MedWorm provides a medical RSS filtering service. Over 6000 RSS medical sources are combined and output via different filters. This feed contains the latest medical blog items that have been tagged with 'income tax'. Sat, 03 Sep 2011 02:54:41 +0100 http://www.medworm.com/index.php?rid=5069450&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FKpdi2xw9bqk%2F By Daniel GriswoldAs its governor, Rick Perry, weighs a run for the White House, Texas has drawn attention for its healthy job growth. Since the recession ended in June 2009, Texas has accounted for half of the net new jobs added to the U.S. economy, according to the lead story in this morning’s USA Today. That’s quite a record for one lone state. We’ll leave it to others for now to argue over how much credit Gov. Perry can claim. Some credit surely goes to high oil prices, fueling job growth in a sector important to the Texas economy. Another reason for its relatively strong job growth is a friendly business climate, including no state income tax and relatively light regulations. And for those who scapegoat trade for the nation’s persistently high unemployment rate, consider that ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=5069450 Tue, 26 Jul 2011 16:38:58 +0100 5069450 http://www.medworm.com/index.php?rid=4975846&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FI7c-rTbplTw%2F By Chris EdwardsIn the Washington Post Friday, Ezra Klein partly confirmed what I fear the Republican strategy is for the debt-limit bill—get to the $2 trillion in cuts promised through accounting gimmicks. As I have also noted, Klein says that there is about $1 trillion in budget “savings” ($1.4 trillion with interest) to be found simply in the inflated Congressional Budget Office baseline for Iraq and Afghanistan. Klein says, “I’m told that a big chunk of these savings were included in the debt-ceiling deal” that Rep. Eric Cantor (R-VA) and Sen. Jon Kyl (D-AZ) are negotiating with the Democrats. Republican leaders have promised that spending cuts in the debt-limit deal must be at least as large as the debt-limit increase, which means $2 trillion if the debt-limit is extended ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4975846 Mon, 27 Jun 2011 12:52:43 +0100 4975846 http://www.medworm.com/index.php?rid=4952797&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FczovuTGcLYA%2F By Alan ReynoldsRobert Reich posted a letter in June 20 Wall Street Journal responding to my article of June 16, “Why 70% Tax Rates Won’t Work.” He argues that I distort his proposal (though I wasn’t talking about his proposal) and ignore his argument that, “Giving the middle class more purchasing power by lowering its rates while raising the rates at the top will help spur [economic] growth.” This strikes me as a futile effort to change the subject.  Since I proved that past tax rates of 50-70% on relatively modest incomes raised less revenue than a top tax rate of 28%, how could Reich’s proposal of 50-70% rates at incomes above $500,000 raise more revenue?   And if 50-70% tax rates would not raise more revenue, then how could he possibly promise “substantial rate ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4952797 Mon, 20 Jun 2011 21:05:45 +0100 4952797 http://www.medworm.com/index.php?rid=4893411&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FEowm-HZKXmA%2F By Chris EdwardsPresident Obama wants to raise revenues by reducing tax deductions and other tax breaks, which the administration calls “spending in the tax code.” Donald Marron of the Tax Policy Center argues that “hundreds of billions of dollars of spending are disguised as tax cuts.” Don is a very good economist, and he is concerned that special interest tax breaks can misallocate resources the same way that spending subsidies do. I agree. But I’m also concerned that tax breaks and spending subsidies have different implications for the size of government, which is where I part ways with Don and the president. The following Tax Policy Matrix helps sort out which sorts of tax cuts make economic sense when government size is also a consideration. The government distorts the econ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4893411 Thu, 02 Jun 2011 15:17:20 +0100 4893411 http://www.medworm.com/index.php?rid=4762752&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FJnItt7aA7SM%2F By Daniel J. MitchellAccording to an article in the New York Times, the Obama Administration is seriously examining a proposal to reduce America’s anti-competitive 35 percent corporate tax rate. The Obama administration is preparing to inject an unpredictable new variable into its economic policy clash with Republicans: a plan to overhaul corporate taxes. Economic advisers have nearly completed the process initiated in January by the Treasury secretary, Timothy F. Geithner, at President Obama’s behest. That process, intended to make the United States more competitive internationally, has explored the willingness of business leaders to sacrifice loopholes in return for lowering the top corporate tax rate, currently 35 percent. The approach officials are now discussing would drop the... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4762752 Thu, 28 Apr 2011 12:49:26 +0100 4762752 http://www.medworm.com/index.php?rid=4684277&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fjerptwu4EFo%2F By Chris EdwardsHouse Budget Committee Chairman, Paul Ryan, introduced his budget resolution for fiscal 2012 and beyond today entitled “The Path to Prosperity.” The plan would cut some spending programs, reduce top income tax rates, and reform Medicare and Medicaid. The following two charts compare spending levels under Chairman Ryan’s plan and President Obama’s recent budget (as scored by the Congressional Budget Office). Figure 1 shows that spending rises more slowly over the next decade under Ryan’s plan than Obama’s plan. But spending rises substantially under both plans—between 2012 and 2021, spending rises 34 percent under Ryan and 55 percent under Obama. Figure 2 compares Ryan’s and Obama’s proposed spending levels at the end of the 10-year budget window in 2021. ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4684277 Tue, 05 Apr 2011 14:54:21 +0100 4684277 http://www.medworm.com/index.php?rid=4489635&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FRX7stlKncCc%2F By Daniel J. MitchellHere's a video arguing for the abolition of the corporate income tax. The visuals are good and it touches on key issues such as competitiveness.   