Federal Tax

Thursday, Sen. Pat Toomey (R-PA) introduced the “ALIGN Act,” which would make 100 percent bonus depreciation for short-life assets a permanent feature of the tax code and provide a technical correction to the 2017 tax law’s “Retail Glitch.” The Tax Cuts and Jobs Act (TCJA) of 2017 enacted a policy called 100 percent bonus depreciation,
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Key Findings 2020 Democratic presidential candidates have proposed various changes to federal payroll tax rates and the Social Security payroll tax wage base to raise revenue and maintain solvency for major federal entitlement programs. This includes levying Social Security payroll taxes on taxpayers with high wages, raising the Social Security payroll tax rate, and enacting
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This week, Democratic presidential candidate and former New York City Mayor Michael Bloomberg released his plan to increase taxes on businesses and wealthy individuals, which he estimates will raise $5 trillion to pay for various policy programs such as infrastructure, health care, and education. Like many of the presidential candidates, his proposal includes tax rate
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Key Findings A broad-based financial transaction tax (FTT)­ in the United States would be a substantial revenue source. For example, the Inclusive Prosperity Act proposed by Sen. Bernie Sanders (I-VT), with an FTT levied at 0.5 percent on stocks, 0.1 percent on bonds, and .005 percent on derivatives, has been estimated to raise between approximately
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Key Findings A lookback charge is in addition to traditional income taxes due on the realization of a capital gain. In an ideal setting, the lookback charge eliminates the benefit of deferral and removes the “lock-in” effect, a design flaw in the current system of realization-based taxation of capital gains. Taxing capital gains with a
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Recently, the Internal Revenue Service (IRS) published its annual Country-by-Country Report, providing detailed statistics on profits and taxes of multinational enterprise groups headquartered in the U.S. by major geographic region and taxing jurisdiction. This data provides important information on a subset of U.S. multinationals that can inform the ongoing debate on the taxation of multinational
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Presidential candidate and Sen. Michael Bennet (D-CO) released a plan, which he calls his “Real Deal,” with $6 trillion in various initiatives and programs—including universal pre-K, paid family and medical leave, and a public healthcare option—to be funded by several tax increases. These tax increases include new levies, as well as repeals of certain changes
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In a last-minute deal, lawmakers have agreed to revive several expiring tax breaks, including many that have been gone for nearly two years. Unfortunately, this deal represents the worst of tax policy, continuing the tradition of retroactive and temporary extensions rather than answering the question of which provisions deserve permanent status. The year-end tax deal
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The wealth tax has been pushed to the forefront of tax policy debates to combat wealth inequality. Presidential candidates Senator Elizabeth Warren (D-MA) and Senator Bernie Sanders (I-VT) both released proposals to tax the rich as part of their 2020 platforms. Senator Warren’s tax plan features a wealth tax rate of 2 percent each year
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