Blog Post Round-Up

August 24, 2008

  • New Study on the Benefits of the 2001 and 2003 Tax Relief: This research illustrates that, while the lower tax rates have not paid for themselves, they do provide important economic benefits and can expand the tax base to such an extent that they cost the federal government substantially less revenue than the casual observer might think.
  • California Considers Tax Changes in Budget Standoff: Temporary taxes tend to become permanent (Californians still pay a temporary 1/2-cent sales tax enacted in 1991), and prohibiting carryforwards but allowing carrybacks in a few years is just an accounting shift. Film tax credits, we have noted, aren’t all they’re cracked up to be. And raising income and corporate taxes may just accelerate the move of people and jobs to Nevada and Arizona.
  • Confused About Marginal Tax Rates? You’re Not Alone: In a recent article on CNN.com, Career Builder provides information regarding the “dangers” of a larger paycheck. The article assumes a pay raise may place a worker in a higher marginal tax bracket, resulting in lower take-home pay. Have no fear; a pay raise will not result in lower net earnings.
  • Sales Tax Holidays: Small Gains Are Outweighed By Serious Harms: Everyone seems to win with these holidays. Consumers save some hard-earned money, retailers get free advertising, and politicians get to take credit for cutting taxes. What’s the harm with sales tax holidays?
  • Mississippi Tax Commission Releases Draft Report: The Mississippi Tax Study Commission has released its draft report of recommendations.
  • Florida Tax Swap Removed From Ballot: Florida’s tax swap Amendment 5 is off the ballot, at least for now. Judge John Cooper ordered it removed after concluding that the ballot title was misleading and confusing. The initiative’s proponents are now appealing the removal.

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