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David Brunori

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All Posts by David Brunori

August 27, 2014 - 8:44 AM EDT
Repealing the Bad Franchise Tax is a Good Idea
One of the best ideas of the year comes from Mississippi. Lt. Gov. Tate Reeves (R) wants to eliminate the state's corporate franchise tax. I have been calling for the repeal of corporate income taxes for a long time. Corporate franchise taxes are much worse. The Mississippi tax is essentially a tax... [Read More]
August 20, 2014 - 9:57 AM EDT
Using Local Cigarette Taxes for Schools Is Silly
Classic sound tax policy suggests that excise taxes should be limited to paying for externalities. It also suggests that local governments are incapable of imposing excise taxes. Yet William R. Hite Jr., Philadelphia's superintendent of schools, is pressing the Pennsylvania legislature to allow the... [Read More]
August 13, 2014 - 9:15 AM EDT
Congress Shouldn’t Make State Tax Systems Worse
I, like most Americans, am cynical about Congress. Our national legislature, whether the Democratically controlled Senate or the GOP-led House, is a joke. Congress certainly doesn't do taxes well, or at least it hasn't since 1986. The federal corporate tax needs to be reformed. The personal income... [Read More]
August 6, 2014 - 8:12 AM EDT
Keep the Inversion Hysteria Out of the States
Please spare me from another story about unpatriotic, greedy, immoral companies failing to pay their fair share in taxes. Yes, companies invert as part of their tax planning strategies. Yes, inversions cost the federal government about $2 billion annually, which would cover lunch for our defense co... [Read More]
July 30, 2014 - 9:14 AM EDT
Lawyers Whining About Taxes
Republican Bruce Rauner is challenging Illinois Gov. Pat Quinn (D) in this fall's gubernatorial election. One of Rauner's big ideas is tax reform. In a nutshell, he wants to cut personal income taxes, freeze property taxes, and expand the sales tax to cover 31 services -- including those provided... [Read More]
July 23, 2014 - 9:35 AM EDT
Who Wants to Tax a Millionaire? Lots of People
On July 16 Stateline, the news arm of the Pew Charitable Trusts, published an interesting piece on the ongoing debate over taxing rich people. The article chronicles past and current efforts to impose higher marginal tax rates on the very wealthy. It discusses recent unsuccessful attempts in New Je... [Read More]
July 16, 2014 - 9:16 AM EDT
What Went Wrong in Kansas? Maybe Nothing
Kansas is collecting hundreds of millions of dollars less than its budgeted projections. That number has a lot of people in a lot of states wondering what happened. Here is why answering that question is important. In 2012 Kansas enacted what Nick Johnson at the Center on Budget and Policy Prioriti... [Read More]
July 2, 2014 - 8:05 AM EDT
A Revenue Department Behaving Badly
This week my colleague Cara Griffith broke an important story about the arrogance of government. An erstwhile publishing entrepreneur named William Hoke has a website that published tax information. He published several government documents. The New Hampshire Department of Revenue Administration de... [Read More]
June 25, 2014 - 8:29 AM EDT
A Bad Law Addressing a Bad Business Tax
North Carolina has eliminated a very bad tax in a very bad way. Gov. Pat McCrory (R) signed HB 1050 to revoke municipalities' authority to tax businesses beginning in 2015. North Carolina did a good thing by eliminating a terrible tax. But it also curtailed local government taxing authority, which... [Read More]
June 18, 2014 - 12:32 PM EDT
Tax Policy Is Not the Way to Deal With an Ass
Some people are jerks. The soon-to-be former owner of the Los Angeles Clippers, Donald Sterling, is a jerk. His reprehensible racist comments were widely and appropriately condemned. The NBA banned Sterling from the league for life, fined him $2.5 million, and is forcing him to sell the team. That'... [Read More]
June 11, 2014 - 8:59 AM EDT
A Coke and a Smile and a Tax
I'm compiling a list of people who propose terrible tax policy. Today's winner is Illinois Rep. Robyn Gabel (D), the sponsor -- and from what I understand, the mastermind -- of the proposal (HB 397) to adopt a soda tax to fight obesity in her state. The idea was to impose an excise tax of one cent... [Read More]
June 4, 2014 - 8:52 AM EDT
Taxing E-Cigarettes Seems Crazy
The do-gooders in the state capitals are at it again: There have been multiple proposals to tax e-cigarettes in the same manner as traditional cigarettes. I get the rationale for tobacco taxes. You smoke, you get sick, society has to pay for your medical care. That's consistent with the classic rat... [Read More]
May 28, 2014 - 9:53 AM EDT
Taxing Togas and Keggers
States should consider ending the absurd practice of granting property tax exemptions to charitable organizations. Exemptions like those narrow the tax base and cause everyone else to pay more. Moreover, the organizations receiving exemptions use public services. I know that's a political pipe drea... [Read More]
May 14, 2014 - 8:51 AM EDT
Repealing the Property Tax Is an Asinine Idea
There is a lot of buzz about a proposal in Pennsylvania to repeal most of the property tax. SB 76, which Sen. David Argall (R) introduced last year, would eliminate all school district property taxes in the state and replace the revenue with increased income and sales taxes. He would raise income t... [Read More]
May 7, 2014 - 9:06 AM EDT
Tax Follies in Pursuit of Equality
Over the past several years, the issue of income and wealth inequality has been all the rage. Apparently the old adage "The rich get richer" was spot on. The purported inequality never bothered me much. Rich people usually get their money from being smart and working hard and taking advantage of op... [Read More]
April 30, 2014 - 9:06 AM EDT
Sad Pragmatism and Tax Incentives
Readers of this blog know my views on tax incentives -- I believe they are the most pernicious of tax policy choices. I believe they violate every principle of sound taxation. They are neither horizontally nor vertically equitable. They distort markets by design. They lack accountability. They cost... [Read More]
April 9, 2014 - 9:53 AM EDT
I'll Raise a Glass to Lower Booze Taxes
For the uninitiated, bourbon is a type of whiskey distilled from corn. Bourbon can be expensive; Black Maple Hill sells a bottle for $125. Or it can be cheap; I've seen it for $8 a bottle. But whether expensive or cheap, it is almost always from Kentucky. In fact, 95 percent of all bourbon in the... [Read More]
April 2, 2014 - 9:20 AM EDT
Tesla, Taxes, and Free-Market Hypocrisy
Tesla Motors makes electric cars -- and they must be pretty good cars because they cost $70,000. Despite selling really expensive cars, Tesla has long been the darling of the left. Nothing says "I am committed to saving the polar bears" better than driving a luxury, battery-powered car. For several... [Read More]
March 26, 2014 - 8:37 AM EDT
Hang On to Your Wallets
Wallet Hub is a social media company that allows people to search for and compare financial products and interact with a community interested in making “smarter financial decisions.” Wallet Hub also does all kinds of state and local rankings. It lists the best places to work, the best places to b... [Read More]
March 19, 2014 - 8:04 AM EDT
Hawaii Tax Credit Craziness
According to some excellent reporting in the Honolulu Civil Beat, the Legislature is considering a slew of tax incentives to promote manufacturing in the state. Yes, there are those (particularly established manufacturers) who would like to promote something other than tourism, hosting of naval bas... [Read More]
March 12, 2014 - 8:45 AM EDT
Where Is the Outrage?
I recently read the February 24 Good Jobs First report, “Subsidizing the Corporate One Percent,” by Philip Mattera, a respected thought leader in our business. It says that three-quarters of all state economic development subsidies went to just 965 corporations since the beginning of the study in... [Read More]
March 5, 2014 - 9:17 AM EST
Taxing Coca-Cola While Exempting Broccoli Is Bad Policy
The Navajo Nation is trying to use its tax code (I didn't know the Navajos had a tax code) to promote healthier living. The Navajos recently voted to impose higher taxes on “junk food” and reduce taxes on healthier alternatives. I abhor government attempts to get people to do things for their ow... [Read More]
February 25, 2014 - 1:59 PM EST
Great Opportunity for Tax and Public Finance Students
If you teach tax law, accounting, or public finance, Tax Analysts is offering a great opportunity for your students. We are conducting our first student writing competition. You should encourage students who have written quality papers to submit them to studentpapers@tax.org by May 31. The winning... [Read More]
February 19, 2014 - 8:31 AM EST
Blaming Big Corporations Is Not the Answer
My friends at Citizens for Tax Justice believe that federal corporate tax burdens are too low. They also believe that the system is infected with planning opportunities that allow corporations to avoid their "fair share" of taxation. Seeing as CTJ is one of the nation's premier progressive advocac... [Read More]
February 12, 2014 - 8:21 AM EST
Tax Breaks for Lawyers -- No Joke
Sometimes I have to pinch myself. I read recently in the Kansas City Business Journal that Missouri gave a big law firm $2.8 million in tax incentives to move to Kansas City. I thought there must be some kind of mistake. Certainly, no politician would agree to give citizens' hard-earned money to l... [Read More]
February 5, 2014 - 8:27 AM EST
Casino Taxes for Horses or Children?
Horse racing has been a dying sport since Nathan Detroit bet on a horse named Paul Revere in Guys and Dolls. In Pennsylvania, the schools are broke. So naturally, when governments need money, they turn to a moribund pastime to pay the bills. Rep. Todd Stephens (R) has proposed taking money from som... [Read More]
January 29, 2014 - 10:04 AM EST
A Sales Tax Conundrum
The sales tax has been a blessing and a curse. One of its great virtues is that it is collected by the vendor, which then remits it to the state. Neither the taxpayer nor the tax agency has much to do except pay and collect. The vendor does the work. The success of the sales tax for the last 90 yea... [Read More]
January 22, 2014 - 9:12 AM EST
Why Exactly Are We Taxing Pot?
The New Hampshire House is poised to pass a law legalizing marijuana use -- and taxing it. The bill, HB 492, sponsored by Rep. Steve Vaillancourt (R), would impose a 15 percent sales tax on retail marijuana purchases and a $30-per-ounce sales tax on wholesale purchases. It would raise about $30 mil... [Read More]
January 15, 2014 - 8:39 AM EST
Apple and Wal-Mart Are Perfect Together in a World of Bad Tax Policy
It's kind of funny to see Apple and Wal-Mart in bed together. Two companies could not be more different. Apple represents the young, hip, educated, and cool. Everybody loves an iPhone. Wal-Mart is ridiculed by the very people who make Apple successful. It is a place at which urban sophisticates wa... [Read More]
January 8, 2014 - 9:11 AM EST
Utter Ignorance When It Comes to Sales Taxes
Several years ago, I had the opportunity to talk to a group of legislators about sales tax policy. I was asked if I had any ideas for reform. I mentioned the common ideas of broadening the base by taxing services and remote sales, and lowering rates. I also said that states should exempt business p... [Read More]
January 1, 2014 - 11:49 AM EST
State Tax Reform Advice for 2014 – Think About Spending
Writing for a tax magazine, I have always focused on the revenue side of public finance. I believe that there is either a right way or a wrong way to raise money to pay for public services. Everyone assumes that any significant changes to the tax system must occur in a revenue neutral way – that i... [Read More]
December 18, 2013 - 8:22 AM EST
Follow the Tea Party on Stadium Financing Issues
The Atlanta Braves are planning to move their stadium to the suburbs. The Braves blackmailed, threatened, and coerced the backboneless politicians in Cobb County, Ga., to pay for the stadium. You might think that Cobb County is run by conservative small government leaders who disdain picking winne... [Read More]
December 11, 2013 - 12:01 PM EST
States Should Just Say No to Boeing
After the milquetoast political leaders in Washington agreed to give Boeing a tax break that will last well past all of our retirement years, the aircraft manufacturer could not come to terms with its union. So Boeing decided to take its toys and find another playground to build its 777X jetliner.... [Read More]
December 4, 2013 - 8:37 AM EST
Indexing the State Income Tax Brackets Makes Sense
Missouri Rep Paul Curtman (R) wants to index his state's income tax brackets to inflation. Of all the tax ideas presented this year, this is among the best. Missouri imposes its top rate of 6 percent on all incomes over $9,000. Nine grand was a lot of money in 1931 – and the top tax rate was aime... [Read More]
November 27, 2013 - 8:27 AM EST
Confusing Tax Cuts with Tax Reform
The American Legislative Exchange Council recently released a report detailing the tax cuts of the past year. It can be found here. The report notes that 18 states cut taxes in 2013. ALEC thinks that's good, as do I. The states -- in case you have not been reading your State Tax Notes -- are Alask... [Read More]
November 20, 2013 - 8:37 AM EST
Hasn’t the Government Done Enough to Mess Up Higher Education Finance?
