The Tax Policy Blog

July 31, 2014

This fall, the U.S. Supreme Court will hear Maryland v. Wynne, which asks whether Maryland must provide a credit against local income taxes for income taxes paid to another state. The taxpayers in the case, Mr. and Mrs. Wynne, own 2.4 percent of a company doing business in 39 states. As Maryland residents, they paid $123,434 in income tax to Maryland, after applying a credit of $84,550 for taxes paid to other states on income earned outside...

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July 30, 2014

When considering a lower tax rate we can make one of two assumptions. We can assume that changes to taxes rate will not change behavior, or we can assume that changes to tax rates do change behavior.

We know that taxes do alter behavior. In Washington, DC, we see it on a small scale every day when people decline a plastic bag at the grocery store because of the 5 cent bag tax. When we see people make such a decision over 5 cents, we know that major tax changes can have large impacts...

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July 29, 2014

29 Democratic members of Congress from California today urged California to make its film tax credit more generous. A bill to do so, AB 1839, has passed the state Assembly and is pending in the Senate.

California has seen billions of dollars of film and television productions flow out of Hollywood to Canada, New York, Louisiana, Georgia, and other places, due to these governments providing some $1.5 billion annually in refundable and transferable tax credits (direct subsidies in all...

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July 29, 2014

This morning, we released a new chart book that illustrates why tax reform should be on the minds of Iowan policymakers and taxpayers during the upcoming gubernatorial election in November. Iowa Illustrated: A Visual Guide to Taxes & the...

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July 29, 2014

News outlets in my home state of Kentucky report that a Creationist-themed amusement park, “Ark Encounter,” is seeking approval for tax incentives. We wrote on this several...

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July 29, 2014

This weekend, Danielle Kurtzleben at Vox.com was puzzled by corporations shouldering what appears to be a declining portion of the federal tax burden, despite the ...

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July 28, 2014

In his recent speech calling for legislation to stop corporate inversions, President Obama added fuel to the misperception that when a company moves its headquarters to another country it avoids paying U.S. taxes. He said, "If you are doing business here, if you are basically an American company but you are simply changing your mailing address in order to avoid paying taxes then you are really not doing right by the country and the American people."

...

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July 24, 2014

Just as Australia repealed its debated carbon tax, India is intensifying its own taxation of non-renewable energy by doubling its coal tax from $0.83 to $1.67 per metric ton.

India estimates that the tax increase will generate $1.2 billion of additional revenues for its National Clean Energy Fund, which pays for renewable energy...

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July 24, 2014

This week’s map takes a look at when each state first adopted its cigarette tax. Although the federal government had been taxing tobacco since the 18th century and cigarettes specifically since 1862, states did not begin doing so until the early 20th century – when manufactured cigarettes surpassed plug tobacco as the highest-grossing tobacco product in the country. Iowa led the charge...

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July 23, 2014

The House Committee on Ways and Means amended the Student and Family Tax Simplification Act last Thursday and has issued a comprehensive report on the bill. The bill, or H.R. 3393, was developed by Representatives Diane Black (R-TN) and Danny Davis (D-IL) in an attempt to further mitigate post-secondary education...

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July 23, 2014

Recently Spain announced that it is increasing the country’s taxation rate on total bank account deposits to 0.03 percent. New revenues from the tax will be distributed to each of Spain’s 17 regional governments to help them pay for budget shortfalls, which the federal government prohibits from being greater than...

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July 22, 2014

The recent death of Eric Garner after an incident with New York police has recently made headlines and sparked controversy about excessive force and police practices. Sources report that police and...

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July 22, 2014

A law professor wrote an article discussing our work ensuring state tax guidance to same-sex couples after DOMA was struck down. About half the states both (1) require state tax return filing status to match the federal tax return filing status and (2) ban gay marriage. As these together create a paradox for taxpayers, we worked with states to provide affirmative guidance and options,...

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July 22, 2014

Australia is the first developed country to both institute and repeal a tax on carbon. On Thursday, July 17, the Australian Senate repealed its carbon tax with a 39 to 32 vote.

After the repeal, Prime Minister Tony Abbot characterized the tax as destructive to jobs, families and the economy, without actually helping the environment. “The Carbon Tax was a $9 billion a year hit on the...

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July 22, 2014

This November Massachusetts will vote to repeal House Bill 3847. The law, signed in 2013, raised the state’s gas tax from 21 to 24 cents per gallon and automatically tied the tax rate to inflation for future years. Despite opposition by the group Tank the Gas Tax, which successfully gathered...

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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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