The Drawbacks of State Taxes on Financial Transactions
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An Analysis of the Graded Property Tax Robert M
TaxingTaxing Simply Simply District of Columbia Tax Revision Commission TaxingTaxing FairlyFairly Full Report District of Columbia Tax Revision Commission 1755 Massachusetts Avenue, NW, Suite 550 Washington, DC 20036 Tel: (202) 518-7275 Fax: (202) 466-7967 www.dctrc.org The Authors Robert M. Schwab Professor, Department of Economics University of Maryland College Park, Md. Amy Rehder Harris Graduate Assistant, Department of Economics University of Maryland College Park, Md. Authors’ Acknowledgments We thank Kim Coleman for providing us with the assessment data discussed in the section “The Incidence of a Graded Property Tax in the District of Columbia.” We also thank Joan Youngman and Rick Rybeck for their help with this project. CHAPTER G An Analysis of the Graded Property Tax Robert M. Schwab and Amy Rehder Harris Introduction In most jurisdictions, land and improvements are taxed at the same rate. The District of Columbia is no exception to this general rule. Consider two homes in the District, each valued at $100,000. Home A is a modest home on a large lot; suppose the land and structures are each worth $50,000. Home B is a more sub- stantial home on a smaller lot; in this case, suppose the land is valued at $20,000 and the improvements at $80,000. Under current District law, both homes would be taxed at a rate of 0.96 percent on the total value and thus, as Figure 1 shows, the owners of both homes would face property taxes of $960.1 But property can be taxed in many ways. Under a graded, or split-rate, tax, land is taxed more heavily than structures. -
Canada Taxation of Foreign Passive Income (FAPI)
INTERNATIONAL TAX POLICY FORUM / GEORGETOWN UNIVERSITY LAW CENTER Reform of International Tax: Canada, Japan, United Kingdom, and United States January 21, 2011 Gewirz Student Center, 12th floor 120 F Street, N.W., Washington, D.C. 20036 International Tax Policy Forum International Tax Policy Forum and Georgetown University Law Center Conference on: REFORM OF INTERNATIONAL TAX: CANADA, JAPAN, UNITED KINGDOM, AND UNITED STATES Table of Contents 1) Agenda ................................................................................................................................................... 1 2) Sponsoring Organizations a) About ITPF ....................................................................................................................................... 2 b) About Georgetown University Law Center ....................................................................................... 3 3) Taxation of International Income in Canada, Japan, UK, and US a) International Tax Rules in Canada, Japan, the UK and US (J. Mintz Presentation) ....................... 4 b) Canada i) S. Richardson, Presentation on Canadian international tax reform (Jan. 2011) ....................... 9 ii) N. Pantaleo, Presentation on Canada's taxation of foreign business income (Jan. 2011) ..... 12 iii) Advisory Panel on Canada’s System of International Taxation, Enhancing Canada’s International Tax Advantage, (Dec. 2008) [Executive Summary] ........................................... 16 c) UK i) M. Williams, Presentation on UK international tax -
German Tax & Corporate Insights
Flick Gocke Schaumburg German Tax & Corporate Insights — Issue #08 / December 2015 1 Contents Editorial International Tax Dear readers, Proposed abandonment of the tax exemption regime for Again in this new issue of GTCI we highlight a number of portfolio investments — need for action? .................. 2 German legal developments and court rulings particularly relevant CFC income not subject to trade tax in Germany ......... 3 to international corporations and investors in Germany. Tax & Corporate BEPS & information exchange: Tax court affirms principle of confidentiality and secrecy in tax matters ... 4 We start with summing up a discussion draft regarding a Insights Accounting for tax uncertainties under IAS 12 — reform of the German Investment Tax Act published by the new developments .......................................... 5 Federal Ministry of Finance in July. Then, we take a closer Updates on recent business trends, look at a ruling by the Federal Tax Court according to legislation and case law in Germany Real Estate Transfer Tax which income attributed to German shareholders under German real estate transfer tax provisions — substitute the rules on controlled foreign companies (CFCs) is not tax base unconstitutional .................................. 6 subject to trade tax. Investment Taxation On October 5, the OECD presented the final BEPS package Reform of the German Investment Tax Act ............... 8 of measures for a comprehensive and coordinated reform Corporate Law of international tax rules. We explain what consequences Bonn Hamburg Breaking old habits in German corporate finance: New the package will have in practice. Also, we outline the main Johanna-Kinkel-Straße 2-4 Amelungstraße 8–10 53175 Bonn 20354 Hamburg rules on convertible bonds and preference shares and proposals made in the long-awaited draft “Uncertainty Phone +49 228/95 94-0 Phone +49 40/30 70 85-0 their tax implications ...................................... -
