The Tax Policy Blog

September 29, 2014

According to this year’s International Tax Competitiveness Index, Estonia has the most competitive tax system in the developed world.

Key drivers for Estonia’s high rank are its relatively low corporate tax rate at 21 percent with no double taxation of dividend income, a nearly flat 21 percent income tax rate, a property tax that only taxes the value of land and not the value of building and...

Continue Reading...
September 29, 2014

Morgan Stanley, six years after getting bailed out by taxpayers, is now doing research on inequality. The former investment bank released a report last week that attributes growing inequality to many factors, including taxes:

Though tax policies are still largely supportive of lower income groups, they have become less progressive over time.

Wrong. The chart below,...

Continue Reading...
September 29, 2014

The Senate this month unanimously passed a bill exempting welfare benefits under Native American tribal jurisdictions from being counted as “income” for the purposes of income tax. The bill passed by voice vote in the House.

This bill was uncontroversial, largely because it is good policy. It resembles the way that the IRS already treats state welfare benefits....

Continue Reading...
September 29, 2014

Each year, the Council on State Taxation (COST) estimates the share of total state and local taxes that are paid by businesses. The lastest edition of the report found that firms paid 44.9 percent of total U.S. state and local taxes last year—amounting to nearly $671 billion.

Here’s the breakdown by tax type (click to enlarge and share):

...

Continue Reading...
September 26, 2014

At the Clinton Global Initiative meeting earlier this week, former President Bill Clinton called for a lower corporate tax rate, saying that the average corporate tax rate across the OECD (25.3 percent) provides a good target for where our corporate tax rate should be. But in his talk—which included discussion of ...

Continue Reading...
September 26, 2014

New York Mayor Bill de Blasio is considering a proposal that would place a property tax surcharge on residences that are worth $5 million or more and owned by non-New Yorkers, according to the Wall Street Journal. The surcharge was proposed by the ...

Continue Reading...
September 26, 2014

Pennsylvania Governor Tom Corbett (R) signed a bill this week allowing Philadelphia’s school district to raise cigarette taxes by $2. This comes after Pennsylvania considered several different cigarette tax increase proposals. The statewide cigarette tax rate is...

Continue Reading...
September 25, 2014

The chart below has been going around the web this week. It is from an analysis by Pavlina Tcherneva of Bard College that used Piketty and Saez IRS data to show that in non-recessionary periods from 1949 to 2012, the share of total income growth has increasingly accrued to the top 10 percent, while the bottom 90 percent’s share has declined.

While this does reflect the general decline in wage growth in the last few decades, there are issues with this data. People reading this chart...

Continue Reading...
September 25, 2014

The OECD’s base erosion and profit shifting (BEPS) initiative promises an integrated, streamlined tax system across the OECD. The initiative, which should be completed in September of 2015, will provide guidelines for member countries to follow when implementing domestic tax policy or negotiating a tax treaty. The initiative is intended to reduce double non-taxation of corporate profits, which in turn should reduce conflict between tax...

Continue Reading...
September 25, 2014

It has not been a good month for professional football. A recent spate of domestic violence incidents has called the moral leadership of the National Football League into question. In addition, concerns about the Washington Redskins’ team name remain a steady source of bad press.

In this climate, some members of Congress, upset over the NFL’s recent...

Continue Reading...
September 25, 2014

Despite questions about the effectiveness of film tax credits, California recently passed AB 1839 , which expands the state’s film credit program to $330 million from its current $100 million. The bill also included provisions changing the way the credit is awarded. As we reported several months ago, the California Legislative Analyst’s Office (LAO) issued a...

Continue Reading...
September 25, 2014

Yesterday, New York Governor Cuomo’s (D) office announced that SolarCity, a major solar cell producer partially owned by Elon Musk, would make a $5 billion investment to operate a “gigafactory” in upstate New York. This comes on the heels of another Musk-owned firm, Tesla, announcing a $1.3 billion incentive deal to build a battery-producing “gigafactory” in Nevada. The New York deal involves three major...

Continue Reading...
September 24, 2014

In old mining tunnels, the workers would often bring a caged bird with them. The bird would function not only as a pet, but also as an advance warning of dangerous carbon monoxide. If the bird – more sensitive to changes in air quality – fell ill, it was a sign that the tunnel was also dangerous for the miners.

Corporate inversions are also a sign. While corporate inversions are actually ...

Continue Reading...
September 24, 2014

U.S. business investment has been severely depressed for many years, and, as a share of GDP, it remains well below that found in most developed countries. Investment is an important driver of productivity and, as a result, workers’ wages. It is therefore not a stretch to connect the protracted investment slump with the similarly protracted slump in...

Continue Reading...
September 24, 2014

At the Clinton Global Initiative meeting this week, former President Bill Clinton called for corporate tax reform as a “practical economic” need.

In the interview on corporate taxes, he likened the corporate tax system to a leaky boat and offered general support for moves...

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