The Tax Policy Blog

September 16, 2014

One of the worst aspects of the federal tax code is the way it treats saving. Under ordinary circumstances, saving is treated to double taxation at the individual level, reducing after-tax returns to saving and incentivizing immediate consumption over saving.

There are several ways, though, that the tax code relieves this undue burden. Traditional IRAs, Roth IRAs, defined-benefit pensions, and 401(k) plans are some of the most common. Each of these is (rightly) subject to only a...

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September 16, 2014

A new report by Standard & Poors finds that rising income inequality may negatively impact state revenue growth. The report confirms the long-standing consensus of tax economists that high, progressive income taxes contribute to revenue volatility, and also confirms the growing chorus of experts...

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September 12, 2014

The latest advertisements on behalf of Larry Hogan, the GOP candidate for Maryland’s Governor, have focused on tying his opponent, Lt. Governor Anthony Brown, to the tax policies of Governor Martin O’Malley (D). In his tenure as Governor, O’Malley has ...

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September 11, 2014

Over the years, the tax code has been altered by changes to statutes, regulations and case law, adding up to over 70,000 pages of instruction to filing taxes. It is the IRS’s job to enforce tax policy, so they keep track of the time and cost of filing taxes for individuals and businesses.

...

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September 11, 2014

On the heels of a poor jobs report—but another drop in the unemployment rate down to 6.1 percent—Adam Hartung published in Forbes a piece titled “Obama Outperforms Reagan on Jobs, Growth, and Investing.”

In the article, Hartung leads with the unemployment rate as his metric to prove President Obama’s success on the job front as compared to President Reagan.

...

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September 11, 2014

Majority Leader Kevin McCarthy recently sent a memo to the House of Representatives indicating the agenda for the fall session. In his memo, he advocates for an, “honest, simple and effective” approach to government, and bundles up previous jobs and tax bills into his economic package for the fall.

Key tax and job highlights of the package include:

  • ...
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September 10, 2014

The estate tax is one of the least effective means of raising revenue in the federal tax code. It combines high administrative costs, low revenues, and implicit taxes on capital. It has a slippery base that creates a cottage industry of tax planning – resources that could be better used in the productive economy. It produces little revenue - only about $18 billion per year. And it is a tax on capital...

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September 10, 2014

We are pleased to announce that the recipients of its 2014 Distinguished Service Awards will be Representative Pat Tiberi of Ohio’s 12th District, former Michigan Governor and President of Business Roundtable John Engler, and Chief Tax Counsel and Deputy Staff Director to the Senate Committee on Finance (minority) Mark Prater. The awards will be presented during the Tax Foundation’s 77th Anniversary Dinner and Gala on Thursday, November 20, 2014 at the Mayflower Renaissance Hotel in...

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September 09, 2014

After North Carolina’s general assembly adjourned without renewing several tax credits or offering funding for several economic development programs, municipalities and economic development offices have begun calling for a special session. The...

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September 09, 2014

This week, Senator Chuck Schumer (D-NY) released a discussion draft for a bill that would further limit the amount of interest an inverted corporation can deduct from its taxable income. The aim of this bill is to make it harder for inverted corporations to reduce their taxes paid to the U.S. Treasury through a procedure called “earnings stripping.” This bill would apply to all future companies that invert and companies that have inverted in the last twenty years.

The proposed bill...

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September 08, 2014

One of the major issues with the Earned Income Tax Credit is that is suffers from a high amount of payment error. In any given year, the error can amount to approximately 25% of total payments and cost $14 billion dollars.

It is usually not clear exactly why these errors occur. There are two common stories behind them. The first story is about plain fraud. Taxpayers, or the preparers that...

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September 04, 2014

The Congressional Budget Office recently released its cost estimate for H.R 647, Achieving a Better Life Experience Act of 2014. The bill, which has strong bipartisan support, would “allow for the creation of a new type of tax-favored account – an ABLE account for individuals with disabilities.”

These accounts, a form of 529 plan for education savings, allow for the accounts to grow tax free, as long...

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September 04, 2014

The Empire Center, a nonpartisan think tank in New York, released a report today suggesting that New York has lagged behind the rest of the nation in making new millionaires. From 2011-2012, the United States on the whole saw a 29 percent increase in the number of...

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September 04, 2014

The Wall Street Journal reported this week that the IRS is looking to tax the free food that many Silicon Valley companies offer their employees.

“The IRS and U.S. Treasury Department last week included taxation of "employer-provided meals" in their annual list of top tax priorities for the fiscal year ending next June. The agencies said they intend to issue new ‘guidance’...

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September 03, 2014

Governor Rick Scott (R) of Florida has launched a new bus tour as part of his re-election bid, advertising a plan to cut taxes in Florida by $1 billion. The key features of the plan are:

  1. A constitutional amendment restricting property tax increases...
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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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