The Tax Policy Blog

October 21, 2015

The Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) together worked on a cost estimate released this week for H.R. 3762, a bill that would repeal many provisions of the Affordable Care Act (ACA). It would preserve the largest spending program in the ACA (the subsidies) and it would...

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October 21, 2015

Back in May, the U.S. Supreme Court struck down Maryland’s practice of taxing out-of-state income earned by residents without a mechanism for adjusting for taxes paid to other states. The result was a Maryland resident investing out of state was paying multiple taxes compared to a Maryland resident who invested only in state, a violation of the U.S. Constitution’s interstate commerce clause....

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October 19, 2015

The New York Times recently published an article by Patricia Cohen, titled “What Could Raising Taxes on the 1% Do? Surprising Amounts.” The basic claim of the article is that the federal government could raise a significant amount of revenue by increasing taxes on the richest Americans.

The article presents several statistics about how much money the federal government...

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October 16, 2015

Most Americans remember exploring the hardships of traveling across the American plains in the 19th century with the computer game Oregon Trail. In the game, students must travel to the Oregon Territories in a covered wagon while most of their game family dies of dysentery or...

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October 16, 2015

Property taxes vary substantially around the United States, both among states and even within states. Property taxes are levied at the state and local level, but they are also typically deductible on federal returns as an itemized deduction on Schedule A for taxpayers who elect to itemize their deductions.

As a result, the IRS has substantial data on property taxes around the country. The map below shows the average...

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October 15, 2015

A few weeks ago, former Governor Lincoln Chafee (D-RI) released a tax plan. The governor’s plan would do three things:

  • Add a new 45 percent tax bracket that applies to income over $750,000.
  • Add a new 25 percent capital gains and dividend tax bracket that applies to taxpayers earning more than $750,000.
  • Increase the personal exemption by $1,000 from the current $4,000 to $5,000, or as much as necessary to make the plan revenue neutral.

 

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October 15, 2015

New Jersey’s legislature is no stranger to offering tax incentives in an increasingly Sisyphean effort to revitalize the beleaguered Atlantic City economy. We previously noted how Revel, the city’s now defunct mega-resort/casino, was the recipient of $261.4 million dollars in tax credits from the Christie administration. The state’s experience with Revel should have cautioned legislators against...

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October 15, 2015

Most taxpayers are aware that the federal income tax is designed to tax individuals with higher incomes at higher rates. Specifically, the income tax is structured around seven tax brackets, which impose rates from 10% to 39.6% on each additional dollar that individuals earn.

Earlier today, we released estimates for how the seven tax...

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October 14, 2015

The BEPS project has arrived at an interesting juncture. On October 5, the OECD released the final reports for its Base Erosion and Profit Shifting (BEPS) project, a collective effort by OECD and G20 member countries to mitigate harmful tax practices. The BEPS project consists of policy reform guidelines divided into 15 action plan areas, including transfer pricing, tax treaty abuse, permanent establishments, and patent box...

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October 13, 2015

So far, tax policy has not been a central focus of the Democratic presidential primary: none of the campaigns have released comprehensive tax reform proposals and few candidates have devoted much attention to the issue. However, one tax policy proposal has been endorsed by several candidates in the Democratic field: a financial transactions tax.

In the last few months, Hillary Clinton, Bernie...

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October 09, 2015

Taxes are a common theme on news shows in the U.S.; you may have even seen the Tax Foundation’s very own Kyle Pomerleau speaking about the presidential candidates’ tax plans. However, Americans rarely see a sitcom or drama where actors discuss taxes, and why would...

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October 09, 2015

Some of the features of Bobby Jindal’s recently released tax plan – fewer tax brackets, ending the estate tax, and eliminating itemized deductions – should be familiar from other Republican candidates’ tax plans. But a few elements of Jindal’s plan stand out from the rest of the field. Specifically,...

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October 08, 2015

In a recent Pew poll, 72 percent of Americans said that they were bothered by how complex the federal tax system is. These taxpayers are justified in their complaints: as of 2015, federal tax laws and regulations have grown to over 10 million words in length.

This figure includes the federal internal revenue code (2,412,000 words long) and federal tax regulations (7,655,000 words long)....

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October 07, 2015

We often hear that one of the primary goals of fundamental tax reform is to “broaden the base and lower tax rates.” But as many of the presidential candidates have found in crafting their tax reform plans, the extreme progressivity of the individual tax code makes broadening the base and lowering the rate an exercise in raising taxes on the poor and cutting taxes on the rich—hardly a winning political message.

Over the past 20 years or so, lawmakers have created or expanded numerous...

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October 07, 2015

In recent weeks we have released estimates of the economic effects of the tax plans proposed by several candidates for the Presidency. Some of these plans appear to be capable of generating very strong growth, enough to lift GDP by 10 percent or more over the next decade above the growth that would occur under current tax policy. Reaching that higher level of output would require the economy to grow at about 3.3 percent a year instead of the rather feeble 2.3 percent a year forecast by the...

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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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