I do have one complaint about the video, though it is merely a sin of omission. There is not enough attention paid to the issue of double taxation. Yes, America's corporate tax rate is very high, but that is just one of the layers of taxation imposed by the internal revenue code. Both the capital gains tax and the tax on dividends result in corporate income being taxed at least two times. These are points I made in my very first video, which is a good companion to the other video. There is a good argument, by the way, for keeping the corporate tax and instead getting rid of the extra layers of tax on dividends and capital ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4489635 Thu, 17 Feb 2011 21:13:01 +0100 4489635 http://www.medworm.com/index.php?rid=4337915&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FCMMX1H-G8kY%2F By Chris EdwardsThe Obama administration is showing interest in reforming the U.S. corporate income tax. That’s good news because a lower corporate rate would boost domestic investment, which in turn would generate more jobs and higher wages and incomes. A lower corporate rate would also attract more inflows of direct investment from abroad—foreign-based businesses expanding their plants and building new plants in the United States. I updated this chart from our book, Global Tax Revolution. It shows that during the 1980s, the United States enjoyed higher inflows of foreign direct investment (FDI) than outflows. But since then, the pattern has reversed—our companies are now investing more abroad than foreign-based companies are investing in the United States. (Data is from the BEA). ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4337915 Tue, 11 Jan 2011 20:10:40 +0100 4337915 http://www.medworm.com/index.php?rid=4313989&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FPremGoVsvgM%2F By Daniel J. MitchellThe news is going from bad to worse for Ireland. The Irish Independent is reporting that the Swiss Central Bank no longer will accept Irish government bonds as collateral. The story also notes that one of the world’s largest bond firms, PIMCO, is no longer purchasing debt issued by the Irish government. And this is happening even though (or perhaps because?) Ireland received a big bailout from the European Union and the International Monetary Fund (and the IMF’s involvement means American taxpayers are picking up part of the tab). I’ve already commented on Ireland’s woes, and opined about similar problems afflicting the rest of Europe, but the continuing deterioration of the Emerald Isle deserves further analysis so that American policy makers h... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4313989 Wed, 05 Jan 2011 17:47:36 +0100 4313989 http://www.medworm.com/index.php?rid=4309592&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIougkQG-aIU%2F By Daniel J. MitchellThe mid-term elections were a rejection of President Obama’s big-government agenda, but those results don’t necessarily mean better policy. We should not forget, after all, that Democrats rammed through Obamacare even after losing the special election to replace Ted Kennedy in Massachusetts (much to my dismay, my prediction from last January was correct). Similarly, GOP control of the House of Representatives does not automatically mean less government and more freedom. Heck, it doesn’t even guarantee that things won’t continue to move in the wrong direction. Here are three possible bad policies for 2011, most of which the Obama White House can implement by using executive power. 1. A back-door bailout of the states from the Federal Reserve &#82... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4309592 Tue, 04 Jan 2011 14:02:34 +0100 4309592 http://www.medworm.com/index.php?rid=4265696&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FX5Wl5PN0vJM%2F By Daniel J. MitchellSometimes it’s not a good idea to be at the top of a list. And now that Japan has announced a five-percentage point reduction in its corporate tax rate, the United States will have the dubious honor of imposing the developed world’s highest corporate tax rate. Here’s an excerpt from the report in the New York Times. Japan will cut its corporate income tax rate by 5 percentage points in a bid to shore up its sluggish economy, Prime Minister Naoto Kan said here Monday evening. Companies have urged the government to lower the country’s effective corporate tax rate — which now stands at 40 percent, around the same rate as that in the United States — to stimulate investment in Japan and to encourage businesses to create more jobs. Lowering the corpor... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4265696 Wed, 15 Dec 2010 15:26:48 +0100 4265696 http://www.medworm.com/index.php?rid=4219726&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fb4TWb67KkNU%2F By Roger PilonToday POLITICO Arena asks Will implementing President Obama’s Fiscal Commission recommendations require that everyone take a hit? My response (with tax insights from Jagadeesh Gokhale): President Obama’s Fiscal Commission Report offers a useful start in reducing our budget deficits and national debt, but it hardly goes far enough. As several of my Cato colleagues have just noted here, here, here, and here, the report recognizes, to its credit, that our corporate income tax structure puts U.S. corporations at a considerable competitive disadvantage against their foreign competitors. And the report keeps military spending cuts on the table, even if there is much more to be cut. Yet by proposing a reduction in government spending from 24.3 percent of GDP to... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4219726 Wed, 01 Dec 2010 21:21:46 +0100 4219726 http://www.medworm.com/index.php?rid=4219729&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F2s4Lbn3TW1Q%2F By Chris EdwardsPresident Obama’s Fiscal Commission has produced a serious and sobering analysis of the government’s budget mess, and it provides some of the needed solutions. Three of the report’s main themes are on target: the need to make government leaner, the need to cut business taxes to generate economic growth, and the need to impose tighter budget rules to discipline spending. The report rejects the view of many Democratic leaders that the welfare state built over the last 80 years must be defended against any and all budget cuts. “Every aspect of the discretionary budget must be scrutinized, no agency can be off limits, and no program that spends too much or achieves too little can be spared. The federal government can and must adapt to the 21st century by transforming it... