Lunch Links: Trump likes graduated, not flat tax; Clinton attacks his estate tax position; Libertarian nominee Johnson wants national sales tax as a substitute tax
August 9, 2016
Here are some interesting links I came across:
Donald Trump Revises His Tax Plan: Compared to his earlier plan, the top rate goes from 25 percent to 33 percent (and intermediate rates of 12 percent and 25 percent), businesses can fully expense new investment, and Trump would allow parents “to fully deduct the average cost of childcare spending from their taxes.” Carried interest will no longer be tax-exempt, but business income (including for non-corporations) will be 15 percent. The estate tax would be repealed. My colleague Scott Greenberg breaks it down. (The Washington Post / Tax Foundation)
Trump Likes Graduated Taxes, Not Flat Taxes: The Republican nominee this morning on Fox and Friends: “I never liked the flat tax, where somebody making $100 is taxed the same as somebody making $1 million. I always thought a graduated tax is the better tax. I thought it was a more fair tax. When you’re making very little, you should be paying very little tax, because you need the money. When you’re making a lot, it could be graduated upward.” (Twitter)
Clinton Attacks Trump Estate Tax Position: The Democratic nominee says Trump repealing the estate tax would be a “Friends and Family Discount.” (The Hill)
Johnson Wants National Sales Tax: Libertarian nominee Gary Johnson says he wants to use a 28 percent national sales tax to replace federal income, payroll, estate, and corporate taxes. (Roll Call)
Pennsylvania May Rethink Vapor Tax: The excessive 40 percent tax on e-cigarette products is causing stores to consider closing, and one policymaker has called for reducing it significantly. (WGAL News 8)
Tennessee Legislator Convicted of False Tax Return: Rep. Joe Armstrong (D-Knoxville) made $321,000 by buying state cigarette tax stamps at 20 cents each, then selling them after the tax went to 62 cents a pack. Armstrong voted for the increase. That’s not the crime, though: it’s that he hid the gains from the IRS. He could get up to three years in prison. (The Tennessean)
Tax Expert Shares Findings on Legalization, Taxation of Marijuana: Okay, okay, this one is about me and our new report. But it was a well-attended presentation at NCSL. Taxing the retail sale seems to be what states are settling on, and the average tax rate is ending up somewhere in the teens. (State Tax Notes / Tax Foundation)
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