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Internet Transactions and the Sales Tax
This report is an introduction to the economics of electronic commerce and its potential impact on sales and use tax collections. Presently, 45 states (and the District of Columbia) require that retail outlets add a fixed percentage to the sales price of all taxable items (inclusive of federally imposed excise taxes).
The Marriage Tax Penalty: An Overview of the Issues
No Description Available.
Tax Benefits for Health Insurance: Current Legislation
No Description Available.
Major Tax Issues in the 107th Congress
No Description Available.
Major Tax Issues in the 107th Congress
No Description Available.
Value-Added Tax as a New Revenue Source
Some Members of Congress have expressed interest in the feasibility of using a value-added tax (VAT) to either replace all or part of the income tax or finance health care reform. A VAT is imposed at all levels of production on the differences between firms’ sales and their purchases from all other firms. Policymakers may be interested in the following aspects of a VAT: revenue yield, international comparison of composition of taxes, vertical equity, neutrality, inflation, balance-of-trade, national saving, administrative cost, intergovernmental relations, size of government, and public opinion.
A Value-Added Tax Contrasted with a National Sales Tax
Proposals to replace all or part of the income tax and proposals for national health care have sparked congressional interest in possible sources of additional revenue. A value-added tax (VAT) or a national sales tax (NST) have been frequently discussed as possible new tax services. Both the VAT and the NST are taxes on the consumption of goods and services and are conceptually similar. Yet, these taxes also have significant differences. This issue brief discusses some of the potential policy implications associated with these differences.
A Value-Added Tax Contrasted with a National Sales Tax
Proposals to replace all or part of the income tax and proposals for national health care have sparked congressional interest in possible sources of additional revenue. A value-added tax (VAT) or a national sales tax (NST) have been frequently discussed as possible new tax sources. Both the VAT and the NST are taxes on the consumption of goods and services and are conceptually similar. Yet, these taxes also have significant differences. This issue brief discusses some of the potential policy implications associated with these differences.
Flat Tax Proposals and Fundamental Tax Reform: An Overview
This report discusses the idea of replacing our current income tax system with a flat-rate tax, including background and analysis and various Congressional proposals.
The Alternative Minimum Tax for Individuals
This report provides a brief overview of the alternative minimum tax (AMT) for individuals, discusses the issues associated with the current system, and describes current legislation to amend the AMT. The report will be updated as legislative action warrants.
2001 Tax Cut: Description, Analysis, and Background
A major tax cut, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), was enacted in June 2001. This report summarizes the provisions of the bill, analyzes effects, and considers the development of the legislation.
Internet Tax Bills in the 107th Congress: A Brief Comparison
No Description Available.
The Foreign Sales Corporation (FSC) Tax Benefit for Exporting: WTO Issues and an Economic Analysis
This report provides a brief overview of the U.S. international tax system, the mechanics of FSC’s partial tax exemption, and how FSC fits into the overall U.S. tax structure.
The Flat Tax, Value-Added Tax, and National Retail Sales Tax: Overview of the Issues
The current income tax system is criticized for costly complexity and damage to economic efficiency. Reform suggestions have proliferated, including a national retail sales tax, several versions of a value-added tax (VAT), the much-discussed “Flat Tax” on consumption (the “Hall-Rabushka” tax), the “USA” proposal for a direct consumption tax, and revisions of the income tax. The President has indicated that major tax reform will be a priority item in his second term.
Homeland Security: 9/11 Victim Relief Funds
In the first days following the terrorist attacks of September 11, 2001, an unprecedented number of Americans contributed over $2.7 billion in donations to assist in the relief of victims. According to a 2004 Rand Corporation study, that money amounted to only a modest share (7%) of the $38.1 billion “quantified benefits” provided to victims of the terrorist attacks. The Rand Study reported that payments worth $19.6 billion (51%) were disbursed by insurers and $15.8 billion (42%) were disbursed by government programs.
Major Tax Issues in the 109th Congress
Report on tax issues facing Congress in late 2005, including state of the economy, federal budget, Hurricane Katrina, and more.
Taxes and Fiscal Year 2006 Budget Reconciliation: A Brief Summary
On April 28, 2005, Congress approved an FY2006 budget resolution (H.Con.Res. 95) with reconciliation instructions calling for three bills: a bill containing spending cuts ($1.5 billion in FY2006 and $34.7 billion over five years); a bill increasing the public debt limit by $781 billion (to $8,965 billion); and a bill containing tax cuts.
The Crude Oil Windfall Profit Tax Act: Context and Content
Debate over natural gas pricing has included the consideration of a windfall profit tax, with the oil windfall profit tax as a possible guide to what might be levied on natural gas at the wellhead. This report reviews the issues surrounding the enactment of the crude oil windfall profit tax, spells out its provisions, and provides data on the revenues collected and anticipated.
Tax Incentives for Alternative Fuel and Advanced Technology Vehicles
No Description Available.
