Value-added Taxes in the Pandemic
Many governments have chosen to use VAT as a tool to provide tax relief for consumption in various sectors throughout the pandemic, but in the long term, VAT should not be used as a tool for relief.
3 min read
Wisconsin’s PPP Loan Recipients Face Hundreds of Millions in Surprise Taxes
Unless the legislature acts, businesses that have received PPP loans and related federal assistance will face $457 million in state taxes through 2024—with more than half of those taxes coming due this spring—despite Wisconsin being on track to see continued general fund revenue growth even amid the pandemic.
4 min read
What the GameStop Saga Can Teach Us About Mark-to-Market Taxation of Capital Gains
Whether you see the GameStop saga as a Robin Hood-style victory for the little guys or as a case of disruptive investor hysteria, it provides an interesting case study in just how badly the mark-to-market treatment of capital gains income could go awry.
6 min read
Washington State Floats a Wealth Tax Which Relies Almost Exclusively on Four People
What happens if you create a tax and its base is, for all intents and purposes, four people? If some Washington lawmakers had their way, we might find out.
5 min read
Using Carbon Tax Revenue to Grow the Economy
The economy and climate change are two challenges the Biden administration has identified as priorities. One way to address both issues at the same time is to enact a carbon tax to discourage carbon emissions, and to use the resulting carbon tax revenue to lower—or in the case of the TCJA’s individual provisions, avoid increases of—other, more distortive, types of taxes. This would not only address the challenges of climate change but also support the economy.
3 min read
5 Observations on Janet Yellen’s Recent Confirmation Testimony
In her recent confirmation hearing, economist Janet Yellen, President Biden’s choice for Treasury Secretary, sought to reassure markets that the new administration would not raise corporate taxes until the economy improves. At the same time, however, she sent a troubling signal that when they do push for higher corporate tax rates, they would do so in coordination with other countries so that the U.S. doesn’t lose its competitive edge.
5 min read
Massachusetts Flavored Tobacco Ban Has Severe Impact on Tax Revenue
The Massachusetts flavored tobacco ban highlights the complications of contradictory tax and regulatory policy, the instability of excise taxes that go beyond pricing in the cost of externalities, and the public risks of driving consumers into the black market through excessive taxation or regulation.
5 min read
President Biden Outlines Plan for Additional Coronavirus-Related Relief and Stimulus
President Biden’s plan builds on previous relief packages and would include larger payments to individuals, expanded relief for households and small businesses, funding for vaccine distribution, and aid to state and local governments.
7 min read
Day 2 of OECD Consultation on International Tax Reform Blueprints
The OECD consultation is in the context of the Inclusive Framework on Base Erosion and Profit Shifting which is made up of delegates from more than 135 countries and is focused on policies that reduce opportunities for tax avoidance by multinational companies. The current proposals being considered would change both where and how much companies pay in corporate taxes.
4 min read