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The Basics of Tax Breaks, Explained

December 4, 2013

Federal policymakers are considering options for reforming the tax code, including scaling back or eliminating credits, deductions, and exemptions.  We explain the basics of these subsidies, known as tax expenditures, in a new...

Watch Out for Individual Tax Reform Timing Gimmicks

October 31, 2013

House Ways and Means Committee Chairman Dave Camp has said he will unveil tax reform legislation by the end of this year that he aims to be “revenue-neutral.”  But, a revenue-neutral package would be inadequate because tax reform should generate...

GOP Senators Revive Fake Offset for Medical Device Tax

October 11, 2013

Republican Senators Collins, Murkowski, and Ayotte are reportedly pushing to repeal health reform’s medical device tax — which helps pay for extending coverage to millions of uninsured Americans — as part of the price for reopening the government.  As we explained...

Proposed Offset for Medical Device Tax Can’t Offset Anything — It’s a Timing Gimmick

October 3, 2013

Update, October 11:  We’ve updated this post.

House Republicans have demanded, as part of their price for allowing the government to reopen, that policymakers repeal health reform’s...

The Trickle-Down Economics of Tax Cuts for Multinationals’ Foreign Profits

June 19, 2013

Representative Jim McDermott (D-WA) asked a witness at a Ways and Means hearing last week how the United States would benefit if policymakers cut taxes on U.S. multinational corporations’ overseas profits to encourage them to bring the profits to the U.S.

The witness — Paul Oosterhuis, an international...

Hearing Highlights Problems Posed By Tax Havens

June 13, 2013

Today’s House Ways and Means hearing examined multinational companies’ use of tax havens and profit shifting — among other strategies — to minimize the corporate income taxes that they pay to the United States.  As we’ve explained,...

Starbucks’ UK Tax Dodge Highlights Flaws of Territorial Taxation

June 6, 2013

U.S.-based multinational corporations that are lobbying Congress to adopt a “territorial” tax system, which would cut their taxes on foreign profits to zero or a very low rate, often note that many other developed countries have such systems.  But those countries are a warning, not a model, as a great new analysis by...

Companies’ Proposals Won’t Fix the Broken Corporate Income Tax System

May 31, 2013

The New York Times’ latest “Room for Debate” feature asks how the U.S. government can get its fair share of revenue from multinational corporations while allowing them to stay competitive.  There are stellar contributions from...

Neither Territorial Taxation Nor a Corporate Tax Holiday Is a Good Idea

May 28, 2013

A recent New York Times editorial about corporate tax avoidance panned two proposals — a “territorial” tax system and a tax repatriation holiday — that some U.S.-based...

Three Reasons Why Killing the Corporate Income Tax Is a Terrible Idea

May 24, 2013

Bloomberg’s Evan Soltas suggests eliminating the corporate income tax.  It’s a terrible idea that would:

  • Create a huge incentive for individuals to shelter income by setting up a company to sell their services tax-free. For example, a chef at a restaurant
  • ...