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4219729 Wed, 01 Dec 2010 17:03:31 +0100 4219729 http://www.medworm.com/index.php?rid=4214086&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F_2z-16QiXAc%2F By Daniel J. MitchellI’m understandably fond of my video exposing the flaws of Keynesian stimulus theory, but I think my former intern has an excellent contribution to the debate with this new 5-minute mini-documentary. The main insight of the mini-documentary is that Gross Domestic Product (GDP) only measures how national output is allocated between consumption, investment, and government. That’s useful information in many ways, but if we want more output, we should focus on Gross Domestic Income (GDI), which measures how national income is earned. Focusing on GDI hopefully would lead lawmakers to consider ways of boosting employee compensation, corporate profits, small business income, and other components of national income. Focusing on GDP, by contrast, is misguided since ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4214086 Mon, 29 Nov 2010 15:56:30 +0100 4214086 http://www.medworm.com/index.php?rid=4159217&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FmZu3EjePgy4%2F By Michael F. CannonThe co-chairs of President Obama’s Fiscal Commission propose to eliminate several tax loopholes while reducing marginal rates.  Hear, hear.  But they describe those loopholes as “backdoor spending in the tax code.”  It is incorrect and dangerous to equate tax loopholes with government spending. The tax code’s countless credits, deductions, and exclusions let people keep a portion of their earnings, provided they use the money how the government wants them to use it.  Tax loopholes therefore have a lot in common with government spending: they give power to politicians, inhibit freedom, reduce economic output, unjustly enrich special-interest groups, et cetera. But to call them “tax expenditures” or “tax subsidies” or ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4159217 Thu, 11 Nov 2010 19:39:01 +0100 4159217 http://www.medworm.com/index.php?rid=4133677&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F46XbEB_1zfg%2F By Daniel J. MitchellLast week, I highlighted nine ballot initiatives that were worth watching because of their policy implications and/or their role is showing whether voters wanted more or less freedom. The results, by and large, are very encouraging. Let’s take a look at the results of those nine votes, as well as a few additional key initiatives. 1. The big spenders wanted to impose an income tax in the state of Washington, and they even had support from too-rich-to-care Bill Gates. The good news is that this initiative got slaughtered by a nearly two-to-one margin.  I was worried about this initiative since crazy  Oregon voters approved higher tax rates earlier this year. In a further bit of good news, Washington voters also approved a supermajority requirement for tax incre... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4133677 Wed, 03 Nov 2010 18:58:40 +0100 4133677 http://www.medworm.com/index.php?rid=3993881&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FevdN6f_RRzU%2F By Daniel J. MitchellOur tax system in America is an absurd nightmare, but at least we have some ability to monitor what is happening. We can’t get too aggressive (nobody wants the ogres at the IRS breathing down their necks), but at least we can adjust our withholding levels and control what gets put on our annual tax returns. The serfs in the United Kingdom are in much worse shape. To a large degree, the tax authority (Inland Revenue) decides everyone’s tax liability, and taxpayers have no role other than to meekly acquiesce. But now the statists over in London have decided to go one step farther and have proposed to require employers to send all paychecks directly to the government. The politicians and bureaucrats that comprise the ruling class then would decide how much to... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3993881 Tue, 21 Sep 2010 20:54:30 +0100 3993881 http://www.medworm.com/index.php?rid=3790692&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fb4DM7DLQdWY%2F By Daniel J. MitchellThe 2001 and 2003 tax cuts are scheduled to expire at the end of this year, which means a big tax increase in 2011. Tax rates for all brackets will increase, the double tax on dividends will skyrocket from 15 percent to 39.6 percent, the child credit will shrink, the death tax will be reinstated (at 55 percent!), the marriage penalty will get worse, and the capital gains tax rate will jump to 20 percent. All of these provisions will be unwelcome news for taxpayers, but it’s important to look at direct and indirect costs. A smaller paycheck is an example of direct costs, but in some cases the indirect costs — such as slower economic growth — are even more important. This is why higher tax rates on entrepreneurs and investors are so misguided. For every... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3790692 Mon, 26 Jul 2010 14:48:04 +0100 3790692 http://www.medworm.com/index.php?rid=3776362&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FYl2o2cca40M%2F By Daniel J. MitchellThe Wall Street Journal has an excellent editorial this morning on the obscure — but critically important — issue of measuring what happens to tax revenue in response to changes in tax policy. This is sometimes known as the dynamic scoring versus static scoring debate and sometimes referred to as the Laffer Curve controversy. The key thing to understand is that the Joint Committee on Taxation (which produces revenue estimates) assumes that even big changes in tax policy have zero macroeconomic impact. Adopt a flat tax? The JCT assumes no effect on the economic performance. Double tax rates? The JCT assumes no impact on growth. The JCT does include a few microeconomic effects into its revenue-estimating models (an increase in gas taxes, for instance, w... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3776362 Wed, 21 Jul 2010 18:17:49 +0100 3776362 http://www.medworm.com/index.php?rid=3740584&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FcqY5QUVJim0%2F By Daniel J. MitchellSupporters of the Cleveland Cavaliers, especially the owner of the team, are upset that basketball superstar LeBron James has decided to sign with the Miami Heat. The anger is especially intense because the Cavaliers offered James $4 million more over the next five years. But their anger is misplaced because more money in Cleveland actually translates into about $1 million less disposable income when the burden of state and local income taxes is added to the equation. Rather than condemn James for making a rational choice, local basketball fans should tar and feather Ohio politicians. This story from CNBC walks through the calculations. [I]f you match up what James’ salary would be for the first five years in Cleveland and the five years in Miami, you find that the C... