Tag: ‘state and local taxes’

New Rules Will Require States to Be More Transparent About Tax Subsidies

By :: August 18th, 2015

Congrats to the Government Accounting Standards Board for pushing state and local governments to be more transparent about their tax subsidies. Last week, the agency approved new disclosure requirements that will require states and localities to publicly disclose how much of a given tax is being abated, what other commitments they make as part of […]

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States That Cut Taxes Do So At Their Peril

By :: July 29th, 2015

Ever since the 1970s, when Jude Wanniski and Arthur Laffer came up with the ideas that are now referred to as supply-side economics, conservative politicians have been unable to resist the siren song of tax cuts for big earners. In recent years, this enthusiasm has spread to state governments led by conservatives, offering new tests […]

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A Divided Supreme Court Rejects Maryland’s Tax On Out-Of-State Income

By :: May 18th, 2015

In a 5-4 decision, the U.S. Supreme Court ruled today that a Maryland law is unconstitutional because it allows residents only a partial tax credit for out-of-state income that is taxed in other states.  The decision not only invalidates the Maryland law but may also limit similar taxes in New York, Pennsylvania, Indiana, and Ohio. […]

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Can States Boost Growth By Cutting Top Individual Tax Rates?

By :: May 4th, 2015

States can generate powerful economic growth by cutting income tax rates. That, at least, is the theory behind a recent wave of tax cuts, or proposed tax cuts, around the country. Kansas has cut taxes repeatedly in recent years. So has Wisconsin. In Maine, Governor Paul LePage vows to repeal his state’s income tax entirely.  […]

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One Solution to California’s Drought: Tax Water

By :: April 7th, 2015

The idea is straight out of Economics 101: If you want people to do less of something, raise the price. And California desperately needs its residents and businesses to use less water. So rather than trying to curb water use through a complex maze of regulation, why not just raise the price though a new […]

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GOP Governors Flirt with Tax Hikes but Still Wedded to Income Tax Cuts

By :: February 25th, 2015

The New York Times recently reported Republican governors across the country were “bucking the party line” on taxes, citing eight GOP executives proposing tax hikes. Bloomberg also noted the trend of Republican governors and “much-regretted” tax increases earlier this week. However, the Wall Street Journal just heralded “The Tax-Cutting Boon Sweeping the States.” So is […]

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Do Sales Tax Holidays Ever Make Sense?

By :: August 18th, 2014

Politicians love sales tax holidays as good campaign fodder. Retailers celebrate them with gaudy signs announcing tax-free shopping, and consumers line up to take advantage of the deals. But economists and policy analysts across the ideological spectrum condemn them as poorly targeted tax policy that produces little economic benefit. Is there any fiscal justification for […]

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Making State and Local Taxes “Friendly” to Small Businesses

By :: June 19th, 2014

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, […]

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How To Fix Washington, DC's Tax System

By :: February 18th, 2014

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 […]

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A New TPC Resource on State Economic Conditions

By :: July 9th, 2013

It isn’t easy to get up-to-date information about state and local economic conditions. Now, a new one-stop resource from The Tax Policy Center’s State and Local Finance Initiative is available to help. The Initiative published its first quarterly State Economic Monitor today. It’s filled with useful information about state labor markets, housing, tax revenues, and overall […]

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