Tax
Does Your State Tax Business Inventory?
As we continue to look at tax types that can harm states’ post-coronavirus recovery, it’s worth highlighting taxes on business inventory. Inventory taxes fall under the umbrella of the property tax, which is the largest tax paid by businesses at the state and local levels. In addition to taxes on the value of buildings and land, businesses…
Read MoreChaos to the Left of Me. Chaos to the Right of me.
Yesterday, Pascal Saint-Amans, the Director of the Centre for Tax Policy and Administration at the OECD, announced that the negotiation timeline for new digital taxation proposals has been impacted by the pandemic. Previously, governments were expected to agree on a set of policies by early July in order to have an implementation plan by the…
Read MoreTreasury Audit Highlights the Need for Clearer Eligibility Guidelines for the EITC
Despite better record keeping, the federal government continues to incorrectly send out billions of dollars in tax relief, a sign of complexity in the tax code. Last Thursday, a Treasury Inspector General for Tax Administration audit estimated that 25.3 percent ($17.4 billion) of the $68.7 billion Earned Income Tax Credit (EITC) payments made in Fiscal…
Read MoreDid Adding Trump’s Name Slow Down The Mailing of Stimulus Checks? Of Course It Did
Did the Treasury Department’s decision to put President Trump’s name on the coronavirus stimulus checks slow the mailing of those checks? Of course it did,…
Read MoreReliance on Property Taxes in Europe
A recent report outlines to what extent OECD countries rely on various tax revenue sources. Today’s map looks at property tax revenue in European OECD countries, which, compared to other types of taxes, accounts for a relatively small share of total tax revenue. In 2018, property taxes accounted on average for only 4.6 percent of tax…
Read MoreDoes Your State Levy a Capital Stock Tax?
This week’s map looks at another barrier to business and consumer recovery: capital stock taxes. These taxes impair economic growth in the best of times, but during an economic contraction they are particularly harmful to businesses struggling to remain viable. As many businesses may need time to return to profitability after the crisis, states should…
Read MoreTrump’s Payroll Tax Holiday Won't Help the COVID-19 Economy. Another Republican Has A Better Idea
President Trump continues to promote a payroll tax holiday as a piece of the next coronavirus relief bill. The idea fails as either relief or stimulus…
Read MoreReviewing the Economic and Revenue Implications of Cost Recovery Options
Removing tax policy barriers can help businesses and individuals invest, work, create jobs, and lift the economy during a post-pandemic recovery without requiring lawmakers to create new spending programs. One of the most cost-efficient options available to lawmakers is to make permanent and expand the full expensing of capital investment. We have used the Tax…
Read MoreMcConnell’s Attempt To Blame States For COVID-19 Budget Shortfalls Is Wrong And Dangerous
Senate Majority Leader Mitch McConnell (R-KY) recently said he is “in favor of allowing states to use the bankruptcy route,” instead of Congress providing them…
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