The Tax Policy Blog

March 24, 2014

A number of states are calling on Congress to authorize them to collect sales taxes on interstate Internet transactions, including at a congressional hearing early this month. The states claim that they have simplified their sales tax systems so that compliance is no longer burdensome.

The growing number of sales tax jurisdictions, as reported by the tax software...

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March 21, 2014

Kevin Spacey is my favorite actor—I spent my entire recent vacation flight watching his movies—so it’s hard for me to say bad things about him. But he’s also a celebrity with an alleged net worth of $80 million ...

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March 21, 2014

On Thursday, Illinois House Speaker Michael Madigan proposed a 3 percent “additional income tax” constitutional amendment for earners with incomes over $1 million. Currently, Illinois’ income tax rate is 5 percent for...

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March 20, 2014

Chairman Dave Camp (R-MI) of the Ways and Means Committee detailed some significant changes specific to the tax treatment of S corporations in the tax reform plan he recently released.

The biggest changes would reform payroll tax treatment for owners of S corporations, the treatment of active and passive income, and the differentiation between manufacturing and non-manufacturing income (e.g. service or retail businesses).

The focus of Rep. Camp’s plan was to create a simpler...

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March 20, 2014

On March 19th, 2014, the Center on Budget and Policy Priorities released a paper praising President Obama’s plan to raise the federal cigarette excise tax in order to finance early childhood education.

The cigarette excise tax is regarded as a regressive tax because it targets smokers, a population that has lower levels of income on average than the U.S. population at large. From CBPP: “29 percent of poor...

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March 20, 2014

Sister organizations Citizens for Tax Justice (CTJ) and the Institute on Taxation and Economic Policy (ITEP) released a report yesterday, finding that Fortune 500 companies paid little or no state corporate income tax during the 2008 to 2012 period according to SEC filings. Looking at a select 269 companies on the Fortune 500 list, CTJ/ITEP found that 90 companies paid no state corporate income tax in at...

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March 20, 2014

Yesterday we shared our new 2014 edition of our Facts & Figures: How Does Your State Compare? booklet. Just in time for Tax Season, the latest edition of this popular pocket-and purse...

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March 19, 2014

Today’s map is from our report released today on cigarette smuggling rates across the states. In it, we find that large differentials in cigarette taxes across states create incentives for black market sales. Smuggled cigarettes make up substantial portions of cigarette consumption in many states, and greater than 25 percent of consumption in twelve states.

...

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March 19, 2014

Today we released the 2014 edition of Facts & Figures: How Does Your State Compare? Just in time for Tax Season, the latest edition of this popular pocket-...

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March 18, 2014

This week's map shows the state sales tax rate, plus the average local rate, for each state as of January 1, 2014. This data comes from a new sales tax report we released today which will include each state’s maximum and average local sales tax rates, as well as each state sales tax rate. 

Tennessee has the highest average combined rate at 9.45%, and is followed closely by Arkansas (9.19%) and...

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March 17, 2014

John Diamond and George Zodrow were recently commissioned by the Business Roundtable to model the dynamic effects of House Ways and Means Chairman Dave Camp’s discussion draft. The study is interesting for a number of reasons, not least because John Diamond is also the principal architect of one of the macroeconomic models used by the...

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March 14, 2014

Senator Pat Toomey of Pennsylvania wrote an excellent piece in National Review on the subject of tax reform. He recognizes that tax reform is an outstanding opportunity for lawmakers to make a real difference in the economy, but he also realizes that this potential could be wasted by the need to stick to arbitrary Congressional scoring rules.

One of these rules is...

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March 14, 2014

A report from the consulting firm Mercer, which surveyed 700 employers, found that 62% of those employers are concerned about being hit with the excise tax on high-cost health plans, also known as the “Cadillac Tax.” According to the report, many companies are already making changes in anticipation of the tax, converting to less generous plans.

In other...

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March 12, 2014

Nebraska legislators are on track to approve a bill to inflation-adjust individual income tax brackets each year, a positive change that ends "bracket creep" and will save taxpayers $10 million per year. However, efforts to adopt a more comprehensive tax overhaul appear to have stalled until the 2015 legislative session.

From the ...

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March 12, 2014

Last year, Minnesota passed a large package of tax increases on high-income individuals, tobacco products, and business inputs. These tax hikes amounted to a projected $2.1 billion in new expected revenues. Some of those new taxes, especially taxes on business inputs like...

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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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