Total state tax revenue collections increased 24.1 percent in nominal terms and 17.2 percent in real terms in the fourth quarter of 2021 relative to a year earlier.
Although state revenue collections have grown rapidly in the most recent months and reported revenue growth is widespread...
Standard analysis of the corporate income tax assumes shareholders bear the burden of taxes on excess returns. But evidence shows that firms share rents with workers, especially high-income workers, which implies that these workers bear some of the burden as well. Using the Tax Policy Center...
State tax revenues saw large swings since the onset of the pandemic, in part because of government actions and behavioral responses to mitigate virus exposure.
States reported strong revenue growth in the second quarter of 2021, but that is largely because of the lower base in 2020. Still...
This brief documents how the US tax system treats the most common forms of equity compensation, including stock, restricted stock units, and stock options. In most cases, these forms of equity compensation are taxed just like cash wages, salaries, and bonuses. Employees pay ordinary income taxes...
The Trump administration has announced the broad outlines of a tax reform plan that contains many provisions similar to those in the House GOP tax reform “blueprint” announced last year, but there are fundamental differences in the provisions affecting businesses and investors. While different,...
Territorial tax systems require clear rules to distinguish between taxable domestic and exempt foreign-source income. Defining the source of a multinational company’s profits is difficult, however, especially for profits that are attributable to intangible assets. Shifting of reported profits to...
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.
Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related,...
This paper analyzes presidential candidate Jeb Bush’s tax proposal. It would reduce individual and business marginal tax rates, curtail tax expenditures, and convert the corporate income tax into a cash-flow consumption tax. The proposal would cut taxes at all income levels, reducing federal...
In a contribution to the Policy Dialogue on Entrepreneurship blog of Kauffman.org. Joseph Rosenberg and Donald Marron examine how tax policy affects investment incentives for startup companies. Startups often make losses, and thus cannot make immediate use of the R&D tax credit, accelerated...
State Tax and Economic Review, 2021 Quarter 4
Total state tax revenue collections increased 24.1 percent in nominal terms and 17.2 percent in real terms in the fourth quarter of 2021 relative to a year earlier.
Although state revenue collections have grown rapidly in the most recent months and reported revenue growth is widespread...
Rethinking the Corporate Income Tax: The Role of Rent Sharing
Standard analysis of the corporate income tax assumes shareholders bear the burden of taxes on excess returns. But evidence shows that firms share rents with workers, especially high-income workers, which implies that these workers bear some of the burden as well. Using the Tax Policy Center...
State Tax and Economic Review, 2021 Quarter 2
State tax revenues saw large swings since the onset of the pandemic, in part because of government actions and behavioral responses to mitigate virus exposure.
States reported strong revenue growth in the second quarter of 2021, but that is largely because of the lower base in 2020. Still...
How Should Tax Reform Treat Employee Stock and Options?
This brief documents how the US tax system treats the most common forms of equity compensation, including stock, restricted stock units, and stock options. In most cases, these forms of equity compensation are taxed just like cash wages, salaries, and bonuses. Employees pay ordinary income taxes...
Neutral Tax Reform with 15 Percent Business Income Tax Rate
The Trump administration has announced the broad outlines of a tax reform plan that contains many provisions similar to those in the House GOP tax reform “blueprint” announced last year, but there are fundamental differences in the provisions affecting businesses and investors. While different,...
Is a Territorial Tax System Viable for the United States?
Territorial tax systems require clear rules to distinguish between taxable domestic and exempt foreign-source income. Defining the source of a multinational company’s profits is difficult, however, especially for profits that are attributable to intangible assets. Shifting of reported profits to...
Protecting Trump's $916 Million of NOLs
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.
A Federal Consumption Tax as Replacement for the Employer Payroll Tax
Introducing a federal consumption tax as a replacement for the employer payroll tax would achieve the intended policy goals of prior consumption tax proposals while overcoming their policy shortcomings. The base and design of the consumption and employer payroll taxes are closely related,...
An Analysis of Governor Bush's Tax Plan
This paper analyzes presidential candidate Jeb Bush’s tax proposal. It would reduce individual and business marginal tax rates, curtail tax expenditures, and convert the corporate income tax into a cash-flow consumption tax. The proposal would cut taxes at all income levels, reducing federal...
How Much Do Taxes Affect Startup Investment Incentives
In a contribution to the Policy Dialogue on Entrepreneurship blog of Kauffman.org. Joseph Rosenberg and Donald Marron examine how tax policy affects investment incentives for startup companies. Startups often make losses, and thus cannot make immediate use of the R&D tax credit, accelerated...