Tax
The History of Excess Profits Taxes Not as Effective or Harmless as Today’s Advocates Portray
Oxfam America has released a new publication purporting to show that 17 of the top 25 most profitable U.S. companies “are expected to make almost $85 billion more in 2020 super-profits compared to previous years.” Drawing from the recent work of Reuven Avi-Yonah, which was inspired by the World War II excess profits tax, Oxfam…
Read MoreSales Tax Holidays: Politically Expedient but Poor Tax Policy, 2020
Key Findings Sixteen states will hold a sales tax holiday in 2020, down from a peak of 19 in 2010 but unchanged from last year. Given the coronavirus crisis, Tennessee established a second sales tax holiday, targeting restaurants. Sales tax holidays do not promote economic growth or significantly increase consumer purchases; the evidence (including a…
Read MoreThe New EU Budget is Light on Details of Tax Proposals
Yesterday, the European Council agreed on a new multiannual budget and a recovery program. The Multiannual Financial Framework (MFF) which sets EU budget levels for 2021-2027 totals €1 trillion (US $1.2 trillion). The Next Generation EU (NGEU) recovery package is €750 billion ($840) and is 52 percent grants and 48 percent loans. The NGEU funds…
Read MoreDebunking 3 Myths About the Mortgage Interest Deduction
In 2017—as part of the Tax Cuts and Jobs Act (TCJA)—Congress limited the mortgage interest deduction (MID) by reducing what can be deducted to interest paid on the first $750,00 in principal value, down from $1 million. The decision to curtail the deduction’s limit by 25 percent was partly due to budgetary constraints imposed by…
Read MoreHow Would Paydown Affect The Reform Of Home Mortgage Interest Deduction?
Reforming the mortgage interest deduction (MID) could raise federal tax revenue and make the tax system more progressive. But some taxpayers, especially those with high…
Read More(Webinar) Figuring Out Phase Four: Next Steps on Federal and State Coronavirus Response
As U.S. businesses struggle to recover from the economic downturn, Congress and the White House continue to debate a phase four relief package, which could include anything from incentives for domestic travel and a payroll tax cut to more fundamental reforms like enacting permanent full cost recovery. Meanwhile, states continue to grapple with revenue shortfalls…
Read MoreTax Options to Promote Short-Term Recovery and Long-Term Economic Growth in Wisconsin
Wisconsin, like every state, is experiencing a great deal of economic uncertainty amid the COVID-19 pandemic. States will need to use caution as they make revenue and spending decisions amid the ongoing public health crisis, but tax policy can play a valuable role in a state’s economic recovery, and policymakers ought to give careful consideration…
Read MoreFinancial Transaction Tax Could Hit Average Spanish
Since Pedro Sanchez first became Spain’s Prime Minister in 2018 and, now, in conjunction with the left-wing coalition party, Unidas Podemos, he has been working to overhaul the Spanish tax system. The main measures to increase revenue entailed higher taxes for businesses and high-income earners. In the face of the economic shock delivered by the…
Read MoreWhere Is My Income Tax Refund?
Hope you had a Happy Tax Day. I’m still waiting for my refund. I filed my 2019 individual income tax return electronically on May 1…
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