The Tax Policy Blog

November 12, 2015

Update: The private investment offset of $0.33 per dollar of added government debt reported in this blog is the offset used by CBO. It is likely that the actually offset calculated by JCT is larger than $0.33 per dollar of added...

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November 11, 2015

Since the release of Senator Ted Cruz’s (R-TX) tax plan, many people have discussed the nature of his “Business Flat Tax.” The tax is best characterized as a subtraction-method value-added tax. This tax is applied to a business’s income and payroll minus investment. It is not the same as a European credit-invoice VAT, but it applies to the same base and would have the same economic impact. We...

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November 11, 2015

Tax policy was a central focus of last night’s Republican debates, as candidates called for tax reform and defended the tax plans they’ve proposed over the past few months. However, one of the most surprising moments of the debate came from a candidate who has not yet released a comprehensive tax plan: Dr. Ben Carson.

About halfway through the debate, when asked how he would...

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November 10, 2015

In Pennsylvania, now in its fifth month without a budget, legislators and the Governor appear to have an agreement in principle to bring an end the impasse, although details are still emerging and assurances somewhat lacking. With the understanding that, in this environment, nothing is certain until Governor Wolf’s signature is affixed to a bill, here’s what we know thus far:

  • State expenditures would come in at...
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November 06, 2015

On October 15th, 2015 the Tax Foundation held a reception honoring Estonia for having the most competitive tax system among the 34 member nations of the Organization for Economic Cooperation and Development (OECD) according to our 2015 International Tax Competitiveness Index.

The Estonian Ambassador to the United States, Mr. Eerik Marmei, was our special guest at the event. The...

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November 06, 2015

As the debate over corporate inversions reignites over Pfizer’s move to acquire Irish-based company Allergan, Ireland is reporting a massive surge in corporate tax revenues for 2015. Ireland’s Department of Finance...

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November 05, 2015

There’s been a lot of talk in the media recently about who would benefit from the Rubio tax plan. While we clarified this issue last week, several media outlets seem confused about how to report the distributional effects of tax changes. Two days ago, Vox published a piece titled “Marco Rubio says he’d...

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November 04, 2015

If you only read one article today about fringe benefits, make sure it’s “Revisiting the Taxation of Fringe Benefits,” by Jay Soled and Kathleen DeLaney Thomas. The authors shed light on an evolving area of tax policy that policymakers would do well to pay attention to.

For some background: eighty years ago, it was relatively uncommon to offer workers compensation other than their regular wages and salaries. In...

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November 04, 2015

Yesterday, voters in five states decided tax- and spending-related ballot initiatives. Here are some of the highlights, with links to more details at the excellent website Ballotpedia:

RESULT

INITIATIVE

FOR AGAINST
...
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November 03, 2015

In an interview with Bloomberg Politics published yesterday, Presidential candidate Donald Trump made some good points about corporate income tax policy.

“What's happening is companies are leaving our country and you're reading about it,” Trump said in a Monday interview with Bloomberg Politics' With All Due Respect...

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November 02, 2015

Update (11/3/2015): A previous version of this blog stated that the personal credit under Rubio-Lee would be $1,750. The credit is actually $2,000.

During last week’s Republican primary debate, Senator Marco Rubio and moderator John Harwood went back and forth about which taxpayers would benefit the most from Rubio’s tax plan. Both referred to our March analysis of the plan. Harwood...

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November 02, 2015

Update: Election results here.

Tomorrow, voters in five states will decide tax- and spending-related ballot initiatives. Here are some of the highlights, with links to more details at the excellent website Ballotpedia:

...
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November 02, 2015

The Earned Income Tax Credit is a policy designed to help working Americans with low incomes. For a more general overview of what it does, I’ll refer you to this piece we put together last year, which explains it in more detail.

The EITC is claimed by individual tax filers, of course, but if you map the claims on a more regional basis, you can see how the EITC is also—aggregated over...

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November 02, 2015

The Joint Committee on Taxation (JCT) has recently released its budget score of the House-passed bill to allow the permanent expensing of half of equipment spending by businesses. Fifty percent expensing means that half of the cost of a machine or vehicle may be deducted as a business expense in the year it is purchased, while the rest of the cost must be written off over the tax life of the asset.

In...

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November 02, 2015

Earlier this month, three economists released a new paper:  “Taxation and the International Mobility of Inventors”. The paper has empirically confirmed that top marginal income taxes will chase away superstar inventors: highly-skilled contributors to the economy who have extremely valuable patents.

We keep hearing...

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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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