Tax
How Stable is Cigarette Tax Revenue?
.axis line, .axis path { stroke: #cccccc; } .axis text { fill: #555555; font-family: ‘Lato’, sans-serif; font-size: 12px; } #inflation-toggle { border-left: 1px solid #cccccc; margin-left: 0.5rem; padding-left: 0.5rem; } Choose a State Inflation Adjusted Cigarette excise taxes have been a source of state revenue for decades, but in recent years, reliance on these…
Read MoreNational Taxpayer Advocate’s Report Is a Road Map to Simpler Pandemic Relief Provisions
Last week, National Taxpayer Advocate Erin M. Collins released her first report to Congress on the challenges taxpayers have faced related to the coronavirus pandemic, including the tax changes made through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The National Taxpayer Advocate’s findings show that policymakers should prioritize simplicity in the next round…
Read MoreTPC Builds A Moog—Or How Synthetic Data Could Transform Policy Research
In 1970, Philadelphia’s Franklin Institute got a Moog synthesizer —a giant, unwieldy computer that created music. The sound was weird and quite evidently electronic. My…
Read MoreTax Foundation Comments on the Initiation of Section 301 Investigations of Digital Services Taxes
The following comments were submitted to the Office of the United States Trade Representative regarding docket number USTR-2019-0009. Thank you for the opportunity to provide comments on the Section 301 Investigation. These comments summarize the discriminatory nature of Digital Services Taxes (DSTs) which arise from their design. These comments also provide some details on the policies…
Read MoreState Tax Changes as of July 1, 2020
Key Findings Nineteen states had notable tax changes take effect on July 1, 2020. Indiana had the lone corporate income tax change, with the rate decreasing from 5.5 to 5.25 percent. Two states, Louisiana and Mississippi, began requiring marketplace facilitators to collect sales and use taxes. Illinois now requires remote sellers to collect state and…
Read MoreDecades in Corporate Taxation
Corporate taxation has evolved significantly over the last several decades. Corporate income tax rates have come down significantly. Countries have redesigned their tax bases by changing the treatment of losses, interest, and capital costs. International tax rules have also been overhauled. A new report from the Organisation for Economic Co-operation and Development (OECD) provides a…
Read MoreCongress Has No Clear Roadmap For Its Next COVID-19 Response
When Congress returns from its summer break on July 20, its primary job (really, its only job) is to respond to the COVID-19 pandemic. Congress…
Read MoreState and Local Sales Tax Rates, Midyear 2020
Key Findings Forty-five states and the District of Columbia collect statewide sales taxes. Local sales taxes are collected in 38 states. In some cases, they can rival or even exceed state rates. The five states with the highest average combined state and local sales tax rates are Tennessee (9.55 percent), Arkansas (9.53 percent), Louisiana (9.52…
Read MoreD.C. Proposal to Include Advertising in Sales Tax Won’t Work as Advertised
While some jurisdictions are exploring standalone—and legally dubious—taxes on digital advertising, D.C. Council Chair Phil Mendelson (D) has a more down-to-earth proposal: why not just include advertising in the sales tax base? The obvious upside is that it doesn’t immediately raise any legal red flags and it takes advantage of a tax that already exists…
Read More