The worst tax idea of the month comes out of Michigan, where legislators “determined to do something, somewhere, somehow” proposed a tax credit for student loan payments. Under the proposal (SB 408), graduates of Michigan universities, both private and public, would receive a tax credit equal to... [Read More]
November 13, 2013 - 9:07 AM EST
Tax Incentives That Aren't Incentives At All
In 2040 I will likely be wherever tax journalists go when they die. But the Boeing Co. will still be getting tax breaks from the state of Washington. Gov. Jay Inslee (D) signed legislation this past weekend that will extend the already extremely lucrative tax breaks Boeing receives from the state u... [Read More]
November 6, 2013 - 8:36 AM EST
Feckless Legislators and Corporate Welfare
Archer Daniels Midland Co. is big. In 2012 the food processing and commodities corporation had $90 billion in sales and about $4 billion in operating income. The company has been headquartered in Decatur, Ill., for 40 years and now wants to move. The good news -- for the state -- is that ADM wants... [Read More]
October 30, 2013 - 9:06 AM EDT
Tax Advice for State Legislators of All Parties
With the state legislative season on the horizon, I thought I would provide some tax policy advice for state lawmakers. For conservatives, I offer the following: First, remember that citizens want a certain level of state and local government. No amount of blustering and hyperbole and antitax rheto... [Read More]
October 23, 2013 - 8:38 AM EDT
Eliminating the Sales Tax Is a Very Good Idea
There is much talk in Rhode Island about repealing the state's 7 percent sales tax. It is a very good idea. Eliminating the sales tax would likely draw customers from the rest of tax-happy New England and spur retail investment. That could lead to an overall economic boom. To be sure, the sales tax... [Read More]
October 16, 2013 - 8:47 AM EDT
When Liberals Preach Fairness, Hold On to Your Wallet
In a few weeks, voters in Colorado will have a chance to reform one of the most significant tax limitations ever enacted. Amendment 66, designed to raise nearly a billion dollars a year for education, would end the state's flat income tax structure. It would mandate a progressive income tax – hig... [Read More]
October 9, 2013 - 8:45 AM EDT
A Solid, Albeit Mild, Tax Reform Proposal
The erstwhile folks at the Tax Foundation and the Platte Institute for Economic Research have a plan to fix Nebraska's tax system. What exactly are the problems they're trying to fix? The Tax Foundation and the institute identify plenty. They say Nebraska's top income tax rate and corporate tax... [Read More]
October 2, 2013 - 8:47 AM EDT
State Taxes and the Poor
I believe liberals are most convincing when they are arguing for tax relief for the poor. Too often liberals are consumed with either screwing the rich or raising revenue from any source to fund crony public works or bloated union bureaucracies. The Institute on Taxation and Economic Policy (ITEP)... [Read More]
September 25, 2013 - 8:44 AM EDT
Marriage and Religious Freedom Act Promotes Neither
A bipartisan group of lawmakers thinks it's appropriate for the American taxpayer to subsidize organizations fighting for "traditional marriage." But the sponsors aren't so much interested in perpetuating marriage between John and Mary as they are in preventing marriage between John and Jimmy. The... [Read More]
September 18, 2013 - 9:18 AM EDT
The Conundrum of Taxing Lots of Kids
Utah is the home of big families. It has long had the largest household size in the country. It's easy to understand why. About 60 percent of the state's residents are Mormons, and Mormons have traditionally favored big families. All those children have a significant impact on Utah public finances.... [Read More]
September 11, 2013 - 9:34 AM EDT
Want a Tax Shelter? Just Do It.
Nike is iconic. It is the definition of American business success. The company shods everybody from the New York football Giants to the New York football Cosmos. The University of Alabama Crimson Tide and the Cal Poly Mustangs wear the swoosh. The company is famous for its famous endorsers -- Tiger... [Read More]
September 4, 2013 - 9:26 AM EDT
Feeling Petty About Guns? Tax Them
Two U.S. Congressmen, who know nothing about tax policy, have introduced a bill that will dramatically increase federal taxes on guns and ammunition. The Congressmen are Democrats Danny K. Davis from Illinois and Bill Pascrell from New Jersey. The bill cleverly called the Gun Violence Prevention an... [Read More]
August 28, 2013 - 9:17 AM EDT
A Cacophony of Opinions, Left, Right and Center
Kyle Wingfield, an editorial writer for The Atlanta Journal Constitution, wrote a column on August 15, 2013 calling for repeal of Georgia's personal income tax. Based on his own research, Wingfield calculated that no income tax states had higher growth, population, and job rates than high income t... [Read More]
August 21, 2013 - 7:24 AM EDT
Governor Christie Does Not Understand Tax Policy
Like many governors, New Jersey's Chris Christie is not well versed in the principles of sound tax policy. In fact, if recent events are an indication, he is ignorant of the basic concepts. On August 19, he vetoed a very good tax policy measure (S 1868). That law would have provided a sales and use... [Read More]
August 14, 2013 - 8:46 AM EDT
I Like the Internet, Taxed or Not
As State Tax Today reported recently, U.S. Senators Ron Wyden, D-Ore., and John Thune, R-S.D., introduced legislation to make permanent the ban on state and local jurisdictions taxing Internet access. This will turn the Internet Tax Freedom Act into the Internet Tax Freedom Forever Act (get it?). I... [Read More]
August 7, 2013 - 7:49 AM EDT
Lotteries Are Winners, Except for the People
New Mexico last week was touting the fact that its lottery netted a record $43.7 million. The absent minded politicians proudly noted that the money will be used for college scholarships for poor kids. Isn't that great? No actually, it's not. You see the lottery system is a big fat scam. It takes m... [Read More]
July 31, 2013 - 8:40 AM EDT
Sales Tax Holidays and the Planet of the Apes
Some aficionados of the genre may remember this from the 2001 remake of Planet of the Apes. After the climactic battle, former underwear model Mark Wahlberg and always alluring (even when dressed as a gorilla) Helena Bonham Carter convince man and ape to make peace and work together toward a common... [Read More]
July 24, 2013 - 8:36 AM EDT
Don’t Cheat the Tax Man (Wink, Wink)
I have quit smoking, I think. Actually, I have been smoking electronic cigarettes, which apparently will not kill you. Sure, they are not as cool as the real thing. I can't see James Dean or Humphrey Bogart puffing on an e-cig. But they won't kill you. Unlike many ex-smokers, I do not care if you... [Read More]
July 17, 2013 - 8:33 AM EDT
Immigrants Are Good for Us
As I write, there is a contentious, heated debate in the U.S. Congress about immigration reform. Some political leaders, mostly Republicans, don't like providing illegal immigrants with a path to citizenship. Their argument is that people who came here illegally are being rewarded for breaking the... [Read More]
July 10, 2013 - 8:32 AM EDT
Taxing Teen Texts and Other Terrible Tax Things
I wish someone would tell me the policy rationale for taxing wireless services. What is it about my ownership of a cell phone and the subsequent texting, tweeting, emailing, etc. that gives rise to punishing me? I get taxing traditional telephone service (for you younger readers, ask your parents w... [Read More]
July 3, 2013 - 7:59 AM EDT
Cuccinelli's Corporate Tax Plan Does Not Go Far Enough
Virginia Republican gubernatorial candidate Ken Cuccinelli is proposing to cut the state corporate income tax from six percent to four percent over the next four years. Cuccinelli is making a big deal about this proposal, claiming that it will spur economic growth. I believe that cutting the tax ra... [Read More]
June 26, 2013 - 8:47 AM EDT
I Am Not Ayn Rand, But What About Me?
My friends at the Center on Budget and Policy Priorities recently took issue with my friends at the Tax Foundation. The subject was whether tax increases harm economic growth. The Foundation published a piece written by Will McBride in December 2012 which concluded that “nearly every empirical stu... [Read More]
June 19, 2013 - 8:25 AM EDT
Gas Tax is the Way to Go
Newspaper editorial pages rarely get tax policy right. Some, like The New York Times and Washington Post, are so driven by political agendas that they do not even pretend to understand the principles of sound tax policy. Unfortunately, smaller city newspapers all want to be The New York Times so th... [Read More]
June 12, 2013 - 8:01 AM EDT
The Myth of State Balanced Budgets
One of the great charades of American public finance is that “states must balance their budgets.” I have been hearing this since I entered the business many years ago. In fact, it was a common mantra of national Republican leaders who often said “the federal government should be like the states... [Read More]
June 5, 2013 - 8:49 AM EDT
On its 35th Birthday, Prop 13 Remains Flawed
Tomorrow, June 6, is the 35th anniversary of the passage of Proposition 13 in California. This very famous amendment to the state constitution limited property tax rates to one percent and limited increases in assessed value to two percent. It was the start of the modern property tax revolt and her... [Read More]
May 29, 2013 - 11:59 AM EDT
Worst Tax Idea of the Year? Cuomo Wins by a Landslide
An ideal tax system is based on a broad base and low rates. At least that is what the thinking folks believe. An ideal tax system also treats similarly situated people and organizations the same. People concerned about fairness have always thought that. And an ideal tax system minimizes economic di... [Read More]
May 22, 2013 - 11:19 AM EDT
Soviets Run Mississippi, Planned Economies and All
My friends at Good Jobs First released a report on Mississippi tax incentives recently that liberals, small government conservatives, and libertarians should find appalling. Between corporate tax breaks, withholding tax rebates, property tax abatements, and infrastructure and training grants, the s... [Read More]
May 15, 2013 - 8:29 AM EDT
Balderdash Masquerading as Tax Policy Arguments
It is no secret. This may hurt my libertarian credentials, but I believe the U.S. Congress should pass the Marketplace Fairness Act. The tax system is sound when built on a broad base and low rates. Broad base means you tax everything without regard to who is lobbying the legislature. It follows –... [Read More]
May 8, 2013 - 8:55 AM EDT
Go Big or Go Home -- Tax Reform in Maine
The big idea of the last week was a dramatic tax reform proposal in Maine. The idea is big and bold. Big and bold usually means a measure has no chance of passage. State legislators from both parties are not exactly profiles in courage. The proposal would change all of the state's primary taxes. F... [Read More]
May 1, 2013 - 9:20 AM EDT
Pancho Villa and Three Hundred Million Joints
As everyone knows, Colorado recently legalized marijuana. I think that is terrific. We should not care if people get “nice with Johnson” which is what my high school buddies called smoking pot. It is one of those code terms you can use in front of adults. You can be in front of Johnny's parents... [Read More]
April 24, 2013 - 6:36 AM EDT
Let's Stop with the Revenue Neutrality
For decades, most people have believed that the success of tax reform is dependent on the reform being revenue neutral. That is, whatever happens, the tax system has to raise approximately as much revenue after as it did before. Proponents of reform want to seem pure in thought. They profess to car... [Read More]
April 17, 2013 - 8:34 AM EDT
States Should Repeal Their Estate Taxes
There are a lot of tax reform proposals being bantered about in the states. The most notable measures center on replacing or reducing personal income taxes with expanded and higher sales taxes. But states can go a long way toward meaningful reform by repealing their estate and inheritance taxes. I... [Read More]
April 10, 2013 - 6:00 AM EDT
Prohibition Through Taxation
I love stories like this. In 2010, Utah raised its excise tax on cigarettes from 69 cents to $1.70 a pack. Why did Utah do this? Call it prohibition through the tax code. A lot of folks in Utah don't like smoking for moral reasons. They come to the same conclusion as obnoxious liberals from the Up... [Read More]
April 3, 2013 - 9:00 AM EDT
Gas Tax Follies
Many states are rethinking how they pay for transportation in general and how they tax gasoline in particular. Maryland is the latest state to pass legislation (HB 1515) dramatically changing the look of transportation finance. Gov. Martin O'Malley (D), who isn't known for promoting good tax polic... [Read More]
March 27, 2013 - 8:42 AM EDT
Bored Politicians Taxing Strippers
Every once in a while politicians have the need to tax or regulate some aspect of the adult entertainment industry. Sometimes they go after hookers. Some times they go after dirty movies. Sometimes they go after adult book stores. Often the politicians go after strippers. Strippers are an easy targ... [Read More]
March 20, 2013 - 9:27 AM EDT
Everybody Loves a Drone
Drones are hot. At least you might think that considering all the press drones have been getting lately. The U.S. military has been using drones to whack terrorists from Somalia to Pakistan. Now terrorists are not exactly the most sympathetic characters. Their main goal in life is to kill Americans... [Read More]
March 13, 2013 - 8:28 AM EDT
Things to Read, Sites to Visit
I decided to share some of my favorite tax resources on the web. The Minnesota Taxpayer's Association has changed its name (after 87 years!) to the Minnesota Center for Fiscal Excellence. The MTA under the direction of Mark Haveman has been one of the most influential organizations in state and lo... [Read More]
March 6, 2013 - 8:12 AM EST
Remember the Alamo, Buy a Gun
