Tax Foundation Events: Recent Episodes
Tax Foundation
Tax Foundation's educational events, lectures, and panel discussions bring together today's leading, independent voices to help you navigate the complicated world of tax and economics. Subscribe to our Events podcast for regular recordings of discussions ranging from the basics of state tax policy to what the experts expect will be the future of federal tax reform in the U.S.
What do the contrasting tax proposals of Vice President Kamala Harris and former President Donald Trump mean for Americans as the 2024 election approaches?
In this episode, we dive into the Tax Foundation's modeling of both candidates' plans, shedding light on how these proposals could impact Americans.
Joining Kyle Hulehan is Erica York, Senior Economist and Research Director. Together, they'll chat about the major economic implications of each candidate’s proposals, from national debt to economic growth.
Links:
https://taxfoundation.org/research/all/federal/kamala-harris-tax-plan-2024/
https://taxfoundation.org/research/all/federal/donald-trump-tax-plan-2024/
https://taxfoundation.org/research/federal-tax/2024-tax-plans/
https://taxfoundation.org/blog/trump-overtime-tax-exemption/
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What are the key challenges facing global tax policy today? Bob Stack, an international tax expert, explores the implications of the EU’s adoption of Pillar Two and the potential for streamlining overlapping policies. He also addresses the issues that the US faces in global tax policy with the upcoming elections.
In this insightful discussion, Bob dives into these pressing issues, drawing on his extensive experience at the US Department of the Treasury. He offers valuable insights into the OECD Inclusive Framework and the transformative Pillar Two.
Links:
https://taxfoundation.org/blog/pillar-two-unintended-consequences/
https://taxfoundation.org/blog/global-tax-agreement/
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While tax policy was almost nonexistent in the first debate between Vice President Kamala Harris and former President Donald Trump, this episode will explore each candidate’s latest proposals in greater depth. We’ll break down Kamala Harris's updated tax plan, highlighting her capital gains adjustments and new deductions for startups. We’ll also take a closer look at Trump’s plans for tax cuts and tariffs, discussing what they could mean for American families and businesses.
Erica York, Senior Economist and Research Director, joins Kyle Hulehan to discuss the debate. We’ll highlight the key issues likely to be discussed and consider the serious implications for national debt and economic growth.
Links:
https://taxfoundation.org/research/all/federal/donald-trump-tax-plan-2024/
https://taxfoundation.org/research/all/federal/kamala-harris-tax-plan-2024/
https://taxfoundation.org/research/federal-tax/2024-tax-plans/
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Dive into the highlights from the DNC as we break down Vice President Kamala Harris's tax proposals and their potential impact on everyday families. What do higher taxes on businesses and the wealthy mean for working Americans?
Erica York, Senior Economist and Research Director, joins Kyle Hulehan to examine her VP pick, Tim Walz, and how his progressive tax policies have shaped Minnesota's economy. Plus, we’ll take a closer look at Harris's child tax credit expansion.
Links:
https://taxfoundation.org/blog/harris-child-tax-credit-economic-agenda/
https://taxfoundation.org/blog/tim-walz-tax-policies/
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How does living abroad impact the taxes an American has to pay? Unlike most countries that tax based on residency, the US employs citizenship-based taxation, meaning Americans are taxed on their global income regardless of where they reside. This unique system creates a web of complexities, including stringent reporting requirements and potential penalties, which can leave many US citizens feeling overwhelmed.
In this discussion, Marylouise Serrato from American Citizens Abroad, joins Kyle Hulehan to explore the implications of FATCA for Americans living outside the United States. Together, they’ll unpack the compliance hurdles and misconceptions surrounding US tax obligations abroad, offering insights on the future of tax policy and its impact on the global American community.
Links:
https://www.americansabroad.org/
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The global tax deal and Pillar Two are shaking up the tax landscape worldwide, introducing a web of complexity and confusion. Today, we untangle the key aspects of these proposals, diving into the latest updates, compliance hurdles, and their ripple effects on industries and smaller nations.
Join Daniel Bunn, President & CEO of the Tax Foundation, and Senior Economist Alan Cole, as they sit down with Kyle Hulehan to explore what the future holds for global taxation and what it means for the United States.
Links:
https://taxfoundation.org/blog/global-tax-agreement/
https://taxfoundation.org/blog/pillar-two-flaw/
https://taxfoundation.org/taxedu/glossary/oecd-pillar-2-global-minimum-tax/
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Tax cuts vs. tax reform: what’s the real difference, and why does it matter? In this episode, we uncover why retroactive tax cuts and temporary tax breaks often miss the mark for long-term growth and how revenue-neutral tax reform can streamline the tax system without altering overall federal revenue.
Erica York, Senior Economist and Research Director at the Tax Foundation, joins host Kyle Hulehan to reveal the true impact of tax policies on households and businesses and discuss how changes in marginal tax rates drive economic decisions.
Links:
https://taxfoundation.org/blog/unified-theory-misconceptions-tax-reform-debate/
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Taxing wealth has become a hot-button issue in today’s political discourse, promising to reshape economic equality. But what are the real-world implications of such policies? In this episode, we dive into the contentious world of taxing wealth, examine how a progressive tax system aims to balance fairness and revenue generation, and explore the potential impacts and broader implications for economic policy and social equity.
Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, joins Kyle Hulehan to dissect the fundamentals of taxing wealth. They discuss the challenges of implementation, potential long-term consequences for the broader economy, and alternative policy options that could achieve progressivity while maintaining economic growth.
Links:
https://taxfoundation.org/blog/taxing-consumption-progressively-tax-the-wealthy/
https://taxfoundation.org/blog/federal-tax-code-progressive-rich/
https://taxfoundation.org/blog/us-pandemic-response-inequality-progressivity/
https://taxfoundation.org/research/all/federal/tax-fairness-funding-government-investments/
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Tariffs are a hot topic this election cycle for both President Biden and former President Trump. But why are tariffs so popular despite their economic downsides? In this episode, we unpack tariffs’ role in the political playbook, their impact on manufacturing jobs and consumers, and the Biden administration's review of Trump-era tariffs.
Erica York, Senior Economist and Research Director at the Tax Foundation, joins Kyle Hulehan to break down the basics of tariffs, explore historical tariff failures, and discuss the potential long-term effects of maintaining or increasing tariffs.
Links:
- https://taxfoundation.org/research/all/federal/section-232-tariffs-steel-aluminum-2024/
- https://taxfoundation.org/blog/biden-tariffs-china/
- https://taxfoundation.org/blog/trump-biden-protectionism/
- https://taxfoundation.org/blog/biden-trump-tariffs/
- https://taxfoundation.org/blog/retaliatory-tax-trade-policies/
- https://taxfoundation.org/blog/trump-china-trade-war-proposal/
- https://taxfoundation.org/topics/tariffs-and-trade/
- https://taxfoundation.org/research/all/federal/tariffs-trump-trade-war/
- https://taxfoundation.org/blog/donald-trump-10-percent-tariff/
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Get ready to hit the autobahn and explore the world of German taxes! We'll navigate the complexities of Germany’s corporate tax structure, including the combined federal and local rates, and unravel the complexities of local trade taxes and the real estate transaction tax, exploring their impact on businesses and property investments.
