This year, Congress will consider what may be the biggest tax bill in decades. This is one of a series of briefs the Tax Policy Center has prepared to help people follow the debate. Each focuses on a key tax policy issue that Congress and the Trump administration may address. This brief walks...
In this article, Rosenthal argues that Republican presidential nominee Donald Trump aggressively stretched the law to avoid hundreds of millions of dollars of discharge of indebtedness income.
This article was originally published by TaxNotes.
This testimony describes how taxes on corporate earnings have dropped because of corporate moves to avoid taxes and because of shareholder shifts from taxable to nontaxable accounts. Secondly, the testimony describes how a lower estimate of the taxable share of US stock complicates attempts to...
In this report, Rosenthal and Austin demonstrate that the share of U.S. stocks held by taxable accounts has declined sharply over the last 50 years, and they urge lawmakers to carefully consider this shareholder base erosion when determining how best to tax corporate earnings.
We explore issues related to a financial transaction tax (FTT) in the United States. We trace the history and current practice of the tax in the United States and other countries, review evidence of its impact on financial markets, and explore the key design issues any such tax must address. We...
The massive financial market failures that led to the Great Recession have prompted renewed calls for a financial transaction tax (FTT) to discourage excessive risk taking and recoup the costs of the crisis. A well-designed FTT could raise up to about 0.4 percent of GDP ($75 billion in 2017) in...
In response to the financial market crisis and Great Recession, there has been a resurgence of interest in financial transaction taxes (FTTs) around the world. We estimate that a well-designed FTT could raise about $50 billion per year in the United States and would be quite progressive. We...
In a recent Tax Notes article, Shay argued that Treasury could write regulations to reduce the tax incentives for U.S. corporations to expatriate. Rosenthal agrees with Shay and analyzes the legal support for regulations under section 385.
This week, the Treasury Department finalized the last set of Obama-era regulations intended to curb tax-motivated corporate inversions. An inversion arises when a U.S. corporation...
Yesterday, the IRS issued a notice warning states that are contemplating one workaround to the Tax Cut and Jobs Act’s (TCJA) $10,000 annual limit on...
Seattle is currently having a contentious debate over a proposed "head tax" to fund more affordable housing and services for its large and growing homeless...
Last year, Congress proved it can act quickly—enacting the massive Tax Cuts and Jobs Act (TCJA) just six weeks after the first version was introduced...
The Tax Cut and Jobs Act (TCJA) that the Senate is debating this week would fundamentally change the way US-based multinational corporations are taxed on...
House Ways & Means Committee Chairman Kevin Brady’s recently-introduced tax plan promises to cap the income tax rate for income generated by pass-through businesses at...
The Trump Administration and congressional Republican leaders (the Big Six) have proposed a $70 billion-a-year tax cut for foreign investors. It stems from the cut...
Top aides to President Donald Trump argue that tax relief for the accumulated foreign earnings of US-based multinational corporations would be a boon for US...
Federal tax receipts have been coming in more slowly than expected, according to the Congressional Budget Office . Through the first eight months of the...
The “Main Street Fairness Act” ( H.R. 5076 and S. 707 ) requires tax “parity” between businesses organized as pass-throughs and corporations. The legislation has...
Yesterday, President-elect Trump tweeted he would leave his businesses “in total” to reduce his potential conflicts as President. The Office of Government Ethics (“OGE”), tweeted...
New information surfaced today that suggests that Donald Trump may not only have used aggressive tax planning to reduce his income tax bill to zero,...
Yesterday, the New York Times reported Donald Trump may have paid no federal income tax for nearly two decades. Leaked excerpts of Trump’s 1995 tax returns showed huge losses that the real estate mogul could have used to offset other income and zero out his income tax liability for many years.
Yesterday, top Senate Finance Committee Democrat Ron Wyden proposed major changes in the taxation of financial derivatives, contracts such as swaps,...
Pfizer’s recent decision to merge with Irish drugmaker Allergan generated headlines as the latest, and biggest, example of an inversion—where a U.S.-...