This story comes from Texas. And it's politically incorrect. Nothing gets liberal ire up like proposing to put more weapons in the hands of citizens. And that is exactly what some in Texas want to do. Rep. Jeff Leach (R) wants to give all Texans a sales tax break on the purchase of firearms and am... [Read More]
February 27, 2013 - 8:41 AM EST
Capital Gains from Copenhagen to Bakersfield
The Tax Foundation released a report recently that showed California had the second highest capital gains tax burdens – in the world. The top rate you would pay if you lived in Sacramento, San Diego, San Francisco, or San Bernadino is a whopping 33 percent. That of course is not only California's... [Read More]
February 20, 2013 - 8:38 AM EST
The End of an Era -- And Your Taxes Are Going Up
An era is coming to a close. Since the dawn of electronic commerce, the famous Quill case cast a pall over state public finance. We in the business know the story well. If a vendor did not have a physical presence in a state, that vendor could not be forced to collect taxes on sales in the state. W... [Read More]
February 13, 2013 - 8:49 AM EST
If You Hate or Love Excise Taxes Read this New Report
Napoleon Complexed politicians like Michael Bloomberg live to tell people how to live. They are almost always motivated by naked aggression. When challenged, these leaders fall back on old standbys. Their favorite argument is that there are societal costs associated with some behavior and such beha... [Read More]
February 6, 2013 - 8:59 AM EST
Who Pays? Who Cares? You Should
I am no fan of progressive taxation. I think it is a morally bankrupt idea. And I can never get anyone to explain how progressive is progressive enough. If a 40 percent marginal rate is fairer than a 35 percent rate – as the President maintained – wouldn't a 50 percent rate be even fairer? There... [Read More]
January 30, 2013 - 9:48 AM EST
Stifling Lefty -- Political Correctness in the Tax Debates
Phil Mickelson, the great golfer, caused quite a stir recently when he said (and this is really all he said) that the new higher taxes at the federal level and in his home state of California “doesn't work for me right now.” Lefty, as golf aficionados refer to him, said he might be taking some d... [Read More]
January 23, 2013 - 9:12 AM EST
Jindal's Bold Move
Republican Louisiana Governor Bobby Jindal has made the most provocative tax reform recommendation in many years. Jindal said he was going to overhaul the tax law. If he has his way, he will revolutionize it. The governor proposes to eliminate both the personal and corporate income tax in Louisiana... [Read More]
January 16, 2013 - 8:32 AM EST
Virginia's Gas Tax Reform
Virginia Governor Bob McDonnell has proposed a somewhat radical plan to fund his state's transportation infrastructure. The highlights of the plan are complete repeal of the 17.5 cent a gallon gas tax and the imposition of a .8 percent increase in the general sales tax. McDonnell also proposes var... [Read More]
January 9, 2013 - 7:47 AM EST
Good -- and Not so Good -- Corporate Tax Ideas from New Mexico
New Mexico Governor Susana Martinez, a rising star among GOP politicians, is calling for a steep reduction in the corporate tax rate. She proposes cutting the rate from 7.6 to 4.9 percent. That is good news. The corporate income tax is -- and will likely remain -- one of the worst ways to raise rev... [Read More]
January 6, 2013 - 11:55 AM EST
Doing it Gangnam Style
Maine GOP Governor Paul LePage released a YouTube video recently touting his administration’s tax cutting prowess. In particular he highlights the fact that 70,000 low income workers have been relieved of their income tax burden with the elimination of the bottom two percent bracket. The rich also... [Read More]
January 2, 2013 - 9:02 AM EST
Only Tax Professionals Benefit from the State Corporate Tax
I was drinking beer and watching football with some old college friends recently and posed the following question. Who do you guys think pays the corporate income tax? There were four responses. 1) Don’t know. 2) Don’t care. 3) You’re weird, there’s football on. The fourth response is not print... [Read More]
December 27, 2012 - 10:56 AM EST
Michael Moore and Film Tax Credits
My liberal friends love Michael Moore. He is the guy behind Bowling for Columbine, Roger and Me, Sicko, and other documentaries in which he tries to illustrate how screwed up America really is. I must admit I find his movies entertaining, albeit often misleading. Here is what we know about Moore. H... [Read More]
December 19, 2012 - 6:28 AM EST
If the Shoe Fits: Oregon Lawmakers Get Rolled
Nike, the sneaker giant, effectively blackmailed the Oregon political establishment last week. Nike demanded that the single sales factor apportionment formula used by Oregon never be changed. Actually, the company said it did not want it to change for 30 years. If the Oregon legislature and govern... [Read More]
December 12, 2012 - 9:39 AM EST
Time To Get Rid of the Deduction for State And Local Taxes
Since the federal government needs money, here is a quick way to pick up about $70 billion -- eliminate the deduction for state and local taxes. My friends in blue states won't like that. But it is the right thing to do. Here are a few reasons why. First, eliminating these expenditures is consisten... [Read More]
December 6, 2012 - 1:47 PM EST
The Rich Will Pay for Our Sins
More and more Republicans in Congress are distancing themselves from their promise never to raise taxes. In fact, it's been "Throw Grover Under the Bus Week" in Washington. I am no fan of the pledge never to raise taxes. It's not that I have a philosophical desire for higher taxes. Liberals have lo... [Read More]
December 5, 2012 - 8:38 AM EST
Note to Everyone: Business Should Not Pay Sales Tax
The New York Times ran a series highlighting the breadth and depth of state tax incentives. It was a terrific set of articles. But they contain one serious flaw. The articles list sales tax exemptions of business as incentives. The articles further imply that such exemptions are bad tax policy. But... [Read More]
November 28, 2012 - 8:38 AM EST
Fetal Craziness
The recent craziness in Michigan illustrates all that is wrong with tax policy in America. A group of Republican lawmakers have proposed (HB 5684 and HB 5685) a tax credit for unborn fetuses of 12 weeks gestation. What is wrong with such a measure? Everything. First, Adam Smith, who I doubt was pro... [Read More]
October 31, 2012 - 3:09 PM EDT
Sacrebleu -- More French Taxes
It is bad enough that the French have a 75 percent top marginal tax rate. Now the Socialists in power want to raise the tax on beer. You would think beer is an easy target in wine swilling France. But the French make some well known beer -- Kronenburg and Fischer for example. The French will never... [Read More]
October 2, 2012 - 1:46 PM EDT
Hawaii's Solar Power Cronyism
Hawaii has one thing in abundance: sunshine. So you'd think that there's no reason for the government to get involved in promoting something dependent on sunshine like solar power. Yet Hawaii, like a lot of other states, doles out money to support a corrupt system. Public taxes are used to support... [Read More]
September 24, 2012 - 12:07 PM EDT
Are They High?
It’s a cliché, I know. But a lot of people in Colorado think that legalizing marijuana and taxing it will solve the state’s fiscal problems. Voters, in Colorado, Washington, and Oregon, will decide in November whether to legalize pot. It is not clear that the measures will pass. After all, a simi... [Read More]
September 17, 2012 - 11:33 AM EDT
Cowardly New Jersey Cronyism
The not so courageous New Jersey’s Economic Development Authority approved a $40 million tax credit for Honeywell International to keep it from moving its headquarters to Pennsylvania. Then the authority not so courageously approved a $40 million Grow New Jersey tax credit for Dotcom Distribution,... [Read More]
September 7, 2012 - 6:03 PM EDT
Tax Credit Scammers
Missouri has many screwed up tax incentive programs that benefit the connected, the powerful, and those willing to throw a little money around the halls of the capitol. Governor Jay Nixon has reconvened a commission to study tax credits in the state. That is a good thing, of course. The state spend... [Read More]
August 16, 2012 - 11:45 AM EDT
Shame on Companies Who Use the Tax Laws To Stifle Competition
This is almost unbelievable. The big three tobacco companies are lobbying the Texas legislature to adopt a special, “extra” tax on small tobacco companies. Philip Morris, R.J. Reynolds, and Lorillard Tobacco are doing the lobbying. Apparently, smaller cigarette manufacturers are undercutting the... [Read More]
August 6, 2012 - 12:44 PM EDT
Governor Kasich's Latest Income Tax Reduction Plan
Ohio Governor John Kasich is going to try to reduce his state’s income tax burden once again. Kasich has long wanted to slash income tax rates; most recently he tried to pay for income tax cuts with a fracking tax. Now the governor would like to reform his state’s sales tax to pay for income tax... [Read More]
August 2, 2012 - 10:54 AM EDT
Michigan Will Limit Taxes in November, Other States will Follow
In November, Michigan voters will decide whether future tax increases will require a two thirds vote of the legislature. It will pass. The people of Michigan are increasingly weary of taxes and the inefficiencies of government. Like many folks around the country they do not think they are getting a... [Read More]
July 24, 2012 - 3:02 PM EDT
What is Wrong with the Press?
When you get to the bottom of this post, you will demand special prosecutors, resignations, and perhaps jail time. The Associated Press recently published a story about the top Republican challengers to U.S. Sen. Claire McCaskill, D-Mo. McCaskill took heat last year for having to pay $320,000 in ba... [Read More]
July 11, 2012 - 9:50 AM EDT
Free the Puppies, Tax a Millionaire
When I was a progressively minded editorial writer, I was never opposed to higher income taxes. I come from a long line of Brunoris who knew neither terrible poverty nor great wealth. It was easy to shrug off attempts to tax people who were better off than I am. But now I'm convinced that calls for... [Read More]
June 27, 2012 - 3:35 PM EDT
They Don’t call it Country and Western Anymore
ABC Studios is going to do a television series called Nashville. The show will, appropriately, be about the country music scene. Nashville is the home of country music. In fact, the city calls itself “music city.” It is the home of the Country Music Hall of Fame, the Grand Ole Opry, and the CMA M... [Read More]
June 6, 2012 - 10:07 AM EDT
Governor Corbett Joins the Bad Tax Club
Pennsylvania Governor Tom Corbett (R) wants to give Shell Oil Co. $1.7 billion in tax breaks for its planned ethane cracker plant. Corbett's proposal would provide Shell $67 million in annual tax credits over a 25-year period beginning in 2017. Corbett should be impeached for suggesting such a ridi... [Read More]
June 5, 2012 - 10:15 AM EDT
I Guess I am 'un-American'
Arkansas Governor Mike Beebe had the nerve to call anyone who does not support tax breaks for the wind energy industry "un-American." To a politician like Beebe, handing out tax breaks to particular industries may seem very American. In fact, it is much more like Soviet economic planning than anyt... [Read More]
May 16, 2012 - 9:56 AM EDT
More Nanny Taxes
I keep hearing more and more state legislators talk about imposing taxes on "violent video games." It reminded me of an article I wrote earlier this year about such proposals. Back in February, bored Oklahoma lawmakers took a break from playing checkers and talking about OU football to make an imp... [Read More]
May 10, 2012 - 7:00 PM EDT
When the Mob is Your Role Model
Pennsylvania casinos earned $1.5 billion for the state last year. That was the tax haul from fleecing gamblers. Everyone – conservatives, liberals, libertarians – should be appalled. I know, the folks who get the $1.5 billion are happy. The teachers, police officers, and the myriad companies livi... [Read More]
May 4, 2012 - 1:29 PM EDT
I'll Drink to That
Several years ago, in a blatant money grab, the California Board of Equalization decided that flavored malt beverages should be taxed as hard liquor (at $3.30/gallon) rather than beer (at a much more civilized 20 cents/gallon). This week, in a 3-0 decision a California appeals court said that “the... [Read More]
March 6, 2012 - 10:06 AM EST
The GOP Offers a Sound Tax Reform Plan in South Carolina
The Republicans in the South Carolina House are preparing a significant reform plan that will vastly improve the state's tax system. Although details are sketchy, the plan will broaden the sales tax base by eliminating two thirds of the exemptions and lower the rate by half a percentage. All remain... [Read More]
February 10, 2012 - 11:05 AM EST
Exempting Groceries from Tax is Feel Good Bad Policy
My friends at Roth & Company – the preeminent CPA firm in Iowa – posted a chart on their Tax Update Blog showing which states tax groceries. Actually the chart is from the Tax Foundation. I was shocked to see how many states completely exempt groceries from sales tax (32) and how many tax at redu... [Read More]
February 8, 2012 - 3:50 PM EST
Corporate Tax Reform Book
I just finished reading my colleague Marty Sullivan's new book on corporate tax reform. It's called Corporate Tax Reform: Taxing Profits in the 21st Century and is a nonpartisan guide to what he calls the great debate on the subject. As many know, Marty is one of the most influential thinkers when... [Read More]
January 27, 2012 - 11:44 AM EST
Still the Worst Idea Out There
On June 12 North Dakota voters will decide whether to pass Constitutional Measure 2. That measure will repeal all property taxes. It is the most ridiculous idea ever proposed in the field of state and local public finance. The property tax remains the only source of revenue that insures local auton... [Read More]
January 11, 2012 - 7:59 PM EST
I Will Ask Again, Why Are We Taxing Corporate Income?