Alex Mengden, Global Policy Analyst, joins Kyle Hulehan to discuss Germany's unique federal system shaping state and local taxes, the intricacies of the value-added tax (VAT), and the substantial labor tax burden.
Links:
https://taxfoundation.org/data/all/eu/germany-trade-tax-rates/
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Buckle up as we navigate the twists and turns of infrastructure and road funding. As electric vehicles gain traction, traditional gas taxes are running out of fuel to support our infrastructure budget. Today, we're exploring how Vehicle Miles Traveled (VMT) taxes pave a more equitable and sustainable path for funding road maintenance and construction.
Adam Hoffer, the Director of Excise Tax Policy, joins Kyle Hulehan to unpack the challenges and opportunities of VMT taxes. They will explore the innovative technologies used for mileage tracking and address the significant privacy concerns involved.
Links:
https://taxfoundation.org/research/all/federal/road-funding-vehicle-miles-traveled-tax/
https://taxfoundation.org/taxedu/glossary/gas-tax/
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All taxes tell a story, and today we’ll explore how taxes influenced Bob Dylan's decision to sell his music catalog, how the "chicken tax" reshaped the auto industry, and how the historic "tax on air and light" had profound effects on architecture and living conditions.
Scott Hodge, President Emeritus & Senior Policy Advisor at the Tax Foundation, joins host Kyle Hulehan to discuss his new book, Taxocracy: What You Don’t Know About Taxes and How They Rule Your Daily Life.
Links:
https://www.amazon.com/Taxocracy-What-About-Taxes-Daily/dp/B0CL3BXBVS
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All Americans are affected by the tax code—but do they understand the tax code? To find out, the Tax Foundation’s educational program, TaxEDU, and Center for Federal Tax Policy conducted a poll with Public Policy Polling. The poll surveyed more than 2,700 U.S. taxpayers over 18 years old—spanning the political spectrum and income distribution—to gauge Americans’ knowledge of basic tax concepts and opinions of the current tax code.
The results: most Americans are confused by and dissatisfied with the federal tax code.
Links:
https://taxfoundation.org/blog/national-tax-literacy-poll-education/
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In the context of the 2024 election year, what does President Biden's 2025 budget proposal signify regarding his strategies and priorities as he seeks reelection? And how could these proposals shape the overall landscape of this election cycle?
Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, joins Kyle Hulehan to discuss the president’s plan—from raising the corporate tax rate to implementing a billionaires' tax—and the longstanding flaws in the budget process.
Links:
- Taxing Consumption Progressively Is a Better Way to Tax the Wealthy
- How Taxing Consumption Would Improve Long-Term Opportunity and Well-Being for Families and Children
- Tax Calculator: How the TCJA’s Expiration Will Affect You
- Details and Analysis of Making the 2017 Tax Reforms Permanent
- How to Rein in the National Debt
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Today, we're examining the differences between the broad incentives provided by the Tax Cuts and Jobs Act and the targeted approach of the Inflation Reduction Act and the CHIPS and Science Act.
Alex Muresianu, Senior Policy Analyst at the Tax Foundation, joins Kyle Hulehan to explore these policies' intentions, tangible effects on specific sectors, and impact on the broader U.S. economy.
Links:
https://taxfoundation.org/research/all/federal/supply-side-economics-industrial-policy/
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As the world of tax policy becomes more interconnected, the Tax Foundation is stepping up, recognizing the pressing need for informed and principled tax policy education in an ever-evolving landscape.
In response, we are broadening our scope by establishing a presence at the epicenter of European tax policy discussions: Brussels.
Sean Bray, Director of European Policy at the Tax Foundation, and Edwin Visser, Deputy Global Tax Policy Leader at PwC Netherlands, join Kyle Hulehan to discuss the launch of Tax Foundation Europe.
Links:
https://taxfoundation.org/blog/tax-foundation-europe-launches/
https://taxfoundation.org/eu/
https://taxfoundation.org/eu/research/european-tax-policy-scorecard/
https://taxfoundation.org/research/all/eu/eu-green-transition-tax-policy/
https://taxfoundation.org/research/all/eu/capital-gains-taxation-eu/
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Sales taxes go beyond a few extra bucks at the register. It’s not just about what you pay, but who pays. What are the implications of state sales tax bases across the U.S.?
Katherine Loughead, Senior Policy Analyst & Research Manager at the Tax Foundation, joins Kyle Hulehan. Together, we'll uncover the core principles behind an efficient sales tax system and examine how taxing business inputs can lead to economic inefficiencies and higher prices for consumers.
Links:
https://taxfoundation.org/research/all/state/kentucky-sales-tax-reform/
https://taxfoundation.org/data/all/state/2024-sales-taxes/
https://taxfoundation.org/taxedu/glossary/tax-pyramiding/
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Today, we're exploring the intricacies of the latest congressional act stirring up Washington—The Tax Relief for American Families and Workers Act of 2024.
Erica York, Senior Economist and Research Director at the Tax Foundation, joins Kyle Hulehan to dissect its key features, including the restoration of crucial business investment provisions, an expansion of the Child Tax Credit, and changes to pandemic-era tax credits.
The conversation also sheds a light on the act's temporary and retroactive dimensions, which could leave taxpayers in uncertain, and confusing, territory.
Links:
- https://taxfoundation.org/blog/bipartisan-tax-deal-2024-tax-relief-american-families-workers-act/
- https://taxfoundation.org/blog/bipartisan-tax-deal-revenue-challenges/
- https://taxfoundation.org/research/all/federal/making-2017-tax-reform-permanent/
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Financial literacy is a problem that educators around the country are trying to tackle. Today, we’re speaking with Jed Collins, a former NFL player, who is leading the charge in the financial education arena by guiding high school and college students, as well as professional athletes, through the world of finance. He’s passing down essential knowledge on understanding taxes, showing students that a good financial game plan can lead them towards a prosperous future.
Links:https://taxfoundation.org/taxedu/podcast/all/economic-education-month/
https://taxfoundation.org/blog/do-people-really-move-because-of-taxes/
https://course.yourmoneyvehicle.com/p/your-money-vehicletke
https://yourmoneyvehicle.com/product-one-hour-course-certification-tax/
https://yourmoneyvehicle.com/high-schools/
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Americans are saving less. While the U.S. saving rate has regularly lagged behind its peers, it has yet to return to pre-pandemic levels. Increasingly, people are turning to credit cards to fill the gaps in their budgets.
