As states reap in tax collections, governors and legislators face the question of how to manage the short-term windfall. New York Gov. Andrew Cuomo, who is pursuing targeted tax cuts in the hopes of reviving upstate businesses, is implementing the wrong policy, Rueben argues.
Forcing foundations to pay excise taxes punishes organizations that see spikes in donations — making it difficult for foundations to pay out more money when society's needs are most pressing. Steuerle proposes reforming taxes to allow foundations to optimize their work.
The federal government has been borrowing rapidly to not only finance recent budget deficits but also make financial investments. These investments now total about $1.1 trillion, and the debt supporting Uncle Sam’s investment portfolio accounts for almost 10 percent of the $11.9 trillion in public debt.
With a budget that is facing a $700 million shortfall, Kansas has set the stage for a perpetual budget crisis, Francis argues. Although lawmakers are trying to attract businesses to the state, the financial uncertainty and deficits Kansas will grapple with will undermine such efforts, he says.
Harris argues that changing deductions for mortgage interest and property tax payments may not bring home prices down, as some critics of tax reform have said, and makes the case for pushing a more efficient tax code forward.
The IRS is under investigation for illegally targeting the Tea Party and other conservative groups. Steuerle offers answers to seven basic questions about the IRS Tea Party scandal.
If Congress allows more people into the United States, our population, labor force, and economy will all get bigger. With immigration policy up in the air, the economy's trajectory will be difficult to predict.
In spite of its widespread use and large fiscal cost, the mortgage interest deduction does little to promote home ownership, Toder writes. It provides no subsidy to the nearly two-thirds of taxpayers who do not itemize and only a modest subsidy to those in the 15 percent bracket.
Online sales tax has growing bipartisan support among the nation’s governors, Francis writes, many of whom are strapped for tax revenues.
Congress could simplify child-care tax benefits by harmonizing the maximum allowable expenses for both benefits, or eliminating one of the benefits altogether, Maag writes.
President Obama's 2014 budget would limit tax benefits for workers with high-balance retirement saving accounts. The plan is a smart way to roll back the billions in tax breaks that go to investors who don’t need tax incentives to save for retirement, Harris writes.
President Obama's 2014 budget proposal calls for a so-called 'Buffett Rule' that would ensure that high-income households pay at least a minimum percentage of their income in taxes. It turns out that setting a floor on the taxes rich people pay is not so easy, Williams writes.
If Congress wants to encourage risk-taking, it may be better off focusing on new businesses, not small businesses, Gale writes.
Higher payroll taxes will take $115 billion out of workers’ pockets this year and cut consumer spending, according to the Tax Policy Center.
Backers of a territorial tax system argue that the current worldwide system puts US firms at a competitive disadvantage since they must pay the high US tax rate on repatriated profits earned by their affiliates in low-tax countries, while multinationals based in territorial countries pay only the local tax rate on these profits, Toder writes.
Stockton, Calif., will be the largest US municipality to enter bankruptcy. The question, Gordon writes, is: Who will be left holding the bag?
Corporate tax reform in the US seems to be inevitable, Harris writes, but questions remain over how to pay for it. Finland may have the answer.
The Supreme Court will rule on two gay marriage cases this week, including the Defense of Marriage Act (DOMA). Although DOMA is not primarily a tax law, taxes are the basis for the case going to the Supreme Court, Williams writes.
A bold plan in California would eventually make automatic enrollment widespread and could revolutionize the state’s retirement savings landscape, Harris writes.
That Capital gains taxes hamper economic growth is a widely held belief. The truth might not be so straightforward.