Links: The World’s Most Fatuous Tax and Taming the Tax Code Beast
August 13, 2013
The U.S. tax code is home to the world’s “most fatuous regulation,” according to a post from The Economist. While this provison does help point out the overwhelming complexity in the tax code, history is full of other equally absurd taxes.
George Will’s recent piece on the Senate Finance Committee’s “Blank Slate” proposal and the likelihood of “taming the tax code beast” (i.e. interest groups). We recently released a series of studies on the Economics of the Blank Slate.
Japan may cut its corporate tax again. The Japanese Prime Minister is considering cutting the rate from its current 37 percent to somewhere between 25 and 30 percent. The cut would be used to “improve [Japan’s] growth strategy” and offset at potential sales tax increase. This would make France’s rate of 34.4 percent the next highest next to the U.S. rate of 39.1 percent.
Federal tax revenues are on their way to new heights. The increased revenues, due to fiscal cliff tax increases, shrinks this year’s deficit just in time for it to increase steadily over the rest of the decade (that won’t stop Paul Krugman from continuing his usual tricks).
Bruce Bartlett lays out his arguments on state and local tax deductions. We have discussed this previously on numerous occasions and recently analyzed the economic effects of trading the provision for a tax cut. As long as it's offset with a tax cut, it's good for the economy.