Garrett Watson, Senior Policy Analyst and Modeling Manager at the Tax Foundation, joins Kyle Hulehan to discuss why the U.S. is struggling to save and what solutions exist within the tax code to help Americans save more.
Links:
https://taxfoundation.org/blog/personal-saving-retirement-taxes/
https://taxfoundation.org/research/all/federal/case-for-universal-savings-accounts/
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October is economic education month. An important part of economic education is understanding how taxes affect the economy. On this special episode of The Deduction, we discuss how Tax Foundation is doing just that through our tax literacy initiative, "TaxEDU."
Zoe Callaway, Manager of Education and Outreach, joins Kyle Hulehan to chat about why Tax Foundation launched TaxEDU and how TaxEDU is advancing tax policy education, discussion, and understanding in classrooms, living rooms, and government chambers.
Links:
- https://taxfoundation.org/taxedu/
- https://taxfoundation.org/blog/taylor-swift-eras-tour-taxes/
- https://taxfoundation.org/blog/gdp-gross-domestic-product/
- https://taxfoundation.org/blog/barbie-movie/
- https://taxfoundation.org/blog/trade-deficit-myths/
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Step into the shadows of illicit trade where taxation, incentives, and criminal networks intersect to fuel the lucrative cigarette smuggling market.
Adam Hoffer, the Director of Excise Tax Policy, joins Kyle Hulehan to shed light on how substantial price markups on legal cigarettes pave the way for tempting tax avoidance opportunities. They unravel the unintended consequences of cigarette taxation and explore strategies to combat this burgeoning illicit trade
Links:
https://taxfoundation.org/blog/illicit-trade-taxes-counterfeit-cigarettes/
https://taxfoundation.org/blog/california-flavored-tobacco-ban-revenue/
https://taxfoundation.org/blog/new-york-cigarette-tax-flavor-ban/
https://taxfoundation.org/data/all/state/cigarette-taxes-cigarette-smuggling-2022/
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The Inflation Reduction Act is an ambitious law with worthy goals to reduce deficits, fight inflation, help the IRS, and combat climate change. However, one year after its enactment, there are concerns about its overall fiscal impact, the additional complexity it introduces to the tax system, and the sustainability of its initiatives.
Will McBride, Vice President of Federal Tax Policy at the Tax Foundation, joins Kyle Hulehan to examine the Inflation Reduction Act one year later. They dive into the disconnect between political aspirations and the real-world consequences of executing intricate policies, the skyrocketing costs of green energy tax credits, and why, despite increased funding, the IRS is struggling to keep up.
Links:
https://taxfoundation.org/research/all/federal/inflation-reduction-act-taxes/
https://taxfoundation.org/taxedu/podcast/all/accounting-for-the-new-book-minimum-tax/
https://taxfoundation.org/blog/inflation-reduction-act-green-energy-tax-credits/
https://taxfoundation.org/research/all/federal/inflation-reduction-act/
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Interest rates and tax policy, two vital components of our economic landscape, often interact in fascinating ways. They influence the behavior of individuals, businesses, and governments. But how exactly?
Alan Cole, Senior Economist at the Tax Foundation, joins us to explore the complex effects of interest rate changes. We discuss how these shifts can impact everything, from budget deficits and tax revenues to investment choices and the overall economy.
Links:https://taxfoundation.org/tax-reform-bill-interest-rates/
https://taxfoundation.org/deficit-interest-rates-and-growth/
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It’s the 5th anniversary of the groundbreaking Wayfair Supreme Court decision—a ruling that marked a new era of sales tax collection and changed how we think about taxation in the digital age.
South Dakota v. Wayfair established a new precedent, allowing states to assert their authority in collecting sales tax from remote sellers based on economic presence.
Jared Walczak, Vice President of State Projects, joins Kyle to provide insights into the evolving legal framework surrounding the Wayfair decision and sales tax collection. They discuss potential solutions that could simplify compliance and bring uniformity to online sales tax regulations.
Links:
https://taxfoundation.org/what-does-the-wayfair-decision-really-mean-for-states-businesses-and-consumers/https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
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On this “not-so-heavy-on-the-policy” episode, our much-beloved host, Jesse Solis, is joined by the Deduction's Senior Producer, Dan Carvajal, and Marketing Associate, Kyle Hulehan, to share some bittersweet news.
If you follow us on social media, you've undoubtedly come across something Kyle created. He is no stranger to the Tax Foundation, having interned here in 2018 and rejoining full-time last year, and his ever-brimming curiosity will be a welcome new seat at the table.
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The past few years have brought a renewed push from countries across the globe to combat climate change. In the European Union, policymakers have put a timeline on their climate agenda. By 2050, the EU wants to achieve a net-zero economy.
Sean Bray, director of European policy, breaks down how much it would cost to achieve this goal. He also discusses the similarities and differences between the EU’s and the U.S.’s climate plans, and how the EU should use its tax codes to make the transition to a net-zero economy as frictionless as possible.
Links:
https://taxfoundation.org/eu-green-transition-tax-policy/
https://taxfoundation.org/tax-basics/full-expensing/
https://taxfoundation.org/cbam-eu-carbon-border-tax/
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The FairTax, on paper, sounds simple: just replace all major sources of the federal government’s revenue—the individual income tax, corporate income tax, estate and gift taxes, and payroll tax—with a national sales tax.
But when you pull back the curtains, this proposal leads to more questions than answers.
Alan Cole, senior economist, makes his Deduction debut to talk us through why this old idea is gaining attention this year. He breaks down what the FairTax shows us about the debate between income taxes versus consumption taxes, and why “simple solutions” appeal to so many policymakers for how best to tax an increasingly complex economy.
Links:
https://taxfoundation.org/fair-tax-national-sales-tax/
https://taxfoundation.org/fairtax-consumption-taxes/
https://taxfoundation.org/tax-basics/value-added-tax-vat/
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The tax base around the world is shrinking for traditional excise taxes, including taxes on tobacco, alcohol, and motor fuel. But newer excise taxes on things like carbon, cannabis, and ride-sharing are on the rise.
This trend has the potential to significantly affect the global economy.
Adam Hoffer, Director of Excise Tax Policy, joins Jesse to discuss how excise taxes have been used by policymakers in the past and how that is changing. They discuss what makes a good design for these taxes and where excise taxes may go in the future as the traditional “sin tax” base continues to shrink.
Links:
https://taxfoundation.org/global-excise-tax-policy-application-trends/
https://taxfoundation.org/unlock-global-growth-role-of-taxation/
https://taxfoundation.org/principles#Stability
https://taxfoundation.org/taxedu-video-cannabis/
https://taxfoundation.org/taxedu-video-carbon-tax-explained/
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When we discuss tax policy, the conversation inevitably turns to who pays, who should pay, and how much they should pay.
