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Economic and Budgetary Impact of Temporary Expensing

Instead of making expensing temporary, lawmakers could pursue other ways to speed up cost recovery with permanent economic gains and without drastically reducing revenue. One way to do that is by enacting “depreciation indexing.”

Ohio’s Commercial Activity Tax: A Reappraisal

The Ohio Commercial Activity Tax, a 0.26 percent tax on business gross receipts above $1 million, is a throwback to an earlier era of taxation, bringing back a tax type that had been in steady retreat for nearly a century.

Four Plans for Permanent, Pro-Growth Tax Reform in the 115th Congress

These four Tax Foundation tax plans demonstrate ways in which lawmakers could achieve permanent, pro-growth tax reform while keeping the level of federal revenue and the distribution of the tax burden roughly the same as current law.

Corporate and Individual Tax Expenditures

The elimination of tax expenditures is a popular way to pay for tax reform, but not all tax expenditures are equally worthy of elimination. It is important to ask, for each expenditure, whether it serves a reasonable purpose and whether it accomplishes that purpose in a reasonable way.

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

Aside from hurting low-income earners, the poor revenue performance of Philadelphia’s soda tax, 24 times higher than the excise rate on beer, threatens the sustainability of the education programs it is intended to fund.

IRS Rehiring Employees Terminated for Performance Reasons

Designing a Territorial Tax System: A Review of OECD Systems

A well-designed territorial tax system would reduce the incentive for companies to invert, encourage businesses to invest in and expand operations throughout the world, and allow capital to flow more freely back to the U.S., but would also come with some new challenges.

State Inheritance and Estate Taxes: Rates, Economic Implications, and the Return of Interstate Competition

Estate and inheritance taxes reduce investment, discourage business expansion, and sometimes drive wealthy taxpayers out of state. It’s little wonder that states are under pressure to reduce or eliminate them.

State Tax Changes Taking Effect July 1, 2017

While most states enact tax changes at the beginning of the calendar year, a number of them implement changes at the beginning of the fiscal year. Eight states have tax changes that will take effect on July 1, 2017, the beginning of the 2018 fiscal year.

Why Temporary Corporate Income Tax Cuts Won’t Generate Much Growth

Real tax reform should boost incomes for all. A corporate income tax cut could be a means to do that, but not if it’s temporary. A temporary cut is less likely to promote growth and less likely to benefit American workers.