Tax Analysts Blog

Monday, April 27, 2015
This is the story of how Jeb Bush killed tax reform when he was governor of Florida. In 2001 Florida Senate President John McKay, a Republican, had already announced he was not seeking reelection. McKay decided that before he left office, he would try to reform Florida's loophole-ridden sales tax....
Monday, April 20, 2015
When it comes to tax policy, the Bush family has one thing in common: They like to cut taxes on investors. Throughout his four years as president, the top tax policy priority for George H.W. Bush was to cut the capital gains tax rate. Even though a majority in Congress agreed with him, he was block...
Monday, April 6, 2015
During his first State of the State address in 1999, Florida Gov. Jeb Bush got a standing ovation when he announced his plan to cut Florida taxes by over $1 billion. “It's not our money,” he told the Republican-controlled Legislature, “it's the people's.” Seven years later, his message rema...
Monday, March 23, 2015
It's a rock-solid fact that the U.S. corporate statutory tax rate is the highest among developed nations and is significantly higher than the average. According to 2014 data from the OECD, the combined federal and state statutory corporate tax rate for the United States is 39.1 percent. The average...
Monday, March 9, 2015
YoonA is a K-pop star. She is 24 years old. She sings. She dances. She acts. She is a fashion icon for teen girls. She has appeared in a number of widely followed Korean serial dramas including Love Rain and The Prime Minister and I. She is one of eight members of the wildly popular band Girls Gene...
Monday, March 2, 2015
We are driving more efficient vehicles and burning less fuel. Like longer life expectancy, this should be a good thing. But it is awful for government finances. That we live longer means more spending on healthcare. Burning less gas means lower fuel tax collections. As a result, the Highway Trust F...
Monday, February 23, 2015

One year ago this month, then-House Ways and Means Committee Chair Dave Camp provided American businesses with a glimpse of what politically realistic income tax reform might look like, and they haven't liked what they've seen. They are pleased with the 25 percent corporate rate and the move to ter...

Monday, February 9, 2015
The economic situation in Puerto Rico is desperate. The territory's more than $70 billion of bonds are junk-rated. New issues of its debt are being purchased by hedge funds rather than by traditional municipal bond investors. It is widely expected that despite plunging oil prices, on which Puerto R...
Tuesday, February 3, 2015
Do U.S. businesses suffer a disadvantage relative to competitors in other major economies? Usually the debate features conservatives pointing to the high U.S. statutory rate (Figure 1), while liberals focus on the effective corporate tax rate as a percentage of GDP (Figure 2). These data are far fr...
Monday, January 26, 2015
Tax reform has been at the forefront of the debate about fiscal policy for over four years. In December 2010, at the behest of President Obama, Alan Simpson and Erskine Bowles issued their famous report (“The Moment of Truth”) that suggested getting rid of every tax break in the code and reducing...
Monday, January 12, 2015
Most business tax reform proposals promise two things that American companies really want -- a lower corporate rate and exemption of foreign profits from U.S. tax. Republican Rep. Devin Nunes has a draft proposal, the American Business Competitiveness Act of 2014, that would provide a third major b...
Monday, December 15, 2014
On December 11 the incoming chair of the Senate Finance Committee, Sen. Orrin G. Hatch, R-Utah, released a 339-page tax reform report written by his staff. It was too short. It contained a lot of things we would expect from a Republican taxwriter: Tax reform should lower individual and corporate ra...
Tuesday, December 9, 2014
On December 3, on national television, Sen. Rand Paul blamed politicians who pass cigarette tax laws for the death of Eric Garner, who died in a struggle with New York City police officers after he was arrested for selling loose cigarettes. The junior senator from the Bluegrass State (the number tw...
Monday, November 17, 2014
In April the Senate Finance Committee agreed to a two-year extension of over 50 expiring tax provisions. The estimated cost is $88 billion over 10 years. Over on the House side, in a series of bills, the Ways and Means Committee approved the permanent extension of 11 expiring provisions. Nine of th...
Monday, November 10, 2014
We've been here before. A midterm election has handed Republicans control of both chambers of Congress, and at the top of their to-do list is getting the staff of the Joint Committee on Taxation to adopt dynamic scoring. It happened at the beginning of the 104th Congress in 1995, and all indication...
Monday, November 3, 2014
President Obama would love to have immigration reform as part of his legacy. Republican leaders in Congress want their party to be competitive in the 2016 presidential election and to show they can get things done. So although the odds are steep -- especially if the president sparks the indignation...
Monday, October 20, 2014
One of the top priorities of Republicans in the next Congress will be the inclusion of macroeconomic feedback effects in the official revenue estimate of tax bills. If a tax change increases economic growth, that growth will increase overall tax revenues. Under current official procedures, these gr...
Monday, October 6, 2014
Increased infrastructure spending is economic nirvana. It gives the economy a supply-side boost by increasing capital formation while also providing a demand-side stimulus that creates jobs. It is one of the surest bets for jobs creation in the economics tool kit. But instead of moving ahead, we ar...
Monday, September 29, 2014
Conservatives correctly point out that proposals to stop inversions from the Obama administration and Democrats in the House and Senate are only stopgap measures—a mere Band-Aid. If Congress were to tighten the anti-inversion rules first enacted in 2004 and further increase the foreign ownership r...
Monday, September 22, 2014
This post is based on a September 17 presentation to the working group formulating the tax portion of the National Strategic Agenda for the No Labels Foundation. The landmark Tax Reform Act of 1986 is the inspiration for most tax reform efforts of the last decade, and with good reason. Against all...