Business Taxes Archive

Stock Buyback Tax Would Hurt Investment and Innovation
August 12, 2022
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TweetShareSharePin0 Shares The Senate-passed Inflation Reduction Act (IRA) calls for a new 1 percent excise tax on stock buybacks, the argument being it would be better for the economy if firms invested their surplus cash in the business, rather than returning this value to shareholders. However, research suggests that buybacks do not hinder investment opportunities,

Digital Services Taxes in Europe, 2022
August 9, 2022
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TweetShareSharePin0 Shares Over the last few years, concerns have been raised that the existing international tax system does not properly capture the digitalization of the economy. Under current international tax rules, multinationals generally pay corporate income tax where production occurs rather than where consumers or, specifically for the digital sector, users are located. However, some

Inflation Reduction Act Accelerated Depreciation & Book Tax: Analysis
August 5, 2022
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TweetShareSharePin0 Shares August 5, 2022 Cody Kallen, William McBride, Garrett Watson As the U.S. Senate races to consider the Inflation Reduction Act (IRA), a centerpiece of the proposed tax increases is the 15 percent minimum book tax on corporate income for firms earning over $1 billion, making up about 60 percent of the net revenue

Not the Way to Raise Revenue
August 4, 2022
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TweetShareSharePin0 Shares In the rush to pass the Inflation Reduction Act, which features an ill-conceived tax on the book income of U.S. corporations, it is worth reminding policymakers of a well-established finding in the economic literature: that among all the major ways to raise revenue, increasing the corporate tax is the most economically destructive due

Inflation Reduction Act: Details & Analysis
August 2, 2022
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TweetShareSharePin0 Shares Preliminary Revenue and Economic Estimates Net Revenue Long-run GDP Wages FTE Jobs Source: Tax Foundation General Equilibrium Model, July 2022. Last-week’s Democrat-sponsored Inflation Reduction Act (IRA), successor to the House-passed Build Back Better Act of late 2021, has been touted by President Biden to, among other things, help reduce the country’s crippling inflation.

Inflation Reduction Act Minimum Tax vs. Global Minimum Tax
August 2, 2022
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TweetShareSharePin0 Shares Over the course of the last year, it has become clear that Democratic lawmakers want to change U.S. tax rules for large companies. However, as proposals have been debated in recent months, there are have been clear divides between U.S. proposals and the global minimum tax rules. Before getting too far into the

CBO Long-Term Budget Outlook: Details & Analysis
July 29, 2022
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TweetShareSharePin0 Shares As the reality of a second quarter of negative economic growth settles in Washington, the Congressional Budget Office (CBO) released its own sobering report on the government’s long-term finances. The CBO long-term budget outlook report shows widening deficits over the next three decades as both federal spending and tax revenues are expected to

UK Prime Minister: Rishi Sunak vs. Liz Truss
July 27, 2022
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TweetShareSharePin0 Shares The Conservative Party in the United Kingdom is in the process of determining its new leader as Prime Minister Boris Johnson exits the stage. The new Conservative Party leader will be the next UK Prime Minister. The process has narrowed the field to two candidates: former Chancellor of the Exchequer Rishi Sunak and Foreign

New Jersey Menthol Cigarette Ban: Details & Analysis
July 27, 2022
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TweetShareSharePin0 Shares New Jersey’s proposed ban on the sale of menthol cigarettes (Assembly Bill 1989) would reduce excise and sales tax collections by as much as $243 million per year. Despite the significant revenue loss, smoking rates are unlikely to decline. New Jersey should look to the recent Massachusetts experiment to see what to expect

Push for Higher Taxes is Misguided Amid Inflation, Looming Recession
July 26, 2022
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TweetShareSharePin0 Shares Efforts to raise taxes on corporations and high-income earners recently hit a brick wall when U.S. Senator Joe Manchin (D-WV) once again expressed concerns about inflation and a potential recession. That would seem to be the end of the story, as there is no reason to think inflation will be going away anytime