Tax Foundation

1. Arizona Governor Signs Bevy of Tax Bills, Offering Something for Everyone

   Arizona’s legislative session concluded in a flurry of activity, including passage of several pieces of tax legislation. Personal exemptions were raised. Tax referenda were restricted. Business exemptions were extended. Gold coinage was exempted from capital gains taxation. The theme, if there was one: something for everyone. Legislation signed by Governor Doug Ducey (R) modestly increases […]

2. Does Your State Have an Estate or Inheritance Tax?

   In addition to the federal estate tax of 40 percent, some states impose an additional estate or inheritance tax. Fourteen states and the District of Columbia impose an estate tax while six states have an inheritance tax. Maryland and New Jersey have both. Washington state’s 20 percent rate is the highest estate tax rate in […]

3. The Cautionary Tale of Chilean Tax Reform

   While most countries in the OECD have labored to reduce taxes on businesses, there is one exception. Chile introduced tax reform in 2012 and 2014, which increased the corporate tax rates and added stricter anti-tax-avoidance rules. Over the decade before the tax reforms Chile had almost tripled its per capita income of $4,700 in 2001 […]

4. Tax Treatment of Structures Under Expensing

   The draft House Republican tax reform plan would permit businesses to immediately expense (write-off the cost in the first year) capital outlays instead of reporting the cost for tax purposes over lengthy depreciation schedules. The expensing would apply to buildings and other structures as well as to equipment. (The partial expensing provisions that have been […]

5. How the Border Adjustment Helps Fix Business Taxation in the United States

   Written Testimony Submitted to the U.S. House Committee on Ways and Means The problems with the current corporate income tax are well-known. The current corporate tax discourages investment, creates an incentive to finance spending with debt over equity, encourages companies to shift profits and headquarters overseas, and is overly complex. In June 2016, the House […]