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T14-0115 - Total EITC Claims ($ millions), 2008

November 17, 2014

Spin Alert: DOE Loans Are Losing Money, Not Making Profits

The Department of Energy snookered the media last week with a report that seems to show that its clean energy lending programs are profitable. “ Remember Solyndra? Those loans are making money ,” went a typical headline. Unfortunately, that’s not true. Taxpayers are losing money on DOE lending.

November 17, 2014Donald Marron

: Daily Deduction

How Quickly Can Lame Ducks Move Before the Holidays?

On the Hill this week: House Republicans will choose either Paul Ryan or Kevin Brady to be the next Ways & Means Committee chair. But Ryan would have to give up the gavel if he chooses to run for president, according to a new party rule approved last week. Meanwhile, senior tax writing

November 17, 2014Renu Zaretsky

Individual Taxes

New Resources for Microdata-Based Tax Analysis

The Statistics of Income (SOI) Division of IRS prepares a publicly available file, the Public Use File, from its annual sample of income tax returns. The PUF is a critical data source for tax policy analysis. To insure taxpayer confidentiality, SOI applies disclosure avoidance procedures to the PUF

November 15, 2014Victoria L. Bryant John L. Czajka James R. Nunns Georgia Ivsin

: TaxVox

A Billionaire Saves, Two Words Disappear, and Three Provisions Protect

There’s more than one way to skin a cat (and reduce taxes). Warren Buffett, chairman of Berkshire Hathaway, has made a swap for Procter & Gamble’s interest in Duracell. The “cash-rich split-off” means that Berkshire Hathaway bought Duracell in exchange for its appreciated P&G stock, worth $

November 14, 2014Renu Zaretsky

Business Taxes: TaxVox

How Did Medical Device Makers Become Poster Children for Obamacare Critics

The push to repeal the Affordable Care Act’s tax on medical devices has somehow become a touchstone for GOP efforts to chip away at President Obama’s health care law. But why? To paraphrase Bogart’s classic line from Casablanca: Of all the taxes in all laws in all the world, why did they pick this

November 13, 2014Howard Gleckman

: TaxVox

Liability, Math, and Budget Crunches

Can a state tax all of the income of its residents, wherever it is earned? The US Supreme Court heard oral arguments yesterday in Comptroller v. Wynne . A decision will answer whether residents of one state are liable for taxes on income earned in another state, even if that income has already been

November 13, 2014Renu Zaretsky

: Daily Deduction

Clicks, Pumps, Dreams and Time… How Many May See Their Taxes Rise?

Cyber Monday will live to hear another click. Speaker of the House John Boehner has at least temporarily killed the Marketplace Fairness Act. The bill, which would allow states to require out-of-state websites to collect Internet sales tax, passed the Senate last year with bipartisan support . Tax

November 12, 2014Renu Zaretsky

Individual Taxes: TaxVox

Now is the Perfect Time to Raise Gas Taxes

Let’s see if I have this right: Congress needs to finance highway and transit projects but can’t agree on how. The traditional revenue source is the gasoline tax. Gas prices are at their lowest levels in years and dropping. Consumers would barely notice if they had to pay a bit more now at the pump

November 11, 2014Howard Gleckman

: TaxVox

You Can’t Always Get What You Want, But If You Tax Sometimes…

Taxes are going up in the Windy City… again. The Chicago city council is about to approve a $62.4 million tax hike on everything from parking and auto leases to cable TV and tickets to live sports and entertainment. Yesterday, the City Council’s finance committee approved a host of targeted

November 11, 2014Renu Zaretsky

Individual Taxes: Brief

Tax Policy and Volunteer Labor

Volunteers are extremely valuable to the charitable sector: Urban Institute researchers estimated the value of their labor at $163 billion in 2013. Though charitable contributions can be deducted from income taxes, volunteers cannot deduct the value of their labor. By economic consensus, donations

November 11, 2014Katherine Toran

: TaxVox

ACA Tax Provisions Still Under Fire

Together again: The US Supreme Court, the IRS, and the Affordable Care Act. Two years ago, the Court ruled that the ACA health care mandate is a constitutional tax. Now, it has decided to consider whether the IRS has overstepped its authority by providing premium tax credits to enrollees in

November 10, 2014Renu Zaretsky

: TaxVox

Tidings of Comfort and… Low Rates.

