The Tax Policy Blog

September 26, 2014

New York Mayor Bill de Blasio is considering a proposal that would place a property tax surcharge on residences that are worth $5 million or more and owned by non-New Yorkers, according to the Wall Street Journal. The surcharge was proposed by the ...

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September 26, 2014

Pennsylvania Governor Tom Corbett (R) signed a bill this week allowing Philadelphia’s school district to raise cigarette taxes by $2. This comes after Pennsylvania considered several different cigarette tax increase proposals. The statewide cigarette tax rate is...

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September 25, 2014

The chart below has been going around the web this week. It is from an analysis by Pavlina Tcherneva of Bard College that used Piketty and Saez IRS data to show that in non-recessionary periods from 1949 to 2012, the share of total income growth has increasingly accrued to the top 10 percent, while the bottom 90 percent’s share has declined.

While this does reflect the general decline in wage growth in the last few decades, there are issues with this data. People reading this chart...

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September 25, 2014

The OECD’s base erosion and profit shifting (BEPS) initiative promises an integrated, streamlined tax system across the OECD. The initiative, which should be completed in September of 2015, will provide guidelines for member countries to follow when implementing domestic tax policy or negotiating a tax treaty. The initiative is intended to reduce double non-taxation of corporate profits, which in turn should reduce conflict between tax...

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September 25, 2014

It has not been a good month for professional football. A recent spate of domestic violence incidents has called the moral leadership of the National Football League into question. In addition, concerns about the Washington Redskins’ team name remain a steady source of bad press.

In this climate, some members of Congress, upset over the NFL’s recent...

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September 25, 2014

Despite questions about the effectiveness of film tax credits, California recently passed AB 1839 , which expands the state’s film credit program to $330 million from its current $100 million. The bill also included provisions changing the way the credit is awarded. As we reported several months ago, the California Legislative Analyst’s Office (LAO) issued a...

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September 25, 2014

Yesterday, New York Governor Cuomo’s (D) office announced that SolarCity, a major solar cell producer partially owned by Elon Musk, would make a $5 billion investment to operate a “gigafactory” in upstate New York. This comes on the heels of another Musk-owned firm, Tesla, announcing a $1.3 billion incentive deal to build a battery-producing “gigafactory” in Nevada. The New York deal involves three major...

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September 24, 2014

In old mining tunnels, the workers would often bring a caged bird with them. The bird would function not only as a pet, but also as an advance warning of dangerous carbon monoxide. If the bird – more sensitive to changes in air quality – fell ill, it was a sign that the tunnel was also dangerous for the miners.

Corporate inversions are also a sign. While corporate inversions are actually ...

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September 24, 2014

U.S. business investment has been severely depressed for many years, and, as a share of GDP, it remains well below that found in most developed countries. Investment is an important driver of productivity and, as a result, workers’ wages. It is therefore not a stretch to connect the protracted investment slump with the similarly protracted slump in...

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September 24, 2014

At the Clinton Global Initiative meeting this week, former President Bill Clinton called for corporate tax reform as a “practical economic” need.

In the interview on corporate taxes, he likened the corporate tax system to a leaky boat and offered general support for moves...

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September 24, 2014

Yesterday, we presented data showing that the United States’ tax code is among the most progressive in the OECD when we compare Federal-level taxes, and an average value for state taxes. However, state income tax structures within the United States have just as much variation, in terms of progressivity, as OECD nations' income tax structures. We find that, using the same measure for the states as was used...

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September 24, 2014

The Obama Administration announced this week that it would clamp down on corporate inversions by altering existing regulations dictating the treatment of foreign earnings and foreign controlled corporations.

These rule changes will seek to reduce the incentive for a company to invert by reducing its financial benefit.

These rule changes will undoubtedly reduce the incentive to invert. However,...

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September 24, 2014

The Nevada Supreme Court recently held that the 2004 Live Entertainment Tax (LET) does not constitute a violation of strip clubs’ rights to freedom of speech under the First Amendment. While the plaintiffs, comprising a group of Nevada strip clubs, claimed the excise tax was discriminatory in...

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September 24, 2014

In a recent Wall Street Journal op-ed, Senators Marco Rubio (R-FL) and Mike Lee (R-UT) presented more details on the tax reform plan they have been working on over...

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September 23, 2014

A defining characteristic of an individual income tax system is its degree of progressivity. The United States has a rather progressive income tax. This means that the average tax rate paid by an individual increases as their income increases. Contrast this with a flat income tax, which all taxpayers have the same average tax rate regardless of income or a regressive income tax, which taxpayers pay declining average tax rates as their income increases.

Most countries maintain...

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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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