The Tax Policy Blog

March 05, 2014

President Obama released his fiscal year 2015 budget yesterday. Overall, the president proposes to increase revenue by $1.759 trillion over ten years. This new revenue comes in the form of a couple large tax changes, numerous small tax changes, and new fees (which we don’t discuss in this post).

This analysis is a general overview and is based on the few specifics that the White House’s budget documents provide.

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March 04, 2014

One of the selling points of Chairman Camp’s tax reform proposal is the simplification of moving to two brackets with an additional ten per cent “surtax.” Sometimes this is styled as three brackets, but given that the surtax has a different base, this isn’t completely appropriate.

However, discussing brackets alone gives a very inaccurate picture of the marginal tax rates that people actually deal with. There are many tax credits and deductions to keep track of, and in total a...

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March 03, 2014

When voters in Washington took to the polls in November of 2011 to approve Initiative 1183, which ended the government’s monopoly on liquor sales, the last thing they expected was to pay more for their alcohol. But instead of cheaper alcohol, residents of the Evergreen State kept the 20.5% spirits sales tax and $3.77 per...

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February 28, 2014

[This blog has been updated with new information]

Last week Chairman Dave Camp of the House Ways and Means Committee delivered the details on his tax reform plan that lowers tax rates and broadens the base in a revenue-neutral fashion. Indeed, it lowers tax rates in many cases, and the Joint Tax Committee (JCT) has scored it as revenue-neutral according to the official rules of Congress. That sounds like a win, but not far below the surface lurk a...

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February 27, 2014

Earlier this month, Illinois Representative Robyn Gabel (D-18th District) and Senator Mattie Hunter (D-3rd District introduced a bill (HB 5690 and...

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February 26, 2014

House Ways and Means Chairman Dave Camp (R-MI) released a plan today to reform the federal tax code. He set out with the goal of simplification while maintaining revenue neutrality. While his plan maintains revenue neutrality, on first blush it appears to do little by way of addressing the complexity of the tax code, and in some ways, makes the tax code more complex.

We’ll have more analysis on the plan soon – it will take us days to get through the...

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February 26, 2014

In less than three hours, I'll be testifying to the U.S. House Judiciary Committee's Subcommittee on Regulatory Reform, Commercial and Administrative Law. The subject of the hearing is the Business Activity Tax Simplification Act (BATSA) of 2013, H.R. 2992, co-sponsored by Rep. Bob Goodlatte (R-VA) and Rep. Bobby Scott (D-VA).

What is BATSA? BATSA re-affirms...

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February 25, 2014

Tomorrow, Chairman Dave Camp of the House Ways and Committee is expected to release his long-awaited tax reform plan. As always we will evaluate it based on the principles of sound tax policy, which have guided the Tax Foundation since 1937 and generations of economists since then, and before, going back to...

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February 24, 2014

With the rise of e-cigarettes (or vapor cigarettes, as they are also known), states face new complications for their tax codes. Washington State may soon decide that e-cigarettes should be subject to tobacco taxes too.

 Tobacco taxes have long ceased to merely compensate...

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February 24, 2014

The Missouri House of Representatives passed House Bills 1295 and 1253 last week, which would change the way the state taxes individual and corporate income, respectively. Unfortunately the bills include distortionary carve-outs and fail to address the state’s severely antiquated individual income tax code.

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February 24, 2014

The Mississippi House of Representatives is considering a bill that would create a new state sales tax holiday for firearms, ammunition, and other hunting equipment, similar to a firearm holiday in neighboring Louisiana. The bill cleared the House Ways and Means Committee last Tuesday.

Dubbed the “Annual...

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February 21, 2014

Earlier this week, the Center for Budget and Policy Priorities (CBPP) published a response to my review of empirical studies on taxes and economic growth, which was published over a year ago. This was my conclusion at the time:

While there are a variety of methods and data...

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February 21, 2014

The Washington Post reported yesterday that the production company in charge of House of Cards, ...

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February 21, 2014

According to a new survey by the Advanced Medical Technology Association (AdvaMed), a medical device industry group, the Affordable Care Act’s medical device excise tax has reduced employment by 33,000 jobs since it went into force in January 2013.

“The tax has led to employment reductions of approximately 14,000 industry workers and foregone hiring of 19,000 workers. The total job impact of the tax on...

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February 20, 2014

Today we will add the New York Times to the list of parties that understand how labor costs impact their own bottom line, but deny the broader economic effects of a mandated increase in the federal minimum wage.

In this morning’s lead editorial,“The Clear Benefits of a Higher Wage...

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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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