The secret’s out: Luxembourg sent “comfort letters” to 300 companies and slashed their tax bills. The companies include Pepsi, AIG, Ikea, FedEx, and Deutsche Bank. The International Consortium of Investigative Journalists review leaked documents which show that companies channeled hundreds of

November 7, 2014Renu Zaretsky

State and Local Issues: TaxVox

Voters Hate Gas Tax Hikes—That's a Problem for States

On Election Day, Massachusetts voters proved once again that increasing the gas tax is a political loser . And that's a problem. As I explain in a new Tax Policy Center brief , the federal government and most states have per-unit gas taxes. That is, they tax the number gallons purchased, not the

November 6, 2014Richard C. Auxier

State and Local Issues: TaxVox

Did Tax Hikes Doom Governors? Did Tax Cuts Elect Them?

At first glance, the message was pretty clear: If you were a governor who cut taxes, you probably got reelected on Tuesday. If you were a governor who raised taxes (or even a candidate who worked for one) you probably lost. It was true in deep red states like Kansas where, against all odds, Sam

November 6, 2014Howard Gleckman

: Daily Deduction

Don’t Call It a Comeback… Yet.

Betting on tax reform in the 114th Congress? Consider some insight from TPC’s Bill Gale . GOP control won’t make gridlock disappear, even if President Obama and Senate Majority Leader Mitch McConnell somehow do get along. The business community is not united on business tax reform. The GOP and the

November 6, 2014Renu Zaretsky

State and Local Issues: Brief

Reforming State Gas Taxes

How States Are (and Are Not) Addressing an Eroding Tax Base

The federal government and most states have per-unit gas taxes. Because they tax gallons purchased, and not a percentage of purchase price, revenues are falling across the country as Americans buy less gas. If states do not want to cut transportation projects they now have to increase tax rates or

November 6, 2014Richard C. Auxier

Campaigns, Proposals, and Reforms: TaxVox

Tax Reform: One Shining Moment or “Blah, Blah, Blah”

Given that prospects for tax reform were virtually nil before the election, the Republican recapture of the Senate has to have made prospects for tax reform better. But I still have the strong sense that tax reform will be a tough slog in the next Congress. Let’s start on corporate side. It is

November 5, 2014William G. Gale

Federal Budget and Economy: TaxVox

The Day After the 2014 Election: Six Things To Watch In the New GOP Congress

Republicans had a very good day yesterday. But can they translate their ballot-box success into a positive legislative agenda? It won’t be easy but here are six clues: Mitch McConnell : He is a brilliant legislative tactician. We know he’ll use those skills to try to outmaneuver Democratic Leader

November 5, 2014Howard Gleckman

: TaxVox

And the Winner Is... The GOP. Now What?

The GOP takes control of the Senate. It has secured a majority in the Senate but has far from working control in a chamber where 60 votes are needed to do almost anything. Utah’s Orrin Hatch will become the new chair of the Senate Finance Committee. Alabama’s Jeff Sessions is in line to head the

November 5, 2014Renu Zaretsky

State and Local Issues: Brief

Temporary Taxes

States' Response to the Great Recession

When the Great Recession created unexpected budget deficits, many states used temporary tax increases to maintain revenues for vital government services. Because they are generally less disruptive than immediate spending cuts, temporary tax increases can be a useful tool for overcoming short-term

November 5, 2014Norton Francis Brian David Moore

Federal Budget and Economy: TaxVox

NTA Will Meet Next Week in Santa Fe

The National Tax Association will hold its 107 th annual conference next Thursday-Saturday in Santa Fe. Highlights will include presentation of the 2014 Holland Award to MIT’s Jim Poterba, luncheon speeches by Nobel Laureate Joe Stiglitz and Assistant Treasury Secretary for Tax Policy Mark Mazur,

November 4, 2014Howard Gleckman

Individual Taxes: TaxVox

Will Consumers Come To Love Longevity Annuities?

Economists love longevity annuities. But what will it take to get real people to buy them? That’s one of the questions that two panels of retirement experts will tackle at a Brookings Institution event on Thursday. These retirement products work like this: At about age 65 you purchase an insurance

November 4, 2014Howard Gleckman

: TaxVox

Mid-Term Monday: The Calm Before The Storm?

Congress returns next week. We’ll resume our regular schedule on Wednesday, November 5, after tomorrow's elections. State ballot initiatives offer clues on how much voters are willing to pay for government services. There are 16 tax-related initiatives on state ballots tomorrow. TPC’s Kim Rueben

November 3, 2014Renu Zaretsky

State and Local Issues: TaxVox

What Will Next Week’s State Ballot Measures Tell Us About Taxes?

While most national attention is focused on which party will control the Senate and who will win the 36 gubernatorial races, many states also have fiscal initiatives on their ballots. And a few may provide some clues to how the public feels about the trade-off between taxes and government services

October 31, 2014Kim S. Rueben