A Benchmark for Socialist Tax Rates

You've heard it a thousand times. President Obama wants to continue the Bush-era tax cuts for households with taxable incomes under $250,000 a year, while allowing those cuts to expire for wealthier taxpayers. Were that to occur, the 33% bracket would increase to 36%, and the 35% bracket (currently...

Does America Need A Two-Page Tax Code?

Emphatically, no. I just absolutely disagree with Fareed Zakaria on this , as I do with anyone who thinks that the measure of a tax system is the shortness of its tax code. We live in a complex and intricate world, in which transacting involves complex relationships involving the allocation of risks...

Apple Sidesteps Taxes – What’s Wrong With That?

A front-page article in Sunday's New York Times (" How Apple Sidesteps Billions in Taxes ") is getting quite the buzz. A couple of things about the article. While the Times piece recognizes that there is nothing illegal about the techniques that Apple uses to minimize its taxes, it insinuates...

State Net Capitol Journal – May 7, 2012

SNCJ Spotlight With Congress stalled, states work their own "Amazon tax" deals Like millions of Americans these days, Dena Davidson buys a lot of products online. From birthday gifts to home furnishings, she eschews crowded malls at every opportunity, preferring the comfort of shopping...

State Net Capitol Journal – May 7, 2012

SNCJ Spotlight With Congress stalled, states work their own "Amazon tax" deals Like millions of Americans these days, Dena Davidson buys a lot of products online. From birthday gifts to home furnishings, she eschews crowded malls at every opportunity, preferring the comfort of shopping...

State Net Capitol Journal – May 14, 2012

Budget & Taxes STATES' FISCAL HEALTH CONTINUING TO IMPROVE: State fiscal conditions are continuing their slow and mostly steady improvement, according to the National Conference of State Legislatures' Spring 2012 budget update. For the first time since the start of the Great Recession...

State Net Capitol Journal – May 14, 2012

Budget & Taxes STATES' FISCAL HEALTH CONTINUING TO IMPROVE: State fiscal conditions are continuing their slow and mostly steady improvement, according to the National Conference of State Legislatures' Spring 2012 budget update. For the first time since the start of the Great Recession...

Repatriation Tax Holidays and IRC Section 965

By Mary Riley * The debate over corporate tax reform has largely centered on lowering the corporate tax rate and, more radically, transitioning from a worldwide to a territorial system of international taxation. [Donald J. Marples and Jane G. Gravelle, CONG. RESEARCH SERVE, R40178, TAX CUTS ON REPATRIATION...

President Romney's Tax Reform

If elected president, Mitt Romney will have to make some adjustments to his tax plan. For now he is saying that he wants to lower rates across the board by 20 percent and entirely offset the cost by scaling back tax expenditures unrelated to investment income. He wants his plan to be distributionally...

Capital Gains: The Missing Link to Tax Reform?

The big stir about Romney's tax plan --that if you fill in the blanks with likely revenue raisers the plan will result in tax increase for the middle class--all stems from the fact that tax breaks are not evenly spread over income categories . Proportionately, the poor benefits most from the EITC...

State Net Capitol Journal – April 22, 2013

Budget & Taxes KS TAX REFORM WORST IN NATION: Joe Henchman of the conservative Tax Foundation and Nick Johnson of the left-leaning Center on Budget and Policy Priorities rarely agree on anything having to do with taxes. But when Governing magazine recently asked the two tax policy experts to...

Let's Stop With the Revenue Neutrality

For decades, most people have believed that the success of tax reform is dependent on the reform being revenue neutral. That is, whatever happens, the tax system has to raise approximately as much revenue after as it did before. Proponents of reform want to seem pure in thought. They profess to care...

Baucus, the Marketplace Fairness Act, and Tax Reform

by jeremy Scott ... [T]he tax community is... concerned with whether Baucus's retirement will hinder or help the chances of tax reform. The answer might lie in how Democrats handled the Marketplace Fairness Act. ... It appears that Baucus, the Senate Finance Committee chair, was the reason...

When Tax Reform Means Soaking the Rich

Tax reform has evolved into one of the emptier platitudes of U.S. politics. Politicians support "tax reform" in the same way that they support "a strong national defense," "fiscal responsibility," and "pro-growth economic policies." It's a brave statement in...

Fast Track to Nowhere

Although the formal expiration of the debt limit is May 19, the ability of the Treasury Department to juggle some internal accounts is likely to extend the effective deadline until late summer . Nothing is certain, but the real deadline is likely to crop up in September or even October. This sets the...

Will DOMA Issues Doom Tax Reform?

by Clint Stretch The already grinding gears of immigration reform slowed again last week when Senator Patrick Leahy (D-VT) angered conservatives by suggesting that his committee extend to roughly 40,000 binational same-sex couples the same rights enjoyed by other couples to sponsor their spouse for...

Go Big or Go Home - Tax Reform in Maine

The big idea of the last week was a dramatic tax reform proposal in Maine . The idea is big and bold. Big and bold usually means a measure has no chance of passage. State legislators from both parties are not exactly profiles in courage. The proposal would change all of the state's primary taxes...

Targeting Tax-Exempts and Tax Reform

by Clint Stretch Many on Capitol Hill are currently focused on the IRS's targeting of conservative groups applying for tax-exempt status as evidence of the need for tax reform. I agree we need tax reform. I doubt how dramatic it can be, whether it is possible without a deeper budget agreement...

State Net Capitol Journal – June 3, 2013

Budget & Taxes CA RELEASES HEALTH EXCHANGE RATES: Last month, California released details about the insurers that will offer plans through the state's newly created health exchange and the premiums that millions of residents can expect to pay for that coverage. Thirteen companies will...

It's Time to Stop Talking About Tax Reform

Enough already: it's time to stop talking about tax reform. Not about necessary and useful changes to the tax code - by all means, let's talk about them. But let's do away with anodyne invocations of "tax reform" as a useful shorthand for this debate. The phrase probably meant something...

Want New Ideas? Look Outside Washington

by Clint Stretch Except for the fact that I headed into the Deep South in June, I was lucky to get out of Washington last week. Few in Washington would dare express the views I heard from a good-sized group of young tax professionals. They were unencumbered by the constraints of political correctness...

Are Republicans Throwing in the Towel on Tax Reform?

... [I]n the modern era of divided government, tax reform is almost certainly going to be a bipartisan enterprise - or no enterprise at all. Which makes it all the more illuminating that House Republicans have floated the idea of passing a tax reform bill without help from Democrats... ... ......

Estate Tax Repeal Movement Intensifying

Questions surrounding the future of the estate tax seem to be a constant in recent years. On June 19 th , Senator John Thune of South Dakota and Representative Kevin Brady of Texas resurrected the issues surrounding the estate tax by expressing their hope that a repeal of the estate tax would be included...

State Net Capitol Journal – December 23, 2013; Tax Reform Trend Taking Hold In States

TAX REFORM TREND TAKING HOLD IN STATES: Five states — Alaska, Minnesota, North Carolina, Ohio and Virginia — enacted major tax reforms this year, and several others approved smaller tax changes, according to the National Conference of State Legislatures. And it looks like more states intend...

State Net Capitol Journal – March 10, 2014; 2013 (Sort Of) 'Year Of Tax Reform'

Budget & Taxes 2013 (SORT OF) 'YEAR OF TAX REFORM': Early last year many predicted 2013 would be "the year of tax reform" in the states, due to the unusually high number of tax measures that had been proposed, a number of which included major reforms. But according to the results...