The Tax Policy Blog

June 19, 2014

For the first time in decades, the District of Columbia is considering impressive, far-reaching tax reform that broadens tax bases, lowers business and individual income tax rates, and makes D.C.’s tax code more competitive with neighboring states. The D.C. Council has already approved the package in an 11-2 vote.

However, the fitness club industry is...

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June 19, 2014

Two of the taxes introduced in the Affordable Care Act (ACA) are not indexed for inflation. As incomes rise with inflation, more Americans will be subject to these new and burdensome taxes. This lack of inflation indexing flies in opposition to the treatment of most other taxes in the ACA as well as many other federal tax provisions.

The Additional...

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June 19, 2014

While last week’s map showed when each state adopted its individual income tax, this week’s map displays when states first imposed taxes on corporate...

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June 19, 2014

A new report by Michigan Future, Inc. focuses on Minnesota, claiming to show how Minnesota has maintained a high level of economic prosperity despite being a high-tax state. After a detailed look at Minnesota’s tax policies, the report claims that Minnesota’s strong economy is due to investing “additional revenue in services and investments that matter in a knowledge-based economy,” which means, broadly, higher...

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June 19, 2014

The Federal Highway Trust Fund is going bust this year. In fact, it goes bust every year. According to the Committee for a Responsible Federal Budget (CRFB), federal highway spending has exceeded dedicated tax revenue in 13 of the last 14 years. The shortfall is projected to be about $15 billion this year and $170 billion over the next 10 years. As shown in their chart,...

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June 19, 2014

Senators Chris Murphy (D-CT) and Bob Corker (R-TN) yesterday called for a twelve-cent increase in the federal gasoline and diesel taxes. The increase would phase in over two years, bringing the tax on ordinary gasoline up from 18.4 cents to 30.4 cents per gallon. From then on, the tax would be indexed to inflation. (The diesel tax would go from 24 cents a gallon to 36.)

This is a simple...

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June 18, 2014

Today the House Judiciary Committee voted to approve legislation to permanently extend the moratorium on taxation of internet access.

The bill, titled the Permanent Internet Tax Freedom Act, would make permanent the current internet tax moratorium that prevents states and localities from levying taxes on access to the internet. It would also eliminate a grandfather...

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June 18, 2014

A new report from the Department of Health and Human Services on Obamacare exchanges suggests that the magnitude of the subsidies (administered through a refundable tax credit) will be larger than previously expected. The Los Angeles Times reports that the total cost of subsidies may be $16.5 billion this year.

These subsidies were projected to become the largest refundable...

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June 18, 2014

The federal fuel tax sounds like it could be a simple excise tax. In a world with competent, broad-based tax policy, we could see such a thing. In America, we get IRS forms 720, 4136, 8849, 6478, and 8864.

A broad federal fuel tax makes some sense. There is federal spending on a variety of things (for example, the United States Highway Trust Fund) that directly benefits people in approximate proportion to their fuel usage. Rather than make these services “free,” which leads to...

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June 16, 2014

The cost of America’s extremely high corporate tax rate continues to pile up. The Wall Street Journal reports on yet another tax “inversion” deal:

Medtronic Inc. ...

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June 13, 2014

A recent National Bureau of Economic Research working paper assessing optimal sales tax policies has found that exempting some services (like health and education) from a hypothetical national sales tax would amount to only a 3 percent revenue loss. They also find that charging different rates on different categories of goods rather than a flat sales tax rate can improve society-wide “utility” (how well off people feel) by 30 percent for any...

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June 12, 2014

The California Senate Governance and Finance Committee yesterday passed a bill that would prohibit sports franchise owners from writing off fines imposed by the league as business expenses on their state income tax returns.

The law is fairly unapologetically aimed at Los Angeles Clippers owner Donald Sterling, who was fined $2.5 million by the NBA for making racially offensive...

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June 12, 2014

Both employers and unions across the nation have continued to realize the burdens of Obamacare. A recent survey of 360 large employers has shown business leaders’ discomfort with many provisions of the Affordable...

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June 12, 2014

Last Thursday, the Census Bureau released its annual report on state government tax collections, showing that state government revenues from taxes increased 6.1 percent between 2012 and 2013. This marks the third consecutive year that collections have increased since the recession – for a total 18.6 percent increase in nominal terms since 2009.

...
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June 12, 2014

The race horse, California Chrome, recently in the news for his attempt at the Triple Crown, may be different than other horses according to the IRS, and it all has to do with the complicated depreciation system in the U.S.

The tax code has different guidelines on how all horses are to be treated depending on the...

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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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