Reform of U.S. International Taxation: Alternatives
This report describes and assesses the principal prescriptions that have been offered for broad reform of the current U.S. system for taxing international businesses. The report begins with an overview of current law and of possible revisions. It then sets the framework for considering economic efficiency as well as tax shelter activities. Finally, it reviews alternative approaches to revision in light of those issues.
The Bush Tax Cuts and the Economy
The George W. Bush Administration enacted a series of tax cuts through the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. This report examines these tax cuts within the context of the current and long-term economic environment.
Alternative Minimum Taxpayers by State: 2009, 2010, and Projections for 2012
Report that breaks down, state-by-state, the percentage of taxpayers subject to Alternative Minimum Tax (AMT), and also maps out these projections for the year 2012.
The Medical Device Excise Tax: Economic Analysis
This report reviews the issues surrounding the medical devices tax within the framework of basic principles surrounding the choice of commodities to tax under excise taxes. The next section describes the tax and its legislative origins. After that, the report analyzes the arguments for retaining and repealing the tax.
Distribution of the Tax Burden Across Individuals: An Overview
This report discusses in the first section different philosophies about how the tax burden should be distributed, and what those philosophies imply for the shape of the tax system. In particular, it addresses the question of the justifications for a progressive tax system (one where the share of income collected as a tax rises as income rises). This section is presented for the interested reader, but is not a necessary preliminary to examining the analysis in the second section, which presents estimates of the distribution of the federal and total U.S. tax burden. The third section of the report discusses the measures that can be used to characterize the distributional effects of tax changes.
Taxation of Internet Sales and Access: Legal Issues
This report first looks at the Constitution's requirement of nexus, including an examination of whether recent state laws comply with the nexus standard and federal legislation that would affect the standard. It then looks at the scope of the Internet Tax Freedom Act (ITFA) moratorium on multiple or discriminatory taxes on electronic commerce and taxes on Internet access.
The Corporate Income Tax System: Overview and Options for Reform
This report presents information and research on the corporate tax to help policy makers understand and evaluate arguments presented in the tax reform debate. This report first reviews the structure of the corporate income tax. Data on which companies pay the corporate tax, corporate tax revenue, and how the U.S. system compares to the rest of the world are then presented and analyzed. Next, the economic effects of the corporate tax are reviewed--including a discussion of the purpose of the corporate tax, who bears the burden of the tax, and how to evaluate alternative corporate tax systems. The report then reviews broad reform options and concludes with a comparison of specific proposals that have been offered.
The Bush Tax Cuts and the Economy
The George W. Bush Administration enacted a series of tax cuts through the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. This report examines these tax cuts within the context of the current and long-term economic environment.
PILT (Payments in Lieu of Taxes): Somewhat Simplified
This report explains Payments in Lieu of Taxes (PILT), with an analysis of the five major factors affecting the calculation of a payment to a given county. It also describes the effects of recent legislative changes to PILT.
U.S. International Corporate Taxation: Basic Concepts and Policy Issues
This report provides a general introduction to the basic concepts and issues relevant to the U.S. international corporate tax system. The explanations provided in this report emphasize the underlying concepts of the international tax system and are intended to be as simplified as possible.
The Earned Income Tax Credit (EITC): An Overview
The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. This report provides an overview of the EITC, first discussing eligibility requirements for the credit, followed by how the credit is computed and paid. The report then provides data on the growth of the EITC since it was first enacted in 1975. Finally the report concludes with data on the EITC claimed on 2012 tax returns, examining EITC claims by number of qualifying children, income level, tax filing status, and location of residence.
PILT (Payments in Lieu of Taxes): Somewhat Simplified
This report explains Payments in Lieu of Taxes (PILT), with an analysis of the five major factors affecting the calculation of a payment to a given county. It also describes the effects of certain legislative changes to PILT in recent years.
Addressing the Long-Run Budget Deficit: A Comparison of Approaches
The growth of the national debt, which is considered unsustainable under current policies, continues to be one of the central issues of domestic federal policy making. On August 2, 2011, Congress adopted, and the President signed, the Budget Control Act (BCA; P.L. 112-25), which might be viewed as an initial step in addressing long-run debt issues. This report examines alternative approaches to reducing the deficit, relating to the immediate issues arising from the BCA and the extended tax cuts as well as to ongoing, longer-term decisions about how to bring the debt under control. It focuses on the trade-offs between limiting the provision of defense and domestic public goods, reducing transfers to persons including entitlements for the elderly and those with low income, reducing support for state and local governments, and raising taxes. Using projections of the debt and deficit, it also addresses how limiting reliance on one source of deficit reduction creates pressure on other sources.
An Economic Analysis of the Homebuyer Tax Credit
This report provides an economic analysis of the homebuyer tax credit. Data suggest that home prices in general may be stabilizing and that the home inventory is beginning to return to a more normal level. Given the close proximity of these improvements to when the homebuyer tax credit was enacted by the Housing and Economic Recovery Act of 2008 and first modified by the American Recovery and Reinvestment Act of 2009, one could argue that the tax credit was the cause of these improvements.
