There is a lesson to be learned from the dispute between political insiders in New Jersey that has unfolded over the last couple of months regarding raising taxes. Throughout 2017, gubernatorial candidate Phil Murphy (D) pledged that, if elected, he would implement a millionaires’ tax in the state: a tax of 10.75 percent on all […]
Online Sales Tax Debate to See Day in Court
During the first week of April, 2018, a number of organizations filed amicus briefs with the Supreme Court with respect to the case of South Dakota v. Wayfair, Inc., Overstock.com, Inc., and NewEgg, Inc. The petitioner in the case seeks to overturn the physical nexus requirement specified by the Supreme Court in 1992, when it […]
Seattle Soda Tax Not Doing Too Well
While the rest of us were popping champagne to celebrate the arrival of 2018, Seattle greeted the New Year with a 1.75 cent per ounce tax on sweetened beverages. It was needed, former Mayor Ed Murray once said, for a host of noble reasons: to reduce sugar consumption; to raise revenue for important projects like […]
Congress Should Not Bring Back the Marketplace Fairness Act
According to the National Retail Federation, holiday sales for 2017 are expected to increase by between 3.6 to 4 percent over last year. During this busy time of year for e-commerce, it is a good time to reiterate that Congress should not bring back the Marketplace Fairness Act. American consumers spend hundreds of billions on […]
Will the Individual Mandate Finally Be Repealed?
The House of Representatives and the Senate are vigorously working to pass a tax reform package before the end of the year. Both the House and Senate passed their budget resolutions with reconciliation instructions by Thanksgiving, a necessary step in order to craft their respective tax reform packages. The entire House passed their tax reform […]
Cook County Soda Tax Repealed After Only Two Months in Effect
When politicians decide to tax something new, taxpayers rarely see the end of it. This adage is especially true of so-called “sin taxes,” levies on products like alcohol, tobacco, and, increasingly, soda. Those in government always appreciate more money, and politicians like beating up on unpopular industries. It’s a two-pronged argument: you shouldn’t be buying […]
Connecticut Legislature Passes a Bipartisan Budget Plan
Faced with a budget deficit of $3.5 billion over the next two years, and three months overdue on a budget for fiscal years 2018 and 2019, Connecticut lawmakers face a difficult situation and must make tough choices. In 2011 and 2015, the legislature tried to solve the state’s fiscal woes by passing big tax increases. […]
The Can-Kicking Congress: Business as Usual
In political patois, “kicking the can down the road” connotes procrastination. As long as the proverbial can is kicked “down the road,” rather than picked up, then the proper disposition of the derelict container is put off until some future point in time. And much like the (equally proverbial) kicker’s aversion to taking definitive action on a relatively straightforward task, the U.S. Congress is composed of 535 “can kickers,” given their predilection to avoid taking action until the last possible minute. On Tuesday, September 5, 2017, when the current Congress reconvenes after its annual August recess, it will have less than a month to complete several “must pass” items.
Maryland’s Boondoggle Inn
In July 2016, Frederick County (Maryland) Executive Jan Gardner introduced a bill that would increase the county’s hotel tax from 3 percent to 5 percent. Despite denials from Gardner, State Senator Ron Young (D-District 3), State Delegate Karen Young (D-District 3), and State Delegate Carol Crimm (D-District 3) that the new tax revenue will not be used to fund certain aspects of a planned $84 million Downtown Frederick Hotel and Conference Center, that does not appear to true. Part of the revenue generated from the hotel tax hike will pay down the $3.5 million in debt payments for the conference center over the course of a 25-year contract.
Wasteful IRS Program Fails to Prevent Tax Fraud
The least favorite government agency during the month of April is the Internal Revenue Service (IRS) (although that may be true every month of the year). During the 2015 tax season, only 38 percent of phone calls were answered, as the IRS hung up on more than 30 million taxpayers. The tax code and tax regulations combined are more than 70,000 pages long. Annual compliance with IRS paperwork takes 8.9 billion hours and costs the economy $409 billion in lost productivity.