The Tax Policy Blog

March 10, 2015

States tend to engage in tax competition, and now Mississippi is proving that elected officials do too, with three separate tax relief packages circulating in the Magnolia State.

Governor Phil Bryant (R) kicked things off last year when he outlined his 2016 budget recommendations, proposing a $78.7 million targeted tax reduction for low- and middle-income taxpayers, yielding an...

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March 09, 2015

Arkansas Governor Asa Hutchinson signed a tax cut into effect at the beginning of February, known formally as the “Middle Class Tax Relief Act of 2015” (Senate Bill 6). While the bill grants savings to taxpayers (an estimated $22.9 million in FY 2016 and $90.3 million in FY 2017), it does so in a rather complicated matter.

Arkansas’ individual income tax is graduated and has six brackets. For reference, we’ve displayed the pre-SB 6 individual income tax rate schedule in Table 1 below...

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March 09, 2015

Americans tend to move in recognizable patterns as they age. This makes a great deal of sense; peoples’ needs when...

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March 09, 2015

The Joint Committee on Taxation (JCT) has estimated that the President’s budget would increase taxes by $1.2 trillion over 10 years. This is slightly more of a tax hike than we estimated under our static analysis, which we released last week.

JCT, like us, found no sign of a corporate tax rate reduction. The...

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March 06, 2015

“See, we can agree on certain things,” Pennsylvania Governor Tom Wolf (D) quipped during his State of the State Address, when members of both parties applauded his proposal to phase out the Commonwealth’s Capital Stock and Franchise Tax. It may be one of the few areas of agreement the Governor can find with a Republican-controlled legislature as he pushes his a budget containing $4.7 billion in new and...

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March 06, 2015

The Congressional Research Service recently released a report on the Medical Device Tax in the Affordable Care Act. It fairly enumerated most of the critiques of the tax, which are wide-ranging and substantial. (Here was ours.) It also stated the principal argument for the tax – essentially, that it’s a source of revenue for the government....

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March 05, 2015

Over at AEI, Mark Perry put together a chart that got a lot of attention yesterday. The chart shows that for the first time ever, Americans are spending more money at restaurants and bars than they spend at grocery stores. (For reference, the total numbers are $50 billion each, with the restaurants and bars now ahead by a nose.)

There are many things to say about this development. Mark...

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March 05, 2015

Chuck Marr over at the Center for Budget and Policy Priorities seems pretty upset over the new Rubio-Lee tax reform plan. He is calling it a “Huge new windfall at the top.” He is also concerned about the plan not addressing the soon-to-expire temporary expansion of the Child Tax Credit. “The plan creates something that’s even more tilted—outrageously so—in favor of...

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March 04, 2015

India’s finance minister this week released a budget that includes, among other things, a five per cent reduction in the corporate income tax. Narendra Modi, the Prime Minister of India, won a landslide election last May on a pro-growth agenda.

The proposed budget would move India, one of the world’s largest economies, from a 30 per cent base...

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March 04, 2015

Here are some great links from this week:

  • The Texas Public Policy Foundation has a new report about repealing the Texas Margin Tax. They find repeal would produce $10.8 billion in new real personal income in the first year and $16 billion over 5 years. The state would be one of just four states without direct business tax or individual income tax. We have some similar...
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March 04, 2015

Earlier today Senators Rubio and Lee released their “Economic Growth and Family Fairness Tax Reform Plan.” We have modeled the economic and budgetary effects of the plan and will release our full results Monday, but the following is a preview.

On the business side, the plan is strongly pro-growth by design. Instead of taxing net business income at our current high...

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March 04, 2015

The Supreme Court will today hear arguments in King v. Burwell, a case concerning the insurance premium subsidies in the Affordable Care Act.

The plaintiffs’ argument is that the health care law does not allow the federal government to provide these subsidies in states that failed to set up their own exchanges. This argument is based on the text of the law referring to exchanges “established by the state,” in apparent contrast with the one established by the federal...

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March 04, 2015

Lately, we have seen good job growth numbers which has led to a reduction in the unemployment rate. At first glance, this is an encouraging sign for the economy. But when we have a closer look at data on business dynamics, it is clear that the overall economy has not come back to its full strength. Specifically, the economy is still not creating as many new firms as it did before the recession.

...

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March 04, 2015

In a new 580-page report, a government advisory panel calls for “bold actions” to “transform the food system” and bring about a fundamental shift in people’s diets and lifestyles. The 2015 Dietary Guidelines Advisory Committee advocates “a diet higher in plant-based foods, such as vegetables, fruits, whole grains, legumes, nuts, and seeds...

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March 03, 2015

A report of mine was quoted recently in the Wall Street Journal, and it drew a response from a concerned reader.

The “Notable & Quotable” of Feb. 23, which is from the Tax Foundation’s report “Sources of Personal Income,” correctly points out that middle-class...

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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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