor Rick Perry has recommended a proposal that would authorize Texas taxpayers to approve city and county budget increases that go beyond 5% or the consumer price index plus population growth - a procedure known as a "rollback election".   

Roddy Stinson has an...

Continue Reading...
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

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 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 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...

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