Tax
Indiana Lawmakers Consider Cigarette Tax Increase
Cigarette smokers in Indiana may be asked to pay a 200 percent higher state excise tax on their cigarettes if lawmakers move ahead with a recent proposal from legislative leaders. The current state tax rate is 99.5 cents per pack but the proposal would increase this rate to $3 per pack. That rate does not…
Read MoreHow Would the Proposed $160 Billion in State and Local Aid Be Allocated?
A bipartisan coalition of U.S. Senators has unveiled a $908 billion COVID-19 relief bill which includes, among other provisions, $160 billion in additional aid to state and local governments. It is worth briefly exploring what this would mean, and the amounts of aid each state might expect. While well short of amounts contemplated in the…
Read MoreOutlining a Path for Tax Policy Compromises
The 116th Congress has few legislative days remaining in the lame duck session to address a relatively long list of priorities, including additional pandemic relief, expiring tax provisions, and economic stimulus. Whether this Congress will accomplish the remaining tasks is highly uncertain, leaving the next Congress and President-elect Joe Biden to likely start the new…
Read MoreNavigating the 2020 Tax Extenders in the Pandemic Economy
Key Findings Introduction Temporary Tax Policy The Remaining Extenders Expiring Provisions under the Tax Cuts and Jobs Act Pandemic-Related Expirations Conclusion Appendix Key Findings At the end of 2020, 33 temporary tax provisions are scheduled to expire at the federal level. These provisions generally fall under four categories: cost recovery, energy, individual, and other…
Read MoreThe Supreme Court Is Hearing A Case That Could Block the IRS From Halting Abusive Tax Shelters
Tomorrow, the US Supreme Court will hear oral arguments in CIC Services v. IRS, a case that threatens to damage the integrity of the tax…
Read MoreKey Questions Biden Will Need to Answer About His First-Time Down Payment Tax Credit
There are many benefits to a first-time homebuyer tax credit , such as the one proposed by President-elect Joe Biden. However, the transition from the…
Read MorePatent Box Regimes in Europe
Patent box regimes (also referred to as intellectual property, or IP, regimes) provide lower effective tax rates on income derived from IP. Most commonly, eligible types of IP are patents and software copyrights. Depending on the patent box regime, income derived from IP can include royalties, licensing fees, gains on the sale of IP, sales…
Read MorePotential Regulatory Changes in Tax Policy Under the Biden Administration
With a likely divided U.S. Congress this January, the incoming Biden administration may have a limited ability to pass the tax changes proposed by Biden during the 2020 presidential campaign. Much of Biden’s tax plan included tax increases on higher earners and businesses, which are unlikely to be considered by a likely Republican-controlled Senate pending…
Read MoreWill Mississippi Be the Next State to Phase Out its Income Tax?
Mississippi Governor Tate Reeves (R), in his budget proposal for fiscal year (FY) 2022, has announced his goal of phasing out the state’s income tax by 2030. Mississippi’s income tax currently has three marginal rates of 3 percent, 4 percent, and 5 percent. The corporate rates and brackets match the individual rates and brackets, and…
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