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3740584 Fri, 09 Jul 2010 19:26:49 +0100 3740584 http://www.medworm.com/index.php?rid=3718382&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FsPvhQSrvB5M%2F By Daniel J. MitchellMany people assume that Europe is the land of high-tax welfare states and America is an outpost of laissez-faire capitalism. We should be so lucky. The burden of government in America is still lower than it is in the average European nation, but the United States is a lot closer to France than it is to Hong Kong — and the trend is not comforting. We recently endured the embarrassing spectacle of President Obama arguing with Europeans that they should increase the burden of government spending. Now we have a new report from the European Commission indicating that the average corporate tax rate in member nations of the European Union has plummeted to just 23.5 percent while the corporate tax rate in the U.S. has stagnated at 35 percent. In the past dozen years a... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3718382 Thu, 01 Jul 2010 15:10:33 +0100 3718382 http://www.medworm.com/index.php?rid=3610322&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FhBsUQsiZdJc%2F By Daniel J. MitchellThe Taxpayers Alliance has a brief but compelling video, entitled “How long do you work for the tax man?,” which shows how an ordinary worker in the United Kingdom spends more than one-half his day laboring for government. “What will they tax next?” is still the best policy video to come out of the U.K., in my humble opinion, but this one is very much worth watching — especially since America is becoming more like Europe with each passing day. What makes the video particularly depressing is that it only considers the tax burden. Regulations and government spending also are a burden on average workers, largely because of foregone economic growth. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3610322 Fri, 28 May 2010 19:12:05 +0100 3610322 http://www.medworm.com/index.php?rid=3460149&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fln1QarG0zcY%2F By Daniel J. MitchellMy former intern, Hiwa Alaghebandian, has just narrated a new Economics 101 video about the cost of the tax code. I won’t spoil the surprise by giving the details, but you if you’re not angry now, you will be after watching. In the video, Ms. Alaghebandian notes that a study from 1996 (back when the tax code was not nearly as complex) estimated that a flat tax would reduce the compliance burden of the income tax by 94 percent. In my video on the flat tax, I mostly focused on how a single-rate, consumption-base system would boost growth and competitiveness, but simplicity also would be a remarkable achievement. Not only would real tax reform reduce compliance costs by hundreds of billions of dollars, it would also put a big dent in the corrupt practice ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3460149 Mon, 12 Apr 2010 14:16:47 +0100 3460149 http://www.medworm.com/index.php?rid=3448844&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FbFVtG7fuqj4%2F By Daniel J. MitchellA Washington Post columnist reports on a group of limousine liberals who are lobbying to pay more taxes. Of course, there’s no law that prevents them from writing big checks to the government and voluntarily paying more, so what they’re really lobbying for is higher taxes on the vast majority of investors and entrepreneurs who don’t want more of their income confiscated by the clowns in Washington and squandered on corrupt and inefficient programs: A group of liberals got together Tuesday and proved that they, too, can have a tax rebellion. But theirs is a little bit different: They want to pay more taxes. “I’m in favor of higher taxes on people like me,” declared Eric Schoenberg, who is sitting on an investment banking fortune. He c... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3448844 Wed, 07 Apr 2010 17:01:20 +0100 3448844 http://www.medworm.com/index.php?rid=3342638&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FDgss7Ji69TQ%2F By Daniel J. MitchellPresident Obama is proposing a series of major tax increases. His budget envisions higher tax rates on personal income, increased double taxation of dividends and capital gains, and a big increase in the death tax. And his health care plan includes significant tax hikes, including perhaps the imposition of the Medicare payroll tax on capital income — thus exacerbating the tax code’s bias against saving and investment. It is unclear why the White House is pursuing these punitive policies. The President said during the 2008 campaign that he favored soak-the-rich taxes even if they did not raise revenue, but his budget predicts the proposals will raise lots of money. Because of the Laffer Curve, it is highly unlikely that all of this additional revenue will ma... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3342638 Mon, 08 Mar 2010 13:34:14 +0100 3342638 http://www.medworm.com/index.php?rid=3279960&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FbOOWjQtMbTI%2F By Daniel J. MitchellBarack Obama wants higher tax rates on the so-called rich, including steeper levies on income, capital gains, dividends, and even death. Along with other politicians in Washington, he acts as if successful taxpayers are like sheep meekly awaiting slaughter. I’ve explained in this video why class-warfare tax policies are misguided, and a new study from Boston College provides additional evidence about the consequences of hate-and-envy tax policy. The research reveals that high tax rates in New Jersey have helped cause wealthy people to leave the state, leading to a net wealth reduction of $70 billion between 2004 and 2008. Wealth and income are different, of course, so it is worth pointing out that another study from 2007 estimated that the state lost $8 billion o... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3279960 Wed, 17 Feb 2010 13:38:36 +0100 3279960 http://www.medworm.com/index.php?rid=3171884&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F1ypg4QUiWbQ%2F By Chris Moody A real stimulus: To create jobs, repeal the corporate-income tax. As if times weren’t hard enough: The individual mandate on health insurance would impose high implicit taxes on low-wage workers. For more on this, read the new Cato study on burdens the health care legislation will place on the poor. Hot off the press: New issue of Regulation magazine looks at lessons from the financial crisis and property rights. Even though the government is running massive deficits, interest rates and inflation are low. So, what’s the problem? Podcast: “Bernanke’s Conceit” featuring Mark A. Calabria. