The Tax Policy Blog

March 28, 2016

For this week's tax map, we take a look at cigarette tax rates across the country, which vary widely from state to state and are levied on top of a federal rate of $1.0066 per 20-pack of cigarettes.

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March 25, 2016

Each summer, students join us at the Tax Foundation for our internship program designed to introduce tax policy principles and apply them in assessing and advancing public policy. Working directly with our staff in various areas of tax policy, interns gain valuable professional experience and learn about all aspects of our operation. While data entry and routine tasks are part of the internship, the majority of the work is substantive. Interns...

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March 25, 2016

Recently, there was a bit of a back and forth between Paul Ryan and the Tax Policy Center on distributional tables. Paul Ryan stated:

“So I do not like the idea of buying into these distributional tables. What you're talking about is what we call static distribution. It's a ridiculous notion. What it presumes is life in the economy is some...

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March 23, 2016

Yesterday, we released a report that looks at the statewide taxation of vapor products (also known as electronic cigarettes). As we point out, the sale of vapor products grew by 23 percent in 2014, and some project that vapor products will surpass traditional cigarettes in consumption over the next decade. This leaves policymakers with the...

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March 22, 2016

Today, we released a study on tax policy and vapor products (also known as electronic cigarettes). These products have grown in popularity dramatically since their invention less than 10 years ago, so much so that Oxford Dictionaries named the word “vape” the 2014 Word of the Year.

To some, vapor products are an exciting innovation that offers a new, less harmful alternative to...

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March 21, 2016

It began as a tax incentive for aquariums, but the Georgia Senate had bigger fish to fry. Last week, on a 35-17 vote, the state senate approved legislation that would replace the state’s current individual income tax schedule with a flat tax of 5.4 percent.

The state’s current individual income tax structure shows its age. A six bracket graduated rate tax, its top bracket kicks in at $7,000. The current bracket structure, with minor adjustments,...

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March 21, 2016

The U.S. Supreme Court today turned down an attempt by Nebraska and Oklahoma to challenge Colorado’s legalization of marijuana, without explanation. The neighboring states had alleged cross-border crime as a result of Colorado’s action, and sought a hearing directly in the Supreme Court to have their complaint aired.

The U.S. government, acting through the Solicitor General,...

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March 17, 2016

The Tax Foundation has highlighted in past blog posts how both Congressional Budget Office and Treasury data show that the current U.S. tax and transfer system is very progressive. In a new paper, Laurence Kotlikoff of Boston University and...

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March 17, 2016

Tax treatment of beer varies widely across the U.S., ranging from a low of $0.02 per gallon in Wyoming to a high of $1.29 per gallon in Tennessee. Check out today’s map below to see where your state lies on the beer tax spectrum.

Click on map to...

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March 16, 2016

Yesterday, I testified in Topeka to the Kansas House Committee on Taxation on HB 2444, a bill that would eliminate the state’s rather infamous exemption of all income earned by pass-through entities (like LLCs, S-corps, and sole proprietors). We’ve been critical of the provision since...

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March 16, 2016

Last night, Senator Marco Rubio (R-FL) suspended his campaign. While this is the end of the road for him, many of the policies Rubio proposed may live on. One such proposal that may stick around is his tax plan.

Rubio's tax plan was a modified version of what is called the “X-tax,” a tax reform plan developed by the late economist David Bradford. The X-tax would move the current tax system to a consumption-based tax (much like a VAT, retail sales tax, or flat tax would).

Rubio...

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March 14, 2016

Last week, criticism of the patent box came from both Europe and the United States.

A patent box, or “innovation box,” is a tax policy that provides a lower tax rate on income related to intellectual property. The stated goal of a patent box is to promote research and development, encourage companies to locate intellectual property in the country with the incentive, and to make a country's tax code more internationally competitive. Several countries throughout the world have patent...

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March 09, 2016

This week’s tax map shows state and local sales tax rates in each state as of January 1, 2016 and comes from our larger report on sales taxes released earlier today. While consumers might be aware of the statewide sales tax rate, local sales taxes can differ widely, so our population-weighted average allows for comparability across states.

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March 04, 2016

Former presidential candidate Mitt Romney this week voiced his concerns about current presidential candidate Donald Trump’s fiscal policy, including his tax plan:

His tax plan in combination with his refusal to reform entitlements and honestly address spending would balloon the deficit and the national debt. So even though Donald...

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March 04, 2016

The Alternative Minimum Tax is quite possibly the least popular part of the federal tax code. One Forbes columnist calls it “the normal tax system’s evil twin.” The Tax Policy Center has labeled it “the epitome of pointless complexity.” Nine presidential candidates – ranging from Marco Rubio to Bernie Sanders –...

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About the Tax Policy Blog

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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