Tax Analysts Blog

Tuesday, January 22, 2013
Many tax reform advocates point to the United Kingdom as a source of inspiration. We often hear that Congress should emulate our British cousins when it comes to taxing corporate income. This argument is worth exploring. Several developments stand out when we scrutinize recent U.K. tax reforms: (1)...
Tuesday, January 15, 2013
If I were a Greek taxpayer I would be mad as hell. The country's latest scandal suggests that elites receive a pass when it comes to tax evasion, while those lacking access to the inner circles of power and influence are expected not only to endure the brunt of austerity but also to pay the nation'...
Tuesday, January 8, 2013
This weekend I noticed the following blurb on the BBC web site. Sir Martin Sorrell, CEO of the global advertising group WWP, said the amount of tax a multinational enterprise should pay is "a matter of judgment" as opposed to a matter of law. Thus we observe the CEO of a major international busines...
Thursday, January 3, 2013
There's a lot of talk in Washington about scaling back tax expenditures for the sake of lowering marginal rates — or preventing future rate increases. Most economists agree that lowering rates, while broadening the base, is the gold standard for tax reform. This explains the chatter about eliminat...
Friday, December 28, 2012
A popular axiom suggests that governments lightly tax that which is mobile and more heavily tax that which is immobile. Such a design is thought to enhance the competitiveness of a country's fiscal environment, meaning taxable entities (and those whom invest in them) are less likely to flee for gre...
Tuesday, December 18, 2012
Is it possible for a multinational corporation to be too good at tax planning? Recent events suggest the answer is yes. Starbucks' British subsidiary has promised to contribute £20 million to the UK tax authorities during 2013 and 2014. We say "contribute" because the proposed transfer of funds is...
Tuesday, December 11, 2012
Congress will soon be forced to contemplate fundamental tax reform. To stimulate their intellectual juices, we thought we'd do something useful -- like turn our attention to Jean-Baptiste Colbert. No relation (that we know of) to Comedy Central's Stephen Colbert. Students of history will recognize...
Tuesday, December 4, 2012
Some American cultural exports were big hits in France. Think blue jeans and jazz man Louis Armstrong. Even screwball comedian Jerry Lewis was famously adored by the French. Today, the dominant U.S. cultural exports are high-tech firms from Silicon Valley. But these multinational corporations are n...
Tuesday, November 27, 2012
Rand Paul is an energetic young Senator with a bright political future. Like his father, GOP presidential candidate Ron Paul, he is a staunch Libertarian who defends small government and low taxes. These are legitimate objectives supported by millions of Americans. But Paul has displayed poor judgm...
Friday, March 23, 2012
How badly do some Republicans want a balanced budget requirement? So much that they're willing to sacrifice one of their party's signature issues in exchange for it. Namely, a tax hike on the super rich. Here are the details. Rick Crawford (R-Arkansas) is a freshman House member who thinks America'...
Wednesday, March 14, 2012
You've heard it a thousand times. President Obama wants to continue the Bush-era tax cuts for households with taxable incomes under $250,000 a year, while allowing those cuts to expire for wealthier taxpayers. Were that to occur, the 33% bracket would increase to 36%, and the 35% bracket (currently...
Tuesday, March 6, 2012
President Obama's proposed minimum tax on offshore profits remains the talk of the town. That tells you something about the nerdy crowd I hang out with. (Until recently I thought glee was the emotion one feels when contemplating capital export neutrality. Turns out it's a TV show). But back to taxe...
Wednesday, February 29, 2012
President Obama has given us his framework for corporate tax reform. There's much talk about his proposed minimum tax on offshore profits. The framework is thin on details, but we're able to provide the following preview of how the tax might operate. The minimum tax would take the form of a low-tax...
Wednesday, February 22, 2012
President Obama's newly released 'framework' for corporate tax reform envisions a significant rate cut for U.S. firms. You can read the details by clicking here. His basic idea is to lower the statutory rate from 35% to 28%. He's vague on the details of how to pay for the rate cut -- but let's ign...
Friday, January 27, 2012
If you saw the State of the Union address you know that President Obama wants to change how we tax corporate profits. Here are his exact words from Tuesday night: "Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit...
Friday, January 13, 2012
Do you pay U.S. federal taxes? If so, did you know you have an official National Taxpayer Advocate? That's correct, somebody in-the-know who looks out for our collective interests as taxpayers. It's her job to loudly cry foul when something about our tax system isn't right and needs fixing. The cur...
Monday, December 12, 2011
The GOP never met a tax cut they didn't like ... until now. That's how Democrats portray Republican reluctance to extend the payroll tax breaks scheduled to expire at the end of the year. Casual observers of U.S. tax policy can be forgiven for doing a double-take here. Election-year politics has tu...
Tuesday, November 22, 2011
We're being told America's future has suddenly grown more bleak because the Joint Select Committee on Deficit Reduction has dropped the ball. I'm not sold on that conclusion. The failure of the Super Committee might be exactly what America needs: a long overdue kick in the back side. The group's pa...
Thursday, November 17, 2011
The papers say we're on the verge of an economic meltdown because numerous EU member states can't get their fiscal house in order, and the contagion will inevitably spread to all corners of the globe. The sovereign debt crisis is rapidly becoming a liquidity crisis as the cost of borrowing has rece...
Monday, August 29, 2011
Germany and Switzerland recently signed a landmark tax agreement that resolves years of squabbling over secret bank accounts. Fascinatingly, the agreement ends one form of blatant offshore tax evasion while preserving Swiss bank secrecy. How can that be? The answer is simple: tax collectors have be...