Archive for the ‘Types of Taxes’ Category

If Congress Lets Firms Expense Investments, It Should Take Away Their Interest Deduction

Egged on by business lobbyists, congressional tax writers seem increasingly interested in allowing firms to rapidly write off the cost of their capital investments. Especially in the House, lawmakers would allow small businesses to expense the full cost of their investments in the year they are acquired, and let larger firms heavily front-load tax depreciation […]

Congress Fiddles While Bridges Crumble

It isn’t news that congressional Democrats and Republicans have agreed to spend the time between now and the November elections messaging, rather than legislating. When it comes to domestic policy it has only two real issues on its must-do list: Deciding the fate of 50+ tax breaks that expired last December and figuring out what […]

What’s Behind That 1040? Check Out TPC’s Interactive Tax Forms

Federal income taxes are complicated. That’s why roughly 90 percent of us either hire someone to prepare our tax returns or use computer software to do the job on our own. Only a tenth of us actually sit down and fill out the forms by hand. But it’s still important to understand what goes onto […]

Seven Tax Issues Facing Small Business

Today I had the chance to testify before the House Small Business Committee on the many tax issues facing small business. Here are my opening remarks. You can find my full testimony here. America’s tax system is needlessly complex, economically harmful, and often unfair. Despite recent revenue gains, it likely will not raise enough money […]

If You Have High Income, Your Taxes Are Going Up

As the April 15 deadline for filing 2013 income taxes nears, most of us are finding that Uncle Sam will take about the same share of our income as last year. But the story is very different for people at the top of the income ladder. Their taxes are going up, in many cases by […]

Two Ways to Fix the Corporate Income Tax: Internationalize it or Kill It

In an important new paper, Eric Toder of the Tax Policy Center and Alan Viard of the American Enterprise Institute say that corporate tax reforms now being debated in Congress fall far short of solving the widespread problems with the levy. Rather than merely lowering rates and tinkering with tax rules for U.S.- based multi-national […]

An EPA-Sanctioned State-Based Carbon Tax Could Reduce Emissions and Improve State Finances

The U.S. Environmental Protection Agency (EPA) is developing a proposed rule due out in June that could allow states to use carbon excise taxes or fees to limit the one-third of U.S. greenhouse gas emissions that come from power plants. The tax approach, one of several options EPA could offer states, could provide an important […]

You Could Owe Capital Gains Taxes When You Spend Bitcoin

The IRS determined this week that Bitcoin and other digital currencies should be taxed as property, not currency. This means Bitcoin transactions will be taxed as capital gains, not as ordinary income. But, perhaps surprisingly, the act of spending Bitcoin could trigger capital gains taxes. Thus, the use of virtual currencies as a medium of […]

As American as Apple Inc.

Are large U.S. multinationals largely U.S. owned? To hear some of the arguments for retaining or enhancing the tax benefits that these companies enjoy, you’d think this was a given. Think again. Quirks in the tax laws essentially provide large U.S. multinationals like Apple, Google, and Cisco with a kind of turbo-charged Individual Retirement Account […]

A Terrible Response to the Internet Tax Mess

Ten months ago the Senate overwhelmingly passed legislation aimed at sorting out the mess over online sales taxes, which consumers owe but states rarely collect. Now, House GOP leaders are floating what they call a compromise:  Set national rules for sales tax collection based on the location of the seller, not the buyer.  It is […]