The Tax Policy Blog

April 12, 2016

On April 13, the U.S. House Small Business Committee's Subcommittee on Economic Growth, Tax, and Capital Access will be holding two hearings on improving the tax system. The second afternoon hearing at 2:30 PM will be testimony by IRS Commissioner John Koskinen, and the tax community will be eager to see what he has to say. The first hearing...

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April 12, 2016

Betsy Ross made the first U.S. flag, Abraham Lincoln freed the slaves, and Tax Day is April 15. These American immutable truths are being thrown a curveball this year, because the day that Americans must timely file their federal income tax returns for 2015 is April 18, 2016, three days later than usual.

The reason is...

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April 11, 2016

We have previously discussed some of the drawbacks of the Earned Income Tax Credit (EITC), including a high rate of improper payments and work disincentives as the credit phases out. Recent research has found that these work disincentives may...

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April 07, 2016

Okay, so the headline is hyperbole, but Bloomberg Markets and Business Insider this week are reporting that New Jersey’s budget estimates might be off due to the move of one man—hedge fund manager David Tepper—from New Jersey to Florida.

From Bloomberg:

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April 07, 2016

On April 5, voters in St. Louis and Kansas City supported identical proposals for extending the cities’ 1 percent earnings tax at least another five years. In Kansas City, unofficial returns have 77 percent of city voters supporting extension; it passed with 72 percent support in St. Louis.

If the...

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April 06, 2016

In mid-March, Louisiana finished its special legislative session that was called to address a $900 million budget shortfall, and the dust is still settling. We’ve been very involved in the state, publishing a book on the state’s tax code at the end of 2015, serving on the state’s Sales Tax Streamlining and Modernization Commission, and...

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April 06, 2016

Tax Freedom Day®, the day when the nation as a whole has earned enough money to pay its total tax bill for the year, will fall on April 24. Tax Freedom Day takes all federal, state, and local taxes and divides them by the nation’s income. In 2016, Americans will pay $3.34 trillion in federal taxes and $1.64 trillion...

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April 06, 2016

We're busily working the phones here at TF, doing media interviews on our Tax Freedom Day 2016 report released earlier today, showing the date that Americans as a whole will have paid off their combined federal, state, and local tax burden. A big, big thank you to all of you who are helping get the word out!

The Center on Budget and Policy Priorities (CBPP) has just ...

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April 05, 2016

Today, the Obama Administration announced a new set of anti-inversion rules. An Inversion is a transaction in which a U.S. firm merges with a foreign firm as a means to moves its legal headquarters overseas. Usually, a company inverts in order to reduce their tax burden. The rules would both make it hard to invert and would make it less attractive to do so.

Treasury’s new rules follow a...

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April 05, 2016

In January, a bipartisan group of New Jersey State Senators sponsored a bill to gradually eliminate the state’s estate tax after Governor Chris Christie raised concerns that it was making the state’s tax system “unfair and uncompetitive.” New Jersey faces many problems when it comes to tax climate. It...

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April 05, 2016

In keeping with the reputation that “The United States can always be relied upon to do the right thing — having first exhausted all possible alternatives”, the Obama Treasury has announced (here) yet its third set of rules aimed at preventing U.S. companies from merging with foreign companies based in low-tax countries such as Ireland. These transactions are known as inversions.

Of course,...

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April 01, 2016

New York City officials have voted for a controversial tax credit program in a purported effort to reduce crime in Times Square. The credits will be offered to repeat criminal offenders known to run afoul of the law in the busy district, but who have not committed an offense in the most recent tax year.

The new program received unanimous support from the city council, but critics assail the credits as a backdoor effort to restrict the activity of...

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April 01, 2016

The American electorate’s desire is to send a political outsider to the White House in 2016, someone who is not controlled by big money and who can clean up Washington. Kayne West, a fashion icon, legendary recording artist, and now a visionary businessman, is considered by many to be an early frontrunner in the 2020 presidential race after he made...

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April 01, 2016

IRS Commissioner John Koskinen today shared details of a new agreement he negotiated over e-mail to share data on over 150 million taxpayers to improve data security.

“The IRS will provide key data on American taxpayers to their data review and security team, which includes several Nigerian princes and financial security expert Marie-Antoinette Mobutu, widow of former Zairean dictator Mobutu Sese Seko,” Koskinen said. “They’ll review the data and then send us recommendations on how...

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April 01, 2016

India has experienced some problems with their curry tax deduction over the past months. As part of the Make in India Great campaign, the Indian government has passed tax reform to attract manufacturers. These reforms included a special lower corporate income rate for income derived from the processing of curry powders or preparing and packaging curry products. Although the...

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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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