Tax Analysts Blog

Wednesday, February 27, 2013
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...
Wednesday, February 20, 2013
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...
Wednesday, February 13, 2013
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...
Wednesday, February 6, 2013
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...
Wednesday, January 30, 2013
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...
Wednesday, January 23, 2013
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...
Wednesday, January 16, 2013
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...
Wednesday, January 9, 2013
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...
Sunday, January 6, 2013
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...
Wednesday, January 2, 2013
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...
Thursday, December 27, 2012
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...
Wednesday, December 19, 2012
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...
Wednesday, December 12, 2012
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...
Thursday, December 6, 2012
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...
Wednesday, December 5, 2012
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...
Wednesday, November 28, 2012
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...
Wednesday, October 31, 2012
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...
Tuesday, October 2, 2012
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...
Monday, September 24, 2012
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...
Monday, September 17, 2012
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,...