Category: Tax Issues

Flattening Tax Rates

To date, five Republican presidential candidates have announced tax proposals that have at least one thing in common – simplifying the current tax code. In its most basic form, a flat tax taxes all income once, at the source, at the same rate. While Senators Cruz and Rubio have suggested one 10% and 15% rate […]

Trump’s Tax Plan and the Deficit

Structurally, Donald Trump’s tax plan is pretty much like every other Republican tax reform proposal.  Nothing really new or exciting to sink your teeth into.  Fewer individual tax brackets, lower rates, elimination of the Alternative Minimum Tax, a lower corporate tax rate, and elimination of the estate tax.  A little hoopla about repatriating foreign earnings […]

NCPA’s New DCGE Tax Model

In case you missed it yesterday, we here at NCPA are pleased to announce that we now have a tax model to – well – model taxes!  Developed by Beacon Hill Institute, the dynamic computable general equilibrium (DCGE) model, will measure the impact of tax changes on economic variables such as capital stock, employment and wages. […]

Hillary Clinton’s Corporate Profit-Sharing Plan – It’s Nothing to Get Excited About

The last thing government should ever be doing is providing taxpayer-financed incentives to fix things that aren’t broken.  Among her plans to “help” families, including college giveaways, Democratic presidential candidate Hilary Clinton wants to boost middle class incomes by incentivizing firms to share their profits. Under her profit-sharing plan, which she calls “Raising Incomes, Sharing Profits,” corporations that […]

Administration Efforts to Halt Tax Inversions Fall Short

Tax-driven corporate migration from the United States to countries with more favorable corporate tax regimes (which means just about anywhere else) continue, despite new rules put into effect by the Treasury Department last fall to curtail these so-called tax inversions. Fifty-five U.S. companies have been sold to, or targeted by, foreign buyers since the rules were […]

Congressional Spending Still Runs Amok

In the antebellum south, it is said that a common practice among slaveholders was to give a barrel of salt pork to slaves to divide amongst themselves. This scrambling and fighting for a share of the pork became equated with its political meaning in the early 1870s, according to Wendy McElroy of the Future of […]

A Double Whammy: Travel Taxes That Fund Stadiums

Last week, NCPA released a report on travel taxes.  Hotel occupancy taxes comprise the largest share of taxes on an average trip, while plane ticket taxes and rental car taxes rank second and third.  Travel taxes are politically easy to levy, because it is assumed that those who pay them are “out of towners” and […]

Nix the Netflix Tax!

Netflix just got a little more expensive in Chicago.  Starting in September, the city is expanding the interpretation of amusement and property taxes to audit “cloud companies” like Netflix and Amazon by levying a 9 percent tax every time consumers use “software as a service” streaming media services.  This new “cloud tax” comes at a time when […]

Busy Week In Congress on a Number of Tax Bills

This week, the House of Representatives is working on a number of tax-related bills (in celebration of April 15).  Two of them, in particular, will directly affect future tax returns: H.R. 1105 – Death Tax Repeal Act of 2015:  Would “repeal the estate and generation-skipping transfer taxes for estates of decedents dying or for transfers made on […]

Tax-Related Identity Theft – A Real and Growing Problem

The first tax deadline is just hours away, and many individuals needing extra time will file extensions.  But some who have electronically filed their returns are surprised to receive notice that a tax return for them has already been submitted — by somebody who is not the taxpayer. This tax-related identity theft is a real […]