Archive for the ‘Stupid Tax Tricks’ Category

Tax-Free Olympic Boodle is Gold Medal Stupidity

President Obama and conservative GOP senator Marco Rubio (R-FL) agree: Olympic medals and the cash awards that go with them should be tax-exempt. This is the dumbest idea of the summer—and in our overheated campaign season, that’s saying something. The idea seems to have originated with anti-tax advocate Grover Norquist. Rubio instantly turned Norquist’s press […]

Three Strikes and You’re Out for Tax Extenders

On Tuesday, the Senate Finance Committee held a hearing on “Extenders and Tax Reform: Seeking Long-Term Solutions.”  It’s about time!  The charade of annual or biennial debate about perpetually “expiring” tax provisions is terrible tax policy and a symbol of our failure to come to terms with budget reality. If you need help sleeping, download the Joint […]

The Final Frontier: A Tax Break for Burial in Space

Just when you thought you’ve heard it all, the Virginia General Assembly is about to consider a bill that would provide a tax subsidy to encourage people to be buried in space. Is buried the right verb? Republican Delegate Terry Kilgore has proposed a deduction of up to $8,000 for people who agree to have […]

Why A Repatriation Tax Holiday is Still a Bad Idea

In another one of those bad ideas that never seem to go away, Congress may be about to grant a huge tax break to multinational companies that have stashed earnings in their foreign subsidiaries. A temporary tax holiday for firms that return those profits to the United States is the latest evidence that bipartisanship is […]

Jon Stewart’s Fake News on Tax Expenditures

Dear Jon, The Daily Show is my favorite TV show.  I think you’re the smartest policy analyst on television.  (Okay, as you prove time after time, that’s a really low bar, but, seriously, you’re brilliant.) Last month, however, your satire missed the mark.  You had a lot of fun with President Obama’s pledge to make “spending […]

Why do cash-strapped states subsidize moviemakers?

While states are trying to balance their budgets by cutting education and health care as well as aid to local governments, governors are fighting to protect truly important initiatives such as film industry tax credits.  In today’s LA Times, Michael Kinsley does a great job dissecting these boondoggles. He cites a nice paper by Bob […]

The Tax Vox 2010 Lump of Coal Award, Job-Killing Edition

It’s time for Tax Vox’s fourth annual Lump of Coal Award, given to 2010′s worst moments in fiscal policy. Bad law, outrageous rhetoric, and months of inaction made it tough to choose, but here are our Top 10 nominees: 10. A GOP leadership that sees “job-killers’ everywhere. The health bill was a job killer. The […]

The Roth Rollover Boondoggle

High-income investors are about to enjoy a massive tax windfall from Uncle Sam. In just a few months, they’ll be able to convert their Individual Retirement Accounts–where investment earnings are taxable at withdrawal– to Roth IRAs– where they are tax-free. As financial planners are happily telling their big-ticket clients, this will be the gift that keeps on giving.

The HAPPY Act

Representative Thaddeus McCotter, a fourth-term Republican from Livonia MI, has introduced the HAPPY Act—the Humanity and Pets Partnered Through the Years Act. It is HR 3501, and it was introduced on July 31. You could look it up.
The HAPPY Act would allow taxpayers to deduct up to $3,500-a-year in pet care expenses, including vet care.
The federal deficit so far this year is $1.268 trillion.

Re-cycling stupid tax tricks

As a bike freak and a tax geek, you’d think that I’d be thrilled about the new tax break for qualified bicycle-commuting reimbursement. I’ve been riding my bike to work for 30 years, so this new tax expenditure has my name written all over it. The biker in me wants to cry out, “It’s about time!” But the tax geek just groans.