I have been opining, preaching really, for years on why we should repeal the state corporate income tax. As I noted before, any corporation with a breathing accountant can avoid all or most state corporate income taxes. It's not the fault of corporations. They generally act responsibly with respect... [Read More]
January 9, 2012 - 6:11 PM EST
Despite What Everybody Thinks, Tax is Not a Four Letter Word
The Policy Institute of Montana issued a report recently calling for higher taxes through a more progressive system. The report is titled “Tax is not a Four-Letter Word: Ideas for a More Progressive Taxation System in Montana.” The Institute would like to raise income taxes on the wealthy (above... [Read More]
January 5, 2012 - 9:35 AM EST
Paying Your Fair Share
A common refrain from liberals is that the wealthy do not pay their fair share of taxes. Such charges usually devolve into a debate over how much the one percent does, did, and should pay. The debate over how progressive the income should be has raged since its inception. Blum and Kalven concluded... [Read More]
December 1, 2011 - 6:23 PM EST
Advice for Conservatives
Just about a year ago, I wrote a post outlining my advice for liberals with respect to tax policy. As we enter the next legislative season, I thought I would share some advice with conservatives. Let’s start with this premise. Citizens want a certain level of state and local government. No amount... [Read More]
November 2, 2011 - 2:04 PM EDT
Down With Stadium Financing
The Minnesota Vikings would like the people of Minnesota to pay for a new stadium. Specifically, the team wanted the legislature to okay a local option sales tax to finance the stadium. But the Minnesota legislature has said no (although most legislators are open to a public referendum). There is n... [Read More]
October 21, 2011 - 11:32 AM EDT
Why Experts Really Don't Like 9-9-9
Most mainstream public finance experts have been critical of Herman Cain's 9-9-9 plan. They have called the plan crazy and nuts and evil. I was shocked at the unanimity of the opposition. But I know why they hate it. First, Cain is a guy who sold pizza for a living. The intellectuals are going to t... [Read More]
October 7, 2011 - 8:45 AM EDT
Haley May Be Right About Repealing the Corporate Tax
Way back in August 2010, South Carolina Governor Nikki Haley called for repeal of her state's corporate income tax. I blogged about this issue at the time. I pointed out that the state corporate tax was an inefficient and ineffective way to raise revenue, but that I was not sure South Carolina coul... [Read More]
September 21, 2011 - 1:55 PM EDT
A Tax Hike Even Liberals Oppose
The District of Columbia Council narrowly voted to impose higher taxes on its wealthiest citizens. The law, expected to be signed by Mayor Vincent Gray, will tax those making more than $350,000 a year at 8.95 percent. Those earning more than $40,000 will continue to be taxed at -- a still high -- 8... [Read More]
August 30, 2011 - 5:01 PM EDT
Bad Idea of the Week
Republican Maine Governor Paul LePage is proposing to exempt all pension income from the state income tax. Old people vote and I get the politics of the proposal. But it is fundamentally bad policy to exempt all pension income from tax without regard to one’s ability to pay. LePage says the propos... [Read More]
August 17, 2011 - 11:13 AM EDT
Income Taxes Do Not Lead to Out Migration
If you have not done so, you should read the Center on Budget and Policy Priorities’s newest report on the effects of taxes on migration (Higher State Taxes Bring More Revenue, Not More Migration). The report, authored by Bob Tannenwald, Jon Shure, and Nick Johnson shows that higher personal incom... [Read More]
August 12, 2011 - 3:22 PM EDT
Corporations are People
GOP presidential candidate Mitt Romney created quite a stir when he tried to explain why he was against raising corporate taxes. In response to a heckler in the audience, Romney said that "corporations are people, my friend." He took a lot of heat for that rather innocuous comment. Democrats had a... [Read More]
June 30, 2011 - 2:47 PM EDT
Tax Friendly States for Old People
Kiplinger’s Personal Finance magazine came out with its ranking for the most tax friendly states for retirees. Wyoming is Number 1, followed by Mississippi, Pennsylvania, Kentucky, Alabama, Georgia, Oklahoma, South Carolina, Delaware, and Louisiana. Where the heck is Florida? I thought old people... [Read More]
June 13, 2011 - 11:42 AM EDT
Wacky Tax Expenditures in Ohio
A lot of people agree that Ohio has a lot of unnecessary tax expenditures that should be repealed. The state gives you a $20 tax credit just for being an Ohioan. That little incentive costs the state $165 million a year. The state provides a deduction for campaign contributions. That deduction cost... [Read More]
May 31, 2011 - 11:52 PM EDT
Taxing Inmates
Just when you thought you heard every weird idea in the state and local tax field, folks in Michigan surprise you. Michigan Rep. Anthony Forlini (R) introduced legislation that would force inmates to pay Michigan’s six percent sales tax on any good they buy in prison. So if you are doing 25 to lif... [Read More]
May 16, 2011 - 2:25 PM EDT
Always Picking on the Fat Kids
Illinois Rep. Shane Cultra (R) has said publicly that parents of obese children should lose their income tax deductions. He thinks that will spur parents to get their kids to go on diets. I know if I was going to lose my deduction, I would have my kid running about five miles every day while I foll... [Read More]
May 4, 2011 - 5:19 PM EDT
Terrible Tax Idea of the Week
Rhode Island governor Chafee has had a lot of tax ideas recently. Some have been good. But one in particular is awful. Chafee would like to impose the state sales tax on “purchases used for manufacturing” and “property or service purchased to make a finished product for resale.” All I can say i... [Read More]
April 26, 2011 - 8:47 AM EDT
Nothing Fair about “Fair Tax Acts”
There are “Fair Tax” proposals being floated in several states – the most serious is in Missouri. The latest is in Louisiana. Some legislators have introduced the Louisiana Fair Tax Act (HB 239) which will repeal all personal and corporate income taxes as well as the franchise tax. It will repla... [Read More]
April 13, 2011 - 11:18 AM EDT
Ready to Rumble over Combined Reporting
Alabama Rep. Merika Coleman (D) said that "It’s time to Rumble" in response to a question as to whether the state Democrats would fight for combined reporting. There is a measure before the Alabama House that would have the state adopt combined reporting for all corporations. Contrary to the argum... [Read More]
April 5, 2011 - 7:09 AM EDT
Lawmaker: I Was Shocked to Discover I Supported This Legislation
Florida Rep. Chris Dorworth (R) introduced a bill (HB 1069) that would create tax incentives for certain investments in the state. Even with Florida's $4 billion deficit, Dorworth’s bill is not all that unusual. But the Orlando Sentinel broke a story that the proposed law would benefit only one co... [Read More]
March 25, 2011 - 3:12 PM EDT
Great Ideas In Oregon
Oregon has a $1.6 billion budget gap. But some folks there figured out that the state forgoes $31.3 billion every biennium through deductions, credits, and exemptions. That proves that narrowing the tax base not only violates the prime directive of broad base and low rates but also costs a lot of m... [Read More]
March 14, 2011 - 4:29 PM EDT
Amazon to California: Back Off or We'll Kill Our Employees
OK, Amazon isn't actually going to kill anyone. But the company that's on every state's list of ways to raise more revenue did send California a threatening letter. California has a budget deficit so big that it can no longer be stated in numbers. It's simply "very big." The state would like to mak... [Read More]
March 9, 2011 - 1:33 PM EST
A Bad Idea in Georgia
Lots of folks in Georgia want to raise the cigarette tax by a $1.00 a pack. Georgia has a very low cigarette tax ($0.37/pack, 47th in the nation). It probably does not collect enough cigarette taxes to pay the costs of smoking related illnesses in the state. And a tax hike is probably warranted. Bu... [Read More]
February 15, 2011 - 6:43 AM EST
Amazon to Texas: Adios
Amazon the internet behemoth is mad as a hornet at Texas. In fact, the company is so mad it closing its distribution center in Dallas. The company informed its employees that it is leaving because Texas is not treating them so nice. You see, Texas has billed Amazon $269 million for sales taxes the... [Read More]
February 8, 2011 - 8:52 AM EST
Taxing Lawyers
There are some folks in Minnesota who are earnestly thinking about expanding the sales tax to services. And some folks would like to see legal services included in the sales tax base. In the modern era, of course, no state has ever expanded the sales tax to any professional services. That failure h... [Read More]
February 3, 2011 - 6:11 AM EST
After 80 Years, Still Trying to Figure Out the Sales Tax
The way the sales tax is supposed to work is simple. You tax all final consumption at a low rate. But from the time the sales taxes started during the Great Depression it has never really worked that way. States have never taxed most services, or intangibles, or real estate. Then states, justifiabl... [Read More]
January 26, 2011 - 1:38 PM EST
Remember: State Budgets are About Values
I know it sounds quaint or a little naïve. But state budgets reflect the values of the citizens. They reflect our preferences for the size of government. Some states (New York) have large, sophisticated government operations. Some (New Hampshire) do not. The budgets reflect how we value particular... [Read More]
January 19, 2011 - 2:45 PM EST
My Advice to Liberals on Tax Policy
I have always considered myself a liberal in the sense that I believe the government has a role to play in making society a better place. In other words, I do not agree with President Reagan when he said that “government is the problem.” To play the role in improving society state and local gove... [Read More]
January 12, 2011 - 9:56 PM EST
A Surrender in New Jersey
New Jersey will soon join the many states that have decided that the corporate income tax is not and will not be an important source of revenue. It’s telling that the Democrats in the State Legislature are behind the adoption of a single-sales-factor formula. New Jersey Democrats have long held th... [Read More]
January 4, 2011 - 8:57 AM EST
The Pension Mess Must be Fixed
States face an estimated $3.2 trillion shortfall in their pension obligations. Keep in mind total state spending is only $1.5 trillion a year. Keep in mind also that local governments faced a pension shortfall of over $500 billion – which in some places must be assumed by the state upon default. I... [Read More]
December 9, 2010 - 10:40 AM EST
Transparency is Good
Everyone should read the new report released by Good Jobs First. The report examines how states disclose tax incentives and other economic subsidies. I think tax incentives and subsidies are bad policy. But whether you agree or not from a policy perspective, disclosure of special deals is essential... [Read More]
December 8, 2010 - 10:15 AM EST
Outrage in California
The Los Angeles Times ran a great story yesterday about corporate hypocrisy. Genentech is a California bio tech firm with a market cap of about $100 billion and annual sales of a million. Genentech was also one of the major opponents of Proposition 24, which appeared on the ballot in California las... [Read More]
December 7, 2010 - 6:32 AM EST
What Happens When You Don't Have Money
A recent study finds that the poor condition of Pennsylvania's roads cost the state over $8.2 billion a year. The roads and bridges in the Commonwealth are in terrible condition which increases the cost of vehicle maintenance, gas, lost time in traffic, and more accidents. The shape of the transpor... [Read More]
December 3, 2010 - 6:38 AM EST
A Not so Crazy Idea Rejected in Wisconsin
Governor elect Scott Walker, incoming Assembly Majority Leader Scott Suder, and most Democratic lawmakers soundly rejected a tax reform proposal by former Revenue Secretary Rick Chandler. Chandler, working on Walker's transition team, suggested raising the state sales tax to 7.5 percent and signifi... [Read More]
December 2, 2010 - 7:17 AM EST
Look For Tax Reform Proposals in Georgia
I understand that there is likely to be a serious proposal toward major tax reform in Georgia in the coming months. The proposal will likely be to expand the sales tax to more services coupled with a reduction in the state income tax. What is interesting about such an idea is that broadening the sa... [Read More]
December 1, 2010 - 4:06 PM EST
In Washington State -- More Gimmicks
Washington Governor Chris Gregoire said she is considering pushing back a payment due school districts by one day -- from June 30 to July 1 next year. This will "save" the state $240 million in the current fiscal year. I am sympathetic to the governor's problem. Washington faces a mid year $1 billi... [Read More]
November 30, 2010 - 8:53 PM EST
Arkansas Task Force on Poverty Makes Tax Recommendations
The Arkansas Legislative Task Force on Reducing Poverty and Promoting Economic Opportunity issued several recommendations on tax policy in its final report released on Nov. 29. One in five Arkansas residents live on incomes below the federal poverty line. The task force obviously believes changing... [Read More]
November 29, 2010 - 9:51 PM EST
Tough Decisions Will Have to be Made
State governments will continue to deal with record deficits in the coming years. In fact, state tax revenue is unlikely to reach 2008 levels for some time -- even as the national economic picture improves. The state fiscal crisis has many causes: the recession, antiquated revenue systems, politica... [Read More]
November 3, 2010 - 10:39 AM EDT
Did the Anti-Taxers Win on Tuesday?
In Washington they did. Voters overwhelmingly rejected the measure that would have imposed an income tax on the state's wealthiest citizens. They also voted to repeal the sales tax on candy and a special excise tax on soft drinks.Oh, and they passed a measure requiring a 2/3 vote of the legislature... [Read More]
November 2, 2010 - 7:07 AM EDT
Care About Taxes? Then Vote
Today is election day. And if you really care about tax policy, you should vote.These elections are important at both the federal and state levels. They will determine the level of taxes we pay, the level of government services we receive, and the amount of public debt we leave to our children. The... [Read More]
October 28, 2010 - 6:05 AM EDT
First Amendment Violation. Really?
