The Tax Policy Blog

February 26, 2015

Corporate tax rate cuts are good for economic growth, and they aren’t bad for government revenues, either.

In fact, eliminating the corporate income tax would actually increase annual federal revenue in the long run. This is due to two main factors:...

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February 26, 2015

Earlier this month there was a little argument between the Treasury Department and the Tax Policy Center. The argument was over a particular provision: the White House’s proposal to tax accrued (but unrealized) capital gains at death.

The Tax Policy Center’s analysis showed that this proposal would affect some middle-income families, and the White House insisted that it wouldn’t. The Tax Policy Center’s Len Burman rounds up the story well...

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February 25, 2015

Only a week after Wal-Mart Stores Inc. announced plans to raise their starting wages to $9 per hour this year and $10 per hour next year, the retail conglomerate that includes T.J. Maxx, Marshalls, and HomeGoods announced similar plans.

This is excellent news. This sort of business move is the most natural, and best, vector by which wages rise. In an...

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February 25, 2015

We’ve been covering a number of important issues in tax policy lately. My colleague William McBride has been covering the decline of the traditional American C corporation. He has found that the number of traditional C corporations in America, once at 2.6 million, has declined all the way to 1.6 million, and – if anything – the rate of that decline is increasing.

...

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February 25, 2015

This week, the Mileage-Based User Fee Alliance held their annual conference. I was invited to speak on the tax policy and the taxpayer perspective of mileage-based taxes, or sometimes referred to as vehicle miles traveled (VMT) taxes. This group is interested in how mileage-based taxes could help better fund transportation spending and how it can better “price” roads than the gas tax.

Mileage-taxes are levied on drivers based on the number of miles they drive. For example, a driver...

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February 24, 2015

Let’s not forget to remember that net fiscal incidence is the key measure to evaluate the distributive effect of government policy; that is, the total distribution of spending and taxes. The significance of net fiscal...

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February 24, 2015

The U.S. is a craft beer nation, and the 2,768 craft breweries in the U.S. are proof of it. Although we would like to believe that Americans love craft beer more than any other nation, our friends across the pond would disagree with us. European breweries are more than just old world brewers, steeped in tradition and bound by outdated purity laws. Craft breweries are on the rise in Europe, producing innovative...

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February 23, 2015

Regular readers of this blog know the main issues with tax increases on investment income, like the capital gains and dividend tax hikes proposed recently by the President. This tax increase would be consistent with a general Obama administration philosophy of taxing returns on financial capital.

We usually...

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February 23, 2015

This post originally appeared as an op-ed on Forbes.com here.

Governor Gary Herbert of Utah’s website recently featured a blog post called “8 facts about e-cigarettes and their effect on public health,” which purports to explain why...

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February 23, 2015

Connecticut lawmakers will take up a budget that includes $914 million in additional tax and fee revenue. Governor Dan Malloy’s FY 2016-2017 budget proposes changes—tinkering in some areas, offering sweeping changes in others—to a range of taxes and fees, including substantial adjustments to the sales tax, corporation tax, and health provider taxes.

The anticipated revenues...

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February 23, 2015

Five states have either eliminated or begun the phase-out of their capital stock taxes in the past five years. If Lt. Governor Tate Reeves has his way, Mississippi could be next in line.

Reeves is touting a tax relief package that decreases individual income tax burdens and phases out the state’s antiquated franchise tax over ten years. The proposal has the support of the...

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February 20, 2015

Update: Due to political delays, April 1st is unlikely to be the starting day of the VAT. The House of Representatives is currently making changes to the bill in anticipation of passing the bill after April 1st. 

Puerto Rico introduced a bill in the Commonwealth’s House of Representatives yesterday to...

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February 20, 2015

On Wednesday, I was invited to present to the Pennsylvania House Majority Policy Committee as they conducted a hearing in York, Pennsylvania about the business climate in the state. A video of the event is here, and I've pasted the text from my handout below, and linked to a PDF of the handout below that.

Introduction

Since 1937, the Tax Foundation has monitored tax policy at the...

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February 19, 2015

A cut in the corporate tax rate would have large effects on GDP, but minimal effects on total federal revenue in the long run. The large boost to the size of the economy from a corporate tax cut comes from a lower cost of capital.

The corporate tax rate is, in effect, a tax on corporate investment; a high corporate tax rate discourages investment, whereas a low corporate tax rate encourages investment. Additionally, the competitive nature of the global economy corporate taxes makes...

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February 19, 2015

For this week's tax map, we're continuing our series on pass-through businesses. For the first map of the series, check out our two previous maps here, here, and...

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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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