The Tax Policy Blog

July 17, 2014

On Tuesday, the Nebraska Department of Revenue released the state’s 2013 annual tax incentives report, which describes the various business tax incentives in the state as well as their effects and beneficiaries. The department reports that this year the state spent around $200 million on tax credits which generated nearly $1 billion of capital investment and 2,300 full-time jobs,...

Continue Reading...
July 17, 2014

Rhode Island is one of the worst-scoring in the State Business Tax Climate each year, but there have been small attempts in the last decade at moving the state toward a more competitive code. In 2010, the Rhode Island brought the top income tax rate down to 5.99 percent, and this year, the corporate rate will be lowered two percentage points, paired with an increase...

Continue Reading...
July 17, 2014

One of the common themes in the debate over corporate inversions is that these transactions will erode the U.S. tax base and cost the Treasury billions of dollars in lost taxes.

What is interesting is that the latest IRS data for 2011 shows that the U.S. subsidiaries of foreign corporations pay a higher effective tax rate than do all active corporations in general. The IRS ...

Continue Reading...
July 16, 2014

In a recent letter to Congress’s tax writing committees, Treasury Secretary Jacob Lew wrote that Congress should act to prevent U.S. corporations from inverting (the practice of a U.S. company merging with a foreign company and moving its headquarters to the foreign country).

In doing so, Lew writes that corporations that invert “seek to shift their profits overseas to avoid paying their fair...

Continue Reading...
July 16, 2014

The Tax Foundation has released a new report that looks at the effects that tax credits for higher education have had on the rising costs of college tuition. The report explains how the credits have expanded, how they disproportionately benefit higher income families, and how they have failed to stop the increase in student loan debt. Additionally, it examines how, instead of being a...

Continue Reading...
July 16, 2014

On Monday Chris Christie announced that Holtec International will be building a 600,000 square foot manufacturing facility on the shores of Camden, New Jersey. Last week the project was spurred along by a $260 million tax credit. Holtec...

Continue Reading...
July 16, 2014

This week’s map shows when each state adopted its gasoline excise tax. States began to adopt motor fuels taxes in 1919 (Oregon was first in February of 1919) and, by 1929, every state in the union at the time had one (Hawaii and Alaska implemented their taxes several years later, but prior to gaining statehood). Unlike many other major taxes, gasoline taxes spread with surprising speed and uniformity, covering the entire nation within a decade. The last holdouts in New York and...

Continue Reading...
July 15, 2014

Governor Nixon (D) this week vetoed a Missouri bill that would have prohibited the sale of electronic cigarettes to minors, ostensibly because he was upset that the bill didn’t include new taxes on the products. The bill, SB 841, would bar sales to individuals under 18, continue to subject electronic cigarettes to the state and local sales...

Continue Reading...
July 15, 2014

The CBO released their 2014 Long-Term Budget Outlook today. Here are a couple highlights:

  • Federal spending is projected to slowly increase over the next 25 years from 20.4 percent of GDP in 2014 to 25.9 percent of GDP in 2039.
  • Federal revenue collections is expected to increase over the same timeframe, from 17.6 percent of GDP in 2014 to 19.4 percent of GDP in 2039.
  • Over the same timeframe, marginal...
Continue Reading...
July 15, 2014

A new paper from the Mercatus Center assessing the relationship between state taxes and economic activity has found that higher, more progressive state income taxes tend to be associated with slower economic growth, lower average incomes, less business formation, and worse migration flows. The sheer breadth of the study, assessing numerous different potential determinants of state economic outcomes...

Continue Reading...
July 15, 2014

The developed world’s most punitive corporate tax regime (ours) continues to spawn new ways to escape it. Corporate inversions, in which the U.S. company buys a smaller foreign company and relocates abroad, have become increasingly common. Over 40 companies have left the U.S. in this way in just the last 5 years, according to the...

Continue Reading...
July 15, 2014

The United States Highway Trust Fund is set to run out of money in less than a month. Congress has been working to address this problem; some long-term solutions have been proposed, but the House and the Senate appear to be converging on a short-term fix to the problem.

Both...

Continue Reading...
July 15, 2014

Venture capitalist Tim Draper announced yesterday that he has gathered the 808,000 signatures necessary to place his proposal to split California into six states on ...

Continue Reading...
July 14, 2014

The D.C. Council just voted 12 to 1 to override the Mayor's veto of the budget/tax reform bill. The bill reduces middle-class income tax burdens, cuts business taxes, and broadens the sales tax base to personal services, starting in 2015. All told, it is a revenue cut of $158 million over five years. We've spoken and written extensively on the benefits of this positive tax reform package; ...

Continue Reading...
July 11, 2014

A Colorado based marijuana dispensary is suing the IRS. The Denver Post reports that a marijuana dispensary, Allgreens, is challenging the IRS for charging them a 10 percent penalty because Allgreen’s pays its federal income tax liability in cash—not electronically.

Since 2011, the IRS has required employers to deposit withheld income taxes through the Electronic Federal...

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 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.

Monthly Archive