The Tax Policy Blog

January 11, 2016

Nearly every year, for over a decade, Congress has scrambled at the last minute to renew the tax extenders – dozens of temporary, constantly-expiring tax breaks for individuals and businesses. Now, the latest tax bill passed by Congress may put the saga of the tax extenders to rest once...

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January 08, 2016

Yesterday afternoon I spoke on a panel in Austin, Texas at the Texas Public Policy Foundation’s annual policy conference. The panel was on what makes a competitive tax code, and of course, Texas’ tax code has a lot of desirable elements. The state ranks 10th overall in our State Business Tax Climate Index, and going without an individual income tax is a major contributor to why the state scores so well.

What holds the state back, though, is its franchise tax, most commonly...

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January 08, 2016

This week Dr. Ben Carson released his tax plan. His plan would replace the current income tax code with a 14.9 percent flat tax on wage income and 14.9 percent tax on corporate income with the first 150% of the federal poverty level of wages exempt from taxation. It would eliminate taxation on capital gains, dividends, and interest income. All businesses would be able to fully expense capital investments and the estate tax would be eliminated. It would also eliminate a number of other taxes...

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January 08, 2016

2015 has been a productive year for the Base Erosion and Profit Shifting (BEPS) project. The OECD published the BEPS recommendations in October of last year and has since began its campaign to convince member nations to implement their suggestions. Consensus among member nations poses the biggest challenge for the BEPS project.

To some extent the OECD has had some success already. Many national have agreed to implement the...

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January 06, 2016

While state-levied taxes are the most evident source of state government revenues, and typically constitute the vast majority of each state’s general fund budget, it is important to bear in mind that they are not the only source. State governments also receive a significant amount of non-general fund revenue, most significantly in the form of federal governmental transfers. In Fiscal Year 2013, a full 30 percent of state revenues derived from federal grants-in-aid.

Such aid takes...

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January 05, 2016

A recent NBER working paper authored by academics and U.S. Treasury economists finds that not all types of businesses face the same tax rate. For example, the paper finds that partnerships pay a lower average tax rate than traditional corporations. These results suggest that having a high corporate tax rate influences the organizational form of businesses.

For most of the 20th century, the U.S. corporate tax rate remained...

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January 05, 2016

United Van Lines, the nation’s largest moving company, released an annual study tracking the inbound and outbound migration of states based on its client’s requests. For the third year, Oregon led the country with most inbound moves. Sixty-nine percent of moving requests for that state brought new...

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January 05, 2016

This Monday, Tax Analysts’ Tax Notes released its 2015 Person of the Year, which recognizes “an individual or organization that had the most influence on federal tax policy and practice.” This year, the Tax Foundation was the only organization to be nominated for the respected award. We have been recognized for our work on scoring the presidential candidates’ tax plans, the...

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January 04, 2016

Professor Danny Yagan recently published a paper in the American Economic Review that concludes that the dividend tax cut enacted as part of the Bush 2003 tax reduction did nothing to promote investment, and that it may not be possible to design effective pro-growth dividend relief.[1] The conclusion appears to be based on flawed assumptions and questionable procedures.

In 2003, qualified dividends, which had been treated as ordinary...

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December 31, 2015

The IRS has released an update of its annual breakdown of the 400 largest tax returns for 2013. The initial media reporting has highlighted the increase in the average tax rate paid by these “Fortunate 400” from 16.7 percent in 2102 to 22.9 percent in 2013, which prompted the Washington Post’s Wonkblog...

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December 31, 2015

In a year-end bid to bring Pennsylvania’s budget impasse to a close, the Pennsylvania General Assembly passed a $30.26 billion budget, representing an increase of more than 4.2 percent over the previous year’s budget. Governor Wolf, who had insisted on additional spending and new revenues, responded to this compromise in the only way he has yet demonstrated in his young governorship:...

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December 30, 2015

2015 was a record year for the Tax Foundation. Our research was viewed over 8.5 million times online and cited over 21,000 times. As we look forward to building on our successes next year, here’s a look back at some of our most popular content of 2015.

Comparing the 2016 Presidential Tax Reform Proposals

Tax policy has proven to be one of the major issues of the 2016 presidential campaign. From the start, our research and analysis has been at the center of...

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December 30, 2015

Yesterday, the New York Times published an interesting piece by Patricia Cohen and Noam Scheiber about trends in wealth management and tax planning among the richest Americans. The article posits that several thousand extremely wealthy Americans now operate under a “private tax system” that applies only to them. While the authors make somewhat misleading use...

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December 29, 2015

There is a vigorous debate among the presidential candidates over how we should tax Americans at different income levels. Some candidates argue that wealthy families should pay more, while most candidates contend that the middle class is overtaxed. Still, others argue that everyone should get a tax...

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December 29, 2015

As the end of 2015 approaches, Americans are deciding where to direct their end-of-year charitable donations. For Americans looking to donate locally, how many tax-exempt organizations will they find nearby?

...

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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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