Unfortunately, the tax burdens debate is often missing a key point: how income transfer programs—like Social Security or Medicaid—affect households’ tax burdens.
When looking at the whole picture, just how progressive is our tax code? Timothy Vermeer, senior policy analyst, joins Jesse to take a closer look. They discuss what is missing from the progressivity debate, and what lawmakers at the state and federal level should keep in mind when they consider tax reforms and interstate competition.Links:
https://taxfoundation.org/who-pays-taxes-federal-state-local-tax-burden-transfers/
https://taxfoundation.org/question-1-massachusetts-millionaires-tax/
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President Biden recently released his budget proposal for fiscal year 2024. As he has with previous budgets, the president is continuing to call for higher taxes on businesses and wealthy taxpayers.
This may be the last budget President Biden releases before he announces a run for a second term. The White House says this budget will reduce the deficit, strengthen Medicare, and will only target the well-off.
But are those claims true? Erica York, senior economist, walks through the details with Jesse. They discuss what the economic impact of this budget would be and what parts stand a chance at actually becoming law.
Links:
https://taxfoundation.org/biden-budget-tax-proposals-analysis
https://taxfoundation.org/biden-budget-taxes/
https://taxfoundation.org/biden-tax-fairness/
https://taxfoundation.org/growth-opportunity-us-tax-reform-plan/
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Affordable housing is an issue that has had long-standing bipartisan interest in D.C. But the path to increase the supply of affordable housing, though often well-intentioned, has created a bureaucratic nightmare.
Large programs like the Low-Income Housing Tax Credit, and other initiatives like rehabilitation tax credits and grants, have created a web of complexity that makes these policies less helpful than they were meant to be.
Garrett Watson, senior policy analyst, joins Jesse to break down the tax code’s relationship to affordable housing. He also discusses his testimony to the U.S. Senate about this topic, and where he thinks lawmakers should focus their efforts as they continue to debate these tax programs.
Links:
https://taxfoundation.org/expanding-affordable-housing/
https://www.finance.senate.gov/hearings/tax-policys-role-in-increasing-affordable-housing-supply-for-working-families
https://taxfoundation.org/low-income-housing-tax-credit-lihtc/
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Filing season is ramping up, as most of us are getting ready to file our state and federal income taxes.
But in nearly a third of U.S. states, taxpayers pay some sort of local income tax too. Levied in thousands of cities, counties, school districts, and other localities, local income taxes are often used to either lower other taxes (like property taxes) or raise more revenue for local services.
While they may make sense on paper, local income taxes come with more challenges than other local revenue sources. Janelle Fritts, policy analyst with Tax Foundation's Center for State Tax Policy, walks Jesse through the origin of local income taxes and the trade-offs lawmakers need to keep in mind when considering them.
Links:
https://taxfoundation.org/local-income-taxes-2023
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On Tuesday, President Biden shared his policy aspirations during the State of the Union address. The commander in chief outlined three tax proposals in his remarks: quadrupling the brand-new excise tax on stock buybacks, instituting a “billionaire minimum tax,” and extending the now-lapsed expanded Child Tax Credit.
Erica York and Alex Muresianu from the federal tax policy team joined Jesse to give a run-down of Tuesday night’s events. They discuss the prospects of major tax changes becoming law in a divided government and what these proposals signal about how President Biden thinks about tax policy as he enters the latter half of his first term.
Links:
https://taxfoundation.org/biden-state-of-the-union-tax-proposals/
https://taxfoundation.org/inflation-reduction-act-stock-buybacks/
https://taxfoundation.org/biden-billionaire-tax-unrealized-capital-gains/
https://taxfoundation.org/child-tax-credit-reform/
https://taxfoundation.org/biden-administration-tax-proposals/
https://www.wsj.com/articles/why-does-the-u-s-tax-code-penalize-r-d-big-tech-innov[…]acturing-production-growth-inflation-silicon-valley-11674415751
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Since 2021, 43 states have provided substantial tax relief for taxpayers and businesses. But this year, a new trend has emerged in the opposite direction: a push for states to tax investment.
From coordinated wealth tax proposals to higher capital gains income taxes, some state legislatures are going after high earners.
Jared Walczak, V.P. of State Projects at the Tax Foundation, joins Jesse to discuss how these measures would affect investment, job creation, and migration between states—and why they’re happening now.
Links:
https://taxfoundation.org/state-wealth-tax-proposals/
https://taxfoundation.org/state-population-change-2022/
https://taxfoundation.org/2023-state-tax-changes/
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It’s a new year. And if one thing is certain, it’s that businesses are facing a lot of uncertainty.
Key parts of the Inflation Reduction Act of 2022 are kicking into effect, including the new book minimum tax.
Erica York, senior economist at the Tax Foundation, joins Jesse to discuss why this policy came into the fold. They discuss if this tax will really stop companies from paying zero in taxes, as the president claims, if the new Republican House will revisit this debate, and what the tax's impact will be on jobs and economic growth.
Links:
https://taxfoundation.org/book-minimum-tax-analysis/
https://twitter.com/ericadyork/status/1610328115393216512
https://taxfoundation.org/federal-tax-lame-duck-2022-midterms/
https://taxfoundation.org/warren-corporate-book-tax/
https://taxfoundation.org/companies-paying-no-income-taxes/
https://open.spotify.com/episode/2b6jGfzvyEbFYicob0YuHn?si=ae929bfae71042bb
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When it comes to international economic competition, people often frame the argument as the U.S. versus China.
But across the Atlantic, nation-states in the European Union have been working hard to show the world that they deserve to be considered an economic force.
Rising up to this challenge for the EU is easier said than done. Sean Bray, EU policy analyst at the Tax Foundation, joins Jesse to talk through the EU's challenges--and potential--when it comes to tax and economic policy.
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Tax Foundation recently announced that Daniel Bunn is our new president and CEO. In this special episode of The Deduction¸ Daniel chats with Jesse about how he got into tax policy. They discuss his time in the Senate, his plans for Tax Foundation’s future, and even his obsession with smoking meats.
Links:
https://taxfoundation.org/staff/daniel-bunn/
https://twitter.com/danieldbunn
https://www.linkedin.com/in/danielbunn
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The 2022 midterm elections are wrapping up, and taxpayers are looking at a divided Congress for the next two years. Senior Policy Analyst Garrett Watson sits down with Jesse at Tax Foundation's headquarters to give a quick analysis of what these elections mean for tax policy. They talk through what we can expect from the approaching "lame-duck" session, what a Republican House and Democrat Senate could find agreement on, and what priorities the upcoming Congress should focus on.
Links:
https://taxfoundation.org/tax-extenders-2022/
https://taxfoundation.org/tax-cuts-jobs-act-business-tax-increases/
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If you’ve been following taxes closely these past few months, you know that the UK is currently undergoing a drastic change.
