News
WSJ | A Super Offer Rejected
...Mr. Toomey explained that this week the GOP Six offered to raise revenues by $500 billion over 10 years as part of a tax reform that would lock in lower tax rates in return for giving up deductions. Democrats have rejected it, which is puzzling since it would achieve so many of their stated goals.
Washington Times | Senate bill aims to close online tax loopholes
A bipartisan group of senators introduced a bill Wednesday aimed at giving states more power to collect billions of dollars in sales taxes on out-of-state Internet and catalog purchases.
Econ Comments
IBD | Who Pays For Corporate Taxes?
What about a corporation? As it turns out, a corporation is an artificial creation of the legal system and, as such, a legal fiction. A corporation is not a person and therefore cannot pay taxes. When tax is levied on a corporation, who pays it?
Fox Business | Enough is Enough, It's Time to Revamp the Tax Code
Politicians are lining up to revamp the tax code. However, it’s kind of like what they say about nuclear fusion – it’s 10 years away and always will be.
Blogs
Political Calculations | Whose Income Should You Tax?
If you want to keep those vital government programs on a sound financial footing, without jeopardizing the well-being of the people who rely on those programs in hard economic times, upon whose income should you most rely for your income tax revenue?
American: Enterprise Blog | Yes, Warren Buffett is confusing the tax debate
Munnell goes on to point out that America has quite a progressive tax system. This surprises many people given the posturing of OWS and the Obama administration (although it is not a surprise to readers of this blog).
Reports
NBER | Payout Taxes and the Allocation of Investment
Investment is “locked in” in profitable firms when payout is heavily taxed. Thus, apart from any aggregate effects, payout taxes change the allocation of capital.
CRS | A Securities Transactions Tax: Brief Analytic Overview with Revenue Estimates
Policymakers are currently considering taxing certain financial securities transactions. There are two justifications commonly offered for imposing such a tax: (1) it would reduce financial market volatility, and (2) it would be a significant source of revenue. Existing empirical research, however, suggests that volatility could actually increase in response to a securities transactions tax (STT), although the existing research may not be directly applicable to today's environment. Estimates do indicate that an STT could be a significant revenue source if designed properly.
