In a 5-4 decision, the U.S. Supreme Court ruled today that a Maryland law is unconstitutional because it allows residents only a partial tax credit for out-of-state income that is taxed in other states. The decision not only invalidates the Maryland law but may also limit similar taxes in New York

The Senate Finance Committee’s working groups on tax reform have narrowed their focus. Chair Orrin Hatch sounds like he’s given up on broad-based reform for now, but Tax Analysts reports (paywall) that the groups have focused on four areas where they still may make progress: Education, charity, and

Be careful what you wish for. Businesses have backed an overhaul of the US tax code for quite some time, but their tune changes when it comes to corporate tax reform in other countries. The Base Erosion and Profit Shifting project, or BEPS, is an effort by the Organization for Economic Cooperation

The silence is deafening. Remarkably, Republicans lining up to run for president aren't talking about cutting taxes. Tax reform? Sure. Rate cuts? Absolutely. But so far at least, national Republicans seem more willing to tackle same-sex marriage than big Ronald Reagan/George W. Bush-style tax cuts

The Illinois Supreme Court says “No” to the state’s proposed pension overhaul. The plan would have limited cost-of-living adjustments for public employees, raised the retirement age for some, and capped pensions for those with highest salaries. But the Illinois constitution says benefits for public

Headline in this morning’s Washington Post : “In a Slog Forward, Congress Passes Budget.” I’ll leave it to others to parse what a slog forward is, but rest assured Congress has not passed a budget. Congressional Republicans, with no support from Democrats, have approved a budget resolution. But

Texas is cutting taxes this year. Although we do not yet know exactly what will get cut because the House and Senate are sorting out competing bills , we already know the outcome: Better-off Texans will get more tax relief dollars than low-income residents of the Lone Star State. Why? Because Texas

My dad taught a teenage me an important lesson when he helped me file my first federal income tax return. I earned the minimum wage at a part-time job, and didn’t have to file. But he explained that I should file, knowing my effort would be rewarded. “You don’t earn enough to owe income taxes,” he

I am delighted to announce a major new endowment gift for the Tax Policy Center from Robert C. Pozen. His gift will establish the Pozen Director’s Chair at TPC in perpetuity. I’m honored to be its inaugural holder. Bob is a widely respected leader in finance and public policy and author of several

Will cuts to a state’s top income tax rate boost growth? Not necessarily. In a new TPC paper , Bill Gale, Aaron Krupkin, and Kim Rueben find little evidence linking state-level economic growth and taxes, especially income tax policy. Neither tax revenues nor top income tax rates have a steady

The GOP calls for Affordable Care Act repeal in its budget resolution. The 10-year plan would cut planned spending by more than $5 trillion, retain the $1.017 trillion sequestration budget ceiling for 2016, and increase off-budget military spending. It would also use budget reconciliation to try to

Plans to raise state gas taxes move down the road in Minnesota and South Carolina. The Minnesota Senate passed a 16-cent-per-gallon gas tax hike that would be triggered when pump prices fall to $2.50 per gallon. Minnesota’s levy is currently 28.5 cents per gallon. In South Carolina, the Senate will