This episode of The Deduction is part one in our ongoing coverage of the UK’s tax battles. Jesse chats with Tom Clougherty, research director and head of tax at the Centre for Policy Studies in London. Tom talks us through what all went down in the UK this fall: from the leadership elections to the countless U-turns the new prime minister has made to try and reform the country’s tax code.
Shortly after we finished recording this episode, news broke that Chancellor Kwasi Kwatern was being ousted, and Jeremy Hunt would take over the Exchequer, with the promise that, yet again, another U-turn would happen on the country’s budget.
While this episode doesn’t get into that turn of events, it is still a very informative start showing how we got here and where the country should go on taxes.
A quick British glossary for this episode—“Bugbear”: a cause of obsessive fear, irritation, or loathing.
Links:
https://www.taxfoundation.org/mailbag
https://cps.org.uk/our-team/tom-clougherty/
https://taxfoundation.org/uk-capital-allowances-super-deduction/
https://taxfoundation.org/2022-international-tax-competitiveness-index/
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From the Tax Cuts and Jobs Act in 2017 to the Inflation Reduction Act signed into law just this summer, lawmakers across the political spectrum are often tempted to implement temporary tax reforms.
But is this how tax policy should be done?
Garrett Watson joins Jesse to discuss the pros and cons of writing tax laws that have an end date and why we find ourselves having a debate at the end of each year about so many temporary provisions.
Links:
https://taxfoundation.org/making-the-tax-cuts-and-jobs-act-individual-income-tax-provisions-permanent/
https://taxfoundation.org/economic-growth-opportunity-tax-reforms/
https://taxfoundation.org/temporary-tax-policies-in-budget-reconciliation/
https://taxfoundation.org/cbo-report-us-gdp-budget-deficit/
https://taxfoundation.org/tax-extenders-expiring-tax-provisions-2021/
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Maine has blueberry taxes. Alabama has mosquito taxes. Each state and county has its tax quirks. But when state and local governments want to raise revenues, there are four key taxes they turn to. Depending on where you live, the differences in these taxes between states can be significant.
Katherine Loughead, senior policy analyst at the Tax Foundation, joins Jesse Solis to discuss trends we are currently seeing in state and local taxes and to break down how stable these revenue sources are for the places we call home.
Links:
https://taxfoundation.org/state-local-tax-collections/
https://taxfoundation.org/mailbag
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The Inflation Reduction Act, signed into law recently by President Biden, includes a book minimum tax, which is raising the eyebrows of accountants everywhere.
This new policy–a 15 percent tax applied to the financial statement income that companies report to their investors–is one of the law’s largest revenue raisers and joins plenty of other “minimum” taxes for multinational corporations, including GILTI and the OECD global minimum tax.
Scott Dyreng, a professor of accounting at Duke University, and Daniel Bunn, executive vice president at the Tax Foundation, join Jesse to discuss how these minimum taxes work and, more importantly, how the accounting will work as companies aim to comply with all these new complex rules and tax increases.
Links:
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/book-minimum-tax-analysis/
https://taxfoundation.org/inflation-reduction-act-minimum-tax/
https://taxfoundation.org/inflation-reduction-act-accelerated-depreciation/
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The Internal Revenue Service (IRS) finds itself under fire often. Outdated technology, millions of unanswered calls, and cafeterias full of paper returns--it's clear thatAmerica’s tax collector needs improvement.
In the same way that technology has helped shape the tax policy debate, tech also has a role to play in advancing tax administration.
Jesse is joined by Courtney Kay-Decker and Jared Ballew, chair and vice chair (respectively) of the Electronic Tax Administration Advisory Committee (ETAAC). They discuss ETAAC's annual report that lays out what the IRS is doing right, and what it's doing wrong, as the agency continues to see its duties grow. They also discuss the IRS funding in the Inflation Reduction Act, and define what steps the agency and Congress should take in order to truly keep the IRS focused on serving taxpayers. Links:
https://www.irs.gov/tax-professionals/electronic-tax-administration-advisory-committee-etaac
https://www.irs.gov/pub/irs-pdf/p3415.pdf
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/tax-season-reform/
https://taxfoundation.org/inflation-reduction-act-irs-funding/
https://taxfoundation.org/tax-gap/
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The House of Representatives is set to pass the Inflation Reduction Act, the latest iteration of President Biden’s tax and climate agenda.
The road to get to this final package has been anything but easy--with congressional Democrats drastically scaling back the initial $3 trillion Build Back Better agenda.
Garrett Watson joins Jesse to discuss what sacrifices were made by key lawmakers to bring this bill to the finish line. They also look at what the economic impact of this proposal would be as the country continues to face historic rates of inflation.
Links:
https://taxfoundation.org/inflation-reduction-act/
https://taxfoundation.org/tax-on-stock-buybacks/
https://taxfoundation.org/inflation-reduction-act-accelerated-depreciation/
https://taxfoundation.org/inflation-reduction-act-corporate-taxes/
https://taxfoundation.org/book-minimum-tax-analysis/
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After months of stalled negotiations, Sen. Joe Manchin (D-WV) announced that he has reached a deal with Senate Democrat leadership on a reconciliation package.
Called the Inflation Reduction Act, the legislation would raise taxes on corporations and top earners with the goal of funding a number of programs to reduce carbon emissions, address prescription drug costs, and spur the economy.
Garrett Watson joins Jesse Solis to talk through what these tax changes would mean for the economy: Will they reduce inflation, and do they break the President's pledge not to raise taxes on those earning less than $400,000?
Links:
https://taxfoundation.org/biden-corporate-minimum-book-tax/
https://taxfoundation.org/prescription-drug-pricing-reform/
https://taxfoundation.org/tax-gap/
https://taxfoundation.org/tax-reform-options/?option=28
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Technology is moving rapidly--especially when it comes to taxes. With advancements in AI and machine learning, we are seeing technology being utilized in every corner of the tax world.
From policy to filing, from accounting to compliance: technology is truly shaping the future of taxes. Jesse chats with Ben Alarie, CEO of Blue J, and Garrett Watson, Senior Policy Analyst at the Tax Foundation, about how companies are utilizing technology to comply with new innovations in the tax code and how policymakers can use technology to advance tax laws that support an ever-evolving economy.
Links: https://www.bluej.com/
https://taxfoundation.org/overview-tax-foundations-taxes-growth-model/
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On July 1st, 2021, over 130 countries agreed to a sweeping overhaul of the global tax system.
This agreement -- on a 15% global minimum tax -- was unprecedented, taking on over a century of how international tax competition has been done.
One year later, the deal appears stuck. Countries are moving ahead with caution before codifying this new tax into their laws.
Daniel Bunn, Tax Foundation's executive vice president, joins Jesse to discuss what this delay means for countries and multinational corporations, and what the path ahead looks like for global tax policy and competition.
