In testimony before the Senate Committee on Finance this morning, I discussed what federal tax reform would mean for state and local governments and how Congress could help by coordinating tax law across states. Here are my opening remarks. You can find my full testimony here. With increasing concerns about the federal deficit, fairness, and the [...]

I’ve finally finished my income tax returns for 2011. The last task—and least pleasant—is figuring my Virginia use tax. That’s the sales tax I owe on our many out-of-state web purchases. It’s a pain to plow through 12 months of receipts to identify untaxed transactions but I do it every year, stubbornly—some say foolishly—insisting on [...]

Congress originally enacted the alternative minimum tax (AMT) to make sure that high-income folks would pay at least a minimum amount of income tax. Sound familiar? It seems awfully similar the “Buffett rule,” the principle that those with incomes above $1 million should pay at least 30 percent of their income in taxes. As currently [...]

In the face of growing income inequality and big budget deficits, some political leaders and commentators are showing a growing interest in raising taxes on the rich. But the ideas on the table would have very different results. The Tax Policy Center has looked at several plans, including the 28 percent limit on the tax [...]

After a frantic day of listening to rival briefings and addressing reporters’ questions on the new tax reform plans unveiled by President Obama and Governor Romney, an old tale stuck in my mind. It was the famous Hans Christian Anderson fable of the emperor and his new clothes. You know the story: A powerful emperor [...]

The top tax rate on long-term capital gains is currently 15%. That’s why Mitt Romney is spending so much time talking about his tax returns. That revelation has set off a familiar debate about whether that low rate is appropriate. Often overlooked in these discussions, however, is the fact that the days of the 15% [...]

The year’s top story in state and local government was “hundreds of billions of dollars” in municipal bond defaults.  Oh wait, that didn’t happen.  It was “states coming to Congress as mendicants, seeking relief from the consequences of their choices.”  No, although the Dickensian imagery may fit with the holiday decorations, that didn’t happen either.  [...]

2011 was another active year for America’s tax and fiscal policy; thank you for sharing it with TaxVox. As we look forward to a busy 2012, we hope you’ll remember us in your end-of-year giving. By supporting the Tax Policy Center, you can help inform the debate about America’s fiscal future. Every tax-deductible gift will [...]

By Dan Baneman and Jim Nunns With election season heating up and 2012 just around the corner, we are hearing a lot about the pending expiration of the Bush-era tax cuts.  If the debate over the original 2010 expiration is any guide, much will center on whether the top rate should increase from 35 percent [...]

A year ago, the big worry in Washington was whether Congress would extend the Bush tax cuts before their end-of-year expiration. Failure would have meant a huge tax hike. This year the question is whether the super committee will produce a budget plan before its Thanksgiving deadline. Failure could mean huge spending cuts. Meanwhile, nobody [...]