The Tax Policy Blog

July 08, 2016

Today is July 8, the 58th birthday of actor Kevin Bacon, the center of the “Six Degrees of Kevin Bacon” parlor game. In 2009, IRS tax examiner John Snyder was convicted of abusing his power to look up tax records of 200 prominent celebrities and professional athletes. Perhaps because of the Six Degrees...

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July 07, 2016

When the New Hampshire legislature presented Governor Maggie Hassan (D) with a program of modest reductions to the state’s business profits tax (a corporate income tax) and business enterprise tax (essentially a value-added tax), she initially rejected the proposal, arguing that the reductions would “create a more than $90 million budget hole.” Eventually, however, the governor acquiesced on...

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July 07, 2016

Today is July 7, the date in 1846 when a U.S. force landed in Monterey, California, and proclaimed California’s annexation to the United States. The settler-proclaimed California Republic would formally come to end two days later, after lasting 25 days. Check out California’s tax system here.

Here are some interesting links I came across...

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July 06, 2016

New Jersey Governor Chris Christie (R) has shut down most highway projects in the state after lawmakers could not reach a deal last week to revamp its nearly empty Transportation Fund. Last week, the state passed a budget, but the state Senate rejected an Assembly-passed gas...

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July 06, 2016

Today is July 6, the 81st birthday of the present Dalai Lama. Tibet as recently as the 1950s had a quasi-feudal social system, with hereditary “treba” (“taxpayer”) families responsible for owning land and paying taxes, with lighter tax obligations owed by householder peasants and indentured peasants.

Here are some interesting links I came across:

    ...
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July 05, 2016

Last Friday, the Democratic National Platform Committee released a draft version of the 2016 Democratic Party platform.

While party platforms are usually inconsequential documents, a great deal of attention has been paid to this year’s...

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July 05, 2016

Over the weekend, the United Kingdom’s Chancellor of the Exchequer, George Osborne, pledged to lower the corporate income tax rate to 15 percent from the current 20 percent. In pledging the rate cut, Osborne cited the need to keep the UK competitive as it exits the European Union.

Interestingly,...

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July 05, 2016

Today is July 5, the 58th birthday of cartoonist Bill Watterson, creator of Calvin and Hobbes (1985-95). There are so many good C&H strips, but I suppose I should link to the one that lightly pokes fun at the IRS.

Here are some interesting links I came across:

  • Analysis of the House Republican Tax Plan: ...
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July 01, 2016

One of the most important provisions in the new House GOP tax plan is the disallowance of the business deduction for net interest expense. While this is not the sort of tax provision that most individuals handle on a day-to-day basis, it is important for the way businesses are run and financed, and worthy of consideration.

The plan explains the provision here:

Under...

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July 01, 2016

States tax real property in a variety of ways: some impose a rate or a millage—the amount of tax per thousand dollars of value—on the fair market value of the property, while others impose it on some percentage (the assessment ratio) of the market value, yielding an assessed value.

Some states have equalization requirements, ensuring uniformity across the state. Sometimes caps limit the degree to which one’s property taxes can rise in a given year, and sometimes rate adjustments are...

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July 01, 2016

Today is July 1, the date in 1943 when federal income tax withholding first began, with taxpayers (or their employers) paying regularly throughout the year rather than paying their annual tax bill in one lump sum. To help pay for World War II, the income tax had recently been broadened to cover most Americans, and the...

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July 01, 2016

The history of taxation in the United States is a tumultuous one. Since our country’s founding, we have witnessed marginal tax rates on income ranging from zero to 94 percent, and federal revenues taking up less than 5 percent of our economy to more than 20 percent. With presidential candidates proposing more sweeping changes of their own, it seems the future of U.S. taxation will continue to be just as...

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June 30, 2016

Tax systems initially built to protect women and low-income spouses can actually incentivize women to exit the workforce, or devalue their labor. This can be seen in Japan, where a spousal deduction leads to a phenomenon that some refer to as the “Wall of 1.03 Million Yen.”

The “Wall of 1.03 Million Yen” (approximately $10,000 USD) refers to the maximum income one spouse can receive in order for a household to take full advantage of the spousal exemption in the Japanese income tax....

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June 30, 2016

The House GOP recently released a tax reform proposal (click here to see the full details). Among other changes, it would convert the current corporate income tax into what is called a “destination-based cash flow tax.” A key provision of the new business tax is that it would be “border adjusted.” Although this is an important part of the House GOP proposal, it would introduce a new feature to the U.S. tax code. As such...

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June 30, 2016

Today is June 30, the date in 1997 when Hong Kong’s sovereignty was transferred from Britain to China. Hong Kong’s taxes today include a 15 percent salaries tax, a 16.5 percent corporate profits tax, and a 15 percent tax on rental income. There’s no value-added or sales tax, no tax on dividends or investments, no tax on capital gains, and even no tax...

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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.

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