The federal judge's ruling on October 25 that the North Carolina Department of Revenue cannot force Amazon.com to disclose customer information on the grounds that the state's request violates the First Amendment is incredible. For the uninformed, North Carolina asked Amazon for a list of its custo... [Read More]
October 25, 2010 - 2:27 PM EDT
Tone Deaf Tax Administrators
If you would like to see why Americans are frustrated with government go to Lewiston, Idaho. Or just go to Glenn Beck's home page where the story has been front and center for several days. It seems that officials from the Idaho State Tax Commission forced two kids to close down their pumpkin stand... [Read More]
October 21, 2010 - 7:11 AM EDT
Tax Cheat Sentenced to Making Pizza
Here is a great story from the Buffalo News. Joe Jacobbi owns a popular pizza joint in Buffalo. His pizza is reportedly very good. But Joe has a tax problem. It seems that he was collecting sales tax on his pizza sales and not paying the tax dollars over to the state. That is generally a big no no... [Read More]
October 19, 2010 - 7:49 AM EDT
Statewide Property Taxes are Bad Ideas
Some politicians in Texas are considering asking the citizens to approve a constitutional amendment authorizing a statewide property tax. That tax would in effect replace most of the local property taxes used for education. The measure is being pushed by several Republican senators who are saying t... [Read More]
October 14, 2010 - 7:11 AM EDT
The Tax and Spend Issue in Wisconsin
Wisconsin is about $3 billion in the hole for the next two year budget cycle. GOP gubernatorial candidate Scott Walker has proposed cutting business taxes to help stimulate the economy. He offers no new revenue options, but is banking on tax cuts to spur economic activity which will raise incomes,... [Read More]
October 12, 2010 - 6:56 AM EDT
The Real Problem
The states continue to face large deficits. Many experts blame either the Great Recession or structural deficiencies in our tax system for the bleak fiscal picture. High unemployment, a crashing real estate market, and the inane way we tax have certainly contributed to the crisis. But we have seen... [Read More]
September 30, 2010 - 6:12 AM EDT
Four Ways to Reduce Poverty
With the recession lingering and poverty on the rise, the Institute on Taxation and Economic Policy (ITEP) released a study this week explaining how states can help out their poorest citizens. ITEP says that states should offer refundable earned income tax credits (currently only 24 states have EIT... [Read More]
September 28, 2010 - 7:37 AM EDT
A Taxing Issue in Maryland
The Washington Post ran a terrific article on Sunday highlighting a big difference among the candidates for governor in Maryland. The Republican challenger (and former governor) Bob Ehrlich promises to roll back the state's sales tax rate to where it was when he left office. The incumbent, Democrat... [Read More]
September 23, 2010 - 6:54 AM EDT
Harley Davidson to Get $25 Million from State
The state has offered Harley-Davidson Inc. $25 million in tax credits for keeping its factories in Wisconsin, a deal aimed at protecting about 1,000 blue-collar jobs in the state. But Wisconsinites should ask themselves if the incentives were necessary.The company just reached a seven year labor co... [Read More]
September 21, 2010 - 6:30 AM EDT
Good Tax Policy from the Tea Party
Conservatives in general and the Tea Party folks in particular are not known for their support of tax reform. You see, tax reform usually means broadening the tax base, i.e., taxing more stuff, and lowering rates. But broadening the base is often seen as a tax increase and off the conservative rada... [Read More]
September 16, 2010 - 6:46 AM EDT
CBPP Says Cutting Corporate Taxes Won't Work
As many practitioners and policy makers know, I am no fan of the state corporate income tax. I simply do not think that the tax is an effective or efficient way to raise revenue. But more troubling are the politicians who claim that repealing or lowering the state corporate income tax will magicall... [Read More]
September 14, 2010 - 6:41 AM EDT
A Dying Field?
The Kansas State Department of Education is running out of money. So understandably, it is making cuts in aid to local school districts. The department announced last week that it will no longer fund high school journalism programs. The department says it doesn't have the money and that journalism... [Read More]
September 9, 2010 - 7:44 AM EDT
Interesting Campaign Question in Michigan
As most people are aware, President Obama has proposed significant tax incentives to help the business community. The president's goal is to spur investment and hiring. I suspect most Democrats are going to get behind the president's proposal. But what about Republicans? Michigan is a state which d... [Read More]
September 7, 2010 - 12:05 AM EDT
That Wacky Sales Tax
Some of us believe that the sales tax should be imposed on all final personal consumption, lest all kinds of ridiculous distinctions appear. In New York, bagels purchased for "takeout" are not subject to sales tax. They are designated as food for home consumption and exempt. If you eat your bagel i... [Read More]
September 1, 2010 - 11:16 PM EDT
Pay Your Taxes or Stay in Australia
On the lighter side of the news, Australian tax authorities are preventing actor Paul Hogan from leaving the country. Hogan of course is the star of those lovable Crocodile Dundee movies. So Hogan lives in Los Angeles with all the other beautiful people, but goes back home to attend the funeral of... [Read More]
August 31, 2010 - 7:37 AM EDT
Fiscal Policy in 2010
New Hampshire is considering allowing corporations to "sponsor" its state parks. Basically, a corporation would buy the naming rights to a park in a similar fashion to sports stadiums. For example, the Washington Redskins play at FedEx Field. The Pittsburgh Pirates play at PNC Park. The Seattle Mar... [Read More]
August 26, 2010 - 6:40 AM EDT
Who Has the Highest Sales Tax Rates?
The Tax Foundation recently released a report on average combined state and local tax rates. Tennessee has the highest combined state and local rate at 9.44 percent. The single highest combined rate can be found in Birmingham, Alabama where the municipal, county, and state rates total 10 percent. A... [Read More]
August 24, 2010 - 7:20 AM EDT
The Myth of the Balanced Budget: Illinois is $120 Billion in the Hole
There is an old saw that unlike the federal government, states must balance their budgets. It is true that all states -- except Vermont -- have balanced budget requirements. But those rules are for annual operating budgets and usually exclude long term capital spending and pension and retirement ob... [Read More]
August 19, 2010 - 7:52 AM EDT
Consolidate School Districts To Save Money
I have always been a big believer in localism, particularly with respect to education. I think local governments are more efficient, democratically responsive, and effective at providing services within a limited jurisdiction. But I also believe that many states need to rethink the wisdom of having... [Read More]
August 17, 2010 - 7:03 AM EDT
Haley Wants to Eliminate SC Corporate Taxes
South Carolina GOP gubernatorial nominee Nikki Haley has proposed eliminating the state's corporate income tax to stimulate the economy. I am no fan of the corporate income tax. It raises relatively little revenue. It consumes an inordinate amount of administrative and compliance resources. And, wi... [Read More]
August 12, 2010 - 6:12 AM EDT
The New Stimulus Reflects What's Wrong with the States
The Education Jobs and Medicaid Assistance Act was signed into law on Tuesday. The new law, designed to prevent teachers from being laid off and the poor from being denied healthcare, is terrible policy, but not for the reasons you may think. The law will funnel billions of dollars to states for K-... [Read More]
August 10, 2010 - 6:40 AM EDT
Can Attorney General Tom Corbett Keep His Promise if Elected?
Pennsylvania Attorney General Tom Corbett is running for the Democratic nomination to be governor. Next year, Pennsylvania expects a $5 billion budget shortfall. Corbett has promised however that he would not raise taxes if elected. Such "no tax pledges" are common among GOP candidates, misguided b... [Read More]
August 5, 2010 - 6:33 AM EDT
Did Obama Already Break His Pledge? Of Course He Did.
President Obama promised during the election, and often afterwards, that he would not raise taxes on anyone making less than $250,000 a year. Conservatives, particularly the Americans for Tax Reform, have been blasting the president for failing to keep his promise. The president and his supporters... [Read More]
August 3, 2010 - 6:34 AM EDT
I Am Back with Celebrity Tax News
After a little vacation, I am back with some hard hitting celebrity tax news which I admit I am borrowing from my friends at TaxProfBlog. Celebrity Number One is Chris Tucker, the cool actor who was in all the Rush Hour movies. He owes the IRS $11.6 million and the state of California another $3.6... [Read More]
July 1, 2010 - 7:23 AM EDT
Luring More Coneheads to New Jersey
Film and television notables have been lobbying the administration of New Jersey Gov. Chris Christie to retain the tax credit for production companies. Everyone thinks that New Jersey, which is bleeding deficits, will eliminate the film and television production credits, which Christie recommended... [Read More]
June 29, 2010 - 7:11 AM EDT
The Rich Get Richer
The Center on Budget and Policy Priorities released a report over the weekend showing that the gaps in after-tax income between the richest 1 percent of Americans and the middle and poorest fifths of the country more than tripled between 1979 and 2007. The CBPP concluded that the data suggests grea... [Read More]
June 24, 2010 - 7:08 AM EDT
You Got to Love These Guys
The Idaho State Tax Commission has four members. With the state facing a huge deficit, and state workers having their wages cut, the foursome decided to reduce their own salaries in solidarity. Royce Chigbrow, David Langhorst, Sam Haws and Tom Katsilometes took 292 hours of furlough in recent month... [Read More]
June 22, 2010 - 6:30 AM EDT
Tax the Rich!
As I recently opined about in the pages of State Tax Notes, New York State United Teachers conducted a poll that found that a majority of voters in three swing districts support higher taxes on the wealthy as a way to avoid cuts in education. OK, what did you expect a poll commissioned by a teacher... [Read More]
June 17, 2010 - 6:36 AM EDT
Another Gimmick
A group of 51 German millionaires and billionaires started a club recently called "Club of the Wealthy." The first official act of this club was to write Chancellor Angela Merkel and offered to give up ten percent of their income to help solve the country's debt crisis. They are actually offering t... [Read More]
June 15, 2010 - 6:07 AM EDT
A Hero in Idaho
An Idaho legislator filed suit against the State Tax Commission alleging that the commission unfairly gives secret tax breaks to wealthy and well connected citizens who game the system. Rep. Shirley Ringo says the commission violates the state constitution's uniformity requirements (that everyone b... [Read More]
June 10, 2010 - 6:05 AM EDT
Sonny Perdue's Good Tax Policy With Vetoes
Georgia Republican Governor Sonny Perdue did the right thing on Tuesday by vetoing two bills that were the epitome of bad tax policy. Perdue rejected the "Jobs, Opportunity and Business Success Act of 2010", a series of initiatives that included a 50 percent reduction in the long-term tax on capita... [Read More]
June 8, 2010 - 6:05 AM EDT
Newt Gingrich’s Fantasy Plan for Detroit
Newt Gingrich gave a speech recently before the Detroit Chamber of Commerce. He has a plan to revitalize Detroit. Now Detroit is a city in need of a savior. It has been mired in economic sadness for decades. Gingrich’s cure for what ails the city is a “10 year tax holiday.” He proposes that all... [Read More]
June 3, 2010 - 6:14 AM EDT
High Tech Tax Credits: A Bad Idea in Maryland
Maryland Governor Martin O'Malley has proposed a complicated tax credit plan designed to spur the state's technology industries. The plan will ultimately cost the state over $100 million in lost revenue. Under the governor's proposal, the state would raise investment capital through auctioned tax c... [Read More]
June 1, 2010 - 8:46 AM EDT
New Jersey: Learn From California
Last month, New Jersey citizens rejected about 60 percent of school district budget proposals. New Jersey voters often reject school budgets but this year the number was unusually high. Under New Jersey law, school districts can still adopt the budgets despite the voter rejection. And, according to... [Read More]
May 27, 2010 - 6:16 AM EDT
The Democrats Squander an Opportunity in California
California is mired in its worst financial crisis -- ever. The state is once again deep in the hole -- short $19 billion. You would think the crisis would spur reform minded political leaders into action. There are after all serious problems with how California raises and spends money. But the Demo... [Read More]
May 25, 2010 - 6:12 AM EDT
Governor Christie's Call For Shared Sacrifice Rings Hollow
As I have been saying in the pages of State Tax Notes magazine, I'm sympathetic to the challenges faced by the political leaders in New Jersey. For a lot of structural and political reasons, their budget crisis is very difficult to solve. That's as true for Gov. Chris Christie (R) as it was for his... [Read More]
May 20, 2010 - 6:13 AM EDT
Celebrities in Trouble with the Tax Man
Once again, it's time to play Celebrities in Trouble with the Tax Man. Periodically, I scour the universe looking for famous people who owe Uncle Sam or a state money. Actually, I just take the posted list from Paul Caron's TaxProf Blog and embellish the story a little. Read on. Corbin Bernsen owes... [Read More]
May 18, 2010 - 6:18 AM EDT
Things are Looking Good for Utah
The conservative American Legislative Exchange Council (ALEC) released its annual economic outlook index for states. Once again, Utah had the best economic outlook in the nation. Utah has held this exalted position for three straight years. After all the praise its getting from ALEC, you would thin... [Read More]
May 13, 2010 - 6:09 AM EDT
