The Tax Policy Blog

July 03, 2014

Yesterday, the Mackinac Center for Public Policy released a great new policy brief outlining the effects of Proposal 1, a Michigan initiative that would significantly decrease personal property tax burdens. The proposal will be put to a vote on August 5th.

According to the report, personal property taxes currently raise nearly $1.3 billion in tax revenue for Michigan. As we’ve written previously, personal property taxes...

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July 02, 2014

We've released a new video in which Tax Foundation Fellow Michael Schuyler explains the consumed income tax.

For more videos, click here, or follow us on YouTube.

July 02, 2014

We missed Flag Day this year, which we've honored in past years by providing information about which states exempt flags from their sales taxes. Flag Day is the anniversary of when 19-year-old Wisconsin teacher Bernard J. Cigrand asked his students to write essays on the U.S. flag and its significance. This fell on the anniversary of...

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July 02, 2014

For this week's tax map, we take a look at cigarette tax rates across the country, which vary widely from state to state and are levied on top of a federal rate of $1.0066 per 20-pack of cigarettes.

(Click on the map to enlarge it. ...

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July 01, 2014

With Independence Day around the corner, millions of Americans will be purchasing celebratory fireworks to shoot off on July 4. However, fireworks, like many other products, sometimes have significant government costs built into their price. This July 4, consumers in at least 3 states (Texas, Indiana, and Michigan) will pay excise taxes on fireworks, and consumers in the vast majority of states will face fireworks price tags that include often high license fees paid by distributors.

...

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July 01, 2014

Today, the Foreign Account Tax Compliance Act (FATCA) goes into force. FATCA was passed by Congress in 2010 as part of the “Hiring Incentives to Restore Employment Act of 2010” in order to ensure that those who have assets overseas are not evading their U.S. tax liability.

It does this by first requiring U.S. citizens and taxpayers to report assets held in overseas accounts worth more than about $50,000. Second, it requires foreign financial institutions to disclose financial...

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June 30, 2014

Today marks the end of the fiscal year in the Keystone State, and a state budget for 2014-2015 is poised for final passage in the Pennsylvania General Assembly in just a few hours. The proposed $29.1 billion deal increases spending in the general fund by about 2 percent from this year to next, and lawmakers have looked under nearly every couch cushion for extra funds.

The budget cobbles...

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June 30, 2014

If the Democrats in both Houses of the New Jersey Legislature have their way, the state’s 2015 budget will at last introduce a statewide “millionaires’ tax.” The proposed tax, which is meant to cover the cost of a scheduled pension payment, would create a new temporary tax bracket for those earning more than $1 million. For just the next three years, these top earners would owe 10.75 percent of their income above $1 million to the state – a jump up from the current top marginal rate of 8.97...

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June 27, 2014

Last week, the Tax Incentive Evaluation Committee, a group of Nebraskan legislators, convened to define both the goals of the state’s existing business tax incentive programs and to create a process to evaluate the programs. The committee, chaired by Senator John Harms, was originally formed to address the vague nature of the tax incentive programs’ goals. Many Nebraskan legislators believe the tax...

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June 26, 2014

Washington legislators are introducing bills to stop “tax inversions,” or the process by which corporations merge with foreign companies and move abroad to lower corporate tax burdens. This follows Medtronic’s recent inversion and comes as Walgreen Co. shareholders exert pressure on the Illinois-based corporation to do the same.

Recent legislative...

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June 26, 2014

The Pennsylvania House of Representatives has passed a measure (HB 2188) to suspend 13 different tax credits for two years, thereby reducing the state’s deficit by $48 million. According to the associated fiscal note, the tax credits suspended would be:

  1.  Property and...
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June 25, 2014


(Courtesy Revel)

Despite receiving tax incentives, state subsidized worker training, and infrastructure support, the $2.4 billion Revel Casino Hotel in Atlantic City, New Jersey,...

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June 25, 2014

For this week's tax map, we take a look at combined tax rates on commercial jet fuel in each state. When fuel for airplanes is bought at airports, much as when fuel for cars is bought at gas stations, there are taxes owed on that fuel. The airline industry estimates that, for every penny increase per gallon in fuel costs, industry-wide fuel expenses rise $180 million, which means $180 million in extra costs for...

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June 24, 2014

The Affordable Care Act increases marginal tax rates on labor by about six percentage points and is one of the largest tax increases in the last 70 years according to economist Casey Mulligan:

“During a period that included more than a dozen tax increases, the ACA is arguably the largest as a...

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June 24, 2014

UPDATE (12:12pm): The Catania amendment was defeated 4 to 9. 

UPDATE (2:04pm): The DC Council passed the full budget 12 to 1, including the tax reform package. It now goes to the Mayor for his approval or veto.

The District of Columbia Council enters into session today at 10:00 AM to vote on a budget package that includes a major tax reform. An initial vote on May 29...

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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.

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