The Tax Policy Blog

July 25, 2016

The United States places a relatively high burden on long-term capital gains income (gains on assets held for more than one year). The top federal tax rate is 20 percent. In addition, taxpayers with AGI over $200,000 ($250,000 married filing jointly) are subject to the 3.8 percent Net Investment Income Tax. Long-term capital gains are also subject to state and local income taxes. Combined,...

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July 22, 2016

Much is being made this political season over the stagnant incomes of middle-class workers and what can be done to improve their living standards. Solutions have ranged from more targeted tax cuts—such as “payroll tax cuts, family-friendly tax reform, wage subsidies or a larger earned-income tax credit”—to more government benefits, such as free college tuition and job training programs.

What’...

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July 22, 2016

Today is July 22, which would have been Senator William Roth’s 95th birthday. The Delaware Republican is best known for sponsoring legislation to create Roth individual retirement accounts (Roth IRAs), which allow after-tax savings to be placed in an account to be withdrawn tax-free in the future, subject to certain limitations. Roth was a Senator from 1971 to 2001, chairman...

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July 21, 2016

Today is July 21, which would have been author Ernest Hemingway’s 117th birthday. Hemingway said much on taxes, so much that his foundation has an entire article on his tax quotations. He once complained to his tax attorney that “[t]his time I have really wonderful stuff to write but now when I should be writing I am chasing receipts and writing letters like this” and said it was “...

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July 21, 2016

State and local governments rely on a variety of tax types to raise revenue, one of which is the excise tax. Like general sales taxes, excise taxes are paid on the purchase of an item. Unlike sales taxes, excise taxes are collected on specific types of transactions, not a wide range of general goods. Some of the most common excise taxes include...

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July 21, 2016

Over the past 30 years, many countries have moved away from "worldwide" tax systems that tax their domestic corporations’ worldwide profits. Instead, many countries have what is called a “territorial” tax system. A territorial tax system generally allows corporations to deduct or exclude the majority of dividends received from their foreign operations. Currently, 91 countries have a territorial tax system of some kind.

...

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July 20, 2016

Today is July 20, the date in 1940 when the first 3.7-mile segment of the United States’ first freeway opened for traffic in Los Angeles. Today, a quarter of all vehicle miles driven in the United States are on controlled-access interstate highways, although the sudden stop in driving growth about ten years ago has created enormous pressure on...

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July 19, 2016

Today is July 19, which would have been the 94th birthday of George McGovern, who was a U.S. Senator and the 1972 Democratic presidential nominee. In 1972, McGovern called the federal tax system “basically sound” but proposed a minimum effective tax rate of 51 percent for high-income earners, maintaining the 48 percent corporate income tax, doubling the estate tax, more federal aid to...

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July 19, 2016

This is part three of a four-part series discussing Measure 97 and recent analysis from the Oregon Legislative Revenue Office. Read parts onetwo, and ...

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July 19, 2016

This is part four of a four-part series discussing Measure 97 and recent analysis from the Oregon Legislative Revenue Office. Read parts one, two, and...

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July 18, 2016

Today is July 18, the 69th birthday of Steve Forbes, who ran for President in 1996 on a platform of enacting a 17 percent flat tax. Forbes said: “The tax code is a monstrosity and there’s only one thing to do with it. Scrap it, kill it, drive a stake through its heart, bury it and hope it never rises again to terrorize the American people.”

Here are some interesting links I came across:

  • Google Responds to European Tax Accusations: CEO Sundar Pichai...
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July 18, 2016

Our analysis of the House Republican tax plan was criticized by Jared Bernstein in The Washington Post last week. I have a couple of concerns with Dr. Bernstein’s thinking that I would like to share here.

One issue with the thinking is a confusion of gross and net values. Bernstein asks, rhetorically, how a $2.4 trillion tax cut could pay for 92 percent of...

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July 18, 2016

This is part one of a four-part series discussing Measure 97 and recent analysis from the Oregon Legislative Revenue Office. Read parts ...

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July 18, 2016

This is part two of a four-part series discussing Measure 97 and recent analysis from the Oregon Legislative Revenue Office. Read parts one, ...

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July 15, 2016

Today is July 15, the date in 1799 when the Rosetta Stone was rediscovered in Egypt by a French soldier. The stone, a boring tax decree issued by Pharoah Ptolemy V in 196 BC, is notable because it provides three versions of the decree in hieroglyphs, Demotic script, and Ancient Greek. The stone thus enabled modern day scholars to understand hieroglyphs.

Here are...

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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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