Intro: 00:02
Overview: 01:15
Myths and Misconceptions: 12:54
Key Takeaways: 15:45
Outro: 17:50
Links:https://taxfoundation.org/global-minimum-tax-us-international-tax/
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Oil prices have skyrocketed, posing a new risk to the post-pandemic recovery. Feeling the pressure to respond, policymakers have proposed everything from gas tax holidays, tapping into strategic reserves, and even rebate cards. One idea that has crawled back from the dead: “Windfall Profits Taxes.”
This idea is seemingly simple: legislation targeted at the “excess” profits of oil companies. However, as with anything in tax policy, the reality is much more complicated.
But why exactly have windfall profits taxes risen from the grave, and what put them there in the first place? Host Jesse Solis sits down with Tax Foundation policy analyst Alex Muresianu to find out more.
Links: https://taxfoundation.org/windfall-profits-tax-oil-company-profits/
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Amidst soaring inflation, policymakers across the political spectrum proposed many ideas to soften the blow of higher prices—especially for low-income workers and families.
One idea that caught on quickly: sales tax relief on groceries.
The idea had its merits, but Tax Foundation research shows that it may have missed the mark. Tax Foundation Vice President of State Projects Jared Walczak joins Jesse Solis to discuss how grocery sales tax relief became a popular idea, and why it is so hard to nail down progressive vs. regressive tax policy.
Links: https://taxfoundation.org/sales-tax-grocery-tax-exemptions/
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Property taxes are one of the most substantial tax burdens businesses face. In 2020 alone, property taxes accounted for almost 38 percent of all taxes paid by businesses to state and local governments.
These taxes are highly unpopular and can get extremely confusing. But when done right, property taxes can actually be quite good. Janelle Fritts, a state tax policy analyst, joins Jesse Solis to talk through what a well structured property tax should look like, which states have good property tax structures in place and which ones don't, and how these taxes impact a state's competitiveness in an increasingly mobile economy.
Links:
https://taxfoundation.org/ranking-property-taxes-2022/
https://taxfoundation.org/2022-state-business-tax-climate-index/
https://taxfoundation.org/tax-basics/property-tax/
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Amidst bipartisan climate negotiations on Capitol Hill, there have been renewed calls for a carbon tax.
Carbon taxes have long been magnets for political controversy. But from an economic standpoint, they deserve to be taken seriously.
Federal policy analyst Alex Muresianu joins Jesse Solis this week to talk through the history of climate tax policy, how a pro-growth carbon tax could be designed, and what its chances in DC actually are as the climate crisis worsens.
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Episode Description: State lawmakers have been on the move this year. One major trend that has been taking place? A push for flat taxes.
In more than 100 years of state income taxes, only four states have ever moved from a graduated-rate income tax to a flat tax. Another four may adopt flat tax legislation just this year.
Jared Walczak, vice president for state projects, joins Jesse Solis this week to discuss what flat taxes are, what they mean for taxpayers, and why so many states are making a push for them this year.
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The return of high inflation after 40 years should cause policymakers to rethink their approach, get back to basics, and focus on economic growth and opportunity. Tax reform should be a key pillar in this approach.
The third session of Tax Foundation University 2022 will provide a demo of the Tax Foundation’s Taxes and Growth (TAG) Model and an overview of Tax Foundation’s 10 Tax Reforms for Growth and Opportunity. We will discuss how charting a path of increased economic opportunity, innovation and dynamism, growing industries, and greater financial security can be facilitated by better tax policy.
The second session of Tax Foundation University 2022 will cover key parts of the individual tax code, explaining why it contains elements of income and consumption taxes and how it applies to a growing share of businesses, colloquially known as “pass-throughs.”
Our experts will discuss the temporary expansion of work and child-related provisions and its impact on growth. Finally, you will learn about ideas proposed as part of the Build Back Better agenda, including a high-income surcharge, mark-to-market tax, and pass-through business tax increases.
The first of our three Tax Foundation University 2022 sessions will explain key parts of the corporate and international tax code, the current tax landscape, implications of scheduled and potential changes, and the latest research on who bears the burden of corporate income taxes.
We will discuss key concepts proposed as part of the Build Back Better agenda, such as profit shifting, differences between taxable and book income, and the tax treatment of other types of financial income. To finish, we will offer a lay of the land for international tax provisions and how the OECD tax deal could play a significant role in U.S. tax policy.
Inflation has made an unwelcome comeback, with consumer prices rising at rates not seen since 1982. Where did this inflation come from and what might its impacts be? What does inflation have to do with tax and fiscal policy and how could each be used to mitigate its negative effects?
The Tax Foundation recently hosted a panel discussion with experts from the Committee for a Responsible Federal Budget and The Hoover Institution to discuss these questions and more, including the impact of enacted and proposed federal legislation on inflation, debt, and tax policy and how all three interact.
Change is here: The pandemic sparked a move toward a more mobile economy for workers and businesses across the country. Where you live no longer has to dictate where you work—and that mobile economy is here to stay.
States are unprepared: Our economy is changing, but state tax codes have failed to keep up. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.
A road map forward: On our latest Talking Tax webinar, our state experts overviewed the landscape and explained how states can remove impediments to new living and working arrangements, enhance their attractiveness for increasingly mobile employers and employees, and respond to greater economic uncertainty and rising inflation.
The way we work is changing, and tax codes have not caught up. The coronavirus pandemic has dramatically accelerated a trend toward remote, flexible, and multistate work arrangements, but existing tax codes often penalize employers and employees alike as companies provide workers with greater flexibility.
Not only will many workers face filing requirements in multiple states, but in some cases, so-called “convenience rules” will obligate them to pay taxes on the same income to two states, with no offsetting credits. Even working remotely for a single day in some states is enough to trigger filing obligations. Hybrid work arrangements, moreover, will yield far more employees working in an office in one state some days, and from home in a different state for others. For businesses, an employee’s decision to work remotely from another state can establish tax nexus that did not exist previously and can sometimes result in the company’s income from services being taxed in two states.
As Americans settle into a much more workplace-flexible new normal, many taxpayers—employers and employees alike—continue to grapple with the tax implications. Our panel of tax experts is here to explain the issues facing businesses and workers, discussing key questions such as:
- What can cause a worker to trigger business tax liability where the business previously lacked nexus?
- Under what circumstances can remote workers lead to double taxation of business income?
- How should a business withhold for employees that live and work in a different state than its offices?
- In the absence of federal legislation, would workers need to file an income tax return in every state they worked in, even if only for a day?
- What reforms could state tax codes incorporate to prepare for an increasingly remote workforce to attract mobile workers but also address revenue needs?