Examination of Taxation on Sugar-Sweetened Beverages Alex Smith University of North Georgia, [email protected]
University of North Georgia Nighthawks Open Institutional Repository Honors Theses Honors Program Spring 2018 Examination of Taxation on Sugar-Sweetened Beverages Alex Smith University of North Georgia, [email protected] Follow this and additional works at: https://digitalcommons.northgeorgia.edu/honors_theses Part of the Accounting Commons Recommended Citation Smith, Alex, "Examination of Taxation on Sugar-Sweetened Beverages" (2018). Honors Theses. 32. https://digitalcommons.northgeorgia.edu/honors_theses/32 This Honors Thesis is brought to you for free and open access by the Honors Program at Nighthawks Open Institutional Repository. It has been accepted for inclusion in Honors Theses by an authorized administrator of Nighthawks Open Institutional Repository. Examination of Taxation on Sugar-Sweetened Beverages A Thesis Submitted to The Faculty of the University of North Georgia In Partial Fulfillment Of the Requirements for the Degree Bachelor of Business Administration in Accounting With Honors Alex Smith Spring 2018 Examination of the Taxation on Sugar-Sweetened Beverages 2 Acknowledgements I would like to thank Dr. Ellen Best for her support and insight throughout my research. I would like to thank Dr. Stephen Smith for agreeing to serve on my committee and providing support during my research. I would like to thank Dr. Poff for his guidance in the early development of my literature review. I would also like to thank Dr. Parker for agreeing to serve on my thesis committee Examination of the Taxation on Sugar-Sweetened Beverages 3 Contents 1. Introduction 2. Sin Tax 3. Sugar-Sweetened Beverage Tax Overview 4. Sugar-Sweetened Beverage Tax Response 5. Current Research on Sugar-Sweetened Beverage Tax 6. -
Latest CBO Report on Incomes and Taxes Shows That the Federal Fiscal System Is Very Progressive
Latest CBO Report on Incomes and Taxes Shows that the Federal Fiscal System is Very Progressive FISCAL Scott A. Hodge FACT President No. 742 Jan. 2021 Key Findings • President Joe Biden has proposed an ambitious agenda that would make the federal fiscal system more progressive, and the huge budget deficits caused by the numerous COVID-19 relief packages could heighten the call for more tax revenues. What is needed are benchmark facts to guide these debates. • A recent study by the Congressional Budget Office fills this void with data showing that the current fiscal system—both taxes and direct spending benefits—is already very progressive and redistributive. • In 2017, the federal fiscal system lifted the incomes of households in the lowest quintile by 126 percent, in the second quintile by 46 percent, and in the middle quintile by 10 percent while reducing the incomes of households in the highest quintile by 23 percent and in the top 1 percent by 31 percent. • In 2017, households in the lowest quintile received $67.67 in direct federal benefits for every $1 of taxes paid vs. $1.60 for middle-quintile households, while households in the highest quintile received $0.15, and $0.02 for the top 1 percent. • In the aggregate, fiscal policy increased the incomes of households in the bottom three quintiles by more than $1 trillion in 2017 and reduced the incomes of households in the highest quintile by more than $1.7 trillion, The Tax Foundation is the nation’s of which $728 billion came from households in the top 1 percent. -
Table of Contents
Table of Contents Preface ..................................................................................................... ix Introductory Notes to Tables ................................................................. xi Chapter A: Selected Economic Statistics ............................................... 1 A1. Resident Population of the United States ............................................................................3 A2. Resident Population by State ..............................................................................................4 A3. Number of Households in the United States .......................................................................6 A4. Total Population by Age Group............................................................................................7 A5. Total Population by Age Group, Percentages .......................................................................8 A6. Civilian Labor Force by Employment Status .......................................................................9 A7. Gross Domestic Product, Net National Product, and National Income ...................................................................................................10 A8. Gross Domestic Product by Component ..........................................................................11 A9. State Gross Domestic Product...........................................................................................12 A10. Selected Economic Measures, Rates of Change...............................................................14 -
How Do Federal Income Tax Rates Work? XXXX
