Tax News Jan. 10 - 14

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News
FRIDAY
Corporate tax reform: Talk grows louder
Many business leaders and tax experts say the corporate tax code discourages foreign investment in the United States and hinders the ability of U.S. companies to compete internationally.
Tax reform on deck in the House
Chairman Rep. Dave Camp (R-Mich.) announced late Thursday that he will hold the first in a set of hearings on “fundamental” tax reform next Thursday.

THURSDAY
Tax Refunds Move to Debit Cards
The U.S. Treasury Department plans to launch a pilot program Thursday to deliver tax refunds through prepaid debit cards, an effort to cut the expense of paper checks and aid lower-income taxpayers who don't have bank accounts.

WEDNESDAY
Illinois House Passes Tax Increase
The Illinois House passed a massive income-tax increase Tuesday to help the state dig out of a $13 billion deficit, despite opposition from Republicans and business groups.
D.C. considers ticketing for uncleared sidewalks
The D.C. Council is considering a bill that would empower the city to write tickets of at least $25 for residential property owners and at least $250 for businesses if they don't clear their sidewalks.

Economist Comments
FRIDAY
Wisconsin 1, Illinois 0
With Springfield raising taxes amidst its fiscal disaster, the new Republican governor of the Badger State is telling Illinoisans, "Escape to Wisconsin."

THURSDAY
Illinois tax hikes will hurt companies
Companies will now have to pay a 7% corporate tax rate for the next four years, up from the previous 4.8%. And Illinois businesses are already subject to a 2.5% surcharge.
Why the Bush tax cuts overpromised and underdelivered
For many of the people whom President Obama calls "rich," the Bush tax cuts didn't make much difference. That's largely because of the Alternative Minimum Tax.
Illinois Exit Fee
Late Tuesday night, Democrats in the Illinois house and senate rammed through Governor Pat Quinn's 67% hike in the state income tax and a nearly 50% jump in the state corporate tax.

WEDNESDAY
Raise My Company's Taxes
A union pension fund tries to lower returns on its investment.

TUESDAY
Defund Organizations That Destroy Freedom
Some Republicans are already introducing bills to either partially or fully take away the taxpayer funding to National Public Radio (NPR).
Better To Cut Payroll Tax For Employers
The rationale for cutting the payroll tax on employers relies on basic economics: If the government makes it less expensive for businesses to hire workers, businesses will tend to hire more workers.
Simplify! Dump the Current Tax Code and Start Over
Want to reduce the deficit and at the same time get Republicans and Democrats to agree on major legislation? Try tax reform—a winning bipartisan platform that can finally rid us of the 60,000 pages in the current tax code.

Blogs
THURSDAY
Idaho politics: Death to the 'death tax?' Crapo pushes repeal
In a guest opinion sent to Idaho newspapers today, Sen. Mike Crapo calls for a repeal of the so-called "death tax."
Disastrous U.K. Tax Hike Unleashes a Steroid-Pumped Version of the Laffer Curve
...this is one of those rare cases where a tax increase is so punitive that the government winds up losing money.
Lessons from the Top 1%: Fixing Tax Revenues
How much money will the U.S. federal government expect to collect from the Top 1% of American taxpayers if it changes their income tax rates?
How the Term ‘Tax Expenditure’ Leads to Bigger Government
Targeted tax breaks are bad because, on balance, they expand government’s control over the people. But they are not “expenditures” or “subsidies.”
Federal Tax Revenues Rising: 23% for Individuals
"Individual tax receipts continued to fall in 2010 even as corporate receipts rose, so the current increase is a sign that wages and bonuses are rising again for workers who have a job."
Secondary Sources: Tax Reform, Oil Shocks, Keynesian Experiment
Howard Gleckman says that if President Obama ignores tax reform in his State of the Union, the issue is likely dead for the next two years.

WEDNESDAY
Will the Last Person to Leave Illinois Please Turn Off the Lights?
Moving across state lines is generally not something that happens overnight. But this giant tax hike is sure to be the tipping point for a few investors, entrepreneurs, rich people, and employers.
Outside the Beltway: Pepsi Cans Baltimore Plant in Face of Sin Tax
This week, Pepsi decided to cease manufacturing at its Baltimore plant and lay off 77 workers while continuing production in the rest of the state. The Baltimore Sun reports that the city’s tax is partially to blame…

Reports
None.