Learn more at: https://taxfoundation.org/events/talking-tax-reform-mobile-workforce-nexus-telework/
Throughout the year, the Biden administration and congressional Democrats have been fleshing out tax proposals as the budget reconciliation process heats up. With these expanded details, the Tax Foundation and other scorekeepers have released updated and more precise analysis.
To explain these proposals and help policymakers and taxpayers understand their impact on American businesses and families, we recently hosted a webinar doubleheader (this being the first of two).
Our first webinar discussion focused on individual and pass-through business tax plans, which include:
-- Raising the top marginal rate from 37 percent to 39.6 percent
-- Taxing long-term capital gains as ordinary income for taxpayers with adjusted gross income above $1 million
-- Taxing unrealized capital gains at death for unrealized gains above $1 million
-- Phasing out the pass-through deduction for taxpayers earning over $400k and expanding eligibility for certain taxpayers under that amount
-- Applying an additional 3.8 percent tax to active business income for taxpayers earning over $400k
-- And more.
Hear from today’s leading tax policy experts on the details and implications of potential individual and pass-through business tax changes, moderated by Tax Foundation Vice President of Federal Projects Will McBride:
-- Robert McClelland, Senior Fellow, Tax Policy Center
-- Garrett Watson, Senior Policy Analyst, Tax Foundation
Learn more at: https://taxfoundation.org/events/biden-individual-tax-plan-webinar
Throughout the year, the Biden administration and congressional Democrats have been fleshing out tax proposals as the budget reconciliation process heats up. With these expanded details, the Tax Foundation and other scorekeepers have released updated and more precise analysis.
To explain these proposals and help policymakers and taxpayers understand their impact on American businesses and families, we recently hosted a webinar doubleheader (this being the second of two).
Our second webinar discussion focused on the corporate tax plans proposed by the Biden administration and Congress and their impacts on business decisions and families across the country. Our panel explored key questions such as:
-- Who bears the economic incidence of corporate tax increases and what would the impact be on after-tax incomes, wages, and jobs across states and congressional districts?
-- How do corporate tax changes impact companies’ decisions on where to invest and employ workers?
-- What could be the economic impact of investment incentives, such as expensing and R&D tax provisions, currently being considered in Congress?
-- How would a tax on businesses’ financial profits work and what economic and administrative challenges could arise?
-- How would industry-specific tax policy reforms impact economic growth, employment, and wage growth?
Hear from today’s leading tax policy experts on the details and implications of potential corporate tax changes, moderated by Tax Foundation Vice President of Federal Projects Will McBride.
-- Doug Holtz-Eakin, President, American Action Forum
-- Erica York, Economist, Tax Foundation
Learn more at: https://taxfoundation.org/events/biden-corporate-tax-plan-webinar
It’s likely that new markets like recreational marijuana and sports betting will continue to grow as legalization and innovation continue, but the structure of excise taxes could dictate where and how that growth occurs.
This has raised important questions as policymakers debate how best to enact or fix excise taxes:
- How should excise taxes be structured so as not to stifle growing industries or push participants into the black market?
- How much will these new taxes raise, how stable will collections be, and are there better or worse ways for governments to allocate the revenue?
- To what extent are different excise taxes effective tools for curbing unwanted behavior?
- What lessons should the federal government take from the policy experiments in the states?
For our latest Talking Tax webinar, our excise tax expert Ulrik Boesen moderates an exclusive panel discussion featuring:
- Norman Birenbaum, Director, Cannabis Programs at the State of New York and President, Cannabis Regulators Association
- Richard Auxier, Senior Policy Associate, Tax Policy Center
- Todd Nesbit, Assistant Professor of Economics, Ball State University
Even a typical filing season brings up many questions for taxpayers, such as, “How big will my tax refund be?” or, “Will I have a balance due when I file taxes this year?” But the 2021 filing season will be far from typical—in addition to normal compliance challenges, taxpayers will also be affected by many of the provisions in the various COVID-19 relief legislative packages, including three rounds of direct payments, a new exclusion of $10,200 of unemployment income, and a significant, but temporary, increase to the Child Tax Credit (CTC) and Earned Income Tax Credit.
These new policies introduce several new wrinkles. Typically, taxpayers would owe taxes on their unemployment checks but a provision in the American Rescue Plan drastically changes what those individuals and families owe. Taxpayers will not owe taxes on their direct payment, but each round of checks has its own unique structure and amount. Also, important questions exist around the advance monthly payment of the CTC.
These changes, and others, have raised additional questions in the minds of many taxpayers and could potentially affect their refund and liability in the 2021 filing season. It should also raise important questions for policymakers. Is the tax code too complex? Is it the best vehicle to deliver direct aid? How can the code be streamlined to reduce compliance burdens for taxpayers and administrative costs for the IRS?
These questions are answered by our all-star lineup of tax experts, hosted by Tax Foundation president Scott Hodge:
— Kathy Pickering, Chief Tax Officer, H&R Block
— Nina Olson, Executive Director and Founder, Center for Taxpayer Rights
— Erica York, Economist, Tax Foundation
The fifth and final session of Tax Foundation University will be dedicated to audience feedback and questions from the first four weeks.
Topics could include upcoming and recent legislation related to COVID-19 recovery or energy policy, Tax Foundation’s Options Guide, or other concepts that attendees express interest in throughout the prior month.
Areas of Focus:
- COVID-19-Related Tax Relief
- Energy Tax Policy
- Onshoring and Supply Chain Incentives
- Workforce Training Incentives
See more educational sessions and explore related resources at: https://taxfoundation.org/university
In the fourth session, we will feature the second edition of our popular guide, Options for Reforming America’s Tax Code, which analyzes more than 70 discreet tax policy changes, encompassing both the individual and business tax codes.
The Options Guide will be used as a teaching tool to discuss the unique trade-offs among revenue, economic growth, and the distribution of the tax burden inherent in all tax policy changes.
Using the Options Guide, this session will review tax policy issues facing the 117th Congress and long-term tax policy considerations and discuss the range of options available to policymakers.
Learn more: https://taxfoundation.org/university
In the third session, we will explore how corporations pay taxes through the corporate income and international tax code, the impacts of the current system, and changes that some policymakers have suggested.
The 2017 tax law reduced the corporate income tax rate, changed the corporate tax base, and reformed the way foreign profits of U.S. multinationals are taxed. Many major business-related provisions of the 2017 tax law are scheduled to change in the coming years, and the Biden administration has proposed increasing the corporate income tax rate, changing international taxes, and instituting a corporate alternative minimum tax.
This session will provide an overview of the corporate and international tax landscape and discuss the implications of scheduled and potential changes.
In the first of five sessions, we’ll explain how to view the economy, the role that taxes play in the economy, and the various measures economists use to talk about the impact of taxes, including growth, wages, and employment.
Our experts will explain how the various tax cuts have different impacts on the U.S. economy and how specific tax changes grow or shrink GDP by changing incentives to work and invest.