TAX POLICY CENTER BRIEFING BOOK Key Elements of the U.S. Tax System INDIVIDUAL INCOME TAX How do federal income tax rates work? XXXX Q. How do federal income tax rates work? A. The federal individual income tax has seven tax rates that rise with income. Each rate applies only to income in a specific range (tax bracket). CURRENT INCOME TAX RATES AND BRACKETS The federal individual income tax has seven tax rates ranging from 10 percent to 37 percent (table 1). The rates apply to taxable income—adjusted gross income minus either the standard deduction or allowable itemized deductions. Income up to the standard deduction (or itemized deductions) is thus taxed at a zero rate. Federal income tax rates are progressive: As taxable income increases, it is taxed at higher rates. Different tax rates are levied on income in different ranges (or brackets) depending on the taxpayer’s filing status. In TAX POLICY CENTER BRIEFING BOOK Key Elements of the U.S. Tax System INDIVIDUAL INCOME TAX How do federal income tax rates work? XXXX 2020 the top tax rate (37 percent) applies to taxable income over $518,400 for single filers and over $622,050 for married couples filing jointly. Additional tax schedules and rates apply to taxpayers who file as heads of household and to married individuals filing separate returns. A separate schedule of tax rates applies to capital gains and dividends. Tax brackets are adjusted annually for inflation. BASICS OF PROGRESSIVE INCOME TAXATION Each tax rate applies only to income in a specific tax bracket. Thus, if a taxpayer earns enough to reach a new bracket with a higher tax rate, his or her total income is not taxed at that rate, just the income in that bracket. -
Pigouvian Taxes
2 Dereliction of duty: Are UK alcohol taxes too low? AN INSTITUTE OF ALCOHOL STUDIES REPORT PUBLISHED MARCH 2016 WRITTEN AND PRODUCED BY AVEEK BHATTACHARYA WITH THANKS TO Rob Pryce, Katherine Brown, Griffin Carpenter, Amanda Spalding, Siladitya Bhattacharya and Will Damazer, Chris Smith, Jon Foster and Habib Kadiri for reviewing earlier drafts of this report. Cover image by Leo Scanlon. About the Institute of Alcohol Studies The core aim of the Institute is to serve the public interest on public policy issues linked to alcohol, by advocating for the use of scientific evidence in policy-making to reduce alcohol- related harm. The IAS is a company limited by guarantee (no. 05661538) and a registered charity (no. 1112671). For more information visit www.ias.org.uk. 3 4 Executive summary There are three standard reasons why governments taX alcohol: 1. Externality Correction: to ensure that alcohol prices reflect the cost to third parties who are harmed by drinking 2. Paternalism: to reduce people’s consumption for their own good 3. Revenue Raising: to fund the government The UK Government estimates that eXternalities associated with alcohol cost England and Wales £21 billion every year Alcohol duty in England and Wales currently generates only £9 billion, less than half of the value of these externalities This suggests higher alcohol taxes can be justified on the basis of the harm drinking causes to wider society alone, without considering the impact on the drinker themselves The lost enjoyment suffered by moderate consumers as a result of alcohol duty is relatively small – we estimate £1.2 billion (less than 2% of market value) to be the absolute possible ceiling of the impact. -
Taxes and New York's Fiscal Crisis
TAXES AND NEW YORK’S FISCAL CRISIS: EVALUATING REVENUE PROPOSALS TO CLOSE THE STATE’S BUDGET GAP By Jared Walczak PRINCIPLE D INSIGHTFU L ENGAGED TAX FOUNDATION | 1 EXECUTIVE SUMMARY At first glance, New York faces projected budget shortfalls as arresting as the New York City skyline, and to meet the challenge, some have proposed taxes that would rival that skyline for staggering height. The challenge confronting policymakers is real, though perhaps not as dire as once feared. Its intensity depends on the pace of recovery, the availability of additional federal aid, and the policy choices state officials make in a state that has borne the brunt of the pandemic. State lawmakers will be called upon to navigate between two forbidding shoals, finding a way to meet the state’s revenue needs from a currently diminished tax base without implementing policies that make those economic losses permanent. It is no easy task, and there are no pat answers. In this publication, we examine the scope of the losses New York confronts and the prospects for—and potential extent of—federal relief in helping alleviate the state’s fiscal crisis. Then, situated in the context of New York’s past efforts to improve its tax competitiveness, and the importance of maintaining the Empire State’s attraction in an increasingly mobile economy, we review many of the proposals for raising additional revenue. Some hold promise, others present economic perils, and a few are legal quagmires. Recent data from the New York Department of Taxation and Finance suggest four-year tax revenue losses of $20.9 billion in real terms, about a 6.7 percent inflation-adjusted decline across the period, and a challenge above what the figures would indicate for a state that was struggling to balance its budgets even before the COVID-19 pandemic. -