The U.S. Congress Should Learn from the Kansas Legislature
Over the past several weeks, the Kansas legislature did something remarkable. It approved a $314 million tax increase. The tax will take the form of a penny per dollar increase in the sales tax (from 5.3 to 6.3 percent). The tax increase is temporary, expiring in three years. Why is this a good sig... [Read More]
May 11, 2010 - 6:27 AM EDT
You Can't Make This Up
Today's post comes from New York. The New York Tax Appeals Tribunal ruled in a case of immense importance to the state's fiscal system that an adult entertainment club's private dance fees were subject to sales tax because they didn't consist of dramatic or musical arts performances. The club (clev... [Read More]
April 23, 2010 - 6:21 AM EDT
Illinois May Start Taxing iTunes, Other Downloads
Illinois is seriously considering imposing its sales tax on some services purchased through the Internet. In particular, there is a lot of talk in Springfield of expanding the sales tax to include Apple iTunes. The state does not currently tax iTunes purchases but they should for several reasons.... [Read More]
April 22, 2010 - 6:12 AM EDT
Asinine Idea of the Week
The Arizona Senate passed a bill on Tuesday called the "I Didn't Pay Enough Taxes" law. If signed by the governor, it will give Arizona citizens the option to donate money to the state's general fund. It is supposed to be a swipe at "liberals" who want to raise taxes. The sponsor, Republican Senato... [Read More]
April 21, 2010 - 6:05 AM EDT
Federal Tanning Tax is Dumb Idea
I know the federal government needs more revenue. But the ten percent tax on indoor tanning sessions passed to help fund health care reform is a bad idea. Society should be hesitant to impose taxes on specific products or services. And it should do so only when there is a reason. The best reason fo... [Read More]
April 20, 2010 - 6:21 AM EDT
Its Time to Tax Pensioners in Michigan
The state of Michigan remains badly in need of revenue. And politicians are starting to look at old folks for more money. Michigan has long had the most generous exemptions for retirement income of the 41 states that impose income taxes. Government pensions have always been 100 percent exempt from... [Read More]
April 16, 2010 - 6:19 AM EDT
I Cannot Help but Write About Celebrity Tax Troubles
The great state of California released its list of people who owe back taxes. And once again, there are some interesting celebrities owing the state big money. For example, "actress" Pamela Anderson owes the state $493,144. What do we know about Pamela? She was Playmate of the Month for February 19... [Read More]
April 15, 2010 - 6:05 AM EDT
California Legislature Approves Important Tax Break for People in Foreclosure
The California legislature passed and Governor Schwarzenegger is expected to approve a measure that will waive state taxes on mortgage debt that has been forgiven in a foreclosure or short sale. More than 30,000 Californians are in that situation. California -- like most states -- considers forgive... [Read More]
April 14, 2010 - 6:12 AM EDT
Oklahoma Rejects Sales Tax Holiday Expansion
Here is a little good news. The Oklahoma legislature defeated a measure to expand the state's sales tax holiday to include school supplies. The bill would have exempted school, art, and instructional materials costing less than $100 from the state's sales tax during the first weekend of August. The... [Read More]
April 13, 2010 - 6:14 AM EDT
A Bad Tax Idea Dies in Colorado
A proposal to give tax credits to Coloradans who make charitable donations for creating nonprofit jobs was rejected by a House committee late last week. The bill would have allowed nonprofits to collect donations through intermediary organizations like the United Way and match those donations when... [Read More]
April 9, 2010 - 6:12 AM EDT
Celebrity Tax Trouble is the Best Tax Trouble
Taking a break from the usual state and local issues, I found an interesting post on Taxprofblog about more famous people in tax trouble. There are some big name people in trouble with the tax man. For example, former Washington, DC mayor Marion Barry owes the IRS $15,000 and change. Barry, who sti... [Read More]
April 8, 2010 - 6:15 AM EDT
Iowa Mayors Want More Tax Options
Mayors in Des Moines and Cedar Rapids Iowa are pressing the state legislature to give their jurisdictions the flexibility to impose different types of taxes as a way of moving away from the property tax. Specifically, these cities want the ability to increase the hotel/motel tax. The mayors are mo... [Read More]
April 7, 2010 - 6:09 AM EDT
Property Tax Reform Likely in Georgia
When the Georgia legislature returns on April 12 it will likely pass a major property tax reform law. The new law would require counties to send out annual property tax assessments and extend the time for owner appeals. It will be the most dramatic property tax law passed since the 1999 enactment o... [Read More]
April 6, 2010 - 6:14 AM EDT
Gambling in Gettysburg? For Shame
There is a big debate going on in Pennsylvania about whether to allow a casino near the Gettysburg Battlefield. Some guy wants to build a 5,000 slot casino a few miles from some of the most hallowed ground in America. I guess folks think that nothing is sacred. I personally think gambling is a ridi... [Read More]
April 1, 2010 - 7:45 AM EDT
Want to Know about your State? Check the Tax Foundation
I often disagree with my friends at the Tax Foundation when it comes to appropriate levels of tax burdens. I am all for progressive taxes. Taking from the wealthy and redistributing to the less fortunate does not bother me at all. But I must admit that the foundation gets good tax policy right. Tha... [Read More]
March 31, 2010 - 7:31 AM EDT
Wind Taxes in Windy States
Wyoming recently enacted legislation to impose an excise tax on wind power. The new law imposes a $1-per-megawatt-hour excise tax on all electricity generated from wind turbines, effective January 1, 2011. A turbine would not be taxed until three years after it first produces electricity. I find th... [Read More]
March 30, 2010 - 6:20 AM EDT
Gun Tax Holidays (Again)
Guns aren't my issue. I grew up around people who hunted and kept all kinds of firearms at home. I know a lot of nice people who own a pistol or shotgun and even the occasional Uzi. Gun violence is horrible. But I must admit I'm more in the "guns don't kill people" camp. Still, gun sales tax holida... [Read More]
March 26, 2010 - 6:16 AM EDT
Should Connecticut Impose Extra Taxes on Executive Bonuses? No
Connecticut is considering imposing a special tax on executive bonuses of more than $1 million that were paid out in 2010 and 2011. The tax would be equivalent to a 2.97 percent surcharge on top of the top state income tax rate of 6.5 percent. The tax would only apply to bonuses paid to executives... [Read More]
March 25, 2010 - 6:11 AM EDT
Want Free State Tax Info? Check out the FTA Website
There are some companies out there trying to sell tax professionals and ordinary citizens all kinds of data that is free on the Internet. If you are looking for basic tax information you should check out the Federation of Tax Administrators website at www.taxadmin.org. The FTA has all kinds of neat... [Read More]
March 24, 2010 - 6:19 AM EDT
South Carolina Should Raise its Gas Tax
Nobody likes to hear it. But sometimes a state should raise its gas tax. They are talking about raising the tax in South Carolina. The state imposes a very low 16 cent a gallon tax. That rate has not been changed in more than two decades. Here is the problem. Over that time, fuel costs have skyrock... [Read More]
March 23, 2010 - 6:19 AM EDT
The Fight in Kansas, More Taxes versus Big Budget Cuts
The state of Kansas faces a $470 million deficit for the next fiscal year. That is a lot of money for a relatively small state. There are only three ways to close the gap. You can raise taxes. You can cut spending. Or you can do a combination of both. Democratic Governor Mark Parkinson says more cu... [Read More]
March 19, 2010 - 6:25 AM EDT
Iowa Thinking of Raising Traffic Fees, Fines
Iowa is thinking about raising many fines and fees for traffic violations. Legislators backing the increase hope to raise an additional $8.8 million a year. The money would be used to fund various justice system functions. Iowa looks like it is falling into a trap that befalls many state and local... [Read More]
March 18, 2010 - 6:12 AM EDT
It's Time to Raise the Alcohol Tax in Maryland
There is a bill before the Maryland legislature -- The Lorraine Sheehan Health and Community Services Act of 2010 -- that would increase alcohol taxes the equivalent of ten cents a drink. The tax increase would raise about $214 million. The revenue would be earmarked for various health related serv... [Read More]
March 17, 2010 - 6:14 AM EDT
Massachusetts Jobs Program Didn't Work
The Boston Globe in an excellent March 14 article reported that Massachusetts has given away hundreds of millions of dollars in state and local tax breaks to companies that created few or no jobs. Indeed, many of the recipients of the tax breaks actually moved jobs overseas or just laid workers off... [Read More]
March 16, 2010 - 6:13 AM EDT
Do We Care if Candidates Release Their Tax Returns?
I don't. Arnold Schwarzenegger took a lot of grief when he was running for governor in California for not initially releasing his tax returns. What did people want to find out? That he was rich? He was and is. Texas Democratic Bill White recently won his party's nomination for governor in Texas. He... [Read More]
March 12, 2010 - 6:54 AM EST
Alabama Senate Democrats Propose Tax Cuts
Who says that Democrats are all about raising taxes? Democrats in the Alabama Senate proposed a slew of tax cuts this week. These cuts include ending the sales tax on purchases of cars manufactured in Alabama, which is probably illegal, but a tax cut nonetheless. The Democrats propose repealing the... [Read More]
March 11, 2010 - 6:15 AM EST
SC Candidate for Governor Opposes Tax Incentives for Retailers
Here is some good news. South Carolina Republican candidate for governor Henry McMaster said that he opposes using the state's economic development incentives program for retail projects. Such incentives are bad tax policy and bad government policy. They place the government in the position of pick... [Read More]
March 10, 2010 - 6:18 AM EST
Colorado Taxpayers Can See Where Their Money Goes on New Website
In a good government program that should be copied by other states, Colorado citizens can see how much tax they pay and how their tax dollars are spent on a new website colorado.gov/taxtracks/. To my knowledge, no other state has such a good governmental tool. The website estimates the amount of in... [Read More]
March 9, 2010 - 6:11 AM EST
No Gays Allowed
Florida is considering changing its film and television tax credits to ban recipients from airing gay characters. That's right. The federal government is thinking about letting gays serve openly in the Marine Corps, but the state of Florida thinks there is something wrong with gays appearing on tel... [Read More]
March 5, 2010 - 6:14 AM EST
What is Up with Congressional Staffers Not Paying Taxes?
Congressman Jason Chaffetz, a Utah Republican, would like to fire Capitol Hill staff who don't pay their taxes. Chaffetz introduced legislation that would allow Hill offices to fire "the hundreds" of Senate and House staffers who owe the government millions of dollars. That's right - there are hund... [Read More]
March 4, 2010 - 6:17 AM EST
More California Voters Want Spending Cuts, Not Taxes, to Close Deficit
A new Field Poll released on Tuesday finds that half of California voters think the state should cut spending rather than raise taxes to close the mammoth $19.9 billion budget deficit. A much smaller percentage -- 29 percent -- thinks the state should use an equal mix of spending cuts and tax incre... [Read More]
March 3, 2010 - 9:10 AM EST
Oregon Business Tax Breaks Total $626 Million
Oregon will provide at least $626 million in tax subsidies for corporations this budget cycle according to a new report by Oregon State Public Interest Research Group. The problem is that the state has no system in place to assess whether the subsidies are accomplishing their goals. Indeed, no one... [Read More]
March 2, 2010 - 6:22 AM EST
Kansas House Advances Bill to Expand Tax Breaks for Businesses
The Kansas House passed a tax break for businesses bringing workers to the state even with lingering concerns that the deficit mired state can't afford it. The bill expands an incentive program created last year to encourage companies to move jobs from other states to Kansas. Basically, more compan... [Read More]
February 26, 2010 - 6:24 AM EST
Snoop Dogg Owes IRS $600k
Snoop Dogg also known as Snoop Doggy Dog when he is not going by his given name of Cordozar Calvin Broadus owes the IRS a lot of dead presidents -- $598,309 to be exact. And the Feds want their cheese (which is rapper slang for money). The IRS filed a tax lien against the famous rapper and his wife... [Read More]
February 25, 2010 - 6:21 AM EST
Proposed Tax Breaks Create Divide in Colorado Legislature
Democrats in the Colorado legislature have proposed a bill that will provide tax credits for businesses that rehire laid off workers. In many respects the bill is similar to the federal jobs bill that will soon be signed by President Obama. Republicans say the proposed tax credit is only a token ge... [Read More]
February 24, 2010 - 6:07 AM EST
Oklahoma Tax Breaks Cost Billions Each Year
The Oklahoma Tax Commission released its semiannual report on tax exemptions. The report lists 460 separate exemptions that total $5.5 billion a year. The number is actually much higher as many exemptions are not included in the report. But before my liberal friends get too excited, many of the exe... [Read More]
February 23, 2010 - 6:15 AM EST
Not Putting Your Money Where Your Mouth Is
Colorado Republican state senator Dave Schultheis was among many legislators who voted against taking a pay cut last week. The problem is that Schultheis is a self described fiscal hawk -- adamantly opposed to government spending. He is opposed unless of course the spending is on him. To be honest,... [Read More]
February 19, 2010 - 12:38 PM EST
Harold Ford Wants to Be a Senator from New York, but...
