The Tax Policy Blog

September 11, 2014

Majority Leader Kevin McCarthy recently sent a memo to the House of Representatives indicating the agenda for the fall session. In his memo, he advocates for an, “honest, simple and effective” approach to government, and bundles up previous jobs and tax bills into his economic package for the fall.

Key tax and job highlights of the package include:

  • ...
Continue Reading...
September 10, 2014

The estate tax is one of the least effective means of raising revenue in the federal tax code. It combines high administrative costs, low revenues, and implicit taxes on capital. It has a slippery base that creates a cottage industry of tax planning – resources that could be better used in the productive economy. It produces little revenue - only about $18 billion per year. And it is a tax on capital...

Continue Reading...
September 10, 2014

We are pleased to announce that the recipients of its 2014 Distinguished Service Awards will be Representative Pat Tiberi of Ohio’s 12th District, former Michigan Governor and President of Business Roundtable John Engler, and Chief Tax Counsel and Deputy Staff Director to the Senate Committee on Finance (minority) Mark Prater. The awards will be presented during the Tax Foundation’s 77th Anniversary Dinner and Gala on Thursday, November 20, 2014 at the Mayflower Renaissance Hotel in...

Continue Reading...
September 09, 2014

After North Carolina’s general assembly adjourned without renewing several tax credits or offering funding for several economic development programs, municipalities and economic development offices have begun calling for a special session. The...

Continue Reading...
September 09, 2014

This week, Senator Chuck Schumer (D-NY) released a discussion draft for a bill that would further limit the amount of interest an inverted corporation can deduct from its taxable income. The aim of this bill is to make it harder for inverted corporations to reduce their taxes paid to the U.S. Treasury through a procedure called “earnings stripping.” This bill would apply to all future companies that invert and companies that have inverted in the last twenty years.

The proposed bill...

Continue Reading...
September 08, 2014

One of the major issues with the Earned Income Tax Credit is that is suffers from a high amount of payment error. In any given year, the error can amount to approximately 25% of total payments and cost $14 billion dollars.

It is usually not clear exactly why these errors occur. There are two common stories behind them. The first story is about plain fraud. Taxpayers, or the preparers that...

Continue Reading...
September 04, 2014

The Congressional Budget Office recently released its cost estimate for H.R 647, Achieving a Better Life Experience Act of 2014. The bill, which has strong bipartisan support, would “allow for the creation of a new type of tax-favored account – an ABLE account for individuals with disabilities.”

These accounts, a form of 529 plan for education savings, allow for the accounts to grow tax free, as long...

Continue Reading...
September 04, 2014

The Empire Center, a nonpartisan think tank in New York, released a report today suggesting that New York has lagged behind the rest of the nation in making new millionaires. From 2011-2012, the United States on the whole saw a 29 percent increase in the number of...

Continue Reading...
September 04, 2014

The Wall Street Journal reported this week that the IRS is looking to tax the free food that many Silicon Valley companies offer their employees.

“The IRS and U.S. Treasury Department last week included taxation of "employer-provided meals" in their annual list of top tax priorities for the fiscal year ending next June. The agencies said they intend to issue new ‘guidance’...

Continue Reading...
September 03, 2014

Governor Rick Scott (R) of Florida has launched a new bus tour as part of his re-election bid, advertising a plan to cut taxes in Florida by $1 billion. The key features of the plan are:

  1. A constitutional amendment restricting property tax increases...
Continue Reading...
September 02, 2014

One of the loudest critics of the recent wave of corporate inversions is University of Southern California law professor Ed Kleinbard, who warns that these transactions will erode the U.S. corporate tax base because these newly relocated firms will use “intragroup interest payments” to “strip” income out of their U.S. subsidiary.

While this is thought to be a common practice with multinational corporations, IRS data actually shows that the U.S....

Continue Reading...
August 29, 2014

Inversions have been in the news consistently this summer as multiple companies have looked for legal paths away from the U.S. corporate tax system. Burger King became the latest corporation to add to the list after they announced their planned moved to Canada. The reason: Our corporate tax system is out of date.

The average corporate tax rate across the 34 member Organization for...

Continue Reading...
August 28, 2014

Matt Yglesias at Vox today argues that migration out of “blue states” is caused by high housing prices, not taxes, and high housing prices are essentially a function of bad zoning laws in “blue” cities....

Continue Reading...
August 27, 2014

Canada is apparently becoming an attractive place to do business. This week Burger King announced plans to move its headquarters to Canada, via a merger with Tim Hortons. Other U.S. companies that have recently moved or announced plans to move to Canada include Bausch and Lomb,...

Continue Reading...
August 26, 2014

Burger King’s announcement that it will move its headquarters to Canada has put the spotlight on Canada’s tax system. Just what are the tax benefits of doing business in Canada versus the U.S.?

First, Canada has a much lower corporate tax rate: 15 percent at the federal level plus another 11 percent on average from provincial corporate taxes. Compare that to the U.S....

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 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.

Monthly Archive