The Tax Policy Blog

February 24, 2015

Let’s not forget to remember that net fiscal incidence is the key measure to evaluate the distributive effect of government policy; that is, the total distribution of spending and taxes. The significance of net fiscal...

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February 24, 2015

The U.S. is a craft beer nation, and the 2,768 craft breweries in the U.S. are proof of it. Although we would like to believe that Americans love craft beer more than any other nation, our friends across the pond would disagree with us. European breweries are more than just old world brewers, steeped in tradition and bound by outdated purity laws. Craft breweries are on the rise in Europe, producing innovative...

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February 23, 2015

Regular readers of this blog know the main issues with tax increases on investment income, like the capital gains and dividend tax hikes proposed recently by the President. This tax increase would be consistent with a general Obama administration philosophy of taxing returns on financial capital.

We usually...

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February 23, 2015

This post originally appeared as an op-ed on Forbes.com here.

Governor Gary Herbert of Utah’s website recently featured a blog post called “8 facts about e-cigarettes and their effect on public health,” which purports to explain why...

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February 23, 2015

Connecticut lawmakers will take up a budget that includes $914 million in additional tax and fee revenue. Governor Dan Malloy’s FY 2016-2017 budget proposes changes—tinkering in some areas, offering sweeping changes in others—to a range of taxes and fees, including substantial adjustments to the sales tax, corporation tax, and health provider taxes.

The anticipated revenues...

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February 23, 2015

Five states have either eliminated or begun the phase-out of their capital stock taxes in the past five years. If Lt. Governor Tate Reeves has his way, Mississippi could be next in line.

Reeves is touting a tax relief package that decreases individual income tax burdens and phases out the state’s antiquated franchise tax over ten years. The proposal has the support of the...

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February 20, 2015

Update: Due to political delays, April 1st is unlikely to be the starting day of the VAT. The House of Representatives is currently making changes to the bill in anticipation of passing the bill after April 1st. 

Puerto Rico introduced a bill in the Commonwealth’s House of Representatives yesterday to...

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February 20, 2015

On Wednesday, I was invited to present to the Pennsylvania House Majority Policy Committee as they conducted a hearing in York, Pennsylvania about the business climate in the state. A video of the event is here, and I've pasted the text from my handout below, and linked to a PDF of the handout below that.

Introduction

Since 1937, the Tax Foundation has monitored tax policy at the...

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February 19, 2015

A cut in the corporate tax rate would have large effects on GDP, but minimal effects on total federal revenue in the long run. The large boost to the size of the economy from a corporate tax cut comes from a lower cost of capital.

The corporate tax rate is, in effect, a tax on corporate investment; a high corporate tax rate discourages investment, whereas a low corporate tax rate encourages investment. Additionally, the competitive nature of the global economy corporate taxes makes...

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February 19, 2015

For this week's tax map, we're continuing our series on pass-through businesses. For the first map of the series, check out our two previous maps here, here, and...

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February 13, 2015

Brazil’s president, Dilma Rousseff, has implemented new taxes to stymie the country’s growing deficit. The taxes include a R$0.22 (US$0.07) per liter excise tax on gasoline and diesel fuel, a 1.5% tax increase on personal loans (a total of 3%), a 2.5% tax increase of the Pis/Cofins (types of social contributions) on imports (a total of 11.75%), and an increase in ...

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February 11, 2015

President Obama recently presented his budget proposal for the 2016 fiscal year. The budget proposes $3.99 trillion in spending and $3.53 trillion in revenue for a deficit of $474 billion for 2016 and a number of new tax proposals.

In total, the plan includes $2.4 trillion in proposed tax increases offset by $713 billion in new...

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February 11, 2015

Inspired by Roosevelt’s New Deal in many regards, Senator Bernie Sanders (I-VT) recently outlined his vision for America, featuring expansionary government spending policies. A major federal jobs program, a hike in the minimum wage to at least $15, expansion of Social Security, Medicare, Medicaid, increased regulation of Wall Street, and protectionist trade policies are examples of initiatives Sanders emphasized. However, Sen....

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February 10, 2015

I have long maintained a skepticism of the ridiculous “wonk” hobby of obsessing over “Jobs Day.” The first Friday of every month, the Bureau of Labor Statistics releases a report on the employment situation in the country.

I am still skeptical. The cultural phenomenon of "Jobs Day," as practiced by economic journalists - where people obsess over small granular details that are likely to be revised substantially anyway...

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February 09, 2015

WMATA, the subway and bus system in the DC area, raises fares every other year (last year, they went up about 3 percent). In the off years, spending still goes up, so they seek additional subsidies from their member jurisdictions (the District of Columbia, Maryland, and Virginia). For FY 2016, Metro in November suggested that the members ante up $929 million in tax dollars as operating subsidies, a...

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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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