Archive for the ‘State and Local Taxes’ Category

State Taxes and the April Surprise

In recent months, several governors have complained about the April, 2014, surprise in state tax revenues. They say they were shocked when personal income tax payments fell far below expectations. They shouldn’t have been. What happened? In part, in an effort to beat an upcoming increase in capital gains taxes, investors accelerated realizations into tax […]

What’s The Matter With Kansas And Its Tax Cuts? It Can’t Do Math

Kansas Governor Sam Brownback and his state legislature have embarked on a wonderful natural experiment. Once again we are testing the question: Can tax cuts pay for themselves? The answer– yet again– is a resounding no. We’ve tried this experiment time and again. And tax cut proponents such as economist Art Laffer continue to insist they […]

Close But No Cigar: The Politics of Class, Race, and Taxes

This week, the District of Columbia City Council approved a major tax reform bill. And, as it happens, some important—but unspoken– issues of race and class are underlying key changes to the revenue code. Earlier this year, the DC Tax Revision Commission proposed a broad rewrite of the city’s tax code, including two modest but […]

U.S. Taxes Have Changed A Lot Since 1929

U.S. taxes today bear little resemblance to the taxes collected before World War II. Income and payroll taxes have replaced tariffs and excise taxes at the federal level while property taxes have become less important for state and local governments. And while the feds collected just one-third of all revenue before the war, they now […]

Making State and Local Taxes “Friendly” to Small Businesses

Small business owners are more concerned with the complexity of state and local tax laws than with the amount of tax they pay, according to a recent survey conducted by Thumbtack.com in partnership with the Ewing Marion Kaufman Foundation. Aside from economic conditions, small business owners’ perception of the ease of compliance with licensing, regulatory, […]

Ohio Lawmakers Turn A Surprise Surplus Into A Huge Tax Cut

What does a state do when faced with a 14 percent decline in income tax collections, much of it due to past tax cuts? Why, it cuts taxes even more—especially when that fall in revenues is lower than expected and—combined with lower spending — results in a surprising $700 million budget surplus. That seems to […]

Washington DC’s Tax Revision Commission Plan

Last year, I had the privilege of serving on the District of Columbia’s Tax Revision Commission, chaired by former mayor Tony Williams. On Monday, the Tax Policy Center will host a panel to discuss our broad-based effort to rework DC’s often unwieldy revenue system. To prepare, I looked more closely at how the personal income […]

Camp Tax Reform Would Create New Challenges for States

House Ways and Means Chair Dave Camp’s recent tax reform plan would raise the cost of doing business for many state and local governments. Camp would repeal the deductibility of state and local taxes, including both property taxes and income taxes. He’d abolish tax-exempt private activity bonds. And he’d impose a 10 percent surtax on municipal […]

How To Fix Washington, DC’s Tax System

An advisory commission has recommended some interesting changes to the District of Columbia’s tax system. The commission’s proposals may provide some useful lessons for other states looking to reform their tax codes. In some ways, of course, DC is unique. While it is a city, it functions much like a state. However, because of its […]

Oscar Nominees Cash In On State Tax Subsidies

Each of the nine movies nominated for this year’s Oscar for best film may already have taken home a pile of tax subsidies. Seven brought back state goodies from the U.S. and two got cash for their work in the U.K. And, according to data collected by the Manhattan Institute, the winner is….Wolf of Wall Street. […]