Business Taxes Archive
DC Income Tax Hike Helps Maryland and Virginia, Not DC
July 26, 2021
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TweetShareSharePin0 Shares The District of Columbia weathered the pandemic with stable tax collections, down less than 1 percent in FY 2020 while recovering above pre-pandemic levels in FY 2021. Yet, even as lawmakers in eleven states have cut income taxes this year, the D.C. Council has responded to surpluses and growth by voting to include
Sports Owners Deductions & Amortization
July 26, 2021
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TweetShareSharePin0 Shares Over the past few weeks the media has reported on how wealthy taxpayers who own sports teams lower their tax liability by deducting the cost of purchasing a sports team over 15 years. Contrary to claims that deducting the cost of a sports team from taxable income is a “loophole,” such deductions are
Tax Complexity for Multinationals is Growing: Survey
July 26, 2021
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TweetShareSharePin0 Shares Initial data from a global survey on tax complexity shows that the overall level of tax complexity for multinational businesses has substantially increased between 2018 and 2020—much like it did between 2016 and 2018. These are the initial results from the third edition of the Tax Complexity Index—a project carried out jointly by
North Carolina Income Tax Reform & Proposals
July 23, 2021
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TweetShareSharePin0 Shares Eleven states have enacted laws this year to reduce income tax rates, in most cases paired with other structurally sound tax reforms. If North Carolina state senators get their way, their state will be the twelfth—and perhaps the most significant to date. On June 10, 2021, the North Carolina Senate passed House Bill
State Tax Incentives & Their Hidden Costs
July 22, 2021
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TweetShareSharePin0 Shares Job creation tax credits. Investment tax credits. Research and development tax credits. Payroll withholding tax rebates. Property tax abatements. Those are just five of the major categories of tax incentives states offer with the goal of encouraging new investment and economic development in their state. Nearly all states offer at least one of
Tobacco Tax Data Tool | Cigarette Tax Revenue & Cigarette Smuggling
July 22, 2021
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TweetShareSharePin0 Shares In the United States, tobacco is taxed at both the federal and state and sometimes even local levels. These layers of taxes often result in very high levels of taxation—the highest of any consumer item. The retail price of cigarettes, for instance, is more than 40 percent taxes on average. In some states,
Territorial Tax Systems in Europe, 2021
July 22, 2021
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TweetShareSharePin0 Shares Under a territorial tax system, multinational businesses primarily pay taxes to the countries in which they are physically located and earn their income. This means that territorial tax regimes do not generally tax the income companies earn in foreign countries. A worldwide tax system, on the other hand—such as the system previously employed
Intellectual Property Came Back to U.S., But Plans Could Change That
July 21, 2021
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TweetShareSharePin0 Shares Tax policy can influence business decisions in a variety of ways, some more easily influenced than others. One decision that the Tax Cuts and Jobs Act of 2017 impacted is where companies choose to hold their intellectual property (IP). International trade data shows a significant shift of IP assets into the U.S. in
Biden Infrastructure Spending Plan Offsets Small Portion of the Cost
July 20, 2021
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TweetShareSharePin0 Shares As Congress considers turning the $579 billion bipartisan infrastructure deal and President Joe Biden’s $2.2 trillion American Jobs Plan (AJP) into legislative text, policymakers may consider using additional tax revenue generated from infrastructure spending to offset the plans’ deficit impact. Applying dynamic scoring to the spending side of the proposals would only generate
How Biden Business Tax Proposals Would Impact Taxpayers Across States
July 19, 2021
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TweetShareSharePin0 Shares The Biden administration has proposed several tax increases on businesses, whether structured as C corporations subject to the corporate income tax or passthrough entities such as S corporations, partnerships, or sole proprietorships that are subject to the individual income tax. It is important to remember that those business taxes ultimately fall on people,