Harold Ford wants to be the US Senator from New York. He once represented Tennessee in Congress but he "moved" to New York three years ago to be vice chair of Merrill Lynch. But he has a little problem. He has never filed a New York tax return, or as far as anyone can tell, has ever paid New York i... [Read More]
February 18, 2010 - 5:41 AM EST
Kansas Considering Applying Sales Tax to Utilities -- A Bad Idea
In the hope of closing the state budget deficit, a Kansas House committee is considering a plan to impose the state’s 5.3 percent sales tax on residential utility bills. The measure would raise $182 million. Most of the money raised would come from eliminating a sales tax exemption on residential... [Read More]
February 17, 2010 - 6:12 AM EST
Doctors Don't Like Granholm's Tax Proposal -- And They Shouldn't
Michigan Governor Jennifer Granholm has proposed numerous tax increases to help balance her state's budget. Most of the ideas are pretty good, involving broadening the sales tax base. But one aspect of Granholm’s plan is less than ideal. She would like to impose a three percent gross receipts tax... [Read More]
February 16, 2010 - 6:49 AM EST
Earning Money from Naked Ladies Dancing
It's about time, but the Texas Supreme Court has finally decided to consider whether the state’s $5 charge on strip club patrons violates the First Amendment right of free expression. The court agreed to review a lower-court opinion that found that the "pole tax" improperly singled out a form of e... [Read More]
February 12, 2010 - 7:25 AM EST
Arizona May Increase School Tax Breaks
Yesterday I blogged about the Iowa Catholic Bishops opposing a reduction in tax breaks for donations to private schools. Lawmakers in Arizona are likely to take a different approach. The Arizona House Ways and Means committee recently adopted a measure to increase the tax credit available for donat... [Read More]
February 11, 2010 - 8:17 AM EST
Iowa Bishops: Leave Tax Credit Alone
There is a proposal in Iowa to lower the tax breaks for donating to private schools. Gov. Chet Culver’s tax credit review panel has recommended lowering the Educational Opportunity Act tax credit from 65 percent of a donation to a school’s tuition assistance fund to 40 percent. It also would lowe... [Read More]
February 10, 2010 - 8:16 AM EST
Major Polluter Tax Bills Introduced in Washington
There is a big environmental bill in the Washington legislature that will triple the tax on oil, pesticides and other chemicals and devote the money to storm water cleanup. House Bill 3181 (and Senate Bill 6851) would triple the "hazardous substances" tax created by a 1988 voter initiative. That co... [Read More]
February 9, 2010 - 7:55 AM EST
Rendell Wants to Change PA Sales Tax
Facing a $3 billion deficit in its pension funds, Governor Ed Rendell is planning to propose dramatic changes to Pennsylvania's sales tax system. The sales tax is now 6 percent (7 percent in Allegheny County and 8 percent in Philadelphia). The governor is planning to propose lowering the rate by on... [Read More]
February 5, 2010 - 6:19 AM EST
Wisconsin Group Proposes Sales Tax Increase to Fund Schools
The Wisconsin Alliance for Excellent Schools is proposing that the state raise its sales tax from five to six percent. The additional $850 million that would be raised would be earmarked for public schools and property tax relief. The group is promoting the idea of "A Penny for Kids" while trying t... [Read More]
February 4, 2010 - 6:16 AM EST
Connecticut Dems Consider Taxing TARP bonuses
Connecticut's Senate Democrats are casting an envious eye on the bonuses paid to employees of investment banks and insurers that received funds from the federal Troubled Asset Relief Program. In fact, some senators are thinking of taxing the bankers and insurers and using the money to help small bu... [Read More]
February 3, 2010 - 7:17 AM EST
Bonus Pay Stokes Anger in Georgia
The Atlanta Journal Constitution ran a story this week that illustrates why so many people -- including good liberals like me -- are mad at their government. The top investment staffers at the Georgia Teachers Retirement System received huge pay increases and bonuses this past year even though the... [Read More]
February 2, 2010 - 6:08 AM EST
ITEP: "Fair Tax" in Missouri Would Cut Taxes for the Richest 5 Percent, Hike Taxes for the Other 95 Percent
You should read the new report of the Institute of Taxation and Economic Policy on the so-called "fair tax" being discussed in Missouri. Basically, the flat tax proposals would eliminate the personal income tax and replace it with higher sales taxes. Eliminating the personal income tax might have s... [Read More]
January 29, 2010 - 6:39 AM EST
Tax Money Spent on Lobbyists in Nebraska
Yesterday I blogged about Kansas school districts, who receive state funds, suing the state. In Nebraska the issue is not lawsuits but lobbying. It turns out that 16 Nebraska schools districts spent a total of $2 million on lobbyists over the past five years. Those lobbyists were no doubt trying to... [Read More]
January 28, 2010 - 6:18 AM EST
Kansas Lawmaker Wants to Make Sure Schools Don't Use State Tax Money to Sue Legislature
Only in America. A group of Kansas school districts are considering a lawsuit against the state legislature. The schools would like to reverse recent budget cuts. In 2006, Kansas courts ordered the state to provide more money to the schools after they determined that the school funding system was u... [Read More]
January 27, 2010 - 6:17 AM EST
Golfer Jim Thorpe Gets One-Year Prison Sentence for Tax Evasion
Jim Thorpe, the golfer, was sentenced last week to a year in prison by the U.S. District Court in Florida for failing to pay over $1.6 million in taxes from 2002 to 2004. Over that time, Thorpe earned over $5 million. Thorpe has been teeing it up professionally since 1972 but has managed to win 14... [Read More]
January 26, 2010 - 6:17 AM EST
Scarlet Letters in Indiana
A new law in Indiana requires the Department of Revenue to post the names of all businesses that are delinquent on their sales tax remittances. The idea is that if their names are put on the Internet, those companies will be shamed into paying up. No self-respecting business owner would want to wal... [Read More]
January 22, 2010 - 6:15 AM EST
Georgia Legislators Owe Taxes, That's Not Good
Georgia newspapers reported yesterday that State Revenue Commissioner Bart Graham sent notices to at least a dozen state legislators who owe back taxes for 2008. This seems to come up quite a bit lately and presents a serious problem. The men and women who write the tax laws are, after all, not abo... [Read More]
January 21, 2010 - 6:13 AM EST
Nicolas Cage has Paid the IRS $70 Million, Still Owes $14 Million
I wish I had problems like this. My friends at TaxProfBlog posted a piece describing how Nicolas Cage has paid the IRS $70 million, yet he still owes Uncle Sam $14 million. Do you have any idea how much money you have to make to owe the IRS $70 million? Or even $14 million? A lot. Do you think Mr.... [Read More]
January 19, 2010 - 6:09 AM EST
A Call to End Tax Credit for Movies, Add Limits on Business Tax Credits
In Iowa, Governor Culver's staff is recommending an end to the tax credit for movie and TV productions. The staff is also advocating for a $185 million limit on the amount of money spent on business related tax credits. And, the staff is calling for more transparency so citizens can see how the tax... [Read More]
January 15, 2010 - 6:47 AM EST
In Michigan, State Mandates Cost Local Governments $2.2B
A new study worth reading was released this week by the Michigan Commission on Legislative Mandates. The report shows that state mandates cost local governments more than $2.2 billion a year. That is, unfunded state requirements cost local jurisdictions about a fifth of what they collect in propert... [Read More]
January 14, 2010 - 6:19 AM EST
Worth Reading: Good Jobs First Report on High Tech Tax Incentives
Good Jobs First, an organization dedicated to fighting the abuse of tax incentives released a study yesterday well worth reading. The study finds that Pennsylvania, Ohio, New Jersey, New York, Maryland, North Carolina, and West Virginia should shun using tax incentives to attract high tech companie... [Read More]
January 13, 2010 - 6:32 AM EST
Tax Commission to Furlough Employees -- Bad Idea
The Oklahoma Tax Commission is giving out one day furloughs to all of its staff as a result of budget cuts. The commission will also hire fewer temporary workers this filing season. The commission already has 80 fewer employees than it did two years ago. Most government agencies in the state are fu... [Read More]
January 12, 2010 - 6:25 AM EST
Boeing Will Pay Four Percent Tax Rate
We are finding out some details about the secret deal Charleston County gave Boeing as part of South Carolina's incentive package to lure the aircraft manufacturing giant to the state. Boeing will be paying four percent on its real and personal property for the next thirty years. That is about what... [Read More]
January 8, 2010 - 7:43 AM EST
Tax Breaks Not Working in Georgia
Georgia is doling out millions of dollars in tax breaks designed to help create jobs, but there is no proof that any of it is working, according to state auditors. Between 2004 and 2007, the value of tax breaks given to corporations was estimated at $265 million. Last month, the revenue department... [Read More]
January 7, 2010 - 6:20 AM EST
Crist Playing to the Right With Call for Corporate Tax Cut
What do you do if your state is billions in the red and you have already shaved ten percent off your spending? If you are Florida Governor Charlie Crist you propose more tax cuts. Crist is running for the US Senate this year and faces a serious challenge from fellow Republican House Speaker Marco R... [Read More]
January 6, 2010 - 5:34 AM EST
Tax Foundation Says More Taxes are Dangerous
The Tax Foundation recently released a report asserting that tax increases will lead to far more fiscal pain down the road for state governments. The author, Joe Henchman, says that the recent move toward higher personal income taxes, and cigarette and alcohol taxes will not serve the states well w... [Read More]
January 5, 2010 - 6:18 AM EST
A Great Idea in Virginia, That Will Go Nowhere
Outgoing Governor Tim Kaine introduced a two year budget that called for worker layoffs and cuts in all programs totalling $2.3 billion. Kaine also called for elimination of the personal property tax and a one percent increase in the personal income tax rate. Kaine offered a sound budget designed t... [Read More]
December 18, 2009 - 7:00 AM EST
Education and Taxes in Ohio
Ohio faces an $850 million budget deficit. The Speaker of the House Armond Budish has already warned school districts to expect deep cuts in state aid to education. The Governor wants to delay a 4.2 percent income tax cut. The House Democrats are behind him, but the GOP majority Senate is balking.... [Read More]
December 17, 2009 - 7:26 AM EST
Voyeurism Through Tax Returns
The release of tax returns by three Democratic candidates for governor in Tennessee has caused quite a stir. Everybody seems to get excited when politicians release tax returns. You may recall when President Clinton released his tax returns and we discovered that he took a charitable deduction for... [Read More]
December 16, 2009 - 7:04 AM EST
Report on Business Credits Illustrates Flaws
A recent post at the Tax Justice Digest illustrates just a few of the myriad problems associated with tax incentives for businesses. In Oregon, the controversy involves the state's Business Energy Tax Credit (BETC). The BETC program is intended to encourage the growth of "green" energy companies i... [Read More]
December 15, 2009 - 6:24 AM EST
Pawlenty Moving Right
Everyone knows that Minnesota Governor Tim Pawlenty is running for president. And it seems like he is doing everything he can to capture the GOP base. His state faces a $1.2 billion deficit right now and many predict projected deficits to be over $5 billion for the next budget cycle. Pawlenty has p... [Read More]
December 11, 2009 - 7:09 AM EST
Dell Says It Won't Pay
Curious development in North Carolina. Apparently, Dell Inc., the giant computer manufacturer, is refusing to pay the state back money it recieved as incentive. Dell, as many know, received millions of dollars in tax breaks and direct grants from North Carolina when it promised to build a plant in... [Read More]
December 10, 2009 - 8:28 AM EST
Kansas Exemptions in Jeopardy
Kansas, like most states, is broke. The government just slashed another $260 million in spending in an attempt to bring balance. The deficits for next year are huge. The state will be looking at raising money by taxing things that aren't currently taxed. The Kansas Advisory Council on Intergovernme... [Read More]
December 9, 2009 - 6:59 AM EST
More Tax Cuts in Georgia
Yesterday I blogged about tax cut initiatives that will be on the ballot in Colorado next year. There is tax cutting talk in Georgia as well. GOP legislators are readying several bills that would cut taxes primarily for businesses. The ideas being tossed around in Atlanta are tax credits for employ... [Read More]
December 8, 2009 - 7:18 AM EST
Two Tax Cutting Measures in Colorado
Last Friday, the Colorado secretary of state approved two ballot measures for 2010. If passed, they would slash $1 billion in state taxes every year and roll back property taxes statewide. Those are pretty significant fiscal changes for a state that is mired in the economic crisis. Opponents of the... [Read More]
December 4, 2009 - 6:48 AM EST
Good Idea from Missouri
Missouri lawmakers are ready to starting reviewing the $500 million in tax credits the state gives away each year. The state's Department of Economic Development hands tax incentives out like cookies from the proverbial jar. It matters little that such incentives have little or no effect on company... [Read More]
December 3, 2009 - 5:51 PM EST
Ernie Banks is Alive and Well
In this morning's blog post, I stated that Studs Terkel and Ernie Banks were dead. Studs is. Ernie isn't. Sorry about that.... [Read More]
December 3, 2009 - 6:40 AM EST
Maybe the Government Has Your Money
One of the big issues in state public finance is unclaimed property. Every state holds money that people did not realize they had. This happens in a number of ways. If a bank has money and can't find you (perhaps you moved did not leave a forwarding address) it eventually must turn your account ove... [Read More]
December 2, 2009 - 8:03 AM EST
Bold New Idea in Michigan