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3171884 Wed, 13 Jan 2010 19:23:48 +0100 3171884 http://www.medworm.com/index.php?rid=3171885&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIn435zpiq7c%2F By Chris EdwardsWe’ve got an IRS Commissioner who doesn’t even do his own taxes, and is not embarrassed about it. We’ve got complex deductions that nobody understands, including the government, as the Maryland nurse with the MBA found out. We’ve got a Treasury Secretary and other high appointees who apparently cheated on their taxes. And we’ve got the Democrats hell-bent on greatly increasing the power and responsibilities of the overwhelmed IRS with their health care bill. Now, more than ever, it’s time to scrap the current income tax and put in a flat tax. Or at least we could take a big jump in that direction with a “Simplified Tax,” as discussed in a new National Academies report. Get rid of all almost all deductions, exemptions, and cr... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3171885 Wed, 13 Jan 2010 19:21:59 +0100 3171885 http://www.medworm.com/index.php?rid=3048091&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FH6-RLz6ONVk%2F At a conference yesterday, White House National Economic Council Director Larry Summers repeated a superficial critique of the U.S. corporate income tax that we’ve heard often from the Obama administration. Politico notes that Summers suggested “that U.S. corporate tax rates are relatively low, despite complaints from U.S. corporations.” And they quote him: “If you look at taxes paid by corporations as a fraction of profits, they’re actually very low” because the U.S. tax code is replete with “evasion and avoidance.” The Obama team’s solution to the supposed problem is to pile more complex IRS rules and regulations on U.S. corporations and to increase taxes on their foreign earnings. There are lots of problems here. One is the implication that the U.... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3048091 Tue, 01 Dec 2009 20:45:46 +0100 3048091 http://www.medworm.com/index.php?rid=3015272&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F1Jo668QVLVs%2F After several posts about crazy decisions by the UK government, mostly involving extreme political correctness, it’s time to get back to basics and look at tax policy. A financial services consulting firm in London has just released a survey with the stunning finding that one-fifth of entrepreneurs are thinking of escaping the country because of punitive taxes — particularly the new top tax rate of 50 percent. Here’s what Tax-news.com reported: The poll of more than 300 entrepreneurs by business advisors Tenon also found that many more may follow in an attempt to escape the 50% rate of income tax, due to be introduced from next April on annual incomes above GBP150,000, with nearly half of the respondents (48%) still deciding what action to take. …Tenon points out that... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3015272 Fri, 20 Nov 2009 18:49:53 +0100 3015272 http://www.medworm.com/index.php?rid=2916083&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FG7xTnco9RUA%2F According to The Hill, House Democrats are considering re-branding their new government-run health insurance program.  A “public option” evidently isn’t catchy enough.  Now they’re thinking, “Medicare Part E” as in, Medicare for Everyone. By all means, model a new government program after Medicare, which: Drags down the quality of care for all patients, both publicly and privately insured Literally kills people by fueling the epidemic of deaths due to medical errors (as many as 100,000 annually) Is responsible for the fragmented delivery system about which the Left complains Has required one tax increase every four years, still has an unfunded liability approaching $90 trillion, and will therefore be the driving force behind income-tax rates essential... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2916083 Wed, 21 Oct 2009 20:11:20 +0100 2916083 http://www.medworm.com/index.php?rid=2898927&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FsOTk-fBoGcU%2F Social Security benefits are indexed for inflation, but because inflation has been roughly zero for the past year, the adjustment formula implies no increase in benefits this year. Nevertheless, President Obama on Wednesday attempted to preempt the announcement that Social Security recipients will not get an increase in their benefit checks for the first time in three decades, encouraging Congress to provide a one-time payment of $250 to help seniors and disabled Americans weather the recession. Obama endorsed the idea, which is expected to cost at least $13 billion, as the administration gropes for ways to sustain an apparent economic rebound without the kind of massive spending package that critics could label a second stimulus act. This is outrageous on four levels: 1. If the president ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2898927 Thu, 15 Oct 2009 16:34:58 +0100 2898927 http://www.medworm.com/index.php?rid=2862465&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FlTr48a3bkh0%2F An earlier post revealed that higher tax rates in Maryland were backfiring, leading to less revenue from upper-income taxpayers. It seems New York politicians are running into a similar problem. According to an AP report, the state’s 100 richest taxpayers have paid $1 billion less than expected following a big tax hike. The story notes that several rich people have left the state, and all three examples are about people who have redomiciled in Florida, which has no state income tax. For more background information on why higher taxes on the rich do not necessarily raise revenue, see this three-part Laffer Curve video series (here, here, and here): Early data from New York show the higher tax rates for the wealthy have yielded lower-than-expected state wealth. …[New York Govern... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2862465 Mon, 05 Oct 2009 16:39:23 +0100 2862465 http://www.medworm.com/index.php?rid=2855545&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FDUOrN4dIdDU%2F I am very fearful that the Republicans will nominate another Bush-style candidate for 2012. With the government running trillion-dollar deficits, the country needs a hard-line budget-cutter as the next president. Politico reports: “Minnesota Gov. Tim Pawlenty has been quietly assembling the blueprint of a presidential campaign and will announce Thursday the support of a group of high-level political strategists and donors, complemented by a handful of top new media consultants.” I gave Pawlenty a “B” in my fiscal report card on the governors last year. Here’s what I said about him: Tim Pawlenty pledged not to raise taxes when he ran for governor, but his tax record in office is more mixed than that. He backed a $200 million tax increase on cigarette consumer... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2855545 Fri, 02 Oct 2009 12:30:55 +0100 2855545 http://www.medworm.com/index.php?rid=2851743&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FNICl_7Jx-5Y%2F Based on five criteria, James Pethokoukis of Reuters connects the dots and warns that President Obama is going to propose a value-added tax. Does President Obama have a secret plan to raise taxes on middle-class Americans — and,well, pretty much everybody else — with a European-style, value-added tax? Actually, it’s not such a big secret. …Obama’s campaign promise to not raise taxes on households making less than $250,000 a year was always considered a joke here inside the Beltway. …Maybe it was a joke inside the campaign, too. Since being elected, Obama has raised cigarette taxes and has advocated raising healthcare taxes, energy and small business taxes, in addition to corporate taxes. What’s more, economic advisers like Larry Summers seem eager to get rid of all t... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2851743 Thu, 01 Oct 2009 14:13:47 +0100 2851743 http://www.medworm.com/index.php?rid=2803891&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F0J1C00uzXig%2F KPMG has released its annual survey of personal income tax rates around the world. The survey covers 86 countries, including all the high-income nations and many middle- and lower-income nations, such as Brazil, China, and India. The chart shows the top personal income tax rates in 2009 for national governments, per the KPMG study. The current top U.S. rate is 35 percent, which is substantially above the 86-country average of 28.9 percent. The Obama administration plans to let the U.S. rate jump to 39.6 percent in 2011, which would be almost 11 points higher than the international average. Worse still, the United States has state income taxes with rates up to 10 percent that are piled on top of the federal tax. Some of the nations in the survey (e.g. Canada) also have subnational in... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2803891 Wed, 16 Sep 2009 20:48:54 +0100 2803891 http://www.medworm.com/index.php?rid=2737696&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FyPNJcGHYRgM%2F A Bloomberg story on one cause of the ongoing British economic disaster under Prime Minister Gordon Brown: Andrew Wesbecher moved to London from New York in 2006 to sell software to banks and hedge funds. This month he joined the exodus of American expatriates fleeing high taxes and the city’s shrinking financial industry . . . Americans are heading home as Britain plans a 50 percent tax rate for those who earn more than 150,000 pounds ($248,000) a year and employers cut benefits for workers living abroad, reducing the allure of London. That comes a year after the U.K. said foreigners who have lived in the country for more than seven years must pay 30,000 pounds annually or give up the special status that shields overseas income from British taxes. Since the 1980s, London has boomed as a... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2737696 Thu, 27 Aug 2009 13:30:19 +0100 2737696 http://www.medworm.com/index.php?rid=2712043&cid=t_218117_86_f&fid=36669&url=http%3A%2F%2Ffadelibrary.wordpress.com%2F2009%2F08%2F18%2Fstatutory-instruments-for-human-resources-payroll%2F SI 2009 No. 2050. Income Tax. The Income and Corporation Taxes (Electronic Certificates of Deduction of Tax and Tax Credit) (Amendment) Regulations 2009 SI 2009 No. 2047 Income Tax. The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes) (Amendment) Regulations 2009 SI 2009 No. 2031. Income Tax. The Special Annual Allowance Charge (Application to Members of Currently-Relieved Non-UK Pension Schemes) Order 2009 SI 2009 No. 2029 Income Tax. The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2009 SI 2009 No. 1989. Income Tax. The Taxation of Pension Schemes (Transitional Provisions) (Amendment No. 2) Order 2009 SI 2009 No. 1976 (L. 20). Tribunals And Inquiries. The Tribunal Procedure (First-tier Tribunal) (General Regulatory Chamber) Rules 2009 SI 2009 No. ... Fade Library blogs http://www.medworm.com/rss/comments.php?id=2712043 Tue, 18 Aug 2009 14:20:10 +0100 2712043 http://www.medworm.com/index.php?rid=2630050&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FncC9gk5xDgw%2F President Obama will hold a press conference tonight to answer questions about his health care reform proposal. This is what I would ask him: Mr. President, during your campaign, you said, “I can make a firm pledge…Under my plan, no family making less than $250,000 a year will see any form of tax increase.”  You also said that “no one will pay higher tax rates than they paid in the 1990s.” Your National Economic Council chairman, Larry Summers, has written that employer mandates “are like public programs financed by benefit taxes.”  Under the House health reform bill, an uninsured worker earning $50,000 per year, with no offer of coverage from her employer, would face a 15.3-percent federal payroll tax, a 25-percent federal marginal income tax rate, an 8-percent reduction i... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2630050 Wed, 22 Jul 2009 18:41:12 +0100 2630050 http://www.medworm.com/index.php?rid=2610891&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FpUTtm370xTY%2F As Mike Tanner has written, the health care bill means a big tax hike — indeed, a lot of tax hikes.  It also means a reversal of one of President Ronald Reagan’s great achievements, bringing down the top marginal income tax rate.  Reports the Washington Times: Small-business owners are warning that the economy would suffer under a health care bill proposed by House Democrats, which would drive tax rates for high-income taxpayers to levels not seen since before President Reagan’s tax reform of 1986. The top federal income tax rate, which Mr. Reagan and a bipartisan Congress lowered from 50 percent to 28 percent, would reach 45 percent in 2011 if Congress and President Obama enact the surtaxes that are part of the health care reform plan that House Democrats announced Tue... