The Tax Policy Blog

May 31, 2016

This month, the Australia Institute released a report that argues persuasively that a substantial portion of Australia’s corporate income tax cuts will simply end up resulting in increased revenue for the U.S. Treasury. As the report explains:

Foreign companies have to pay tax in their place of residence and that...

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May 31, 2016

Today is May 31, the date in 1904 when the U.S. Supreme Court decided McCray v. United States, upholding an excise tax that had the real purpose of discouraging the purchase of one product to benefit a competitor. Dairy farmers successfully lobbied Congress to impose a hefty tax on margarine, an oil-based yellow-colored imitation butter that proved to be quite popular with consumers due to being cheaper....

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May 27, 2016

To wrap up a special legislative session on highway funding, Arkansas Governor Asa Hutchinson signed a measure that will generate close to $300 million over two years to help pay for upgrades to the state’s roads and bridges.

The plan shifts existing sources of funding to transportation,...

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May 27, 2016

Today is May 27, the date in 1935 when a unanimous U.S. Supreme Court decided Schechter Poultry v. United States, striking down the New Deal’s National Industrial Recovery Act. The Act directed industry trade associations to develop codes of fair competition for each industry, and violations of the codes could be criminally prosecuted. The Schechters, two brothers who ran a Kosher chicken coop,...

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May 26, 2016

Today is May 26, the anniversary of the Quill v. North Dakota decision of 1992, when the U.S. Supreme Court upheld “the continuing validity” of restricting state sales tax powers only to businesses with property or employees in the state. This decision is why Internet-based retailers are not required to collect sales tax to customers in a state where they have no...

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May 25, 2016

In addition to the federal estate tax of 40 percent (which is fourth highest in the OECD), many U.S. states levy their own estate and inheritance taxes.  Estate taxes are charged against the estate regardless of who inherits the assets, while inheritance taxes are levied on the transfer of assets to heirs, based on the relationship of the inheritor to the deceased. In the case of inheritance taxes,...

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May 25, 2016

Today is May 25, the day when you might see people walking around with towels. It's also the one-month anniversary of Lunch Links, which we launched to gauge interest in us providing a daily list of interesting tax-related links. A month in, an average of 1,989 people click on these posts each day, and if you're one of them, e-mail me to tell me what you like...

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May 24, 2016

What’s the proper way to tax personal saving and investment? It’s a great question, and under current tax law, we have lots of different answers! Specifically, we have four of them, which I’ll get to in a moment. But first let’s talk a little about what saving and investment is.

What Is Saving?

Personal saving is putting aside some resources today in order to get benefits later. The way economists think of saving, this is a little bit more expansive a...

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May 24, 2016

Today is May 24, the date in 1937 when the Supreme Court upheld Social Security (and Social Security and unemployment insurance payroll taxes) in Helvering v. Davis and Steward Machine Co. v. Davis. In Helvering, the...

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May 23, 2016

Oregon’s Legislative Revenue Office (LRO) released its much-anticipated report today on Initiative Petition 28 (IP28). If adopted in November, IP28 would raise the state’s minimum tax on large...

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May 23, 2016

Today is May 23, the date in 1938 when the U.S. Supreme Court upheld the imposition of federal income tax on state employees in Helvering v. Gerhardt. Conceding that McCullough v. Maryland in 1816 ruled that states couldn’t tax the federal government, Justice Stone wrote that the feds taxing the states was something completely different: “in laying a federal tax on state instrumentalities, the...

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May 20, 2016

Today is May 20, the date in 1899 when the first traffic ticket was issued (to a taxi driver speeding down Lexington Avenue in Manhattan at 12 mph). Traffic tickets generate over $6 billion a year in...

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May 19, 2016

Massachusetts could be the next state to adopt a millionaire’s tax. Yesterday, the legislature passed the first hurdle in passing a new constitutional amendment establishing the new tax. If adopted, the amendment would create a 4 percent surtax on income above $1 million. 

The Boston Globe has more details on the proposed tax...

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May 19, 2016

Today is May 19, the date in 1828 when the “Tariff of Abominations” was enacted. The tariff imposed a nearly 50 percent tax rate on imported goods, with the intention of protecting domestic manufacturing; opposition (primarily in the South) led to the Nullification Crisis which in turn was defused by tariff reductions in 1832 and 1833.

Here are some...

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May 18, 2016

Today is May 18, the first anniversary of the U.S. Supreme Court’s decision in Maryland v. Wynne, where they definitively ruled that state tax powers do not extend to harming interstate commerce by levying extra taxes on residents engaged in interstate commerce. The line-up was an unusual one: Chief Justice Roberts and Justices Alito, Kennedy, Breyer, and Sotomayor restraining state...

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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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