This week Michigan state Representative and Democratic candidate for governor Alma Wheeler Smith did something daring. She called for graduated income tax rates with higher earners paying significantly more than lower income earners. She is also calling for an expansion of the sales tax base to inc... [Read More]
December 1, 2009 - 5:52 AM EST
Stupid Idea of the Week
Every once in a while a real nutty idea percolates among politicians. Today's example is from Arizona, where 33 representatives have signed on to "voluntary taxation" legislation. Twelve state senators agreed to sponsor this nonsense as well. Basically, these legislators, all Republicans, are intro... [Read More]
November 24, 2009 - 7:04 AM EST
Tax Revenue Down in 44 States
The Rockefeller Institute of Government released a report yesterday showing that tax revenue declined for the third quarter in 44 states. The report found that states collected 10.7 percent less revenue than the previous year. And the researchers predicted that tax collections for the fourth quart... [Read More]
November 20, 2009 - 6:45 AM EST
Florida to Crack Down on Corporations
Because its facing a another multibillion-dollar deficit, Florida is searching for ways to make money. Here is the current plan. By law the state's 1.2 million corporations must file an annual report. Failure to do so means a $400 fine. But, the state has to, by law, waive the fine if it failed to... [Read More]
November 19, 2009 - 6:26 AM EST
A Special Tax for Colleges? Bad Idea
There are always wacky tax ideas emanating from the states. Here is one. Community colleges in Wyoming are advocating for a special statewide sales tax. The revenue would be earmarked for community colleges. I am all for spending more government dollars on higher education in general and community... [Read More]
November 18, 2009 - 6:18 AM EST
One Third of Property in Providence is Exempt from Tax -- That's A Lot
A new study shows that one third of all property in Providence, Rhode Island is exempt from property taxes. Actually it's 37 percent, as $8 billion of the city's $21.7 billion of property escapes tax. Universities and private schools accounted for $2.1 billion of the exempt property, by far the lar... [Read More]
November 17, 2009 - 6:50 AM EST
Naming Names of Tax Delinquents
Interesting story out of Connecticut. Back in 1991, then state senator Gary Hale was the deciding vote in the state's adoption of an income tax. Now the former state senator is on the state's website listing the top 100 individual income tax delinquents. Hale is listed as number 50, owing $77,951.... [Read More]
November 13, 2009 - 7:07 AM EST
Florida Companies to Lose Tax Breaks
As many as 300 Florida companies could lose up to $85 million in tax incentives because they have not hired enough employees. Like most states, Florida doles out corporate welfare to companies that promise to locate or expand in the state. Smartly, those tax breaks are tied to some standards, in th... [Read More]
November 12, 2009 - 6:37 AM EST
Iowa Gubernatorial Candidate Promises Property Tax Cuts
Republican Rep. Christopher Rants is running for governor of Iowa next year. He plans on running on a platform of cutting property taxes. Folks in Iowa don't like property taxes. Heck, nobody likes property taxes. They remain the most disliked of all taxes. That of course is unfortunate because the... [Read More]
November 11, 2009 - 6:41 AM EST
Poor Still Paying Income Taxes -- Unfortunately
The Center on Budget and Policy Priorities released a study on November 4, that everyone should read. The study found that of the 42 states with an income tax in 2008, 16 states tax families of four with incomes below the federal poverty line. That is a slight improvement over 2007 when 18 states t... [Read More]
November 10, 2009 - 7:53 AM EST
More Celebrity Tax News
I get all of my celebrity tax news from the cool kids at TaxProfBlog. This week's news includes Joe Francis, founder of Girls Gone Wild, who pleaded guilty to two counts of filing false tax returns. He was sentenced to time served and probation. I swear I do not know what Girls Gone Wild is. Cathy... [Read More]
November 6, 2009 - 7:32 AM EST
Mileage Taxes
One of the most talked about ideas in the tax world of late has been mileage taxes. Many states are thinking about adopting a tax on the number of miles you drive. All states earmark gasoline tax revenue to maintain highways and roads. In effect, the gas tax acts like a user fee. But, people are us... [Read More]
November 5, 2009 - 6:37 AM EST
Kansas May Raise Taxes
Kansas state revenue continues to fall. Indeed, revenue was down $15 million or 3.6 percent below projections for the quarter. Since the beginning of the fiscal year, revenue is down $80 million. Here is what you should know. Kansas is a conservative, solidly red, state. There are not many tax and... [Read More]
November 4, 2009 - 6:29 AM EST
Property Tax Credits for Everyone. But Why?
An interesting development in North Dakota. State lawmakers are considering giving property tax relief -- now reserved for senior citizens and the disabled -- to all homeowners. The state's homestead tax credit is available to any homeowner who is disabled and to residents 65 years old or older who... [Read More]
November 3, 2009 - 7:08 AM EST
Alabama is Number 1 (or No. 50 depending on your view)
The U.S. Census numbers for 2007 just came out and Alabama has the lowest per capita state and local tax burden in the nation. Some Alabama politicians are crowing about that. After all, Alabama citizens pay only $2,909 a year in combined state and local taxes. That compares to $6,898 in New York,... [Read More]
October 30, 2009 - 5:26 AM EDT
The Kind of Guy I Want for Governor
Utah is a long way from my home in Virginia. But Salt Lake County Mayor Peter Corroon would get my vote. Corroon, a democrat, is contemplating a run for governor next year. His county faces a large budget deficit. And there are only a few ways to deal with deficits. You raise taxes. You cut service... [Read More]
October 29, 2009 - 6:59 AM EDT
Company Makes Profit on Tax Refund
South Carolina newspapers have been reporting that Scana Corp., the state's only Fortune 500 firm, saw a 9.6 increase in earnings for the third quarter. That sounds great. But it turns out that its earnings include a $15 million state tax refund. Scana received the tax refund after the state Suprem... [Read More]
October 28, 2009 - 6:37 AM EDT
What do People Think about Taxes?
I love polls on what people think about taxes. They inevitably show the paradox in which both liberals and conservative political leaders try to govern. You see, people want services and do not want to pay taxes. The liberals are quick to serve up the services you want and the conservatives promise... [Read More]
October 27, 2009 - 6:20 AM EDT
Gas Companies Escape the Pain In Pennsylvania
The Philadelphia Inquirer ran a terrific story yesterday on how state taxation really works. This summer, Pennsylvania Governor Ed Rendell said he wanted to tax natural gas as it was extracted from a black rock reservoir known as Marcellus Shale. The state needed the money and it seemed like a prud... [Read More]
October 23, 2009 - 6:20 AM EDT
An Age Old Problem Exists in Illinois
As reported today in the excellent publication State Tax Today, many people still want government services without the inconvenience of paying for them. A poll of Illinois voters released October 21 shows that a majority oppose an income or sales tax increase. Those folks say that the state's budge... [Read More]
October 22, 2009 - 7:08 AM EDT
All New Mexico Candidates for Governor Promise Not to Raise Taxes
All five people running for governor in New Mexico in 2010 have promised not to raise taxes. Those running to replace Bill Richardson are Democrat Lt. Gov. Diane Denish and Republicans Janice Arnold-Jones, Susana Martinez, Doug Turner and Allen Weh. To solve the continuing budget mess, Turner wants... [Read More]
October 21, 2009 - 7:06 AM EDT
RI Governor Again Calls for Repeal of Corporate Tax
Rhode Island Governor Carcieri once again is calling for repeal of his state's corporate income tax. The corporate income tax is not ideal. Many people, including me, have called for its repeal. The tax as imposed in many states is structured so that corporations have numerous opportunities to avoi... [Read More]
October 20, 2009 - 7:00 AM EDT
McDonnell's No Pain Tax Policy
Virginia GOP gubernatorial candidate Bob McDonnell has been blasting his Democratic opponent Creigh Deeds for having the nerve to say that taxes may have to be raised to pay for transportation improvements. Both McDonnell and Deeds are campaigning on the promise to fix the state's transportation in... [Read More]
October 16, 2009 - 9:05 AM EDT
Thank God. Powerball and Mega Millions to Team Up
The wacky world of state public finance took a strange turn this week when the cartel that runs the Powerball lottery got together with the cartel that runs the Mega Millions lottery and decided that there was no reason for every state not to enjoy the benefits of these games of chance. Starting i... [Read More]
October 15, 2009 - 8:54 AM EDT
The Doctor Tax in Michigan
Michigan Democratic legislators are considering a three percent tax on the gross receipts of the state's 28,000 physicians. And the docs are not happy. Most doctors in Michigan would have to absorb the tax -- they would not be passing it along to patients or insurance companies. But advocates are c... [Read More]
October 14, 2009 - 5:19 AM EST
Which States Rely on Which Taxes -- New Study Explains
Folks should read the new Tax Foundation report on which states rely on which taxes. The report, using new U. S. Census data, will help you understand how the states collect revenue. For example, Oregon, Maryland, Massachusetts, North Carolina, and New York are the states most heavily dependent on... [Read More]
October 9, 2009 - 5:40 AM EST
The Problem With Incentives
The news in North Carolina is that Dell, the mega computer manufacturer, is closing its production plant in Winston-Salem -- laying off over 900 workers. Dell is doing this after the state offered the company over $280 million in incentives. Folks may remember that the General Assembly convened a... [Read More]
October 8, 2009 - 5:34 AM EST
Nebraska To Study Sales Tax Exemptions
Senator Rich Pahls wants to study the way Nebraska taxes or doesn't tax sales. And that is a good thing. Like most states, Nebraska has a screwed up sales tax system. It taxes tap water, but not bottled water. It taxes food purchased in restaurants, but not vending machines. It taxes car washes, bu... [Read More]
October 7, 2009 - 5:12 AM EST
Unemployment Tax Increases -- Bad Idea
Maryland expects to increase employment taxes for all businesses in the coming year. This is because the state has paid out a lot more unemployment benefits than a year ago (about 50 percent more). The bad economy has wreaked havoc on the unemployment fund and the state needs more money. Part of th... [Read More]
October 6, 2009 - 5:32 AM EST
Louisiana Art Tax Incentive -- Dumb
As I get older, I have less patience for ridiculous tax policies. I came across a new one yesterday. A year ago, Louisiana instituted a policy that designates 29 "cultural product" districts to foster economic activity. If you buy original works of art within a designated cultural district, you don... [Read More]
October 2, 2009 - 6:12 AM EST
Good Move By South Dakota Governor
Gov. Mike Rounds on Wednesday asked the Department of Revenue and Regulation to review the tax-exempt status of nearly 375 organizations that claim to be charities under state law. The governor says that he wants to make sure that all groups receiving tax exemptions are legitimate. This is an impor... [Read More]
October 1, 2009 - 6:07 AM EST
State Budgets Get Rocked
According to census data released Tuesday, state tax revenues in the second quarter plunged 17% from a year earlier as rising unemployment and reduced spending hurt sales- and income-tax collections. The decline was the largest in over forty years. The biggest drop was in state income taxes, which... [Read More]
September 30, 2009 - 6:00 AM EST
Tax Foundation's Property Tax List
Using census data, the Tax Foundation recently released its rankings of property tax burdens across the country. The top 10 states in median real estate taxes paid for 2008 are, from 1 to 10, New Jersey ($6,320); Connecticut ($4,603); New Hampshire ($4,501); New York ($3,622); Rhode Island ($3,534)... [Read More]
September 29, 2009 - 6:17 AM EST
Why Clawbacks are Needed
Clawbacks are laws that require companies to pay back tax benefits under certain circumstances. For example, a company might receive tax breaks for creating a certain number of jobs. If the company doesn't create the requisite number of jobs, the state can demand the money back. These laws have bee... [Read More]
September 25, 2009 - 5:38 AM EST
Rhode Island Identifies Companies Getting Tax Breaks
The Rhode Island Department of Revenue recently released its second annual "Tax Credit and Incentive Report," providing the names, addresses, and size of tax breaks received by Rhode Island businesses under six major tax incentive programs. The report provides a valuable, and unusually detailed lo... [Read More]
September 24, 2009 - 5:06 AM EST
South Dakota is Number 1
As reported in the excellent publication State Tax Today, South Dakota has the most business-friendly tax system in the country and New Jersey has the least, according to a September 22 report by the Tax Foundation. The report, "2010 State Business Tax Climate Index," defines a good tax system as o... [Read More]
September 23, 2009 - 5:38 AM EST
Ohio May Need To Raise a Lot of Taxes
The Ohio Supreme Court's decision that the new slot machine law is void will create a huge budget problem for the state. The court ruled that the slot machine law had to be put to a vote of the people and could not be enacted solely by the legislature. But the state was counting on the slot machine... [Read More]
September 22, 2009 - 6:48 AM EST
Gambling Revenue Declines -- Political Interest Doesn't
The Rockefeller Institute released a study yesterday showing that revenue from legal gambling operations declined by 2.8 percent from 2008 to 2009. It was the first time in 30 years that legal gambling revenue has declined. That is good news of course. Gambling is a terrible way to raise revenue. A... [Read More]
September 21, 2009 - 5:16 AM EST
Governors-To-Be Call for End of Income Tax
At least two candidates for governor next year are calling for the end of their state's income tax. John Oxendine, a Republican, would like to be governor of Georgia. He would like to repeal the state's personal income tax. Former Congressman John Kasich, also a Republican, would like to be governo... [Read More]