The Tax Policy Blog

February 12, 2014

Senator Ron Wyden (D-OR) will soon become the new chairman of the Senate Finance Committee. In his new role, it’s likely he will pick up where former chairman, Sen. Max Baucus (D-MT) left off: with tax reform.

As reported by Forbes, Sen. Wyden said last week that he hopes to reform the “dysfunctional, rotting mess of a carcass that we call the tax code.”

In a conference last week, the next chairman said his agenda will focus on a few key issues....

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February 12, 2014

Michael Jackson’s estate says he was worth only $7 million when he died, but the IRS’s claims the Michael Jackson estate owes them $702 million in taxes and penalties on $1.125 billion in assets.

The IRS attributes a big chunk of that $1.125 billion to MJ’s image and likeness, which it values at over $434 million. It’s likely that Jackson’s estate is closer to $1 billion than $7 million, but a $434 million valuation on image and likeness brings up an important issue with the estate...

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February 11, 2014

In May 2013, we filed a brief opposing an IRS appeal of a court decision striking down their regulation of small tax preparers. The new regulations require federal tax return preparers to register with the agency, pay significant fees, and pay for certified continuing education. Larger preparers with other professional credentials were largely exempted from these...

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February 10, 2014

Tennessee legislators are currently considering several bills that would eliminate or draw down the state’s tax on interest and dividend income. This tax is called the “Hall” tax in Tennessee, named for Senator Frank Hall, who created the legislation back in 1929. These proposals appear to have some legs, as organizations in Tennessee and at the...

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February 10, 2014

According to an analysis by the Americans for Tax Reform, U.S. Olympic gold medal winners may have to pay up to $9,900 to the IRS. They calculate this by assuming gold medalists already have adjusted gross income of at least $400,000 and multiplying 39.6 percent by the cash prize of $25,000. They also show the approximate tax bill of all other medalists and income tax brackets.

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February 10, 2014
Edited by Andrew Lundeen, Edited by Richard Borean

An overview of cost recovery in the U.S. with Steve Entin and Kyle Pomerleau.

February 07, 2014

Recently, former NFL player Jeff Saturday lost his appeal of an income tax assessment by the city of Cleveland. Jeff Saturday was taxed by the city of Cleveland for a game...

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February 07, 2014

Yesterday the Treasury Department announced that 630 Americans renounced their U.S. citizenship in the fourth quarter of last year, bringing the total for 2013 to 2,999 – almost double the previous record set in 2011. In the last four years 7,246 Americans have renounced their citizenship, far exceeding the total number that left in the twelve years before that, 1998-2009. See the chart below.

...

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February 07, 2014

Tax historian and expert Joseph Thorndike comments in Forbes today on a new scientific study urging reduced meat consumption to address global climate change. The scientists venture outside their wheelhouse for a rather unimaginative solution: use the tax code to punish meat purchases with a hefty new tax.

Thorndike:

We can all dream up things we’d like to...

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February 07, 2014

Last week, we were recognized as one of the top 150 think tanks in the world in four separate categories in the seventh annual Global Go-To Think Tank Index.

  • 21st Best Policy Study/Report Produced by a Think Tank (State business tax climate index)
  • 35th Best Advocacy Campaign
  • 63rd Best Institutional Collaboration Involving Two or More Think Tanks
  • 63rd...
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February 06, 2014

Jesse Myerson has made a splash lately, writing a Rolling Stone piece that sounded communist even if it wasn't, and a less disguised "why you're...

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February 06, 2014

Maryland, like all states with an income tax, gives taxpayers a credit for income taxes paid to other states. However, since 1975, Maryland has only allowed taxpayers to use the credit to offset state income taxes, not local income taxes. Each county in Maryland (plus Baltimore City) imposes a local income tax, ...

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February 06, 2014

One tax downside to the new legal marijuana industry in Colorado and Washington State is disparate tax code treatment. While all other businesses (including illegal businesses!) can deduct their business expenses from their revenue and pay tax only on the difference, marijuana businesses are explicitly denied the business expense deduction.

It's in the tax code at 26 U.S.C. § 280E:

No deduction or credit shall be allowed for any amount paid or...

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February 06, 2014

Yesterday, the CBO released its Budget and Economic Outlook between 2014 to 2024. There are a few takeaways from this new report.

We will continue to suffer from a Slow Recovery

Although it shows that the economy will continue to slowly recover, they predict...

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February 04, 2014

People can disagree about whether corporations pay too little or too much tax, but first we have to know what they pay. Unfortunately, in a report released today the Congressional Budget Office (CBO) has vastly understated a measure of the effective tax rate paid by corporations. The main issue is that there are two types of corporations: C corporations that pay the corporate tax and S corporations, which are pass-through entities that pay...

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Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog 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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