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Posts by Michael Mazerov

Too Soon for States to Consider “Opportunity Zone” Tax Breaks

May 1, 2019

Update, July 12: we’ve updated this post.

I’ve noted that the new federal Opportunity Zone (OZ) tax incentive program will automatically cut state as well as federal taxes for individuals and corporations investing in distressed areas unless...

Stack of Bills

States Should Decouple Their Income Taxes From Federal “Opportunity Zone” Tax Breaks ASAP

April 29, 2019

Update, July 12: we’ve updated this post.

With the IRS issuing investor-friendly draft regulations for the new Opportunity Zone (OZ) tax incentive program, investments in OZ investment funds will likely accelerate. Before they do, state lawmakers should...


States Shouldn’t Use 2017 Federal Foreign Tax Rules to Justify Tax Cuts

April 30, 2018

Some states have enacted, or are considering, changes in their corporate income taxes in response to federal corporate income tax changes in the 2017 federal tax law. In so doing, they are laying the groundwork for future fiscal problems by cutting taxes in anticipation of a “windfall” they may not receive — particularly when state authority to enact such provisions may not hold up in court....

money puzzle

Oregon Should Retain International Tax-Haven Law

March 2, 2018

Oregon lawmakers are about to repeal an effective 2013 law that limits corporations’ ability to cut their taxes by shifting profits they earned in the state to their subsidiaries in foreign tax havens.  Corporate representatives argue that Oregon no longer needs the law because the state can piggyback on new federal rules — under the new tax law that President Trump and Congress...

quarter on graph

Excuses for Kansas Tax-Cut Failures Don’t Hold Up

January 25, 2018

With Kansas Governor Sam Brownback’s confirmation this week as ambassador at large for international religious freedom, it’s an appropriate time to evaluate his legacy as governor — particularly his huge tax cuts enacted in 2012. At the time, he and other proponents helped sell the tax cuts with “supply-...

Private-Sector Job Growth: Kansas Lagged Most Neighbors and U.S. After Cutting Taxes

Quill at 25: Window Closing on Federal Solution to the Remote Sales Tax Problem

May 26, 2017

Today is the 25th anniversary of the Supreme Court’s Quill decision, which has cost states and localities tens of billions of dollars in uncollected sales taxes and hurt many local businesses. Quill reaffirmed a 1967 decision...


Marking a Milestone on Taxing Online Sales, but Still Far to Go

March 31, 2017

As of tomorrow, will be collecting and remitting state and local sales tax on the sales of its own merchandise in all 45 states that levy such a tax. That’s worthy of celebration. Amazon’s sales will generate hundreds of millions of dollars in...

Tax Calculator

Michigan Considering Replicating Kansas’ Failed Tax Cut “Experiment”

February 16, 2017

Michigan lawmakers are seriously considering bills to start phasing out the state’s income tax sooner than scheduled under current law. Both proposals would likely force some combination of deep cuts in critical services like education, health care, and infrastructure and increases in sales and other regressive taxes. And, just as Kansas learned from its disastrous “experiment,” cutting...

After Tax Cuts, Kansas' Economy Underperforming U.S.

Missouri Nixes Sales Tax Base Expansion

November 10, 2016

Missouri voters on Tuesday approved a constitutional amendment to prohibit the state from ever broadening its sales tax base — and that of local governments — beyond what was subject to the tax as of January 2015.  That will lock in the state’s inequitable taxation of goods and services and hamstring its future revenue-raising capacity.

As I’ve...

Service Sector Growth Erodes Sale Tax Base

Millionaire Tax Flight Myth Debunked — Again

May 26, 2016

An important study published today conclusively debunks the myth that raising state income taxes on the wealthy causes many of them to flee to lower-tax states.  It also shows that repealing state income taxes — a change the American Legislative Exchange Council (ALEC) and others are promoting across the country — likely won’...