This session will also introduce you to the Tax Foundation’s General Equilibrium Model, used to estimate the economic, revenue, and distributional effects of tax policy changes, as well as the other major tax models in use today.
Learn more at: https://taxfoundation.org/university
In the second session, we will cover the key parts of the individual tax code that contain elements of income taxes and consumption taxes, and apply to a growing share of businesses, colloquially known as “pass throughs.”
Our experts will also discuss work and child-related tax benefits, which have led to a growing share of households that receive net benefits through the individual income tax, and several individual income tax elements that are scheduled to expire in the coming years.
Finally, you will learn about progressivity in our current income tax system and some of the proposals the Biden administration has put forward to change the way income is taxed.
Learn more: https://taxfoundation.org/university
State revenues have not taken as much of a hit as was once feared, but state lawmakers still face the difficult task of balancing responses to reduced revenues with efforts to help facilitate the economic recovery.
In this final session, we will review the latest revenue data, survey state responses to the Great Recession and prior economic downturns, explore the state tax implications of federal relief packages, and outline states’ options.
Drawing upon earlier discussions, we will close out the legislative boot camp with a timely discussion of tax policy choices, on issues ranging from UI tax adjustments to tax conformity measures to the advantages and disadvantages of different revenue-raising options.
Learn more at: https://taxfoundation.org/boot-camp
Recent years have seen expanded interest in new or less common forms of taxation—things like wealth taxes, digital advertising taxes, excess compensation taxes, and financial transaction taxes.
States have little or no experience with these taxes, leaving basic questions about the proper structure of such taxes unresolved and creating significant uncertainty around fundamental issues such as their revenue potential, impact on tax competitiveness, and even, in some cases, constitutionality.
In this session, we will dive into several of these notable additions to the tax debate, outlining the arguments made for and against each tax, exploring some of the design and implementation challenges policymakers have encountered or are likely to encounter, and surveying the legal hurdles such tax proposals would have to clear.
Areas of Focus:
- Wealth taxes and the mark-to-market taxation of capital gains income
- Financial transaction and stock transfer taxes
- Digital advertising and data taxes, contrasted with sales taxation of digital goods and services
- Excess compensation taxes, business head taxes, and other new developments in state taxation
Learn more at: https://taxfoundation.org/boot-camp
With revenues short of pre-pandemic projections, many states are looking to excise taxes as a way to plug revenue gaps, sometimes by raising existing tax rates (particularly on tobacco and vapor products) and other times by legalizing and taxing new markets, like sports betting and marijuana.
States often struggle with the trade-offs inherent in these so-called “sin taxes,” trying to navigate sometimes competing public health and revenue generation goals. They must also grapple with often unstable revenues and questions of how to design taxes on newly legalized markets.
In this session, we explore these and similar questions related to excise taxes, along with a review of the basic theory of excise taxation.
Learn more at: https://taxfoundation.org/boot-camp
The pandemic has changed how we live and work, and for many, some of those changes may be permanent. But what are the tax implications of remote work?
In this session, we will delve into the tax implications of multistate living or working arrangements. We’ll look at what this means for tax withholding, where an individual might have liability, how credits for work performed in another state function, and what scenarios can yield actual double taxation. We will also examine the business side, identifying scenarios in which remote workers could trigger business tax liability in a state where a company previously lacked nexus.
Remote work is here to stay, but state tax codes aren’t ready for it. This session is about how states can remove impediments to remote work, what they can expect from a dramatically more mobile workforce—and how to respond to it.
Learn more at: https://taxfoundation.org/boot-camp
In the second part of our overview of major state and local taxes, we tackle sales and excise taxes, property taxes, severance taxes, and other forms of state and local tax revenue.
In this session, we discuss states’ different approaches to defining the sales tax base, and where there is room for reform. We also explore local sales tax authority, how services are sourced for tax purposes, and how states have responded to the Wayfair court decision on the taxation of remote sales. We discuss the design of marketplace facilitator laws, which require sales platforms to remit on behalf of their sellers, and look at some of the complexities that have arisen under these laws.
We also tackle property taxes, both real (land) and personal (machinery and equipment, etc.), talking about assessments, split roll taxation, and other structural issues. We explore the merits and demerits of different state approaches to mitigating property tax burdens, either through property tax limitations or through tax swaps. And we discuss the different approaches to severance taxes, and the basic theory of excise taxation, all in an informative one-hour session.
Learn more at: https://taxfoundation.org/boot-camp
In the first of our six sessions, we will explore individual and corporate income taxes plus the timely subject of unemployment insurance taxes.
Everyone knows income taxes—but sometimes the details can be murky. How long does someone have to work in a state to pay income taxes there, and how does that affect their tax burden in their home state?
Unemployment insurance (UI) taxes, meanwhile, are opaque to even the most senior policymakers. We will walk through the basic structure of unemployment insurance taxation, explaining how each business’s rate is determined, outlining some of the key provisions of UI taxation, and highlighting how the exhaustion of state unemployment compensation funds yields automatic UI tax increases.
Learn more at: https://taxfoundation.org/boot-camp
(Recorded February 16, 2021)
The sheer size and scope of the tax changes within the CARES Act and subsequent relief legislation created significant administrative challenges for the IRS and taxpayers alike.
The National Taxpayer Advocate found that despite the significant relief Congress has provided, many taxpayers and businesses have had difficulty navigating the various tax provisions.
And even though the most recent relief legislation, the Consolidated Appropriations Act, 2021, addressed some issues with the CARES Act, confusion and compliance challenges remain. For example:
- Taxpayers with direct deposit information with the IRS received their recovery rebates quickly, while others lacking this information, such as non-tax filers and beneficiaries of programs such as Social Security, waited longer.
- Uncertainty persists among individuals who received recovery rebates or unemployment benefits about whether those benefits are taxable.
- As Tax Day 2021 approaches, confusion will likely increase as taxpayers receive different refund amounts than expected due to their eligibility under relief provisions.
- Despite clarifications in the most recent COVID-19 relief legislation, some businesses may still be unsure about the deductibility of expenses paid for with Paycheck Protection Program loans and differences between various payroll tax provisions, among other things.
This experience highlights the importance for policymakers to prioritize simplicity in future relief efforts and in tax legislation in general.
To discuss this issue and other lessons we can learn from COVID-19 relief legislation so far, Tax Foundation and the The Tax Institute at H&R Block hosted a special Talking Tax Reform webinar discussion, which was moderated by Tax Foundation President Scott Hodge and featured several of today’s leading economic and tax experts:
- Elaine Maag, Principal Research Associate, Urban-Brookings Tax Policy Center
- Kevin Martin, J.D., LL.M., Principal Tax Research Analyst, The Tax Institute at H&R Block
- Erica York, Economist, Tax Foundation