Republicans have promised major tax reform, and Cato has suggestions for policymakers. In today’s Wall Street Journal op-ed, Chris Edwards and I argue for the elimination of the Low Income Housing Tax Credit (LIHTC). For those unfamiliar with the program, LIHTC is a corporate tax loophole that endeavors to create low-income housing. Show More Summary
Back in July, the state of Illinois narrowly avoided a junk bond rating with a last minute budget deal that included a 32% in hike in income taxes. Republican Governor Bruce Rauner vetoed the budget and called it a "disaster," but both houses of the state legislature voted to override his veto. Show More Summary
The U.S. Senate’s top Republican on tax policy said on Tuesday that allowing U.S. corporations to deduct dividend payments to shareholders from federal income tax could overcome problems facing Republican efforts to overhaul the U.S. tax code. In a statement at the outset of a tax reform...
Be thankful for the federal income tax, one of the economy’s most powerful drivers of employment.
U.S. taxpayers who inherit foreign assets must handle the tax consequences of their inheritances with great care. In addition to taxing all worldwide income, the U.S. also includes foreign assets in the gift and estate tax calculation, which determines whether estate tax will be assessed. Heirs who receive foreign assets also have to consider their […]
White House National Economic Council director Gary Cohn, former president of Goldman Sachs, said recently that “only morons pay the estate tax.” I’m reminded of Donald Trump’s comment that he didn’t pay federal income taxes because he was “smart.” And billionaire Leona Helmsley’s “only the...
Election Tax Returns In an effort to force present presidents running for re-election and future presidential candidates to release income tax returns, California passed SB249 Disclose Act. California became the first state to require presidential candidates to release their tax returns in order to appear on the state ballot. Lawmakers sent Gov. Jerry Brown AB249 […]
Two Democratic lawmakers are leading the way to fundamentally restructure the EITC, shifting it from a program primarily aimed at helping low-income working families with children to a wage subsidy for even middle-income workers.
With the primary election out of the way, Mayor Bill de Blasio and Republican challenger Nicole Malliotakis have already begun sniping at each other. But if Malliotakis wants to improve her dismal... To view the full story, click the title link.
You can cut income and estate taxes with smart planning. Here's what you need to know before you go.
Last week we posted about the taxation of Australian superannuation funds potentially being treated as social security under the Australia-U.S Income Tax Treaty. The post explicitly assumed, for argument’s sake, that “superannuation guarantee” was considered part of the social security system of Australia. Show More Summary
Lawmakers of both parties have been talking about restructuring the refundable tax credits, such as the earned income tax credit and the child tax credit,...
The top Republican tax law writer in the U.S. House of Representatives said on Thursday that he does not expect an upcoming tax reform framework to contain specific numbers on income tax rates for corporations and individuals. “Probably not that specificity,” House Ways and Means...
No program other than Social Security has had a bigger impact on reducing poverty than the Earned Income Tax Credit.
I get this real time Federal tax collection data every day from the US Treasury's Daily Treasury Statement. It gives us up-to-the-minute information on withholding taxes, estimated individual and corporate income taxes, excise taxes, and others. These tax collections tell us EXACTLY what the US economy is doing at any given point in time. Show More Summary
Sen. Ted Cruz Wednesday unveiled a plan to overhaul the nation’s tax code that features a single, flat income tax rate and a simpler system for filing taxes. The Texas … Click to Continue »
The Republican plan to slash corporate and personal income taxes has finally begun moving forward in Congress, and President Donald Trump wants lawmakers to act with haste. In a tweet Wednesday, Trump urged Republicans to "move fast"...Show More Summary
That topic has been knocking around for some time, with varying opinions. I’ve now seen the clearest and most thorough treatment to date, namely from Gerald Auten and David Splinter. It hasn’t received that much attention, perhaps because the results don’t have such a strong built-in constituency, but here goes: Previous studies using U.S. Show More Summary