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Simple Is as Simple Does

Congress is in recess. The Daily Deduction will publish Mondays until Congress returns in mid-September. About those simple tax plans proffered in last week’s GOP debate… Bloomberg considers the plans shared by Mike Huckabee and Ben Carson, and finds devils in some details. Among them: Huckabee’s “

August 10, 2015Renu Zaretsky

: Daily Deduction

“If at first you don’t succeed, try, try, again.”

“ All by myself… ” Paul Ryan and international tax reform. The House Ways & Means chairman has his work cut out for him with his international tax plans. The Hill reports that Senate Republicans continue to express skepticism, including Senate Majority Leader Mitch McConnell , Majority Whip

August 7, 2015Renu Zaretsky

: Daily Deduction

Information: Additions, Disclosures, and Theft

Better revenues through form additions? The short-term highway funding extension gets about $1.8 billion in revenue over ten years from a change to an IRS form, reports Tax Analysts (paywall). The change goes into effect in 2017, even though the spending it helps pay for ends on October 29.

August 6, 2015Renu Zaretsky

: Daily Deduction

On Carbon, Soda, and the Safety Net

Are carbon taxes in our future? President Obama unveiled strong new rules to reduce carbon emissions this week. States could use pollution trading or “fees” (“carbon taxes”) to help meet their emission cutting requirements. Would it work? Brookings Institution economist Adele Morris told The

August 5, 2015Renu Zaretsky

Individual Taxes: TaxVox

The Case of the Little Wrong Thing: Evading Online Sales Tax

Our eight-year-old son wants to write the President. “He needs to get a law passed that will make it illegal to throw cigarette butts out of car windows.” I told him that littering was already illegal. “What?!” In his mind, littering must be legal if everybody does it. He shook his head,

August 5, 2015Renu Zaretsky

: Daily Deduction

Tax-Exempt Status, Tax Breaks, and the Limits of Economic Recovery

Colleges that oppose same-sex marriage can keep their tax-exempt status. Granted, the US Supreme Court ruled that same-sex marriage is legal in all 50 states. But testifying before the Senate Judiciary Oversight Subcommittee last week, IRS Commissioner John Koskinen said, “At this time there is no

August 4, 2015Renu Zaretsky

State and Local Issues: TaxVox

Recovery cannot save state budgets from politics

During the Great Recession and its aftermath, the economy wreaked havoc on state budget negotiations, forcing tough votes on spending cuts and tax increases. Since then the economy has improved, state tax revenue are growing, and legislatures have more room to maneuver during budget season. Yet

August 3, 2015Richard C. Auxier

: Daily Deduction

Happiness Is: Paying Your Taxes?

The Clintons earn a lot income, and pay a lot in taxes. Former President Bill Clinton and Democratic presidential candidate Hillary Clinton released eight years of tax returns over the weekend. They paid about $43 million in federal taxes between 2007 and 2014 on earnings of $139 million. In 2012,

August 3, 2015Renu Zaretsky

: Daily Deduction

“Although they’ve come… to the end of the road… They still can’t let it go…”

To the President’s desk: A short-term highway patch. Yesterday the Senate approved an $8 billion stop-gap authorization for federal transportation funding, with just a day to spare before funding is due to expire. This brings the number of short-term extensions in the past six years to 34. Congress

July 31, 2015Renu Zaretsky

: Daily Deduction

Long-term Highway Funding: “Ain’t no time like three months from now”

Another summer kick of the can…down the “highway.” The Senate will vote today on its long-term highway bill. Of course, the House has already gone home for August, so the Senate will also extend federal highway funding for three months before it expires tomorrow. The White House signaled that

July 30, 2015Renu Zaretsky

Individual Taxes: TaxVox

States That Cut Taxes Do So At Their Peril

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

July 29, 2015William G. Gale

: Daily Deduction

Another Short-Term Rescue and a Misdiagnosed Problem

The latest on highway funding… Just before leaving town for its August recess, the House approved a three-month extension of highway funding until October 29. That is likely to push the Senate to follow suit. The Senate is likely to act tomorrow. Lawmakers say they’ll use the extra time to work

July 29, 2015Renu Zaretsky

Campaigns, Proposals, and Reforms: TaxVox

Hillary Clinton’s Off-the-Mark Proposal to Encourage More Patient Investors

Democratic presidential hopeful Hillary Clinton has proposed to radically rejigger top capital gains tax rates to encourage investors to take a longer-term perspective. But I think she’s misdiagnosed the problem and, even if she’s right, the proposal won’t work as she expects. Her idea: Give

July 28, 2015Leonard E. Burman

: Daily Deduction

Running Out the Clock on the Hill?

Highway funding work continues. The Senate continues its work on highway funding legislation , scrambling to finish its work by the end of the week. If it doesn’t send a bill over by tomorrow , the House will not have to time to consider it before current funding expires on Friday. Neither the

July 28, 2015Renu Zaretsky

Individual Taxes: Current Law