It sometimes seems hard to get a group of politicians to agree to anything, so it’s notable that just a hundred miles northwest of Tuesday night’s heated presidential debate, 104 state representatives of both parties came together in a unanimous vote to reform South Carolina’s antiquated business license tax. South Carolina’s business license tax regime
The individual income tax is one of the most significant sources of revenue for state and local governments. In fiscal year 2017, the most recent year for which data are available, individual income taxes generated 23.3 percent of state and local tax collections, right behind general sales taxes (23.6 percent). The map below shows combined
Last week, Maryland House Majority Leader Eric G. Luedtke (D) introduced HB1628 which, if enacted, would expand the state sales tax base to include services and raise an estimated $2.6 billion annually by 2025. The concept of broadening the sales tax base to include retail service consumption is one that tax economists across the spectrum
Today’s state tax map shows state and local tax collections per capita in each of the 50 states and the District of Columbia. Tax collections of $10,717 per capita in D.C. surpass those in any state. The five states with the highest tax collections per capita are New York ($9,073), Connecticut ($7,638), New Jersey ($6,978),
Monday, a tax relief package advanced out of the Wisconsin Joint Committee on Finance and is expected to receive consideration by the full Senate and Assembly this week. Assembly Bill 910 and companion bill Senate Bill 821 would reduce individual income taxes for low- and middle-income taxpayers by increasing the standard deduction. In addition, this
Lawmakers in Kansas, Nebraska, and Utah never voted to tax GILTI—and now their respective tax committees are getting a chance to decide whether they really should. Committee chairs in Nebraska and Utah are seeking a decisive “no” to their states’ respective taxation of international income, while Kansas lawmakers will consider the matter this coming Monday.
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State-levied taxes make up the vast majority of each state’s general fund budget, and thus are the most obvious source of state revenue. But state governments also receive a notable amount of assistance from the federal government. In fiscal year (FY) 2017, 22.9 percent of state revenues came from federal grants-in-aid. Federal aid is allocated
Tennessee Governor Bill Lee’s 2020 budget proposal includes cutting in half what’s left of Tennessee’s privilege tax. Lee’s plan would continue the trend of Volunteer State leaders scrapping all forms of income taxation. This change would further simplify Tennessee’s tax code and make it more neutral and pro-growth. Tennessee’s privilege tax is a $400 tax
Earlier this week, a tax omnibus bill—Senate Bill 1398—advanced out of the Arizona Senate Finance Committee with a favorable recommendation. This bill includes many tax changes (paywall), but one particularly notable provision would conform Arizona’s corporate tax code to the 100 percent bonus depreciation allowance under Internal Revenue Code (IRC) § 168(k). Offering full expensing
In recent years, hurricanes devastated the U.S. Atlantic coast and other island territories. Many communities—including those in Puerto Rico and the Virgin Islands—are still recovering. This week, the House of Representatives plans to vote on a disaster aid package to expand tax credits, provide subsidies, and increase funding contributions to taxpayers throughout the island territories.
Kansas Gov. Laura Kelly’s Fiscal Year 2021 budget and tax proposals can be targeted to effectively restructure Kansas’ tax base. Her budget proposal includes expanding Kansas’ sales tax base and providing state funding for local property tax relief. These proposals can be used to restructure Kansas’ sales and property tax bases, respectively. Sales Tax Restructuring
The following is our testimony to Kansas’ Senate Committee on Assessment and Taxation; and Kansas’ House Committee on Taxation Presenting: Kansas Tax Modernization: A Framework for Stable, Fair, Pro-growth Reform Table of Contents Introduction Thank you for inviting us to present today before your committee, and for the openness and hospitality we have experienced in
Corporations in the United States pay federal corporate income taxes levied at a 21 percent rate. Many states also levy taxes on corporate income. Forty-four states and D.C. have corporate income taxes on the books, with top marginal rates ranging from 2.5 percent in North Carolina to a top marginal rate of 12 percent in
Introduction Alaska has a history of blazing its own path. It forgoes both an income tax and a state sales tax, a distinction shared only with New Hampshire. Many sparsely populated jurisdictions forgo property taxes, and some jurisdictions—including large cities like Anchorage and Fairbanks—go without a local sales tax. Alaska is, therefore, the only state
In December 2019, identical bills HB 861 and SB 1112 were introduced in Florida’s House of Representatives and Senate. The proposals would tax water extraction (excluding production from public water systems) at a rate of 12.5 cents per gallon. The revenue from the tax would be deposited in the Wastewater Treatment and Stormwater Management Revolving
Legislation before the D.C. Council would allow private parties to file tax actions—a concept that has a superficial appeal (the potential for greater tax compliance without greater governmental enforcement expenses) but falls apart under greater scrutiny. If enacted, B23-0035 could be a boon to certain law firms, but not to the District or to D.C.
Key Findings Forty-four states levy a corporate income tax. Rates range from 2.5 percent in North Carolina to 12 percent in Iowa. Six states—Alaska, Illinois, Iowa, Minnesota, New Jersey, and Pennsylvania—levy top marginal corporate income tax rates of 9 percent or higher. Ten states—Arizona, Colorado, Florida, Kentucky, Mississippi, Missouri, North Carolina, North Dakota, South Carolina,
In the wake of the 2018 South Dakota v. Wayfair case, states were quick to take advantage of their new authority to tax online sales. By the end of 2019, all states with sales taxes except Florida and Missouri had adopted remote sales regimes, whether by legislation or revenue department regulations. After its notable wait,
Massachusetts policymakers should reform the Commonwealth’s corporate excise tax to make it a simpler, more neutral revenue tool conducive to better economic growth. In our previous blog post, we looked at three provisions of the corporate excise tax that impact C corporations and recommended that Massachusetts adopt a consistent corporate apportionment formula, cap, or eliminate