Analysis of the Tax Exclusion for Canceled Mortgage Debt Income
This report begins with an overview and analysis of the historical tax treatment of canceled debt income. Next, the changes enacted by recent legislation are reviewed. A discussion of policy options concludes.
Value-Added Tax as a New Revenue Source
This report discusses the valueadded tax (VAT), which has been frequently discussed as a full or partial replacement for the U.S. income tax system.
Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945 (Updated)
Income tax rates are at the center of many recent policy debates over taxes. Some policymakers argue that raising tax rates, especially on higher income taxpayers, to increase tax revenues is part of the solution for long-term debt reduction. This report examines the top tax rates since 1945 and analyzes the ways in which tax rates affect economic growth.
Federal Income Tax Treatment of the Family
The first section summarizes the major features of the tax law affecting families and family choices, and how they developed over time, including the relatively recent introduction of large benefits for children at low and moderate income levels, a reversal of a trend in the past that tended to reduce these benefits through the erosion of the real value of the personal exemptions. It also summarizes the origin of the marriage penalty and marriage bonus. The following two sections first discuss general equity issues, and then apply the ability-to-pay standard to examine how tax burdens vary by family size, across the income spectrum. The final section examines the marriage penalties and bonuses.
Tax Returns of Individuals: Statistical Charts for the Five Most Recent Years
This report provides answers to some of the most frequently asked questions concerning the federal individual income tax, including the number of returns filed, average tax per return, and income tax as percentage of adjusted gross income. This report will be updated as the Internal Revenue Service (IRS) releases new or revised statistics.
Taxation of Hedge Fund and Private Equity Managers
This report provides background on hedge funds and private equity and summarizes the tax issues.
An Introduction to the Design of the Low-Income Housing Tax Credit
This report discusses the Low-Income Housing Tax Credit (LIHTC), which is a federal provision that reduces the income tax liability of taxpayers claiming the credit. These taxpayers are typically investors in real estate development projects that have traded cash for the tax credits to support the production of affordable housing. The credit is intended to lower the financing costs of housing developments so that the rental prices of units can be lower than market rates, and thus, presumably, affordable.
Agriculture in the Next Round of Multilateral Trade Negotiations
This report discusses the objective of agricultural negotiations in the World Trade Organizations (WTO) in 2001 to create trade reform. The Uruguay Round Agreement on Agriculture (URAA) established a new set of rules for the conduct of agricultural trade that the report also considers.
Taxes and Offshore Outsourcing
The impact of taxes on international trade and foreign investment has had a place in tax policy debates for decades, although its prominence has waxed and waned. The debate has tended to grow more heated during times of domestic economic weakness and high unemployment ; questions arise during such times over whether taxes contribute to such weakness by discouraging exports (or encouraging imports) or by encouraging U.S. firms to move abroad. In recent months, the debate over international taxation again became prominent as a part of the wider debate over “outsourcing.” With taxes, the debate asks how the current tax system likely affects outsourcing, and whether alternative tax policies designed to limit the phenomenon might be desirable. This report applies economic analysis to both questions.
The Alternative Minimum Tax for Individuals: Legislative Initiatives in the 109th Congress
This report describes the Alternative Minimum Tax (AMT), specifically revenue effects of modifying the AMT and Legislative Initiatives.
Retirement Savings and Household Wealth in 2000: Analysis of Census Bureau Data
This report examines recent trends in retirement saving and the policy implications. The aging of the American population and the impending retirement of the "baby boom" will place significant strains over the next several decades on both Social Security and on retirees' own financial resources. With continued increases in average life expectancies, retirees in the 21st century will have to stretch their savings and other assets over longer periods of retirement than were experienced by their parents and grandparents.
Major Tax Issues in the 108th Congress
This report provides an overview of major tax issues. It begins by describing three aspects of the economic context in which the tax policy debate during 2004 is likely to occur: the general state of the U.S. economy; the position of the federal budget; and the level of taxes in the United States.
Internet Sales and State Taxes: Policy Issues
This report discusses Internet sales, which do not always include sales and use tax. Customers who do not pay sales or use tax to the vendor are typically required to remit the tax to their home state.
U.S. International Corporate Taxation: Basic Concepts and Policy Issues
This report provides a general introduction to the basic concepts and issues relevant to the U.S. international corporate tax system. The explanations provided in this report emphasize the underlying concepts of the international tax system and are intended to be as simplified as possible.
Summary of Revenue Act of 1971 as Enacted Into Law
This report describes the major provisions of the Revenue Act of 1971.
What Happens if H.R. 1 Conflicts with U.S. Tax Treaties?
This report discusses what happens if a new U.S. tax law contradicts existing U.S. international tax treaties, with considerations for Congress.
What Share of Taxpayers Would See a Tax Increase or a Tax Decrease Under a Senate Version of the Tax Reform Bill
This report provides a brief overview and charts illustrating statistics about who would receive tax cuts, tax increases, or stay the same under the Senate version of the Tax Reform Bill.
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