The Tax Policy Blog

December 29, 2015

There is a vigorous debate among the presidential candidates over how we should tax Americans at different income levels. Some candidates argue that wealthy families should pay more, while most candidates contend that the middle class is overtaxed. Still, others argue that everyone should get a tax...

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December 29, 2015

As the end of 2015 approaches, Americans are deciding where to direct their end-of-year charitable donations. For Americans looking to donate locally, how many tax-exempt organizations will they find nearby?

...

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December 29, 2015

This Thursday night, millions of Americans will celebrate the New Year with close friends, good food, and champagne. People who otherwise never drink sparkling wine will indulge in the experience—often at their wallet’s expense—in order to wish “farewell” to 2015, and to offer a warm welcome to 2016. For many of us, however, our champagne toasts come with some...

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December 28, 2015

Part 4: Taxes on Capital Do Matter for Investment

This blog continues a discussion of a recent piece by the Center for American Progress, “Long-Termism or Lemons:...

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December 23, 2015

This past Sunday, Apple CEO Tim Cook repeated his call for a simpler U.S. corporate tax code on CBS’s 60 Minutes. In fact, to say that he appealed for a “simpler” code might be an understatement. Cook called for a tax code that would befit a modern day digital economy.

Tim Cook did not say anything in his Sunday night appearance on national television that he hadn’t said already when...

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December 23, 2015

During Saturday’s CNN Democratic debate, Governor Martin O’Malley (D-MD) suggested creating a new tax bracket that would apply to income over $1,000,000, and taxing capital gains at ordinary marginal income tax rates. He claimed that these changes would provide sufficient revenue for the public investments he supports. Here is the relevant quote:

“If we were to raise the marginal rate to 45% for people earning more than a $1,000,000, and if we taxed capital gains...

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December 22, 2015

Massachusetts Governor Charlie Baker (R) tried to eliminate the state’s film tax credit program earlier this year. That effort failed, and the tax credit continues to live on, wasting millions every year. On Friday, the state’s Department of Revenue released its annual accounting of the credit. The state estimates that $58 million in tax credits were...

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December 22, 2015

The congressional deal on tax extenders includes good news for small businesses, which will enjoy greater certainty under the revised Section 179 provision. At the federal level, expensing levels have been at temporarily increased levels since 2003; under the extenders deal, the current $500,000 expensing level will be maintained in perpetuity. Now it’s the states’ turn to follow suit.

Forty-five states and the District of Columbia allow first-year expensing of small business capital...

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December 22, 2015

Have you calculated your allowable Christmas light wattage yet? Do you know your figgy pudding allocation? If not, be of good cheer, for we at the Tax Foundation bring you tidings of… a tax form, basically. Lump of coal in the stocking for us. Nonetheless, this Christmas season we offer you a new way to assess your level of Christmas cheer. Unfortunately, the instructions sheet has gone missing, so if you get stuck on, e.g., Line 17 (“Mannheim Steamroller expressed as a percentage of all...

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December 21, 2015

During Saturday night’s Democratic presidential debate, each of the three candidates on stage called for higher taxes on wealthy Americans. At one point in the debate, Hillary Clinton called for a new minimum tax on high-income individuals:

Look, I have said I want to be the president for the struggling, the...

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December 18, 2015

Soda taxes are poised to be on the agenda in many cities in 2016, an effort spearheaded by former New York City Mayor Michael Bloomberg. After a long string of rejections—including in New York City itself, where the city that never sleeps refused to sacrifice its caffeine fix—advocates of a tax on sugary beverages finally secured a victory in Berkeley in 2014, a success which advocates hope to parlay into efforts in...

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December 17, 2015

Earlier today, the House of Representatives passed a 233-page tax bill (the PATH Act), which includes over $620 billion in tax reductions for families and businesses. The provisions are a mixed bag: some are principled, sound tax policy, while others are giveaways to narrow interests.

Notably, the bill renews all of the tax extenders –...

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December 17, 2015

Governor Terry McAuliffe (D) released his budget proposal this morning. If passed, his budget would make several changes to Virginia’s tax code.

His plan includes the following changes:

  • Personal Exemption. Governor McAuliffe would increase the personal exemption for individuals and dependents from $930 to $1,000. The exemption for the elderly and the blind would increase from $800 to $900. This is expected to save taxpayers $42 million over two years....
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December 11, 2015

Senator Tom Carper has reportedly proposed a tax credit for oil refineries, as part of the ongoing spending bill negotiations. Such a credit would have several drawbacks: it would make the tax code more complex, reduce federal revenue, and subsidize certain businesses...

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December 11, 2015

When businesses suffer losses in a calendar year, well-structured corporate tax codes allow them to deduct those losses against previous or future tax returns. These provisions are called net operating loss (NOL) carrybacks and carryforwards. While the federal code allows 20 years of NOL carryforwards and 2 years of NOL carrybacks, states vary widely on their net operating loss policies.

Net operating loss deductions are important because many businesses operate in industries that...

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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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