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2610891 Thu, 16 Jul 2009 13:03:03 +0100 2610891 http://www.medworm.com/index.php?rid=2598193&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FB0HUbJHo-qk%2F The Democrat’s latest plan to raise money for federal health care expansion is to impose surtaxes ranging from 1 percent to 3 percent on higher-income earners. Currently, the United States is in the middle of the pack of industrial nations when it comes to imposing punitive tax rates on higher earners. The chart shows the top statutory personal income tax rates for the 30 nations in the Organization for Economic Cooperation and Development. The current top U.S. rate is 42 percent (including state taxes), which is the same as the 30-nation average. The data is from the OECD. With the top federal rate scheduled to jump 5 percentage points in 2011, plus the new 3-percent surtax, the top U.S. rate would hit 50 percent. Fifty percent! Half of all additional income earned by the nat... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2598193 Mon, 13 Jul 2009 12:50:16 +0100 2598193 http://www.medworm.com/index.php?rid=2570386&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FMwC1DQQHSZY%2F Economists have advanced many theories of taxation. But as usual, the one that seems to explain the policies of the Obama administration best is what I call the Mikulski Principle, the theory most clearly enunciated in 1990 by Sen. Barbara Mikulski (D, Md.): Let’s go and get it from those who’ve got it. Just take a look at the myriad taxes proposed or publicly floated by President Obama and his aides and allies: Raise the top income tax rates from their current 33 percent and 35 percent rates to 36 percent and 39.6 percent in 2011 Limit itemized deductions for people paying high rates Increase capital gains and dividend taxes by 33 percent for people paying high income tax rates Impose a value-added tax (VAT) on all goods and services Raise the Social Security tax by lifting the ca... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2570386 Thu, 02 Jul 2009 13:02:26 +0100 2570386 http://www.medworm.com/index.php?rid=2477545&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FskNcd3Xcbxw%2F The Baltic nation of Latvia is in the middle of a serious economic downturn resulting largely from a credit bubble and excessive government spending. This created an opening for those who have long wanted to undo the nation’s flat tax and impose a discriminatory system. Indeed, the economic Luddites at the Tax Research Network were already celebrating the expected demise of the single-rate tax. Unfortunately for them (but fortunately for Latvians), the government made a stunning announcement that the flat tax will be retained according to Reuters: Latvia’s government is to reduce old age pensions and state sector salaries but not raise taxes, it said on Thursday as it tries to win more loans and avert crisis and possible currency devaluation. The five-party coalition ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2477545 Mon, 15 Jun 2009 12:52:25 +0100 2477545 http://www.medworm.com/index.php?rid=2473203&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F700mP9Ii7G4%2F Cato’s tax experts, Chris Edwards and Dan Mitchell, have written extensively on international tax competition. Their research shows that countries can help attract investment and spur economic growth by lowering their tax rates. Could countries employ this same strategy to make their sports teams better? Real Madrid, one of the most popular and successful soccer teams in the world, recently purchased the rights to two of the sport’s top players. They acquired Kaka, who was named the world’s best soccer player in 2007, from Italian powerhouse, AC Milan. And they lured Cristiano Ronaldo, the world’s top player in 2008, away from Manchester United, the reigning champions of the English Premier League. There are a number of reasons why Kaka and Ronaldo are moving to Spain, but it’s p... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2473203 Thu, 11 Jun 2009 20:51:54 +0100 2473203 http://www.medworm.com/index.php?rid=2458045&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FUdOe8CcANOo%2F My colleague Chris Edwards made a good point yesterday in his post on the injustice of federal subsidies.  The wrangling between the states to haul in the federal largesse is wasteful, and getting worse.  But the underlying issue in the article Chris cites — a state using taxpayer money to lure a company away from another state — is another wasteful activity that is all too common. Instead of competing with other states to attract industry by lowering taxes and reducing regulations, it seems most state governors prefer a politically opportunistic method I call “press release economics.”  Here’s how it works: A state “economic development” agency offers an out-of-state company (or even an out-of-country company) tax breaks and/or direct subsidies to loc... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2458045 Fri, 05 Jun 2009 12:36:27 +0100 2458045 http://www.medworm.com/index.php?rid=2441173&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fs4bH_Ap6yDI%2F Desperate for fresh revenues to feed the giant spending appetite of President Obama, Democratic policymakers are talking up ‘tax reform’ as a way to reduce the deficit. Some are considering a European-style value-added tax (VAT), which would have a similar effect as a national sales tax, and be a large new burden on American families. A VAT would raise hundreds of billions of dollars a year for the government, even at a 10-percent rate. The math is simple: total U.S. consumption in 2008 was $10 trillion. VATs usually tax about half of a nation’s consumption or less, say $5 trillion. That means that a 10% VAT would raise about $500 billion a year in the United States, or about $4,300 from every household. Obviously such a huge tax hit would fundamentally change the American... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2441173 Thu, 28 May 2009 17:07:21 +0100 2441173 http://www.medworm.com/index.php?rid=2416802&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F1c3gTc551gg%2F Steve Moore and Art Laffer have an excellent column in today’s Wall Street Journal. They explain that high-tax states drive repel entrepreneurs and investors, leading to a pronounced Laffer Curve effect. Productive people either leave the state or choose to earn and report less taxable income. And because growth is weaker than in low-tax states, there also is a negative impact on lower-income and middle-class people: Here’s the problem for states that want to pry more money out of the wallets of rich people. It never works because people, investment capital and businesses are mobile: They can leave tax-unfriendly states and move to tax-friendly states. …Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2416802 Mon, 18 May 2009 16:27:17 +0100 2416802 http://www.medworm.com/index.php?rid=2405045&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FbqgkbVpa0MA%2F    Photo by Peter Holden Photography for AEI I was a panelist at an American Enterprise Institute forum today discussing the proliferation of federal tax credits, particularly for low-income families. AEI scholars Kevin Hassett, Larry Lindsey, and Aparna Mathur have a draft paper that looks at the idea of consolidating current individual credits into one supercredit. The idea would be to simplify the system and reduce the economic distortions created by these credits, which are valued at about $170 billion in 2009. My observations included: Obama’s Make Work Pay credit is valued at about $60 billion per year, much of which is ”refundable.” (That means it is partly a spending increase not a tax cut). Coincidentally, Obama’s proposed tax hikes for higher-... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2405045 Tue, 12 May 2009 20:16:34 +0100 2405045 http://www.medworm.com/index.php?rid=2375867&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fr_MRDTJaqwc%2F In Tax Notes International today, two Ernst and Young experts describe how corporate tax reforms in Japan have made America an even bigger outlier in its punitive treatment of multinational corporations: Japan’s recent adoption of a territorial tax system as part of a broader tax reform reduces the tax burden on the foreign-source income of Japanese multinational corporations. Before the Japanese reform, the two largest economies had both high corporate income tax rates and worldwide tax systems. Now the United States not only has the second-highest corporate income tax rate of the OECD countries, it is also one of the few that still have a general worldwide tax system. The Japanese corporate tax reform is part of a global trend toward reduced taxation of corporate income, which oft... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2375867 Mon, 27 Apr 2009 19:03:05 +0100 2375867 http://www.medworm.com/index.php?rid=2347797&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fn1ux5-LtGnc%2F Oh, what a burn. My tax debate with French economist Thomas Piketty was a dead heat, 50-50, for the past four days. Then just as the contest was closing, he pulled ahead to seize victory, 51-49. The Economist editor described the tightly fought battle: Chris Edwards got over a strong initial disadvantage to narrow what was originally a strong lead for Mr Piketty to a dead heat, but eventually Mr Piketty has prevailed: but only just—even hours before closing, the vote was split exactly down the middle. One could not have asked for a closer contest: this has been the most closely-fought of our 21 online debates, although it began with a fairly substantial lead for the proposition. Certainly, the debate revealed high levels of interest in taxation and relative income levels. There were mo... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2347797 Fri, 17 Apr 2009 15:23:29 +0100 2347797 http://www.medworm.com/index.php?rid=2306746&cid=t_218117_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FTO5_JBwgJPw%2F The left-of-center government in Ontario, Canada’s largest province, is enacting dramatic corporate income tax (CIT) cuts. It announced last week that it is phasing in a reduction of the provincial CIT to 10 percent, which is paid on top of the federal rate that itself is falling to 15 percent. The combined rate of 25 percent will be far lower than the average U.S. federal/state rate of 40 percent. The province is also eliminating sales taxes on business purchases, which will substantially reduce effective business tax rates. As the Canadian Press reports, the cuts will make Ontario’s business tax rates much “lower than the average U.S. Great Lake state, considered Ontario’s main competitors for jobs and investment.” Big Three auto companies, for example, m... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2306746 Thu, 02 Apr 2009 19:03:26 +0100 2306746 http://www.medworm.com/index.php?rid=2216723&cid=t_218117_137_f&fid=35357&url=http%3A%2F%2Ffeeds.b5media.com%2F%7Er%2Fb5media%2FAlzheimersNotes%2F%7E3%2FcxIK_e5-wEo%2F Tax time is here, so there often are questions about preparing taxes returns for Alzheimer’s patients.  Some have very simple reports while other may be involved in a business. Kathy has a question about signatures and wonders if her elderly brother, who has Alzheimer’s, can use his signature from last year on his tax returns.  “He does NOT like to sign his name anymore, because he gets confused,” Kathy said. I’m not a tax expert and only have the knowledge about what I did when filing personal and business returns for my mom when she could no longer sign her name.  I had power of attorney for her, so could sign the paperwork. However, her accountant did her tax returns and her attorney, who was knowledgeable about taxes, also advised us.  I probably had... Alzheimer's Notes blogs http://www.medworm.com/rss/comments.php?id=2216723 Thu, 26 Feb 2009 05:00:55 +0100 2216723 http://www.medworm.com/index.php?rid=2047028&cid=t_218117_137_f&fid=35357&url=http%3A%2F%2Ffeeds.b5media.com%2F%7Er%2Fb5media%2FAlzheimersNotes%2F%7E3%2FOn0RkoV3d9Q%2F  Caregiving Business Caregivers sometimes take care of Alzheimer’s patients other than family, do housekeeping for them, provide shopping services for them or their families.  Whenever they receive payment, they’re considered as conducting a business, unless they’re working as an employee for an agency that does this type of work.  Often they think because it’s a “little” business, they don’t have to worry about taxes.  However, under most circumstances, the IRS generally looks at it differently, and caregivers still do have to pay taxes and Social Security and develop a system of keeping track of income and expenses. Jean Murray, at Home Biz Notes, has a great post with some initial tax information.  Check out 5 Myths About Work At Home Busin... Alzheimer's Notes blogs http://www.medworm.com/rss/comments.php?id=2047028 Thu, 18 Dec 2008 02:11:34 +0100 2047028