The Tax Policy Blog

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...
Continue Reading...
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...

Continue Reading...
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, ...

Continue Reading...
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...

Continue Reading...
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...

Continue Reading...
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...

Continue Reading...
February 03, 2014

A recent study suggests that high taxes on tobacco products drive black market cigarette sales, finding that some areas have black markets equal to nearly half of total sales. The study, which was based on an analysis of cigarette packs littered throughout major urban areas,...

Continue Reading...
January 31, 2014

Yesterday, the Indiana House and Senate overwhelmingly passed bills that would reform the state’s business personal property tax, a tax on business equipment, machinery, and supplies. H.B. 1001 (which passed 63-33) would allow localities to exempt new equipment from the tax, which is designed to slowly reduce the state’s reliance on the tax through intrastate competition. S.B. 1 (which passed 35-11) would create an exemption of $25,000 in the business personal property tax, and also...

Continue Reading...
January 31, 2014

Illinois House Speaker Michael Madigan (D), has filed a bill to lower Illinois’ corporate tax rate dramatically. At 9.5 percent, Illinois’ corporate tax is among the highest in the nation. Notably, many sources erroneously report Illinois’ corporate tax rate as 7 percent, excluding the 2.5 percent “personal property replacement tax.” However, as we...

Continue Reading...
January 31, 2014

Today is the Earned Income Tax Credit Awareness Day. For an overview of the EITC, please refer to this post.

According to the IRS, 19.2 percent of the 146 million income tax filers in 2011 claimed the Earned Income Tax Credit across the United States. However, looking at each state, the proportion of filers in each state that claim the EITC varies based...

Continue Reading...
January 31, 2014

Today is the Earned Income Tax Credit Awareness Day. From the IRS:

“EITC Awareness Day is a one-day blitz in mainstream and social media -to reach the broadest possible range of potentially-eligible taxpayers, including taxpayer segments we believe under claim EITC and newly eligible taxpayers”

According to the IRS research in 2005, only 75 percent of eligible taxpayers take advantage of the EITC, which is approximately the same participation rate...

Continue Reading...
January 31, 2014

When the Seattle Seahawks play the Denver Broncos in the Super Bowl on Sunday, New Jersey will gain more than just media attention from the game. The state will also take in a substantial amount of tax revenue from the players, coaches, and other team personnel that travel to the state for the game. New Jersey will levy a so-called "jock tax" on every employee of the team that travels to the state. Since the teams have been in New Jersey all week participating in National Football League...

Continue Reading...
January 30, 2014

New York Governor Andrew Cuomo released his executive budget last week and it includes some suggestions to seriously change some aspects of New York tax law. These proposals come on the heels of reports issued by the two tax commissions formed by the Governor since December 2012 (see those recommendations ...

Continue Reading...
January 29, 2014

Last night, the President said this about corporate tax reform:

“Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here, and reward companies that keep profits abroad.  Let’s flip that equation.  Let’s work together to close those loopholes, end those...

Continue Reading...
January 29, 2014

Florida’s Office of Program Policy Analysis and Government Accountability (OPPAGA) has released a detailed assessment of several of Florida’s economic development programs, most notably its Innovation Incentive Program (IIP), Qualified Target Industry Tax Refund Program (QTI), Capital Investment Tax Credit Program (CITC), and Quick Action Closing Fund Program (QAC). As I’ve...

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 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.

Monthly Archive

Privacy Policy