Blog Profile / Tax Foundation's Tax Policy Blog

Filed Under:Business & Finance / Taxes
Posts on Regator:3021
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Archived Since:March 8, 2011

Blog Post Archive

The Four Pillars of Corporate Tax Reform: Testimony before the Senate Finance Committee

The most important thing that Congress and the administration can do to boost economic growth, lift workers’ wages, create jobs, and make the U.S. economy more competitive globally, is reform our business tax system.

Protecting Interstate Taxpayers from Discriminatory State Taxation: Illinois Central Railroad Company v. Tennessee Department of Revenue

State and local governments are frequently tempted to apply different tax rules to individuals and businesses less able to resist them. One area of this is interstate railroads, where local governments historically imposed excessive property tax levies compared with other similarly situated property. In some cases, a railroad track going through a town paid most […]

Comments on South Dakota’s Challenge to Quill

(Background: In 2016, South Dakota adopted a law requiring all businesses with a certain amount of sales in the state to collect sales taxes, regardless of whether the business has a physical presence. The South Dakota Supreme Court ruled today that the law violates prior U.S. Supreme Court precedent, setting up an appeal. South Dakota […]

How Much Does Your State Collect in Sales Tax Per Capita?

Forty-five states and the District of Columbia levy a statewide sales tax. State rates vary widely among states, from 2.9 percent in Colorado to 7.25 percent in California. This does not take into account the local sales tax rates that are levied in thirty-eight states, which can significantly change the combined rate for consumers. Hawaii […]

What Rothification Means for Tax Reform

Rothification is the compulsory conversion of some or all traditional defined-contribution plans to Roth-like plans. While that definition can seem like a mouthful, it may soon be important to understand the concept and what it means for tax reform. Rumor has it that policymakers are considering using Rothification to raise revenue as part of a […]

What Counts as Tax Reform?

Over the next few weeks, Republican lawmakers plan to introduce legislation to overhaul the U.S. federal tax code. But before the public has even seen the text of a bill, a debate has emerged about the terminology that should be used to describe the endeavor. Republicans typically use the phrase “tax reform” to describe their […]

How Much Does Your State Collect in Corporate Income Taxes Per Capita?

The corporate income tax is one of the smallest sources of state tax revenue. According to Census data, in FY 2015, the corporate income tax only comprised 5.3 percent of state tax collections. As we outlined earlier this year, there are several reasons why the corporate income tax share is so low on average. Some […]

Do Hurricane Harvey Victims Deserve Less Federal Aid Because Texas is a Low-Tax State?

There are two kinds of thought-provoking op-eds: those that force readers to confront new ideas, and those that simply provoke the thought, “I wonder how that wound up in print?” Yesterday, tax attorneys and tax law professors Peter Barnes and H. David Rosenbloom served up the latter in a piece that is either an extremely […]

Corporate Income Tax Rates around the World, 2017

Key Findings The United States has the fourth highest statutory corporate income tax rate in the world, levying a 38.91 percent tax on corporate earnings. The only jurisdictions with a higher statutory rate are the United Arab Emirates, Comoros, and Puerto Rico. The worldwide average statutory corporate income tax rate, measured across 202 tax jurisdictions, […]

Why Business Tax Reform Will Encourage Additional Investment

One of the main goals of the Trump administration and Republicans in the Congress is to reform corporate and business taxation in the United States. The idea is to reduce the statutory tax rate on corporate income and speed up cost recovery to encourage business to invest more in the United States. This would boost […]

Sources of Government Revenue in the OECD, 2017

Key Findings: OECD countries rely heavily on consumption taxes, such as the value-added tax, and social insurance taxes, such as the payroll tax. The United States relies heavily on the individual income tax, at 39.3 percent of total government tax revenue. On average, OECD countries collect little from the corporate income tax (8.8 percent of […]

Notes on Trump’s Tax Policy Speech in Missouri

Yesterday, President Trump laid out his goals for a federal tax overhaul, during an address in Springfield, Missouri. While the speech was short on detail, the broad objectives outlined by the President provide a good starting point for thinking about what a potential tax reform could look like. In the address, Trump listed four principles […]

Net Operating Loss Carryforward & Carryback Provisions by State

The corporate income tax should tax only the profits of a corporation; however, profitability can vary for businesses. A business’s yearly profit may not capture its true profitability. Businesses in particularly cyclical industries may experience substantial profits during boom years, but also experience substantial losses during bust years. Show More Summary

A Comparison of the Tax Burden on Labor in the OECD, 2017

Key Findings: Average wage earners in the United States face two major taxes: the individual income tax and the payroll tax (levied on both the employee and the employer). Although a little more than half of a U.S. worker’s payroll tax burden is paid by his employer, the worker ultimately pays this tax through lower […]

The Effects of Converting the State and Local Tax Deduction into a Credit

Over the past couple of years, the state and local tax deduction has been a popular base broadener for the GOP. Nearly all GOP tax reform proposals from Congress and presidential campaigns since 2014 have included eliminating or limiting the deduction to pay for lower statutory tax rates. Under current law, individuals who itemize can […]

Which Areas Benefit Most From the Home Mortgage Interest Deduction?

This map shows how much U.S. taxpayers deduct in home mortgage interest by county. The measurement used here is the home mortgage interest deduction per return. It is calculated using the total of all home mortgage interest divided by number of returns filed in each county. The data source is 2014 Statistics of Income from […]

The Careful Balance of Anti-Base Erosion Rules

Lawmakers will undoubtedly make changing the way the United States taxes foreign profits of U.S. multinationals a priority of tax reform. A territorial tax corporate system would be an improvement over our current worldwide tax system, but requires careful thought about what sort of rules to enact to prevent base erosion and profit shifting by […]

A Unified Theory of Some of the Misconceptions in the Tax Reform Debate

I. Last week, The Hill published an article titled, “GOP debates retroactive tax cuts.” The article describes how some Republicans have been calling for a tax package that would reduce taxes on income that Americans have already earned, going back to the beginning of 2017: “We need to make it retroactive so that we unleash […]

Congress Considers Taxing Opioids

In an effort to combat the ongoing opioid epidemic, Representative Michelle Lujan Grisham (D-NM) submitted a bill last week that would apply a federal excise tax of 1 cent per milligram of active opioid, mirroring a similar bill submitted in the Senate in June. The tax would be levied on drug manufacturers and is estimated […]

What is the Real Value of $100 in Metropolitan Areas?

Two weeks ago, we published a map showing how far $100 in purchasing power would go in different states. This week’s map further explores purchasing power differences at the metropolitan level. Using data from the Bureau of Economic Analysis, we can examine how purchasing power varies between cities, like Los Angeles and San Francisco, and […]

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