The Tax Policy Blog

August 18, 2016

There’s a lot of misinformation about tax policy floating around online. Usually, the Tax Foundation can’t take the time to correct every erroneous claim about federal taxes that we run across on the internet. But it’s a slow August day, Congress is out of session, and I just came across an article on AlterNet titled, “Monarchy in America? One...

Continue Reading...
August 18, 2016

Today is August 18, the date in 1988 when George H.W. Bush said “Read my lips: no new taxes” to the Republican National Convention when accepting the presidential nomination. The pledge got a lot of attention, and even more in 1990 when Bush decided to agree to significant tax increases as part of a budget deal. The subsequent loss of...

Continue Reading...
August 17, 2016

Many politicians have called for raising tax rates on top earners to combat income inequality. Both Sen. Bernie Sanders (I-VT) and Democratic presidential nominee Hillary Clinton have in particular expressed concerns about executive compensation, repeating a commonly cited...

Continue Reading...
August 17, 2016

Today is August 17, Davy Crockett’s 230th birthday. Before he moved to Texas, Crockett was a congressman representing Tennessee, and there’s a story of him opposing an appropriation of relief money and instead proposing that each member of Congress contribute a week’s pay for the effort (and none do). The bill and Crockett’s opposition are true, though the details are...

Continue Reading...
August 16, 2016

Corporate tax avoidance has become a serious area of focus for the OECD. In 2013, the organization started the Base Erosion and Profit Shifting (BEPS) initiative, advising countries to adopt policies to prevent shifting of pre-tax corporate income to low-tax jurisdictions.  Most countries have had regulations to prevent earnings stripping for decades, but it has only become a pressing policy issue in recent years.

There are many...

Continue Reading...
August 16, 2016

The tax reform proposal recently released by the House Republicans would be strongly pro-growth and greatly reduce income tax biases against saving and investment. The only major provision that would be inconsistent with a purely neutral tax is the elimination of the deductibility of business interest as a partial “pay-for.” (Please see the Tax Foundation analysis of the proposal at: http...

Continue Reading...
August 16, 2016

Today is August 16, the date in 1954 when a complete overhaul of the Internal Revenue Code was adopted. A number of loopholes were tackled and ambiguous sections made clearer. Pushed by congressional leaders, the revision occurred after two years of hearings, testimony, and public comments. President Eisenhower made it a key element of his 1954 State of the Union address, and most of the reorganization remains with us today...

Continue Reading...
August 16, 2016

The Cato Institute this week released Freedom in the 50 States, a report that ranks the states on three areas:

  • Fiscal policy: taxes, government employment, spending, debt, and fiscal decentralization
  • Regulatory policy: liability system, property rights, health insurance, and labor market
  • Personal freedom: a variety of categories including incarceration rates, marriage laws, education, guns, and...
Continue Reading...
August 15, 2016

One of the biggest debates in economics has been the question of who bears the real economic burden of corporate taxes: shareholders through lower returns, consumers through higher prices, or workers through lower wages. In an essay (here) in today’s Wall Street Journal, economist Kevin A. Hassett and Aparna Mathur review the growing empirical evidence showing that workers bear the true economic burden of the...

Continue Reading...
August 15, 2016

Today is August 15, the date in 1971 of the “Nixon Shock,” when President Nixon announced (via a TV address on Sunday evening) a series of economic measures designed to tackle high unemployment, high inflation, and draining gold reserves. Nixon suspended convertibility of the dollar into gold, imposed wage and price controls, and a 10 percent tax on imports. A political success, the Nixon shock likely helped bring on the 1970s...

Continue Reading...
August 12, 2016

I have a simple exercise for the reader. This shouldn’t be difficult to follow, nor should it require any kind of advanced education in economics, nor should it even require you to agree with me about a lot of basic axioms or assumptions of economics. It just requires you to think along with me. Are you ready? Here goes.

First:

I want you to think about the best possible revenue-neutral  tax reform that you can come up with. What I mean by revenue-neutral is that you...

Continue Reading...
August 12, 2016

This week, both Donald Trump and Hillary Clinton gave speeches in Michigan outlining their respective economic policy platforms. Tax policy featured prominently in both speeches: Trump took the opportunity to announce revisions to his...

Continue Reading...
August 12, 2016

Today is August 12, the 183rd anniversary of Chicago being organized as a town (it would become a city officially four years later). Chicago is often in the tax news, with the highest sales tax of a major U.S. city, a tax on bottled water, a hefty combined $6.16-per-pack...

Continue Reading...
August 11, 2016

Last month, the National Bureau of Economic Research (NBER) released a paper presenting findings that research and development depreciation rates for capital in large, high-tech industries in the United States are generally greater than previously understood. Such a finding highlights the complexities and arbitrariness in depreciation schedules used by the Internal Revenue Service (IRS), with negative consequences for the economy....

Continue Reading...
August 11, 2016

Fifteen years ago, the Tax Foundation was just seven people with a small but dedicated audience. Today, we have a team of 24 and are the go-to source on tax policy for millions of taxpayers, hundreds of state and federal legislators, most of the presidential candidates, and every major news outlet in the country.

There are, however, a few things that have remained consistent over the last 15 years. There is still hope that one day American tax policy will stop placing such a heavy...

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 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.

Monthly Archive