The Institute on Taxation and Economic Policy is out today with a report recommending how states should approach taxing legalized marijuana. It’s a topic we’ve written about extensively, and based on that research, we have some concerns with the report’s suggestion that states tax marijuana based on the weight of the amount sold rather than
Every state has its traditions, and in Washington, you can mark the dawn of a new year by the inevitable attempt to tax capital gains—and the insistence that, despite appearances, it’s not a tax on income. On Thursday, Washington Senate Majority Leader Andy Billig (D) went on Inside Olympia to discuss the proposal and to
State sales tax bases have two key areas in need of improvement: in some ways, they are too narrow, and in other ways, they are too broad. State sales tax bases have narrowed over time as new exemptions have been created, such as exemptions for groceries and prescription drugs. Another factor contributing to the shrinking
The Virginia General Assembly, the New World’s oldest continuous lawmaking body, began its 400th year amid pageantry and an unintended tax increase on which, thus far, that body has had no say. The House’s ceremonial mace, a symbol of the legislature’s prerogative, was escorted into the chamber by a company of pikemen in colonial garb.
Taxes are perhaps the most apparent source of state revenue, as they constitute the vast majority of each state’s general fund budget. But state governments also receive a notable amount of assistance from the federal government. In fiscal year (FY) 2016, 32.6 percent of state revenues derived from federal grants-in-aid. Federal aid is allocated to
States compete with each other in a variety of ways, including attracting (and retaining) residents. When states experience sustained periods of inbound migration, greater economic output and growth can be expected to follow. However, prolonged periods of net outbound migration can put a strain on state coffers, contributing to revenue volatility as economic activity and
Champagne will flow, Auld Lang Syne will be sung, resolutions will be made (and soon forgot, and never brought to mind), and, in a handful of states, taxes will change. There is less January 1st activity than we usually see, but this does not mean 2018 was a quiet year. Rather, state consideration of tax
The Arkansas Tax Reform and Relief Task Force concluded its work earlier this month, referring several tax changes to the General Assembly for its consideration in January when the legislative session begins. Amidst the flurry of activity, it’s difficult for everyday Arkansans to know how these tax reforms will impact their budget and their tax
As the end of 2018 approaches, many Americans are considering making end-of-year charitable donations. While the new tax law contains many changes that will impact these decisions, we can look at Internal Revenue Service (IRS) data to gauge how much Americans have deducted for charitable giving in the past. In tax year 2016, just over
Key Findings State tax changes are not made in a vacuum. States often adopt policies after watching peers address similar issues. Several notable trends in tax policy have emerged across states in recent years, and policymakers can benefit from taking note of these developments. The enactment of the federal Tax Cuts and Jobs Act (TCJA)
The Arkansas Tax Reform and Relief legislative task force concluded its work today after 18 months of study, research, and analysis of the state’s tax code. The task force was charged with modernizing the state’s tax code, improving its competitiveness, and reducing tax burdens. In August, it released its report with 22 recommendations in it.
Key Findings A typical American household with four wireless phones paying $100 per month for taxable wireless service can expect to pay about $229 per year in wireless taxes, fees, and surcharges—up from $221 in 2017. Nationally, these impositions make up about 19.1 percent of the average customer’s bill—the highest rate ever. Illinois now has
This week’s state tax map examines states that have a throwback or throwout rule in their corporate tax code. Throwback and throwout rules are not widely understood, but they have a notable impact on business location and investment decisions. For purposes of corporate taxation, multistate businesses are required to apportion their income among the states
This week’s state tax map examines states that have a throwback rule in their corporate tax code. Throwback rules are not widely understood, but they have a notable impact on business location and investment decisions. For purposes of corporate taxation, multistate businesses are required to apportion their income among the states in which they operate.
Below is a brief excerpt from South Carolina: A Road Map For Tax Reform. To download our full reform guide, click the link below. Download The Full Book Introduction Two decades before he published his famous treatises on government, John Locke’s Fundamental Constitutions of Carolina were adopted as the governing document of provincial Carolina. Voltaire
A forthcoming spike in pressure on Chicago’s public employee pension system has mayoral candidates turning anywhere and everywhere for funding to make hundreds of millions of dollars in additional retirement payments. The latest proposal? A tax on the wages of those working in Chicago but living outside city limits. Bill Daley, among the candidates vying
Unlike the attention being drawn to San Francisco’s legal troubles with Proposition C, there is less fanfare surrounding Proposition D, which creates a new municipal gross receipts tax on cannabis. The measure will distort the cannabis market and raise costs for consumers in an especially opaque manner, as other gross receipts taxes often do. Proposition
Under the federal individual alternative minimum tax (AMT), many taxpayers are required to calculate their income tax liability under two different systems and pay the higher amount. Established in 1969, the federal AMT was created when Congress discovered that 155 high-income taxpayers were eligible to claim so many deductions that they ended up with no
This year, “Cyber Monday” signifies more than just a chance to get the best post-Black Friday deals. It also kicks off the first holiday online shopping season since the U.S. Supreme Court sales tax ruling in South Dakota v. Wayfair. It’s a big step but also doesn’t represent a huge sea change, given the evolution
Like the federal income tax, 33 states and the District of Columbia have a graduated-rate state individual income tax, with tax rates that get progressively higher with increases in income. However, significant variation exists among states in both the number of tax brackets and the income threshold at which the top tax rate kicks in.