Federal Tax

Today, Senator Elizabeth Warren (D-MA), Democratic presidential hopeful for 2020, announced plans for a wealth tax on high-net-worth individuals, a type of tax that is flawed economically and administratively. (There are also constitutional questions about assessing a wealth tax.) According to The Washington Post, Senator Warren’s proposal would assess a 2 percent annual wealth tax
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The OECD’s new database Corporate Tax Statistics provides insights into the recent history and current state of corporate income taxes (CIT) around the world. The database includes information on a variety of measures of corporate taxation including statutory tax rates, marginal and average effective tax rates, the cost of capital for different investments, and the
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As America’s advantage in innovation erodes and levels of entrepreneurial activity decline, it is becoming increasingly important that tax policy does not further hinder economic dynamism. Unfortunately, a recent proposal by freshman Rep. Alexandria Ocasio-Cortez (D-NY) to increase the top income tax rate to 70 percent would unmistakably do this. In addition to making dubious
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Policymakers at the federal level have expressed interest in raising the tax burden on high-income individuals. For instance, Representative Alexandria Ocasio-Cortez (D-NY) recently proposed raising the top marginal income tax rate to 70 percent. What these debates sometime gloss over is that the U.S. federal tax system is already progressive. Under current law, high-income taxpayers
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The incoming House Democratic majority unveiled a set of proposed rules Jan. 1 that includes eliminating the use of dynamic scoring in the House budgeting process. While the Republican-controlled Senate should keep dynamic scoring as an option, House lawmakers would lose an important tool for judging the true economic and fiscal impact of various tax
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On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep,” when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to
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Key Findings In general, large industrialized nations tend to have higher statutory corporate income tax rates than developing countries. The worldwide average statutory corporate income tax rate, measured across 208 jurisdictions, is 23.03 percent. When weighted by GDP, the average statutory rate is 26.47 percent. The average top corporate rate among EU countries is 21.68
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Tax competition at its best. Politico reports that the Canadian federal government will allow accelerated depreciation for some investments to compete with the U.S. expensing provision that was implemented as part of the U.S. Tax Cuts and Jobs Act (TCJA). The Canadian government has been concerned that the U.S. move has made the U.S. a more
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Greece has faced some of the most difficult economic challenges in the developed world over the last decade. Instead of growing, the Greek economy has contracted in eight of the last 10 years, growing by small amounts in just 2014 and 2017. In 2011, the Greek economy shrank by 9.2 percent. The unemployment rate peaked
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As lawmakers return to Washington, D.C. after the midterm elections, one of their tasks will be addressing technical corrections to last year’s tax reform law. Issues often arise after legislation is enacted, and Congress can pass “technical corrections” to make laws accurately reflect congressional intent or to fix clerical errors. A letter sent to the
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Tracking The Economic Impact of U.S. Tariffs and Retaliatory Actions A new study provides modern-day evidence for what economists have long said: tariffs are bad, and international trade should be free. The International Monetary Fund (IMF) paper finds that tariff increases have negative effects on output and productivity that are magnified “when tariffs rise during
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