The Tax Policy Blog

January 29, 2016

Legislation being considered with bipartisan support in the Ohio Senate would permanently extend the state’s tax holiday on back-to-school gear.

Senate Bill 264 would permanently eliminate sales taxes on the first Friday, Saturday and Sunday of each August on select back-to-school items,...

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January 29, 2016

Americans paid $129 billion more in income taxes in 2015 than they did in 2014, according to data released today by the IRS. While taxpayers’ incomes grew by 6.1 percent from the year before, their overall tax bill grew by 10.0 percent.

The new data is the public’s first look at the taxes that Americans paid last year on the income they earned in 2014. The table below shows some of the top-line statistics:

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January 29, 2016

Tax Analysts had an excellent story by Ajay Gupta a few days ago about the deft tax planning of David Bowie. The piece traces the story of Bowie’s success and consequent locale ch-changes to avoid some of the most inhospitable tax rates in particular parts of the world.

In 1976, David Bowie set up residency in Switzerland, as his...

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January 28, 2016

Voters in Iowa who plan on attending Monday’s Democratic caucuses will be making a choice between two very different tax policy visions from the leading candidates. This contrast is so stark that it can be expressed pretty simply with a visualization. I’ll first show you a graph that illustrates the differences between former Secretary of State Hillary Clinton and Vermont Senator Bernie Sanders. Then I’ll get to the background: how two candidates with many broad areas of agreement ended up...

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January 28, 2016

Today, the Tax Foundation released an analysis of Senator Bernie Sanders’s tax plan. In many ways, Sanders’s plan is the most ambitious plan proposed by any of the 2016 presidential candidates. It would increase federal taxes by $13.6 trillion on a static basis –...

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January 28, 2016

The Florida House of Representatives released its tax proposal yesterday, and it is worse than the mediocre plan released by Governor Rick Scott in November. The House plan includes several of the...

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January 27, 2016

We have modeled the economic effects of seven tax plans released by seven of the Republican Presidential candidates. (Click here to see our presidential tax plan analyses).  This blog provides a convenient side-by-side comparison of the GDP and federal revenue estimates in the seven plans. The numbers are for the ten years of the budget window, 2015-2024, and are compared to the...

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January 27, 2016

The Congressional Budget Office (CBO) this week released its latest Budget and Economic Outlook, a document that includes projections about the U.S. economy and fiscal situation over the next decade. One interesting prediction highlighted in the report was the CBO’s belief that corporate income tax revenues, as a percentage of GDP, would fall over the next decade.

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January 26, 2016

Professor Peter Fisher
GradingStates.org

Dear Dr. Fisher,

I want to alert you to errors on your Grading the States website with respect to our State Business Tax Climate Index.

Regarding the page “The SBTCI Bears No...

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January 25, 2016

Americans of different ages tend to live in different places. This makes a great deal of sense; peoples’ needs when they are working are...

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January 22, 2016

Among the most significant tax law changes that the Congress enacted at the end of the year was to make nineteen temporary tax provisions permanent. The Tax Foundation and other commentators have discussed those provisions. However, in the “Program Integrity” title of the Protecting Americans from Tax Hikes (...

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January 21, 2016

If you’re a business owner or self-employed, you’ve probably noticed that the U.S. tax code has different rules for investments than it does for most other business expenses.

Usually, when a business spends money on an “ordinary and necessary” expense – like office rent, heating costs, and postage stamps – it is able to deduct the cost in the same tax year. However, when a business spends money on investments – such as machinery, buildings, or even farm animals – it is usually...

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January 20, 2016

This week, Senator Orrin Hatch (R-UT) announced that he is working on a plan to eliminate the double taxation of corporate income, according to Politico Pro. He hasn’t released any details, but he said he is thinking about allowing corporations to deduct the dividends they pay to shareholders. There are many benefits of corporate integration: it equalizes the treatment of debt and equity financed investment, it lowers the cost of capital, and moves towards treating all business forms...

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January 20, 2016

State tax discussions generally focus on two variables: the amount that a state collects in revenue, and the various marginal rates of taxation that a state charges. There is a third important factor to consider: a state’s tax burden. Tax burdens measure the percentage of total income that goes to taxes. Our new report, State-Local Tax Burden Rankings, calculates the tax burden for each state.

The...

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January 15, 2016

A new NBER working paper discusses the effects of corporation taxation on corporate risk-taking. The researchers find that corporations respond to tax increases by investing in fewer risky projects. Interestingly, they did not find that tax cuts incentivized corporations to increase their appetite for risk. They attribute this counterintuitive result to a set of shareholder constraints, which reduces a corporation's ability to assume...

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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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