Posts Tagged ‘tax deductions’

Let Legal Marijuana Dispensaries Deduct Their Business Expenses

Firms can legally sell medical marijuana in 19 states and the District of Columbia and recreational weed in two. They must pay federal income taxes, but unlike all other businesses they are prohibited from reducing their taxable income by deducting business expenses. It is, to say the least, an odd state of affairs. Almost all […]

Who Benefits from Tax Preferences? You Do.

The Congressional Budget Office report on the distribution of tax expenditures is getting lots of buzz, nearly all of it positive. This is a gratifying and somewhat surprising outcome. The paper confirms many of the findings of my Tax Policy Center colleagues who have done similar analyses in recent years. The basic story is pretty […]

The Challenge of Cutting Deductions to Lower Tax Rates

Two interesting new papers from the Congressional Research Service highlight a major challenge faced by any tax reform that reduces itemized deductions to help pay for lower tax rates—lots of middle-income people would lose at least some benefits from scaling back those deductions. It isn’t a new lesson, but it is one that bears repeating. For instance, […]

Congress Can’t Avoid Tax Rate Hikes By Closing “Loopholes”

You can tell when Congress and the President have tough choices to make. That’s when they trot out the euphemisms—all aimed at making what they are about to do sound as benign as possible.  Case in point: the impending fiscal cliff. If you listened to President Obama and House Speaker John Boehner’s radio addresses last Saturday, […]

What Did We Learn from the Presidential Debate? Not Much.

The breathlessly-hyped debate between President Obama and Governor Romney left me with an empty feeling. There were many words–oh, there were words– but even the most casual observer of the campaign has heard most of them before. Yet when it comes to economic policy,  I learned almost nothing new about how either Romney or Obama would govern over the next […]