The Supercharged IPO (Vanderbilt Law Review, Forthcoming, 2014)
The Supercharged IPO (Vanderbilt Law Review, forthcoming, 2014) Victor Fleischer University of Colorado School of Law and Nancy Staudt USC Gould School of Law Center in Law, Economics and Organization Research Papers Series No. C13-6 Legal Studies Research Paper Series No. 13-6 March 26, 2013 VOLUME FEBRUARY 2013 NO. THE SUPERCHARGED IPO By Victor Fleischer* Nancy Staudt** A new innovation on the IPO landscape has emerged in the last two decades, allowing owner-founders to extract billions of dollars from newly-public companies. These IPOs—labeled supercharged IPOs—have been the subject of widespread debate and controversy: lawyers, financial experts, journalists, and Members of Congress have all weighed in on the topic. Some have argued that supercharged IPOs are a “brilliant, just brilliant,” while others have argued they are “underhanded” and “bizarre.” In this article, we explore the supercharged IPO and explain how and why this new deal structure differs from the more traditional IPO. We then outline various theories of financial innovation and note that the extant literature provides useful explanations for why supercharged IPOs emerged and spread so quickly across industries and geographic areas. The literature also provides support for both legitimate and opportunistic uses of the supercharged IPO. With the help of a large-N quantitative study—the first of its kind—we investigate the adoption and diffusion of this new innovation. We find that the reason parties have begun to supercharge their IPO is not linked to a desire to steal from naïve investors, but rather for tax planning purposes. Supercharged IPOs enable both owner- founders and public investors to save substantial amounts of money in federal and state taxes. -
The Labor Incidence of Capital Taxation: New Evidence from the Retail Sales Taxation of Manufacturing Machinery and Equipment
National Tax Journal, June 2017, 70 (2), 257–294 https://doi.org/10.17310/ntj.2017.2.02 THE LABOR INCIDENCE OF CAPITAL TAXATION: NEW EVIDENCE FROM THE RETAIL SALES TAXATION OF MANUFACTURING MACHINERY AND EQUIPMENT John L. Mikesell and Justin M. Ross This paper seeks to produce evidence on the labor incidence of the taxation of ma- chinery and equipment purchases by manufacturers under the state general sales tax. For the identification strategy, we exploit tax policy discontinuities among adjacent counties along state borders. The main results demonstrate that, on aver- age, there are no significant losses or gains to manufacturing labor from adjusting this tax. The main results are robust to specifications of controls and state specific time trends. The identification strategy also passes a falsification test where counties are differenced from a randomly selected county. Keywords: sales tax, capital income tax, tax incidence JEL Codes: H25, H71 1. INTRODUCTION here has long been substantial interest in the labor incidence of business tax instru- Tments, both from economists in the study of economic incidence of partial factor taxes and from policy makers who worry these taxes are “job killers.” In the case of taxes on the formation of capital inputs, previous literature has mostly been limited to the study of corporate income taxes (Gravelle, 2013).1 This literature follows in the tradition of Harberger (1962) heavily cited general equilibrium model, “The Incidence 1 See a recent symposium review of the incidence of CIT in the March 2013 issue of the National Tax Journal. For distributional analyses of proposed tax reforms, both the Joint Committee on Taxation (2013) and the Congressional Budget Office assume that 25 percent of the CIT burden will fall upon labor, whereas the Department of Treasury on average allocates about 18 percent of the burden to labor. -
Tax Freedom Day 2018 Is April 19Th
Tax Freedom Day 2018 Apr. 2018 is April 19th Erica York Analyst Key Findings • Tax Freedom Day is a significant date for taxpayers and lawmakers because it represents how long Americans as a whole have to work in order to pay the nation’s tax burden. • This year, Tax Freedom Day falls on April 19, 109 days into 2018. • Tax Freedom Day will be three days earlier than it was in 2017, in large part due to the recent federal tax law, the Tax Cuts and Jobs Act, which significantly lowered federal individual and corporate income taxes. • In 2018, Americans will pay $3.4 trillion in federal taxes and $1.8 trillion in state and local taxes, for a total bill of $5.2 trillion, or 30 percent of the nation’s income. • Americans will collectively spend more on taxes in 2018 than they will on food, clothing, and housing combined. • If you include annual federal borrowing, which represents future taxes owed, Tax Freedom Day would occur 17 days later, on May 6th. The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, • Tax Freedom Day is a significant date for taxpayers and lawmakers because it our research, analysis, and experts have informed smarter tax policy represents how long Americans as a whole have to work in order to pay the at the federal, state, and local levels. We are a 501(c)(3) non-profit nation’s tax burden. organization. ©2018 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, D.C.