Archive for the ‘Types of Taxes’ Category

A Payroll Tax Math Error Adds $5 Billion To The Deficit

Nothing gets lawmakers and pundits more outraged than government’s proverbial waste, fraud, and abuse. Nearly always, these stories involve spending. But taxes are hardly immune. One case of pure waste involves a simple math mistake that will cost the Treasury $5 billion in lost revenue over the next decade. Much of this windfall goes to […]

The Real IRS Flap Is About Dark Money, Not Emails

Don’t get distracted by the political theater over lost IRS emails. There is little new about headline-seeking politicians berating IRS Commissioner John Koskinen. Like most of what happens in Congress these days, these second-rate star chambers do little more than create cable TV sound bites and base-motivating outrage. But get past the shouting and two […]

The Corker-Murphy Gas Tax Hike: A Good Idea Spoiled

Senators Bob Corker (R-TN) and Chris Murphy (D-CT) deserve enormous credit for having the courage to do what few of their colleagues would: Propose to pay for transportation projects by raising the gas tax.  It’s too bad they’d ruin such a sensible, straight-forward idea with a ridiculous budget gimmick. Their bill would hike the gas […]

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, […]

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion

How can a company headquartered in Minneapolis merge with a competitor run out of Mansfield, Massachusetts in order to pay taxes in Ireland?  It’s just another day in corporate inversion-land, where an opportunity to cut taxes is once again driving key business decisions. This time, the buyer is Minnesota-based medical device maker Medtronic Inc. Its […]

The Strange Fruit of the House’s Bonus Depreciation Bill

When the Ways & Means Committee sent the House a measure to make permanent extra-generous tax subsidies for firms that purchase capital equipment, I noted in passing that the bill included a provision extending “bonus depreciation” rules to fruit and nut trees. If I had read the bill more carefully, I would have noticed that while […]

Good And Bad News About The ACA Penalty Tax

An important feature of the Affordable Care Act (ACA) is the penalty tax imposed on people who do not have health insurance. But newly updated report from the Congressional Budget Office projects that just under 4 million people will pay the penalty in 2016, less than 15 percent of the estimated 30 million people who […]

Did Multinationals Use a Foreign Earnings Tax Holiday To Burnish Their Financials Rather Than Reduce Taxes?

We’ve known for years that the 2004 repatriation tax holiday did little to boost domestic investment or create U.S. jobs, as promised by its backers. Now we are learning that many multinational corporations were not even interested in using the temporary holiday to cut their taxes. Instead, according to a new study, it may have been little more […]

Are Domestic Partnerships A Way For Heterosexual Couples To Avoid The Marriage Tax Penalty?

In their zeal to provide a legal alternative to banned marriage for same-sex couples, some states may have created a new tax shelter for heterosexual couples. By choosing domestic partnership or civil union over marriage, opposite-sex couples are able to avoid paying a federal income tax marriage penalty, just as same-sex couples can. Over the […]

Could EPA’s New Greenhouse Gas Rules Open the Door to a State-based Carbon Tax?

EPA’s proposed tough new standards for power-plant emissions of greenhouse gasses opens the door to new state or regional cap-and-trade systems to limit carbon discharges. It is less clear whether it would go the next step and permit states to impose their own carbon tax. The proposed EPA rules, which Brookings senior fellow Barry Rabe […]