The Tax Policy Blog

June 05, 2015

Earlier this week, the Connecticut Legislature adopted a $40.3 billion biennial budget that includes significant changes to the state’s tax structure. Facing a projected deficit of nearly $3 billion in FY 2016-17, legislators acted on a budget which raises approximately $...

Continue Reading...
June 05, 2015

The Congressional Research Service (CRS) recently released a report on the Earned Income Tax Credit (EITC). The EITC is a tax credit that is aimed at helping low-income taxpayers while increasing labor force participation. As a refundable credit, it not only reduces an individual’s tax bill by the amount of the credit, but can also reduce a taxpayer’s tax bill below zero, yielding a refund.

The...

Continue Reading...
June 04, 2015

Earlier today, MSNBC’s Morning Joe with Joe Scarborough featured the State Business Tax Climate Index in an interesting segment on Connecticut’s latest tax debate over corporate taxes. Morning Joe analyst Steve Rattner compares the state’s 42nd place ranking on the Index to the state’s growth and unemployment rates. He then examines how Connecticut stacks up against other states.

Watch the full clip below!

...

Continue Reading...
June 04, 2015

Today I received a question from a reader: “Delaware is home to some of the biggest incorporated businesses in the US, but the Tax Foundation ranks the state 50th (worst) in the corporate tax component of your State Business Tax Climate Index. How can that...

Continue Reading...
June 04, 2015

As Congress works on reauthorizing the Federal Aviation Administration, the issues facing airports are worthy of extra attention. The current system for airport funding in the U.S. is in need of reform. Passengers face a variety of fees on their air travel, and some of them – like the Passenger Facility Charge – do much better job of funding airports than others – like the taxes levied on tickets. I recently wrote a...

Continue Reading...
June 03, 2015

In the New York Times op-ed page today, I noticed an article on residential areas that have suffered since the housing crisis. I don’t have much to say on housing; I’m sure the author knows much more about distressed residential areas than I do. However, the tax proposal in the article caught my eye: “For longtime owner-occupants in such neighborhoods, we should consider a fully...

Continue Reading...
June 03, 2015

The Affordable Care Act, passed in 2010, included several new revenue provisions, intended to fund the federal government’s expanded role in the health care system. Many of these new sources of revenue were excise taxes, levied on specific goods or activities. One of these, the medical device excise tax, has been in the...

Continue Reading...
June 03, 2015

I have a new publication up at Libertarianism.org, a project of the Cato Institute. It examines the role that Adam Smith has played in influencing the public debate on tax policy in the last couple of centuries, and includes some critiques that Smith might have had against federal, state, and local tax systems in America today.

Other key discussions include:...

Continue Reading...
June 03, 2015

For this week's tax map, we take a look at cigarette tax rates across the country, which vary widely from state to state and are levied on top of a federal rate of $1.0066 per 20-pack of cigarettes.

...

Continue Reading...
June 03, 2015

Illinois Governor Bruce Rauner (R) yesterday announced a series of program suspensions, including new targeted tax incentives to businesses, including new film tax credit commitments to film and television studios.

After defeating incumbent Governor Pat Quinn (D) last November, Rauner in February proposed a balanced $31.5 billion budget with no tax increases. Last week, the Democratic majority in the Legislature instead passed a budget totaling $36.3 billion, about $3 billion more...

Continue Reading...
June 02, 2015

The New Hampshire Legislature is considering two bills, SB 1 and SB 2, to cut the state’s Business Profits Tax and the Business Enterprise Tax. While New Hampshire generally has a good tax code, a tax cut for businesses could improve the state’s economic climate.

Because the state has no tax on wage income or general sales, New Hampshire...

Continue Reading...
June 02, 2015

Dan Reed asks in the Baltimore Sun if a land tax could save Baltimore. This idea, popularized by economist Henry George, is one that historically has had support from left and right. The left supports it in the belief that wealth comes primarily from land, taxing it prevents excessive wealth accumulation and speculation, and that...

Continue Reading...
June 01, 2015

The House Ways And Means Committee will tomorrow consider a bill to repeal the Medical Device Tax levied by the Affordable Care Act. The tax, a 2.3% excise tax on sales of devices, has caused trouble for manufacturers and accounting firms due to its difficult base. As a result, it...

Continue Reading...
June 01, 2015

Last week, Texas took a step in the right direction when lawmakers passed a bill cutting the state’s controversial Margin Tax. HB 32, the “Franchise Tax Reduction Act of 2015,” reduces the burden of the Margin Tax by lowering rates and administration costs. From 2016-2017, HB 32 will result in an estimated $2.56 billion...

Continue Reading...
June 01, 2015

Harry Grubert is a Senior Research Economist in the Office of Tax Analysis at the U.S. Department of the Treasury.

As one of the world’s foremost scholars in the field of taxation, Dr. Grubert’s research focuses on profit shifting, the economic effects of taxes on investment, trade, and firm behavior, and assessing tax policy. His research has been published widely in leading scholarly journals and is frequently cited in tax...

Continue Reading...

Pages

Follow Us

About the Tax Policy Blog

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.

Monthly Archive