Policymakers at all levels of government should avoid the pitfalls of incentives. Instead, they should focus on creating a more efficient, neutral, and structurally sound tax code to the benefit of all types of business investment.
Manish Bhatt is a Senior Policy Analyst with the Center for State Tax Policy at the Tax Foundation.
He holds an LLM in taxation from Georgetown University Law Center, a JD from St. Thomas University College of Law, and a BA from the George Washington University. Prior to joining the Tax Foundation, Manish counseled clients on corporate taxation matters at a Big Four accounting firm, served as a judge advocate in the U.S. Coast Guard, advised several startups, and taught business law as an adjunct faculty member at TCU.
In his free time, Manish enjoys skiing, sailing, and fly fishing with his family.
Recharacterizing a rather simple repayment transaction as a tax rebate is concerning, not just for sound tax policy, but also for the future of public-private financing partnerships.
Montana Policymakers should pursue principled property tax reform that benefits all property owners without creating market distortions or unfairly shifting the tax burden.
However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
Texas’s robust surpluses create an opportunity to use state funds to lower local property taxes. However, it remains important for legislators to pursue a principled approach to rate compression, rather than enacting a plan that will simply shift the tax burden in nonneutral ways.
In the closing days of the 2023 legislative session, Oklahoma lawmakers repealed the state’s corporate franchise tax and eliminated the marriage penalty in its individual income tax. Both tax changes represent a positive step forward for the state.
Legislation currently advancing in Louisiana—related to the franchise tax, inventory tax, and corporate rebate and exemption programs—would make the state’s tax code simpler and more competitive.
Michiganders will pay a lower individual income tax rate next year thanks to high general fund revenues, but these savings may be short-lived following an opinion released by the state’s attorney general.